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Boiler Upgrade Scheme

The Department for Business, Energy and Industrial Strategy (BEIS) announced on 23 May 2022, that the government’s new £450 million Boiler Upgrade Scheme is now open for grant applications and payments.

The government is providing grants to encourage homeowners and property owners (private landlords and second-home owners are eligible) to install low carbon heating systems such as heat pumps, when they replace their oil and gas boilers through the Boiler Upgrade Scheme (BUS). These grants can help property owners overcome the upfront cost of low carbon heating technologies. The scheme is open to domestic and small non-domestic properties in England and Wales. It runs from 2022 to 2025, this includes clean heating systems installed from 1 April 2022.

Heat pumps are now much cheaper and more competitively priced against gas and oil boilers, and closer to the cost of installing a traditional gas boiler. The scheme will improve the energy efficiency of homes, reduce energy bills and cut emissions in the long-term.

The scheme has a committed budget of £450 million over three years from 2022 to 2025, with an annual budget allocation of £150 million and property owners will be able to get:

  • £5,000 off the cost and installation of an air source heat pump
  • £5,000 off the cost and installation of a biomass boiler
  • £6,000 off the cost and installation of a ground source heat pump

For more information, eligibility criteria and guidance on applying for the Boiler Upgrade Scheme visit GOV.UK

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