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All you need to know about the Boiler Upgrade Scheme
The Boiler Upgrade Scheme – what’s covered?
The Boiler Upgrade Scheme covers three low carbon heating systems. These are:
- Air source heat pumps: £5,000 off cost and installation.
- Biomass boilers: £5,000 off cost and installation.*
- Ground source heat pumps: £6,000 off cost and installation.
* The grant only applies to biomass boilers in rural locations and in properties that are not connected to the gas grid.
A key point that installers will need to relay to customers is the need to get in fast. The amount being invested in the scheme is capped at £450million. This means just 90,000 homes will be able to take advantage of the grant over the next three years.
How the scheme will work – what your customers need to know
Unlike the former Green Homes Grant, where customers made the application, you, as the installer, will be the one to apply for the Boiler Upgrade Scheme grant on behalf of your customers. It is an installer-led scheme.
You will also need to explain to customers that the new heating system must meet the full space heating and hot water requirements of the property and meet certain technical standards, such as minimum efficiency requirements.
Your customer must be a homeowner or small business owner and the property where the new low carbon heating is to be installed must be in England or Wales. In addition, the property must have been issued with an Energy Performance Certificate (EPC) in the past 10 years, except for listed buildings where the property has an insulation exemption, or custom-built homes where eco-friendly building regs have been followed.
You will likely have to explain the eligibility rules and the valid paths to EPC to your customers. Remind customers they may still be eligible, even if they’ve received separate funding for energy efficiency upgrades, such as insulation, doors or windows.
The scheme is open to domestic and small non-domestic properties with an installation capacity of up to 45kWth (this covers most homes). Be sure to let customers know that there can be no outstanding recommendations for loft or cavity wall insulation.
For customers interested in Biomass boilers, further strict criteria apply. The property must be in a rural area (where there are fewer than 10,000 residents) and have no mains gas connection.
The scheme is available for applications until April 2025. Remember, the total available funds are capped, so it’s worth mentioning this to customers who are dithering. Grants will be handed out on a first come first served basis, so you don’t want your customers to miss out!
Don’t forget to remind customers that now is a great time to take advantage, since VAT has been scrapped for heat pumps, along with other energy-efficient installs such as solar panels and insulation, for the next 5 years.