A Comprehensive Guide To The New Boiler Upgrade Scheme

The Boiler Upgrade Scheme is the primary source of grant funding for heat pumps. Here’s everything you need to know.

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What is the Boiler Upgrade Scheme?

Government incentive

The Boiler Upgrade Scheme is a new government initiative, managed by Ofgem, aimed at encouraging homeowners to replace fossil fuel boilers with low-carbon alternatives like heat pumps. It’s part of the broader strategy to achieve net-zero emissions by 2050.

With energy prices on the rise and growing concerns over climate change and carbon emissions, heat pumps are becoming an increasingly attractive option for heating homes, offering a more sustainable alternative to traditional fossil fuel boilers.

One of the main obstacles to switching to a heat pump is the higher upfront cost compared to installing a boiler. The Boiler Upgrade Scheme helps overcome this barrier by offering financial support to eligible homes, making the transition more affordable.

The new Boiler Upgrade Scheme provides:

A £7,500 voucher to help with the purchase and installation of an air or ground source heat pump.

As the scheme is installer-led, an MCS accredited installer will apply for the voucher on your behalf. You will need to pay the full cost of the system upfront, with the voucher being redeemed once the installation is completed and MCS certified.

Any remaining costs for the installation are the responsibility of the homeowner and will vary depending on the type of heat pump selected.

How Much Funding is Available for the Boiler Upgrade Scheme?

The government has set aside £450 million for the Boiler Upgrade Scheme, with a cap of £150 million per year. This funding will support approximately 90,000 households over the next three years.

Gas Boiler vs Air Source Heat Pump:

Which is Best?

The Boiler Upgrade Scheme is designed to encourage homeowners to replace their old fossil fuel boilers with energy-efficient heat pumps. While the scheme primarily targets existing homes, it also extends to self-build properties and smaller non-domestic buildings, such as garages or workshops. Whether you’re renovating or building a new property, you could be eligible to benefit from the Boiler Upgrade Scheme.

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