Installers are key to deliver £450million Boiler Upgrade Scheme

Installers are being asked to help deliver a £450million government scheme to heat the nation’s homes and small businesses with low-carbon technology.

Installers can sign up to deliver the new Boiler Upgrade Scheme from midday 11 April. Then from 23 May householders and small businesses in England and Wales will get access to grants of up to £6,000 towards the cost of replacing traditional fossil fuel boilers with more efficient, low carbon heating technologies. These include air and ground source heat pumps and, in some cases, biomass boilers.

  • Scheme for up to 30,000 households and small business premises in first year
  • Installers asked to sign up before the scheme opens for voucher applications in May
  • Grants of up to £6,000 to be made available

By setting up an account early with scheme administrators Ofgem, installers will be ready to benefit by helping deliver up to 30,000 installations in the first year.

Philippa Pickford, Director of Delivery and Schemes at Ofgem, said: “We are delighted to be working with BEIS in administering the Boiler Upgrade Scheme (BUS) on behalf of the government. Continuing to decarbonise heat is central to the delivery of Ofgem’s decarbonisation action plan.”

The aim of the scheme is to provide support to property owners, to help meet some of the costs of installation. However, social housing will not be eligible for support, and neither are new buildings, which are covered by existing legislation, except for self-built domestic properties.

For more information on the Boiler Upgrade Scheme visit www.ofgem.gov.uk/environmental-and-social-schemes/boiler-upgrade-scheme-bus.

What to do if you’re an installer

Download an application form and provide your business address, bank details, MCS certification and proof of ID. Once registered you will not have to do this process again.

  • Property owner contacts you about carrying out work

You agree a quote for installation. Make sure your quote deducts the grant amount from the total cost.

  • You apply for a grant on behalf of your customer

The scheme is installer-led meaning you have greater control of timeframes. You apply to Ofgem for a voucher for the grant, and your customer will provide consent to Ofgem for you to act on their behalf. When the work is complete, you send in your redemption application and the grant will be paid to you.

Through the Boiler Upgrade Scheme 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

In addition to this, the government has recently announced 0% VAT on the installation of heat pumps and biomass boilers, which will last for 5 years.