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What is the Boiler Upgrade Scheme?

The Boiler Upgrade Scheme is intended to help decarbonise homes and some non-domestic buildings across England and Wales from 1 April 2022. It replaces the Renewable Heat Incentive, which made quarterly payments to households that generated renewable energy through various qualifying systems such as ground source heat pumps and solar panels.
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House with air source heat pump

What do homeowners get out of the Boiler Upgrade Scheme?

The scheme will run from 2022 to 2025 and will allow homeowners 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 (only in rural areas and in properties unconnected to the gas grid) 

  • £6,000 off the cost and installation of a ground source heat pump.

Who is eligible for the Boiler Upgrade Scheme?

The property will need to have:

  • an installation capacity up to 45kWth (kilowatt-thermal, a unit that relates to the potential output of a heating plant - most homes would have this capacity)

  • an Energy Performance Certificate with no recommendations for loft or wall insulation (unless you have an insulation exemption)

  • the commissioning date of the low carbon heating system must be on or after 1 April 2022

  • you must be fully replacing an existing fossil fuel system such as an oil or gas boiler, or an electric heating system such as storage or panel heaters.

New build properties will not normally be eligible unless you’re building your own home.

You can also apply if you’re receiving funding for other energy efficiency measures.

How does the Boiler Upgrade Scheme work?

Your chosen system installer will handle most of the admin involved in applying for the grant. They will advise you whether an installation is eligible for a grant, and then apply for the grant on your behalf.

You need to:

  • Ensure that the quote you have from the installer is competitive - this may involve gathering quotes from multiple installers

  • Ensure the installer is MSC-certified, therefore proving their competence

  • Confirm that the installer is acting on your behalf when Ofgem contacts you to check.