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Our installer explains how the latest updates to the Boiler Upgrade Scheme mean you don’t need to add insulation before applying for the £7,500 grant. 

What is the Boiler Upgrade Scheme?

It’s a government incentive administered by Ofgem. The scheme is open to homeowners who are looking to replace their traditional fossil fuel boilers with an eco-friendly heat pump. It has recently been extended to run until 2028.

While heat pumps are cheaper to run and kinder to the planet, one of the possible barriers to switching to a heat pump can be the upfront cost of purchase and installation. So, the Boiler Upgrade Scheme, also known as BUS, aims to substantially reduce that cost for you.

How much funding is available?

The level of grant towards a heat pump increased from £5,000 to £7,500 in October 2023.

So, the good news is that the scheme now offers £7,500 towards the purchase and installation of an air source heat pump. This means, if your home is ‘heat pump ready’, your new heat pump could be completely free. The Boiler Upgrade Scheme would cover all the costs of your new monobloc heat pump.  

What does ‘heat pump ready’ mean? 

It refers to homes that won’t need any additional equipment or adjustments – such as a hot water tank or radiator changes – to have a heat pump installed. It’s most likely to apply to newly built homes with modern fixtures.  

Many homes will need a compatible hot water tank installed with their heat pump. This will ensure your heating system provides energy-efficient heating and hot water for your home.  This will add an additional cost (we estimate around £1,400) to your installation. 

What’s the latest change to the scheme?

In May 2024, Ofgem announced it that will now accept Energy Performance Certificates (EPCs) with insulation recommendations. 

What does this mean for homeowners? It means you don’t need to worry about adding loft or cavity wall insulation before applying. It will make many more households eligible for the grant. But remember, you still do need an EPC and you need to own the property.

Why is it important to have good insulation?

Even though the government is awarding the grant to properties without loft and cavity wall insulation, we still highly recommend insulating your home properly. 

As heat pumps are designed to keep your home at a steady temperature, it’s important to make sure your home is well insulated to get the most efficient results. Although you can now apply for the grant before installing insulation, it’s definitely worth planning to get it upgraded in the future. 

How do I apply for the Boiler Upgrade Scheme?

Installing a heat pump isn’t a do-it-yourself job, and neither is applying for the Boiler Upgrade Scheme. An MSC-certified installer (with a BUS installer account) will have to apply for the grant on your behalf. 

Fortunately, finding one is easy with our network of Daikin-trained Sustainable Home specialists. You’ll have complete peace of mind that your heat pump is being installed by a fully trained professional. 

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