Boiler Upgrade Scheme
Get up to £7,500 off the cost of your new Daikin heat pump when you upgrade from your old fossil fuel heating system.
With the Boiler Upgrade Scheme, you can replace your fossil fuel boiler and get £7,500 off the installed cost of your heat pump for sustainable, year-round comfort.
Launched in April 2022 to encourage homeowners to install low-carbon heating technology, the grant aims to support the UK’s transition to reach net zero emissions by 2050.
Heat pumps provide an eco-friendly heating solution that’s better for the planet, and your pocket. Quite simply, heat pumps are the future of home heating.
How does it work?
The Boiler Upgrade Scheme is a government incentive administered by Ofgem, running until 2025. The scheme is open to homeowners who are looking to replace their traditional fossil fuel boilers with an eco-friendly heat pump.
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 aims to substantially reduce that cost for you.
The BUS offers £7,500 towards the purchase and installation of an air source heat pump. Any remaining costs towards the installation are paid by the homeowner.
Heat pumps are more affordable than ever
From October 23rd 2023, the grant funding increases from £5,000 to £7,500. By increasing the Boiler Upgrade Scheme support, the Government has made eco-friendly heat pumps more accessible to all.
And, as these green machines are around four times more efficient than your current boiler, they could reduce your energy bills at the same time.
How much could a heat pump cost with BUS?
While every installation is different, we’ve pulled together a few pricing examples to give you an idea of how much it will cost to buy and install a heat pump, using the Boiler Upgrade Scheme funding. These examples are based on a standard three-bedroom house in the UK, installed by one of Daikin’s Sustainable Home Experts.
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.
What’s included?
- monobloc heat pump system
- plumbing & electrical fittings
- installation costs
- 5-year warranty on all equipment, parts & fittings
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.
That’s an all-in price for a monobloc heat pump and hot water cylinder, installed and ready to go. And thanks to the Boiler Upgrade Scheme, it’s the cost-effective choice. In fact, it’s less than half the price of buying and installing a new boiler and hot water tank*.
What’s included?
- monobloc heat pump system
- hot water tank
- plumbing & electrical fittings
- installation costs
- 5-year warranty on all equipment, parts & fittings
*Which Report 2023: average price of replacement gas boiler and hot water tank = £3,065.
Some homes will require additional adjustments to make sure the heat pump is operating effectively. These modifications can include a new hot water tank, radiators and piping.
With these adjustments included, you could get a brand-new sustainable heating system for less than £2,255 all in. That’s still considerably less than the average cost to buy and install a new gas boiler*. Giving you comfortable and efficient heating and hot water for years to come.
What’s included?
- monobloc heat pump system
- hot water tank
- radiators
- plumbing & electrical fittings
- installation costs
- 5-year warranty on all equipment, parts & fittings
*Which Report 2023: average price of replacement gas boiler and hot water tank = £3,065.
Change is coming
Although the government shifted their position slightly in the September 2023 announcement, the message remains the same. In order to meet the UK’s net zero targets, 80% of homeowners will need to switch over to heat pump technology by 2035. That 80% covers the majority of UK homes, including those off-grid.
With the increased funding of £7,500 now in place, the incentive to make the move to renewables has never been more attractive.
Six steps to BUS success
A step-by-step guide to installing a heat pump through the Boiler Upgrade Scheme
- Insulate your home
- Find an installer
- Find the right heat pump
- Apply for the grant
- Schedule your installation
- Enjoy market-leading efficiency
Step 1 - Insulate your home
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.
The BUS scheme requires a valid Energy Performance Certificate (EPC), typically one issued in the last ten years. For your EPC to be accepted, you should have no outstanding recommendations for loft or cavity wall insulation. If you do, you'll need to insulate your home before applying.
Step 2 – Find an installer
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.
Step 3 – Find the right heat pump
Your Daikin Sustainable Home specialist will assess your home and living arrangements to see which type of heat pump is best for you and whether your installation is eligible for a grant under the scheme.
Once your installer has prepared a customised quote, which takes into account the amount expected from the grant, you’re given the chance to look things over and confirm you want to proceed.
Step 4 – Apply for the grant
Your Sustainable Home Installer will then apply for the grant on your behalf. Ofgem will then get in touch with you by email to confirm that all the details are correct and you’re happy to go ahead. It’s a good idea to respond as soon as possible to prevent delays.
You and your installer should hear back from Ofgem within 15 working days to confirm whether your grant application has been approved.
Step 5 – Schedule your installation
Once your grant is confirmed, your Sustainable Home Installer will take care of your heat pump installation from start to finish.
They’ll install the indoor unit(s) and then the outdoor unit, usually mounting it on the side of your home. Then they’ll connect up the electrical wiring and the piping. And finally, they’ll quality test the entire system.
Step 6 - Enjoy market-leading efficiency
Once everything is complete, your Sustainable Home Installer will set up and programme your system to ensure you’re receiving the maximum efficiency from your new low-carbon heating system.
And with our ‘Stand By Me’ warranty scheme, you can rely on market-leading support going forward, including annual maintenance checks and servicing.
