Boiler Upgrade Scheme Grant Eligibility: A Comprehensive Guide
As we all know, the Boiler Upgrade Scheme (BUS) is a fantastic government initiative designed to help homeowners in England and Wales make the switch to eco-friendly heating systems. With grants of up to £7,500, it's a real game-changer when it comes to installing heat pumps!
Let's be honest, who wouldn't want to upgrade their old heating system with a shiny new heat pump, especially with this kind of financial support from the government, not to mention the lower energy bills!
Mitsubishi Ecodan air source heat pump
At Alto Energy, we have almost a decade of experience in renewable energy solutions, and I've personally spent the last two years guiding homeowners through the BUS Grant application process. We're passionate about helping our customers meet all the requirements, avoid those tricky pitfalls, and have a smooth and stress-free application experience.
So, grab a cuppa and settle in, because I've put together this comprehensive guide to help you understand everything you need to know about Boiler Upgrade Scheme eligibility, the common challenges you might face, and how we at Alto Energy can be your trusted partner every step of the way!
boiler upgrade scheme eligibility
To qualify for the Boiler Upgrade Scheme, properties must meet specific eligibility criteria depending on whether they are new builds or existing homes undergoing retrofits or renovations. Below are the key requirements for each category:
For New Builds:
The property must not have had a heating system installed before the heat pump's commissioning date and must meet the specific requirements for new-build properties.
The property must have been built primarily by the first owner using their own resources or labor.
It must never have been owned by a company or be part of a large-scale property development.
For Retrofits and Renovations:
The property must have had a previous heating system. Documentation, such as a valid and up-to-date Energy Performance Certificate (EPC), is essential.
If the EPC lists an air source or ground source heat pump, you'll need to provide additional proof of the old heating system.
For retrofits and renovations, properties owned by companies are eligible as long as they are residential.
For company-owned properties, the consent provider must be a company officer (e.g., director or secretary), and their personal details must be used in the application.
Common Application Hurdles
Based on our experience, here are some common challenges and pitfalls you might encounter during the Boiler Upgrade Scheme grant application process:
The 120-Day Deadline
Since May 8, 2024, Ofgem has introduced a 120-day deadline for submitting applications. This means you must submit your application within 120 days of the heat pump's commissioning date, and that includes responding to any requests for information from Ofgem. Missing this deadline often leads to rejection, so it's crucial to be organised and efficient.
Example:
If your heat pump was commissioned on October 1, 2024, your application deadline is January 29, 2025. Don't let delays in gathering documents or responding to Ofgem's inquiries jeopardize your grant!
Tip: Start preparing your documentation early and let us handle the submission process to ensure you meet the deadline.
Worcester Bosch Compress 2000 air source heat pump
Documentation Issues
For New Builds:
Missing or Insufficient Documentation: You'll need to provide proof of ownership, funding for the self-build, and heat pump installation invoices. Missing or incomplete documentation can cause delays or even lead to rejection.
Invoice Address Errors: Invoices must be addressed to the property owner (not a company) and must match the installation address. If invoices are linked to a company (even if it's the homeowner's company), you may need to provide personal bank statements to verify payments.
For Retrofits and Renovations:
For straight retrofits and renovations, you must have had an old heating system in the property, and you'll need proof of this, such as a valid EPC. If your current EPC shows an air source heat pump or ground source heat pump, you'll need to submit additional proof of the old heating system.
If the property has a secondary heating system, such as a wood burner, Ofgem may ask for clarification regarding its purpose.
And no, your EPC ratings does not matter, and you don’t need to get renew your EPC to apply for the Boiler Upgrade Scheme, even if you’re having a renovation.
3. Planning Permission Confusion
For new builds, planning permission must have been obtained by the homeowner as an individual, not a developer or company. Applications linked to company-obtained planning permissions are usually rejected.
4. Complex Cases (e.g., Gifting or Inheritance)
Properties that involve gifting, inheritance, or separate funders require additional documentation, such as a solicitor's confirmation or a build contract. These situations often require personalized guidance to navigate successfully.
5. Operating the Heat Pump Before Commissioning
It's crucial to avoid operating the heat pump before its official commissioning date. Doing so can put your BUS Grant eligibility at risk, as the scheme requires the heat pump to be operated only after commissioning and as part of the approved installation process.
Boiler upgrade scheme Grant Application Timeline
Alto Energy Heat Pump Installation
Understanding the timeline of a Boiler Upgrade Scheme grant application is crucial for ensuring everything runs smoothly. Here's an outline of the process, from the moment we request information to when you receive your grant funds.
Step 1: Requesting Information (Pre-Commissioning)
Once the Technical Sign Off (TSO) is completed, we begin requesting all the necessary information and documents from you. We aim to gather everything before the heat pump commissioning takes place. This gives us time to carefully review and ensure that all documents are correct and compliant with the Boiler Upgrade Scheme requirements.
Step 2: Commissioning and Application Submission
After the heat pump is commissioned, we have a 120 day window to complete all necessary paperwork and issue the MCS Certificate for your installation, which is required to redeem the grant from the government. We aim to submit the application immediately after the commissioning to ensure we stay within the 120-day deadline.
Step 3: Awaiting Ofgem Approval
Once the application is submitted, Ofgem will review the information and documentation. In some cases, they may request further information or clarification. If additional information is required, we’ll promptly address it to keep the process moving forward.
Step 4: Redemption Process
After receiving approval from Ofgem, we will proceed with the voucher redemption. Our accounting department will submit the necessary paperwork to redeem the grant from Ofgem. This process typically takes 2-3 weeks from the time the voucher is approved.
Step 5: Snags and Final Works
If there are any minor works or snags to complete after commissioning (e.g., awaiting confirmation that further works have been finished or receiving the EIC for the property), we must ensure all snags are completed before we can proceed with the funds transfer. This ensures that everything is fully compliant and meets the necessary standards for the grant.
Alto Energy Heat Pump Engineers
Why Choose Alto Energy?
With almost a decade of industry experience and my personal two-year focus on Boiler Upgrade Scheme applications, we offer unparalleled support to our customers:
Comprehensive Document Review: Before applying, we meticulously review your documents to ensure they meet all the requirements, helping you avoid delays or rejections.
Accurate and Timely Submissions: We keep track of deadlines, handle submissions, and address any queries from Ofgem, ensuring your application is processed smoothly and on time.
Expert Guidance: Our in-depth understanding of the process helps us address challenges efficiently, giving you peace of mind throughout the journey.
Audit Preparedness: We ensure that all information provided is accurate and compliant, minimising the risk of issues during audits or compliance checks.
The BUS Grant is a fantastic opportunity for homeowners to embrace low-carbon heating systems, but the application process can be daunting. At Alto Energy, we're here to simplify things for you. We'll leverage our extensive expertise and my personal experience to guide you every step of the way.
Whether you're embarking on a new build or a retrofit, we'll help you meet the requirements, steer clear of pitfalls, and secure your grant with confidence.
Want to apply for the Boiler Upgrade Scheme? Get in touch with Alto Energy today for expert guidance.
Boiler Upgrade Scheme FAQs
Can I get a grant to replace my old boiler?
Yes, you may be eligible for a grant to replace your old boiler through the Boiler Upgrade Scheme if you live in England or Wales. The scheme offers grants for replacing fossil fuel boilers with a heat pump or biomass boiler.
Who is eligible for the Boiler Upgrade Scheme?
Homeowners in England and Wales may be eligible for the Boiler Upgrade Scheme if they are replacing an existing fossil fuel heating system with a heat pump or biomass boiler. Properties owned by companies are also eligible as long as they are residential. A valid Energy Performance Certificate (EPC) is required, but from 8th May 2024, the scheme no longer requires loft or cavity wall insulation to be completed beforehand.
Will I have to replace my gas boiler after 2025?
No, you will not be required to replace your existing gas boiler with a low-carbon alternative. However, from 2025, gas boilers will start being phased out, beginning with new build homes, which must install low-carbon heating systems instead. This is part of the UK’s plan to cut carbon emissions and promote renewable heating technologies. While existing homes can keep their gas boilers, schemes like the Boiler Upgrade Scheme offer incentives to switch to heat pumps.
When does the Boiler Upgrade Scheme End?
The Boiler Upgrade Scheme is set to run until 2028. However, government policies and funding allocations can change, so it is advisable to apply as soon as possible if you are considering upgrading your heating system.
Looking to purchase a heat pump?
If you’re considering replacing your fossil fuel system with a heat pump, you could be eligible for the Boiler Upgrade Scheme. Click the link below to get in touch with us, and we’ll help you find out if you qualify for the grant.