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This week, the UK government announced a big boost of £1.5 billion to the Boiler Upgrade Scheme (BUS). It started in 2022, helps homes switch from old heating systems to new ones like heat pumps or gas boilers.
Initially, the scheme offered £5,000 for air source heat pumps (ASHP) or gas boilers, and £6,000 for ground source heat pumps (GSHP). But now, those grants have gone up. From October 2023, ASHP and GSHP grants increased to £7,500 each. However, grants for gas boilers stayed the same.
Since this increase, there has been a 57% rise in applications for the boiler upgrade scheme UK, as per the Department for Energy Security and Net Zero (DESNZ).
While this funding increase is good news for the energy industry, some worry it might not be enough.
| For instance, Ian Rippin, CEO of the Microgeneration Certification Scheme (MCS), pointed out a key implication. He highlighted that “The original budget might only support 3% of the government’s target of 600,000 yearly installations by 2028.” |
To keep up with this target, more funding for the Gov boiler upgrade scheme is needed. Charles Wood, from Energy UK, believes the increase will help more households. In turn, it will help make energy-efficient changes and tackle fuel poverty.
| Mark Sommerfield, from the Association for Renewable Energy and Clean Technology (REA), thinks the BUS is now more appealing. He predicts that it will encourage more people to invest in heat pumps. He suggests extending the grant increase to biomass boilers too. |
The BUS funding boost is part of a larger £6 billion plan to help homes save on energy bills and move towards net zero emissions. This includes money for social housing, green heat networks, and upgrading existing heat networks.
| Energy secretary Claire Coutinho says: “Cutting energy bills is a top priority. With this funding, around a million more families can stay warm during winter, and 200,000 cold, low-income, and social homes can be improved.” |
The government’s goal is to make sure everyone has a warm and energy-efficient home. They’ve already made good progress. Almost half of properties in England have better energy performance than before. Now, with this funding, they aim to go even further.
