Boiler Upgrade Scheme

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IBGs For The Boiler Upgrade Scheme

Learn how Insurance Backed Guarantees could help you on your BUS installations.

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    What Is the Boiler Upgrade Scheme?

    The Boiler Upgrade Scheme (BUS) provides grants of up to £6,000 to support the installation of low carbon heating systems in homes and some non-domestic buildings. These heating systems include, Air Source Heat Pumps, Ground Source Heat Pumps, Water Source Heat Pumps and Bio-mass Boilers for rural properties.

    What does that mean for me & my business?

    Homeowners will want to take advantage of this new funding. For those who install boilers, there will be an increase in demand for these low carbon heating systems. By 2030, new homes will no longer be built with standard combi-boilers and so, the BUS Scheme gives opportunities to plumbing and heating engineers to transfer into renewable energy systems.

    When does the Boiler Upgrade Scheme start?

    The new Boiler Upgrade Scheme starts in April 2022 and will run until April 2025.  During this time the Government is set to make £450 million of funding available for the BUS Scheme to help cut carbon emissions from UK domestic homes.

    Boiler Upgrade Scheme Key Dates

     1st April 2022 – Commissioning Date: Eligible low carbon heating systems that are commissioned on or after this date will be entitled to Boiler Upgrade Scheme support.

    11th April 2022 – Account Creation Opens: Installers can now open an account for the Boiler Upgrade Scheme. At this stage businesses will be verified upfront and once the account is set up there will be no need to go through this process again. This will make applying for the vouchers a smoother process.

    23rd May 2022 – Voucher Applications Open: Installers will be able to apply for vouchers for grants from this date. They will also be able to redeem them and receive payment once they provide evidence of commissioning.

     

    Boiler Upgrade Scheme Vouchers

    From 23rd May 2022, Installers should follow the steps below to receive their funding:

    Voucher Application: – Installers will download a voucher application form, complete and submit this to Ofgem via email.

    Property Owner Consent: Once the application is received, an email to the property owner will be triggered asking them to provide consent, which will be completed on GOV.UK. Installers will be notified by email of the outcome.

    Voucher Redemption: Once the product is installed and commissioned, installers will email Ofgem with the evidence required for a voucher redemption, including the MCS certificate number.

     

    Which Heating Systems are eligible on the Boiler Upgrade Scheme?

    Heating systems eligible for grants under the Boiler Upgrade Scheme are Ground Source, Air Source, & Water Source Heat Pumps and also Biomass Boilers for rural areas.

    -Air Source Heat Pumps & Biomass Boilers Grants:  Up to £5,000

    -Ground Source & Water Source Heat Pumps Grant – Up to £6,000

    No VAT on Heat Pumps

    During the Spring Statement Chancellor Rishi Sunak announced that VAT will be scrapped for heat pumps, as well as other energy-efficient installs such as solar panels and insulation for the next 5 years.

    How do I apply for the Boiler Upgrade Scheme?

    MCS (or equivalent scheme) certified installers will need to apply to Ofgem for a voucher on behalf of the property owner, who must consent to the application. Vouchers will be valid from the time of issue. Vouchers for air source heat pumps and biomass boilers will be valid for three months from the time of issue and vouchers for ground source heat pumps will be valid for six months. The installer will need to then apply to Ofgem to redeem the voucher once the installation is complete. Installers will need to submit evidence to demonstrate that eligibility criteria have been met at both stages of the process. Grant payments will be made direct to the installer.

    Who is eligible for the Boiler Upgrade Scheme?

    The Boiler Upgrade Scheme is open to properties located in England and Wales.

    It is mandatory for an Insurance Backed Guarantee (IBG) to be issued on work carried out using the Boiler Upgrade Scheme grant. This means that all installers providing their services must also provide an IBG for the home owner. An Insurance Backed Guarantee protects the homeowner in the event that the installer ceases to trade.  IBG’s are a powerful tool for installers to win more business on all types of installations, not just on Government backed schemes.

    How can an IBG Boost Your Business?

    Provide an Insurance Backed Guarantee on all installations to help provide customers financial protection. This increases confidence, helping the installer to convert more quotes and win more business.

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    Subject to our accreditation, installers can purchase protection for homeowners for a variety of home improvements. 

    Please click on the categories below to view more information on the products we cover.

    Renewables

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    Electric Vehicle Charging Point
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    Air Source Heat Pumps
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    Insulation

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    Roof and Floor Insulation

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