The Boiler Upgrade Scheme (or ‘BUS’ for short) gives eligible homes a £7,500 grant to help replace your old gas boiler with a clean energy heat pump. Why? Because heat pumps are four times more energy efficient than boilers and emit 75% less carbon dioxide.
The Boiler Upgrade Scheme is available nationwide, with the £7,500 government grant currently available in England and Wales. It’s an installer-led scheme, which means Aira applies for the grant on your behalf. The only thing you have to do is enjoy the money off.
What’s more, any clean energy improvements you make to your home, like switching to a heat pump, installing solar and insulating your walls and roof, are currently VAT-free. That cuts a hefty 20% off the cost of becoming an instantly more energy-efficient home.
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What’s the difference between a gas boiler and a heat pump?
Both heat your home. Both heat your water. But the way they work couldn’t be more different.
In England and Wales the Boiler Upgrade Scheme is an installer-led scheme, which means your installer should deduct the value of the grant from your quote. The scheme does have a set of eligibility criteria to be aware of before making the decision to install a heat pump:
– Your property must be a home or small non-domestic building in England or Wales. There are separate grants schemes available in place for Scotland and Northern Ireland.
– Your property must have a valid Energy Performance Certificate with no outstanding recommendations for loft or cavity wall insulation. There are some exceptions to this e.g. listed properties or those in conservation areas, so please speak to your installer for further information.
– You are fully replacing your old fossil fuel heating system
– You can still apply if you’ve received separate funding for energy efficiency upgrades such as insulation, doors or windows.
– New-build homes and social housing are not eligible for the Boiler Upgrade Scheme, although self-build properties are eligible.
The calculation compares heating related costs for a boiler versus an Air Source Heat Pump System (ASHP). Heating related costs include the hardware cost for either your boiler or your ASHP, any servicing and maintenance over 20 years and includes an average yearly electricity consumption with the ASHP system of 4,500 kWh compared to a consumption of 20,000 kWh for gas for heating and hot water; at an average gas price of £0.07 /kWh, and an average electricity price of 0.27 € / kWh (prices accurate October 2023). The calculation is based on a semi detached, 3 bedroom home with no loft or cavity wall insulation. Source of data: AIRA 2023.
The calculation is based on an average yearly electricity consumption with an Air Source Heat Pump System (ASHP) of 4,500 kWH compared to a consumption of 20,000 kWh for gas, resulting in an average of 932kg of CO₂ emissions per year by using an ASHP compared to an average 3,660kg of CO₂ emissions per year using a general household gas boiler. This results in an average reduction of CO₂ emissions amounting to approximately 75%. The calculation only relates to the energy consumption while using the ASHP instead of a general household gas boiler, and is based on a standard UK semi-detached home. Source of data: CO2e/kWh data from UK GOV 2023.
The calculation is based on an average yearly electricity consumption with the ASHP system of 4,500 kWh compared to a consumption of 20,000 kWh for gas. 20,000 kWh / 4,500 kWh ≈ 4.44. The calculation only relates to the energy consumption while using the ASHP instead of a general household gas boiler, and is based on a standard UK semi-detached home. Source of data: AIRA 2023