Boiler Upgrade Scheme - What Is It and How Do Heat Pumps Work?

Daikin air source heat pump in a home garden

The UK Government extends the Boiler Upgrade Scheme until 2028.

Were you wide awake this morning watching the BBC Sunday Breakfast Show? You may have missed the important and informative discussion on the Government’s flagship eco-friendly heating scheme - the Boiler Upgrade Scheme.

The Boiler Upgrade Scheme is a UK government scheme helping England and Wales homeowners to cut the costs of installing a heat pump by £5,000. The £450m scheme provides homeowners with grants worth £5,000 to swap their fossil-fueled boiler system for a green energy air source heat pump. And now, it has been announced that the Boiler Upgrade Scheme will now run for a further five years, extending the initial closure date of 2025 by a further three years until 2028. The Boiler Upgrade Scheme extension comes as a surprise - so soon after the recent House of Lords Environment and Climate Change Committee’s scathing report, was criticised heavily and bluntly stated the Boiler Upgrade Scheme is currently "failing" to meet its goals.

The Committee on Climate Change (CCC) explained the reasons for the extension were that the heating of domestic properties accounts for an estimated 14% of the UK’s carbon emissions, and extending the Boiler Upgrade Scheme gives homeowners the opportunity to help the UK reach its target of becoming net zero by 2050. They Committee also stated that it hopes the scheme will ensure all newly installed heating systems will be low-carbon certified by 2035.

With the number of homeowners across England and Wales taking advantage of the scheme currently very low, the Lords Net Zero Committee has warned the national target for green heating is "very unlikely to be met".

So has there ever been a better time to start your home’s journey to a more sustainable future? We explain the details behind the Boiler Upgrade Scheme, what air source heat pumps are, and the benefits of upgrading your boiler.

The Boiler Upgrade Scheme is a UK government scheme helping England and Wales homeowners to cut the costs of installing a heat pump by £5,000.

What is the Boiler Upgrade Scheme?

The boiler upgrade scheme was launched in April 2022 by the UK government to help reduce the cost of more environmentally-friendly heating system installations for homeowners in England and Wales. Grants are available for air source heat pumps at domestic or small commercial properties.

 

Who is eligible for a Boiler Upgrade Scheme grant?

Your property must have a currently in-date Energy Performance Certificate (EPC) that has been issued in the last 10 years, and importantly with no recommendations of loft or cavity wall insulation needed. If your Energy Performance Certificate recommends you insulate your home further, you will need to carry out this work first before starting the Boiler Upgrade Scheme application process. The scheme is not available to those that reside in social housing or newly built properties. If you are a tenant in a privately rented home, your landlord has to apply on your behalf.

 

What does the grant cover and how do you apply?

  • As an MCS-certified installer, you’ll need to contact us to gather an air source heat pump installation estimate

  • After a full site survey and quotation, we will apply to the energy regulator Ofgem for a grant voucher on behalf of the homeowner

  • If your application is approved by Ofgem, they will send a payment to us after the installation is complete. The homeowner then pays the remaining quote balance

  • We must complete your heat pump installation within three months of the grant voucher being approved

  • The scheme runs on a first-come, first-served basis so don’t miss out…

How does a heat pump work?

A heat pump is an electrically-powered device that sucks in air from the outdoors and passes it over pipework and tubes that contain a special refrigerant fluid to produce heat and keep your home at a consistent temperature

 

Are heat pumps more efficient than gas boilers?

On average, a quality heat pump installation offers a minimum efficiency rating of 300% more than gas boilers. However, they do require electricity to run. With electricity prices currently more expensive than gas, and gas prices still remaining incredibly high compared to previous years, these factors need to be taken into account when working out a true efficiency rating.

Our MCS-certified installers can give you an accurate figure when conducting a site survey and quote for you, but our expert opinion is that a heat pump would still be cheaper to run and heat your home effectively.

 

How big are heat pumps?

An air source heat pump is rectangular in shape and has average dimensions of 1m x 1m x 0.4m. Air source heat pumps need to be situated outside, close to, or attached to the property but at least 1m from your neighbor's property.

You also need space inside for a heat pump unit and a hot water cylinder too. These units are around the size of a traditional gas boiler, while the cylinder size will depend on the size of your property.

 

 

Homeowners can save up to £5,000 off a new air source heat pump installation with the Boiler Upgrade Scheme - find out now if you're eligible.