On 18th October 2021, Government announced plans for a new initiative known as the Boiler Upgrade Scheme (previously referred to as the Clean Heat Grant). The hope is that this the Boiler Upgrade Scheme will incentivise people to install low-carbon heating systems in a simple, fair, and cheap way as they replace their old boilers over the next decade.
The Boiler Upgrade Scheme is the latest UK government initiative to offer financial support for low-carbon heating solutions. Supporting the aim to decarbonise the use of heat in buildings, it is part of the wider goal to achieve net zero emissions by 2050.
It provides upfront capital grants to support the installation of heat pumps in households and small businesses across England and Wales.
It allows you to upgrade your current inefficient heating and hot water systems to the more energy-efficient heat pump. The scheme will run until 2028, having been recently extended, with a budget of £1,950 million.
If you’re a homeowner, then Severn Valley Renewables can act on your behalf to apply for a grant under the scheme.
Under the Boiler Upgrade Scheme, you can receive one grant per property. You can receive up to £7,500 off the installation cost of your chosen low-carbon system, which is applied for by Severn Valley Renewables on your behalf. This amount will be refunded to you after the installation is compleated.
You’re entitled to claim for the following:
The system you choose to install must meet certain standards. To be eligible for the grant, it must have a seasonal coefficient of performance (SCOP) of at least 2.8 and its maximum capacity must be less than 45kWth.
As of the 23rd of May 2022, applications and payments for the scheme have been accepted. It will run until 2028. Initially, the scheme was running until 2025, but this has been extended to 2028, so you have plenty of time to make the most of the grants and make the switch to a heat pump.
In order to be eligible for a grant, you must meet the following criteria:
You’re also still able to apply for a grant if you have already received funding previously to make your property more energy efficient. For example, if you have received a grant for insulating your home.
In terms of your property, there are some additional requirements that you’ll need to consider. This includes having a valid Energy Performance Certificate (EPC). There are no minimum loft or cavity wall insulation requirements for applications.
You won’t be able to get funding for:
If you own a self-built property, then you’ll need to ensure that you or the original owner built the property or paid a builder to do so. It must have also never been owned by a business or organisation. In all cases, you’ll need to show proof to Severn Valley Renewables before applying for the grant.
You can find out more information about Boiler Upgrade Scheme eligibility on the government website.
The Boiler Upgrade Scheme is designed to help work toward Government’s ambition of all new heating systems installed in UK homes from 2035 to be low carbon heating.
Government believes it will help reduce the UK’s dependency on fossil fuels and exposure to global price spikes.
Additionally, the Scheme is set to support up to 240,000 jobs across the UK by 2035.
