The Department for Business, Energy and Industrial Strategy has released a promotional update for the new Boiler Upgrade Scheme (BUS). Ditching fossil fuel heating is now cheaper thanks to the heat pump scheme where there is £5,000 towards the cost of installing a heat pump. Heat pumps are cleaner and more efficient than traditional gas, oil and LPG boilers. They use electricity to draw heat from the air or ground, compressing it to produce a higher temperature to warm your home. Grants are available to homeowners, landlords and small businesses in England and Wales.
Scheme funding will be available through a simple application procedure that installers carry out on behalf of property owners. The grants are in addition to the 5-year long 0% rate of VAT on the installation of heat pumps, announced as part of a package of measures to help ease the cost of living. The scheme has a committed budget of £450 million over 3 years from 2022-2025, with an annual budget allocation of £150 million and property owners will be able to get:
- £5,000 off the cost and installation of an air source heat pump
- £5,000 off the cost and installation of a biomass boiler