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The Boiler Upgrade Scheme (BUS) is designed to support the UK transition from fossil fuels to renewables. This scheme is a UK Government grant supporting renewable heating and switching to sustainable technologies instead of burning fossil fuels, like coal, gas, or oil, to reduce home carbon footprint.
Heat pump technology is an example of renewable solutions widely used in the UK that efficiently transfers heat from natural sources – air or soil. Now, many homeowners choose heat pumps instead of conventional boiler installations. However, there is much ambiguity about the BUS criteria and eligible technologies.
Questions about air-to-air heat pumps’ eligibility arise due to possible savings in heat pump installation costs via grants. This article describes what you need to know before applying to the Boiler Upgrade Scheme for air-to-air heat pumps.
This guide explains Boiler Upgrade Scheme coverage for air-to-air heat pumps clearly. It also explains grant amounts, restrictions, and key government funding rules.
What is the Boiler Upgrade Scheme?
The Boiler Upgrade Scheme is an Ofgem-managed government grant programme in England and Wales. The scheme is part of the UK’s heating decarbonisation and clean energy transition goals. Grants are awarded for replacing fossil-fuel heating systems with energy-efficient and low-carbon alternatives like heat pump installations in private homes and small non-domestic buildings.
Homeowners receive funding through MCS-certified installers who apply for the heat pump grant directly after taking the homeowner’s consent. This reduces upfront heat pump installation costs for eligible households significantly. It encourages wider adoption of renewable heating systems across the UK housing stock.
Types of Heat Pumps
Heat pumps are renewable heating systems used in energy-efficient home heating. Receiving Grants depends on the heating system type (source and design).
1. Air-to-Water Heat Pumps
Air-to-water heat pumps are the most common systems under the Boiler Upgrade Scheme. They provide central heating and domestic hot water using renewable air energy. These systems connect to radiators or underfloor heating systems easily. They are widely used for full boiler replacement in UK homes.
2. Ground Source Heat Pumps
These are the most commonly funded heat pumps in the Boiler Upgrade Scheme. Ground source heat pumps install underground loops, using the ground as a heat source. They’re highly effective, yet require considerable installation space and costs.
3. Water Source Heat Pumps
Water source heat pumps also fall into the Boiler Upgrade Scheme grants scope. They use open water bodies (rivers, lakes) as a heat source.
4. Air-to-Air Heat Pumps
Air-to-air heat pumps are used to produce space heating and cooling via indoor units. These heat pumps don’t interact with radiators or the domestic hot water circuit. They are common in apartments, office buildings, and other modern constructions.
Does the Boiler Upgrade Scheme Cover Air-to-Air Heat Pumps?
The Boiler Upgrade Scheme (BUS) funding does allow for air source heat pump installation. However, air-to-air heat pumps are not included in full BUS funding and only get a fixed grant of £2,500 according to current funding rules.
Air-to-water heat pumps can receive up to £7,500 through BUS funding. Ground source heat pumps also qualify for up to £7,500 grant support. The scheme focuses on whole-home renewable heating system installation. These systems must replace fossil-fuel boilers and provide full heating services.
The reason for limited BUS funding is the fact that air-to-air heat pumps primarily provide space heating. They don’t produce domestic hot water and, therefore, receive reduced BUS funding.
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Why Less Funding for Air-to-Air Heat Pumps?
Air-to-air heat pumps receive lower UK government heating grants for clear reasons. They are not considered full boiler replacement systems under BUS rules. The Boiler Upgrade Scheme (BUS) focuses on achieving whole-house or building renewable heating, i.e., replacing both heating and hot water provision.
Air-to-water heat pumps meet this requirement more effectively. They integrate with central heating and domestic hot water systems. Air-to-air systems only provide room heating or cooling functions. They do not fully replace traditional central heating systems.
Another reason is the energy efficiency measurement for the UK carbon targets. Water-based systems provide more consistent whole-home energy performance data. Government policy also prioritises scalable heating solutions for UK housing. Radiator-based systems remain standard in most UK homes.
Air-to-water heat pumps can be used to provide both heating and hot water, unlike air-to-air heat pumps. Most UK homes feature radiator-based heating systems. This is why installing an air-to-water heat pump is easier, and these systems are better suited to BUS goals.
How Much Grant Is Available for Heat Pumps?
Different amounts of funding are provided according to the heat pump type:
Air-to-air heat pumps qualify for £2,500. Other types of air-source heat pumps (air-to-water) can receive up to £7,500 funding under the Boiler Upgrade Scheme. Ground source heat pumps are also eligible for up to £7,500 grant.
These air source heat pump grants reduce installation costs significantly. They make low-carbon heating more affordable for UK homeowners. Installers apply for the BUS grant on behalf of homeowners. The grant is deducted directly from the installation cost by the installer.
Eligibility requires an EPC certificate and an MCS-certified installer. These conditions ensure compliance with UK renewable heating standards.
Are Air-to-Air Heat Pumps Still Worth Installing?
Despite being granted smaller sums in BUS funding, air-to-air heat pumps remain cost-effective for UK homes. They’re much cheaper to run than conventional electric heaters while providing both space heating and cooling at once.
Installation is usually faster compared to full central heating systems. Also, these heat pumps don’t need complex installation (they require less pipework and fewer structural modifications). Yet, air-to-air heat pumps cannot completely replace the existing boiler heating. You’ll probably need another hot water provision system installed in your property.
Insulation quality also affects performance and energy efficiency levels. Well-insulated homes achieve better savings and comfort results.
Will Boiler Upgrade Scheme Rules Change in the Future?
As UK heating policies continue promoting the country’s transition to net zero by reducing greenhouse gas emissions, the current BUS grant eligibility rules may also change. Nothing certain is known, though.
Homeowners should always check the latest Ofgem guidance for updates. Grant schemes can change based on the government’s energy strategy.
Conclusion
The BUS initiative promotes adopting renewable heating sources and reducing dependence on gas/oil usage. Heat pumps are a crucial part of the process, but they have different grant availability.
Air-to-air heat pumps can receive a BUS grant now (according to current eligibility rules), but this amount is fixed and equal to £2,500. This funding level is set due to insufficient heat or hot water production.
FAQs
No, the BUS grant is submitted by the installer on your behalf.
Typically, the existing heating equipment is removed by the installer during heat pump installation.
Insulation will matter. Older UK houses may require an energy assessment as they lose heat due to poor insulation quality.
Yes, heat pumps can be combined with solar PV systems. This setup can reduce electricity bills and improve overall energy efficiency. It is a popular option for reducing long-term running costs.
Installation time varies based on various factors like property size and system design. Most air-to-air systems take up to 2 days for a standard residential setup. More complex systems, such as full-home ducted systems or those requiring extensive electrical work, may take 4 to 5 days.
