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£25m boost to BUS scheme

UK: Encouraged by rising heat pump installations, the Department for Energy Security and Net Zero (DESNZ) has committed an additional £25m of funding to the Boiler Upgrade Scheme (BUS).

The additional funding for this financial year (2024 to 2025), increasing the total BUS budget to £205m.

DESNZ has also given permission for Ofgem to over-allocate vouchers to a total of £280m, to provide certainty that vouchers will continue to be available.

The announcement comes after a record year for heat pump installations. Latest stats showed 2,781 BUS voucher applications received in December, 97% of which were grants for air-source heat pump installations.

Ian Rippin, CEO at MCS, the UK’s quality mark for renewable energy technologies, welcomed the funding increase, adding: “The £7,500 grant makes switching to heat pumps more affordable and accessible for consumers. Following this record-breaking year, we look forward to sustained momentum as consumer confidence and government support for low-carbon technologies continue to grow.”

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