Government looks to expand Boiler Upgrade Scheme
30th April 2025
UK: The UK government has promised further support for the heat pump sector by expanding the Boiler Upgrade Scheme (BUS), boosting training and offering consumers more flexible purchase options.
The proposals by the Department for Energy Security and Net Zero are part of government’s Warm Homes Plan to provide working families with greater choice on home heating upgrades. These would include new products and plans to build a ‘clean power army’ with up to 18,000 professionals to be trained to retrofit homes and install heat pumps, insulation, solar panels and heat networks.
An extra £5m will be provided to continue the Heat Training Grant until March 2026, supporting a further 5,500 heat pump installers and 3,500 heat network professionals.
A key part of the efforts is the announcement of a new consultation on expanding the Boiler Upgrade Scheme.
The Boiler Upgrade Scheme – which currently offers up to £7,500 off the cost of a heat pump install, enjoyed its best month ever in March, with 4,028 applications received – an increase of 88% on the same month last year.
Changes to the scheme could see families potentially access air-to-air heat pumps and electric heating technologies such as heat batteries, which are currently not eligible for grants under the scheme.
Options are also being considered to help spread the installation cost of a heat pump by allowing property owners access to third-party ownership finance products. These might include hire purchase and leasing and a combination of paying for a heat pump in instalments with a separate contract for an energy tariff, allowing providers to simplify costs into a single monthly payment.
The consultation will also seek views on proposals to enhance consumer protections, including adopting the reforms to the Microgeneration Certification Scheme (MCS), and mandating that installers deduct the grant value upfront rather than reimburse property owners once they have received the grant value from Ofgem.
The second part of the consultation seeks views on the current certification scheme requirements for government clean heat schemes and the pros and cons of allowing multiple certification schemes versus mandating MCS as the sole certification scheme for all DESNZ clean heat schemes to ensure there are clear, consistent quality and consumer protections for consumers.
The consultation is open to all interested parties until 11 June 2025. Access to the consultation here.
