Are you looking to replace your old gas boiler? You could be eligible for a substantial government grant.
As London moves towards a greener future, the way we heat our homes is changing. The UK government is actively encouraging homeowners to switch from fossil fuel heating systems to low-carbon alternatives. The headline initiative driving this change is the Boiler Upgrade Scheme (BUS).
If you are a homeowner or landlord in London considering a heating upgrade, this guide covers everything you need to know about securing your grant and future-proofing your property.
What is the Boiler Upgrade Scheme?
The Boiler Upgrade Scheme is a government financial initiative launched to help decarbonise buildings in England and Wales. Running until 2028, the scheme provides upfront capital grants to support the installation of heat pumps and biomass boilers in homes and non-domestic buildings.
Unlike previous schemes where you had to claim money back over time, the BUS acts as an upfront voucher, effectively discounting the cost of your installation immediately.
How much can you claim?
As of late 2023, the grant levels were increased to make green heating more accessible:
- £7,500 off the cost and installation of an Air Source Heat Pump (ASHP).
- £7,500 off the cost and installation of a Ground Source Heat Pump (GSHP).
- £5,000 off the cost and installation of a Biomass Boiler (restricted to properties in rural areas without a gas connection).
Am I Eligible for the Grant?
To qualify for the BUS, you must meet specific criteria set out by Ofgem. As your local London heating specialists, we can help assess your property, but here are the general requirements:
- Ownership: You must own the property (this includes homeowners, small landlords, and private landlords).
- Location: The property must be in England or Wales.
- Current System: You must be replacing a fossil fuel heating system (such as oil, gas, or electric resistance heating).
- Efficiency: You must have a valid Energy Performance Certificate (EPC) with no outstanding recommendations for loft or cavity wall insulation.
Note: If your EPC suggests insulation upgrades, these must be completed before the grant can be claimed. Good insulation is vital for heat pumps to work efficiently in London’s varied housing stock. - New Technology: The commissioned system must meet specific efficiency standards (which we ensure as standard).
Who is NOT eligible?
- Social housing properties.
- New build properties (unless you are building your own home).
- Properties that have already received government funding or support for a heat pump or biomass boiler.
Why Switch to a Heat Pump in London?
Many of our London clients ask if a heat pump is truly viable for city living. The answer is yes, provided the system is designed correctly.
- Lower Carbon Footprint: Heat pumps run on electricity and are roughly 3–4 times more efficient than traditional gas boilers.
- Future-Proofing: With the eventual phase-out of gas boilers on the horizon, switching now puts you ahead of the curve and potentially increases your property value.
- Reduced Energy Bills: When paired with a smart tariff and good insulation, a heat pump can offer protection against volatile gas prices.
The Application Process: How It Works
The best news about the Boiler Upgrade Scheme is that it is installer-led. You do not need to fight through complex paperwork yourself. Here is the step-by-step process when you choose us:
- Consultation & Survey: We visit your London property to perform a heat loss calculation and assess if a heat pump is right for your home.
- Quote: We provide a detailed quote for the installation, clearly showing the £7,500 grant deduction.
- Application: As an MCS Certified Installer, we apply to Ofgem for the grant voucher on your behalf.
- Installation: Once the voucher is issued, we install your new low-carbon heating system.
- Redemption: We redeem the voucher from Ofgem. You only pay the remaining balance of the quote.
Why You Must Use an MCS Certified Installer
You cannot claim the BUS grant if you use a general builder or uncertified plumber. The work must be completed by an installer certified by the Microgeneration Certification Scheme (MCS). This ensures the equipment and the workmanship meet the highest industry standards.
Frequently Asked Questions
Can I get a grant for a hybrid heat pump?
Generally, no. The scheme is designed to replace fossil fuel systems entirely. Hybrid systems (a gas boiler working alongside a heat pump) are typically excluded.
Will a heat pump work with my existing radiators?
In many cases, yes. However, heat pumps run at lower flow temperatures than gas boilers. We may recommend upgrading to larger radiators or underfloor heating to ensure your home stays toasty during the British winter.
Do I need planning permission?
In most domestic settings in London, installing an air source heat pump is considered Permitted Development, provided it meets certain size and noise criteria. We can guide you through these local authority regulations.
Ready to Upgrade Your Heating?
The Boiler Upgrade Scheme is a fantastic opportunity to modernise your home for a fraction of the usual cost. However, the key to a successful switch is expert system design.
At Osborne Plumbing & Heating, we are fully MCS accredited and experienced in retrofitting London homes with energy-efficient heating solutions.
Contact us today on +44 7545 142724 or Contact Us to book your survey and see if you can claim your £7,500 grant.