Boiler Upgrade Scheme (BUS) position statement
Designed to support the decarbonisation of homes and small and medium non-domestic buildings in England and Wales, the government has announced that the budget for 2025/2026 for the Boiler Upgrade Scheme will be £295 million1. The scheme provides upfront capital grants of up to £7,500 to encourage property owners to replace fossil fuel heating with more efficient low carbon heat pumps.
Whilst the BUS is receiving a record number of heat pump grant applications, barriers to entry such as cost, consumer awareness and workforce inertia are still restricting the uptake of low carbon technologies. With record numbers of applicants, and a total budget £295 million it is paramount that these technologies are deployed efficiently and effectively with government taking a steady approach to addressing these issues as to not further exacerbate them.
IET recommendations:
- Property dependent solutions: The UK’s housing stock is incredibly diverse. Heat pumps can become expensive if not integrated and installed under the right circumstances, potentially causing them to be ineffective and inefficient. Therefore, government should consider what the best low carbon heating solution for the building is, rather than pushing a specific technology for all buildings.
- Early adoption and image: Adoption of these technologies is in part driven by word of mouth, positive and negative stories from family and friends whilst discussion becomes amplified on social media. If low carbon heating technologies are mis-sold or deployed in an inappropriate setting, it can increase bills and therefore harm perception and uptake.
- Costs of achieving net zero: New grants, such as the BUS, should first aim to maximise the reduction in fossil fuel emissions per £ spent. Grants should be available to support a wider variety of options that will represent the least cost to consumers in their bills and maximise GHG reductions per GBP for the taxpayer.