What is the Boiler Upgrade Scheme?

At DC2 Engineering, we are frequently asked to explain the Boiler Upgrade Scheme and how it may benefit you, therefore, we thought we would put together a simple guide to explain how it works, whether or not you would be eligible and how long the scheme is due to last.

How does the boiler upgrade scheme work?

You may have formally heard of a scheme called the Clean Heat Grant?, the boiler upgrade scheme works in a similar way, the government will contribute a fixed sum towards the cost of a renewable heating system.

The scheme opened for grant applications and payments in April 2022 and is due to run until April 2025.

How much funding could I receive?

The grant for biomass boilers is £5000, as the funding is a grant, any remaining balance over and above the £5000 will need to be paid for by the homeowner.

How do I apply for the boiler upgrade scheme?

Firstly, you will need to get a quotation, from a biomass supply and installation company, such as DC2 Engineering, we would then apply for the grant on your behalf.

The final price you pay will then have the discount applied. We would then take care of all the required paperwork, confirmation of the installation, and ensure that the process is as stress free as possible and easy for our clients.

Which heating systems are eligible?

Biomass boilers are supported, but only in rural areas with populations of 10,000 people or less. They are not being offered to people in urban areas. 

Your home must also meet high emissions standards to have a biomass boiler installed, which the government says is “to mitigate any negative impact on air quality.”

Systems with a total capacity of up to 45kW are eligible for the scheme.

Homeowners need a valid Energy Performance Certificate (EPC) to apply to the Boiler Upgrade Scheme.

Click the link, to check to see if you are eligible:

Boiler Upgrade Scheme – GOV.UK

How long do the vouchers last?

There is a set time period that must be adhered to, to ensure that the vouchers are used correctly.

The timescales are three months for biomass boiler vouchers.

Am I eligible to apply?

Most homeowners, small landlords and private landlords in England and Wales can apply for a grant, the grant is not available for those in social housing or to new build properties.

All applicants must have a valid Energy Performance Certificate (EPC), typically, one which has been issued in the last 10 years. 

There are some caveats to ensuring your EPC is eligible, firstly, you must have no outstanding recommendations for loft or cavity wall insulation. If you do, you’ll need to make the recommended insulation installations before applying for the scheme. 

Alternatively, you can progress with your application if your property has an EPC insulation exemption.  

You cannot replace an existing low-carbon heating system on the scheme. Only properties which are fully replacing existing fossil fuel systems (such as oil, gas or direct electric) are eligible for support.

What about self builds?

Self-built homes are eligible for the Boiler Upgrade Scheme. 

Self builders have a three-month validity period to complete their installations, and will not have to provide an EPC to evidence insulation eligibility. 

Which systems are not supported?

Support is available to installations providing space and water heating in buildings, but the grant excludes:

Hydrogen boilers (which aren’t expected to be available by the time the scheme ends)

Hybrid heat pumps

Solar thermal is not directly supported, but solar thermal systems can be installed as part of a heat pump or biomass system that is funded on the scheme, providing the heating system can meet the full space and water heating requirements of the home. 

Has this scheme replaced the Domestic Renewable Heat Incentive?

The Boiler Upgrade Scheme has indeed replaced the Domestic Renewable Heat Incentive (RHI), which provided payments for the generation of renewable heat from eligible renewable heat technologies from 2014 to 2022. 

The scheme ended for new applications on 31 March, and the Boiler Upgrade Scheme took its place from April 2022. 

The RHI operated through tariff-based support, where payments varied between properties in accordance with the efficiency of the property. Payments were made on a quarterly basis over a seven-year period after the system had been installed. The Boiler Upgrade Scheme has replaced this funding with a flat-rate payment.

Want to know more? Call our expert team today on 01550 777717 or email us at louise@dc2engineering.co.uk

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