Boiler Upgrade Scheme Applications Up 39% Year-Over-Year Growth 2024

boiler upgrade scheme

The Boiler Upgrade Scheme (BUS), a UK government project that provides payments to homes that transition from fossil fuel heating to greener alternatives, is growing in popularity.

Figures released for January 2024 show a 39% rise in applications over the same month last year. This comes after a major grant increase announced last autumn, which raised the subsidy for air source heat pumps (ASHPs) from £5,000 to £7,500.

Industry experts attribute the surge in applications to increasing financial support. Ian Rippin, CEO of the Microgeneration Certification Scheme (MCS), emphasized the beneficial impact, saying, “The increase in grants to £7,500 continues to have a positive impact on the sector.” MCS data also showed a 20% increase in average monthly heat pump deployment in 2023 compared to the previous year.

The Scheme Hails As A Success

The Boiler Upgrade Scheme (BUS), which was introduced in 2022, seeks to inspire homes to use low-carbon heating alternatives. The initiative has clearly increased demand by covering a significant percentage of the upfront cost for ASHPs. As of January 2024, the BUS had received over 33,424 applications and distributed over £133 million in vouchers. Energy security secretary Claire Coutinho underlined the scheme’s effectiveness, saying, “Applications have increased by 40% year on year, showing that our approach is entirely right.”

The CMA also investigates Worcester Bosch’s messaging about hydrogen heating in the UK. Hydrogen isn’t currently available for home heating, and its introduction is years away, dependent on government decisions.

Welsh Homes Lead The Charge

Support for low-carbon heating goes beyond the Boiler Upgrade Scheme. Wales has seen an especially significant uptake of heat pumps, with a record number of installations in 2023. This spike has lifted the overall number of Welsh properties with renewable energy installations to above 100,000, the highest proportion in the UK.

Government Invests In Low-Carbon Heating Innovation

The UK government’s commitment to low-carbon heating goes beyond homeowner incentives. The Boiler Upgrade Scheme (BUS) is just one tiny part.  In January 2024, an £80.6 million financing package was announced to finance four major projects. This includes a significant £8 million investment to improve heat network efficiency across the country. Furthermore, in February 2024, the Net Zero Technology Centre invested £1.2 million in 12 low-carbon technology businesses, two of which focused on novel heat pump technologies.

The UK’s quest for low-carbon heating seems to be gaining traction. With additional grant funding and continuous investment in innovation, the country is well on its way to a cleaner, more sustainable heating future.