The Boiler Upgrade Scheme: What you need to know

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With energy bills being a constant topic on the news and across the internet, we want to help homeowners make real savings. In this article, we will be looking at the Boiler Upgrade Scheme.

We want to help homeowners, and private renters understand the reasons for upgrading their boilers, the benefits and the types of low-carbon heating systems covered by the government’s Boiler Upgrade Scheme. We will also look at the application process, eligibility and uptake of the scheme.

We aim to provide you with helpful information to reduce your energy bills and carbon footprint and improve the comfort of your home.

An Overview of the Boiler Upgrade Scheme

The UK government has introduced the Boiler Upgrade Scheme to assist homeowners and private renters in England and Wales to switch to more energy-efficient boilers. This scheme aims to lower carbon emissions, support energy-saving initiatives and help households save money on their energy bills.

Why Upgrade Your Boiler?

An outdated and inefficient boiler can be a significant source of energy consumption, leading to high energy bills and potentially costly repairs. However, upgrading to a modern and energy-efficient boiler can solve these problems. The Energy Saving Trust estimates that upgrading to a new and efficient boiler can result in energy bill savings of up to £350 per year.

A properly functioning boiler is essential to a comfortable home, but it often goes overlooked until a problem arises. Upgrading your boiler ahead of time offers several benefits, including reduced energy bills, quieter operation, a more compact design, improved heating control, and a new warranty.

A new A-rated condensing boiler equipped with a programmer, room thermostat, and thermostatic radiator controls can reduce annual fuel bills by as much as £315 and reduce up to 1,500kg of carbon dioxide per year. Furthermore, modern boilers tend to be more compact and have a quieter operation, allowing for better temperature control in each room of your home. Additionally, a new boiler warranty provides added peace of mind and can potentially save money on emergency repairs.

When selecting a new boiler, it’s essential to consider the warranty offered by the manufacturer. The length and terms of warranties vary among different brands and models, so it’s vital to thoroughly review these details before making a final decision.

We always recommend getting in touch with an experienced boiler technician who will be able to advise you on the right central heating system for your home.

Eligibility for the Boiler Upgrade Scheme

To be eligible for the scheme, you must be a homeowner or private renter in England and Wales, and your boiler must be at least 8 years old. You must also receive either Pension Credit or Child Tax Credit. The scheme is unavailable if you have upgraded your boiler in the past 10 years or if your boiler is non-functioning.

Visit the Ofgem website for details on eligibility for the Boiler Upgrade Scheme.

How the Scheme Works

If you are eligible, you can have a new energy-efficient boiler installed at a reduced cost, funded by the government, with only a minimal contribution required from you. The exact contribution amount will depend on your situation, but it is likely to be around £200. While you will have to pay for the installation, the cost is likely to be offset by your energy bill savings.

Types of Low-Carbon Heating Systems Covered by the Scheme

The scheme covers a range of low-carbon heating systems, including air source heat pumps, ground source heat pumps, and biomass boilers. We will give you an overview of each type of system.

Air Source Heat Pumps

An air source heat pump (ASHP) is a renewable energy system that uses heat from the outside air to generate heat for your home. The system consists of an outdoor unit, which absorbs heat from the air, and an indoor unit, which then distributes the heat throughout your home. ASHPs are highly efficient, as they can generate up to three times more heat energy than the electrical energy they consume.

If you’re looking for an Air Source Heat Pump installer, the Trades Team provide professional installation services to homes across the southeast.

Ground Source Heat Pumps

A ground source heat pump (GSHP) works on a similar principle as an air source heat pump, but instead of using heat from the air, it uses heat from the ground.

The system consists of a network of underground pipes that absorb heat from the ground. This heat is then pumped to your home to provide heating and hot water. GSHPs are considered one of the most efficient low-carbon heating systems, as they can provide heat at a very high-efficiency rate.

Biomass Boilers

Biomass boilers are heating systems that use organic materials, such as wood pellets, as fuel. The organic material is burned in a boiler to produce heat, which is then used to heat your home. Biomass boilers are considered low-carbon because the carbon dioxide produced by the burning of the organic material is absorbed by the trees and plants that are grown specifically for use in these boilers. This creates a carbon-neutral cycle, making biomass boilers a sustainable heating option.

Application Process for the Boiler Upgrade Scheme

To apply for the scheme, contact the Energy Saving Trust, which will advise you on your eligibility and assist with the application process. You will need to provide information about your boiler and financial details, including your Pension Credit or Child Tax Credit status.

The installer will submit a voucher application to Ofgem, who will verify your consent and eligibility. If approved, a voucher will be issued, and the grant will be paid directly to the installer after the installation is complete.

Data on the Boiler Upgrade Scheme

The Department for Business, Energy and Industrial Strategy provides information on the scheme’s uptake. Data from November 2022 shows that 10,582 voucher applications have been received, with 96% of them for air source heat pump installations.

You can download the BUS monthly statistics for November 2022 in this excel doc.

The majority of applications and installations have been in the South West and South East, with almost all installations taking place in domestic properties and replacing gas boilers.

The median cost of an air source heat pump installation with a capacity of 10kW is £12,905, and the median cost of a ground source heat pump installation with a capacity of 12kW is £27,041.

Number of claims by Technology Type

England and Wales, May 2022 – November 2022.

Status Air Source Heat Pumps Ground Source Heat Pumps Shared Ground Loop GSHP Biomass Boilers Total
Voucher Applications Submitted 10,167 283 7 125 10,582
Vouchers Issued 8,425 228 7 111 8,771
Redemption Applications Received 5,821 126 2 71 6,020
Redemptions Paid 5,164 97 2 65 5,328

Average Reported Cost

England and Wales, May 2022 – November 2022.

Measure Air Source Heat Pumps Ground Source Heat Pumps Biomass Boilers
Mean cost of installation £12,974 £28,269 £15,759
Medican cost of installation £12,905 £27,041 £15,000


The Boiler Upgrade Scheme offers homeowners a chance to lower their carbon emissions and energy costs by switching to low-carbon heating technologies. With financial incentives and an uncomplicated application process, it’s an excellent opportunity to enhance the comfort of your home and contribute to the UK’s efforts to reduce its carbon footprint.

With the scheme covering a range of low-carbon heating technologies, including air-source heat pumps, ground-source heat pumps, and biomass boilers, homeowners have a range of options to choose from, each with its unique benefits. The scheme has seen a high uptake, with most applications and installations being in the South West and South East of England, replacing gas boilers with low-carbon heating systems.

So, if you’re a homeowner or private renter in England or Wales and meet the eligibility criteria, consider applying for the Boiler Upgrade Scheme to upgrade your outdated and inefficient boiler with a more energy-efficient, reliable, and comfortable heating system.

The Energy Saving Trust can assist with the application process and advise on your eligibility, and the government funding, along with your energy bill savings, can help offset the cost of installation.

About the author

Trades Team are experts in Heating, Plumbing and Gas Services. We have 15 years of experience providing expert Boiler Repair and Boiler Servicing to homes and businesses across the Southeast. Learn more about Trades Team.

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