Air Source Heat Pumps (BUS Grant)

Ofgem has recently released data for the uptake of the Boiler Upgrade Scheme, which is a key initiative under the UK Government’s commitment to achieving net-zero emissions by 2050.

The UK’s Boiler Upgrade Scheme (BUS) has been instrumental in promoting the adoption of heat pumps as part of the nation’s strategy to reduce carbon emissions from home heating. In 2024, the scheme achieved significant milestones, reflecting both its successes and the challenges ahead.

Record-Breaking Heat Pump Installations in 2024

In 2023, a total of 40,426 certified heat pump installations were recorded across the UK between January and December. By early October 2024, this number had already been exceeded, with more than 42,000 installations completed from January to September. This marks a 39% rise in the average number of monthly installations compared to the previous year, bringing the UK’s total certified heat pump installations to nearly 260,000.

Boiler Upgrade Scheme’s Role

The BUS offers homeowners in England and Wales a £7,500 grant for MCS-certified heat pump installations, making this low-carbon technology more accessible and affordable. To accommodate this surge in demand, the Secretary of State for Energy Security and Net Zero authorised Ofgem to over-allocate grant vouchers up to £50 million, increasing the available total to £200 million.

BSE|Home remains at the heart of installations at a local level. According to the Microgeneration Certification Scheme, Mid Sussex saw a total of 133 ASHP installations in 2024, and across West Sussex there were 642.

The average cost in 2024 for an air source heat pump installation in Mid Sussex was £12,674 which is in line with the national average. Costs are dependent on a number of factors including the size of property, existing radiator sizes, insulation and window sizes and the size of heat pump installed.

As MCS registered installers, BSE|Home offers homeowners and small businesses the grant offered by the UK Government of £7,500 towards the cost of an ASHP, there is no VAT on the installation and as your installer we apply for the grant on your behalf.

If you are considering utilising the grant for the installation of an air source heat pump, property eligibility checks will be required:

1. You must own the property.
2. Be replacing fossil fuel heating system, such as gas or oil.
3. The property must have a valid EPC (dated within the past 10 years).
4. Any band of EPC can apply for the grant. Changes to the rules in May 2024 means you no longer require an EPC with no recommendations for loft or cavity wall insulation.

Note: You can still apply if you’ve already had funding to make your property more energy efficient, such as insulation.

New build properties are not eligible for the scheme, with the exception of self-builds that:

• have been built mainly using the labour or resources of the first owner
• have never been owned by a business or organisation
• are not part of an excluded property development

 The installer will need to be shown proof if the property is a self-build and will request a copy of the title deeds or similar.

Grants are not available for social housing or properties that have already received funding from government or an Energy Company Obligation.

Grant Process

Once you have chosen BSE|Home as your installer, we will apply for the grant on your behalf. Ofgem will then contact you to confirm:

1. You give BSE|Home consent as the installer making the application on your behalf
2. You meet the relevant eligibility for the scheme

You have 14 days to confirm this with Ofgem, otherwise they may reject the application. If they require more information from you they will contact you directly.

If you have requested more than one installer to submit a BUS application, you can only confirm your consent to one of them. Other applications from installers will be rejected.

BSE|Home then has three months from the moment the application is approved to complete the installation. Once the system has been fully checked and commissioned BSE|Home then apply for the grant payment directly.

The Boiler Upgrade Scheme has made commendable progress in promoting heat pump adoption, as evidenced by the record number of installations in 2024.

If you are interested in talking to one of our experts regarding air source heat pump installation at your property, please contact one of our experts on 01444 222900 where they’ll be happy to discuss the process or any questions you may have.