Boiler Grants in the UK Explained

According to Checkatrade, purchasing and installing a new boiler in your home will cost between £2000 and £4000. At this price, many UK residents will struggle to afford a boiler.

While many leading boiler installers will offer finance options, some families still require more help to afford a new boiler.

The UK government wants to help these households with boiler grants. But what is a boiler grant?

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What Is a Boiler Grant?

A boiler grant is financial assistance for eligible households that need help purchasing a new boiler or replacing an old one with a more efficient unit.

It’s important to note that a grant is not a loan and does not require the recipient to repay the funds. The government and leading energy suppliers are currently funding two schemes in the UK to reduce carbon emissions dramatically by helping households purchase new, more carbon-friendly boilers.

These schemes or grants can cover the total cost of the boiler or a large portion of the cost of the new boiler and its installation. Also, it’s worth mentioning that the scheme refers to the literature behind the grant, while the grant itself is a lump sum.

Some will refer to these grants as applying for a free boiler grant. However, strict eligibility requirements exist, so not everyone in the UK can claim a new system.

In the UK, there are currently two primary active funding schemes for eligible citizens to apply for:

• The Energy Company Obligation Scheme (ECO)
• The Boiler Upgrade Scheme (BUS)

Both these schemes will help eligible citizens to upgrade their boiler systems and lower their carbon footprint.

So what are the differences between the UK’s primary active boiler schemes?

The UK’s Two Primary Active Boiler Schemes

Both schemes are designed to help more citizens upgrade their older boilers and achieve the UK’s lower carbon footprint goal. However, these schemes are for two different audiences.

First, let’s dive into the details of the ECO scheme.

ECO Boiler Scheme

The scheme, as mentioned, often called the free boiler scheme, was launched in January 2013. Its main goal was to reduce the UK’s overall energy consumption by providing low-income households with more energy-efficient methods to warm their homes.

Who Funds the ECO Scheme?

Parliament passed the ECO scheme in 2012, and it is now primarily funded by the UK’s largest utility companies which include:

• British Gas
• EON
• EDF
• Octopus
• OVO
• Bulb
• Scottish Power
• And others.

The Main Goal Of ECO

The ECO scheme’s primary obligation is the Home Heating Cost Reduction Obligation (HHCRO), which funds a free boiler and provides grants to private homeowners for insulation, which helps reduce the fuel needed to warm a property.

According to the Department for Energy Security & Net Zero in 2023, an estimated 13% of households (or 3.17 million) in England were in fuel poverty under the Low-Income Low Energy Efficiency metric.

By providing these grants, the UK hopes to reduce the country’s level of fuel poverty.

Who Is Eligible For ECO?

While it can be tempting to suppose anyone can apply for a free boiler, there are strict requirements to adhere to.

The first requirement is the applicant is a permanent resident within the property and is also already a recipient of another government benefit. These include:

• Child tax credit
• Child benefit (with a qualifying household income)
• Working tax credit
• Disability Living Allowance
• Pension credit
• Job seekers allowance
• Universal Credit
• Employment and support allowance

Once you have confirmed that you can receive a grant, you can access up to £10,000 in funding to invest in eco-friendly products and measures.

However, other criteria need to be met which are as follows:

Do You Own The Property?

To apply for the ECO grant, you must be either the property owner or a private tenant currently receiving a specific benefit with permission from the landlord.

How Much Do You Earn?

This is an important metric that needs to be met. You’re only eligible to claim the ECO grant if the household’s collective income does not surpass the maximum amount.

That amount is £31,000. Households that make this amount or less per year can apply for the ECO grant.

What Type Of Boiler Do You Currently Own?

The boiler you’re looking to replace needs to be non-condensing. Condensing boilers are much more energy-efficient than their counterparts.

A condensing boiler is designed to capture heat that would be expelled and not reused in the heating process. Because non-condensing boilers don’t reuse this heat, their flues expel far hotter gases up to 200°C.

What Age Is The Boiler?

You won’t be eligible to claim an ECO grant if the boiler was installed after 2005 or is younger than ten years old. Older boilers are generally less efficient, with most offering efficiency levels between 65% and 86%.

Another factor to consider is how the gas is supplied to your boiler, as only units connected to the mains can apply for a grant.

What Did The Energy Performance Certificate (EPC) Say?

When applying for the ECO grant, you must have an Energy Performance Certificate (EPC) that states your home’s energy rating is E, F, or G.

The EPC needs to be valid when applying for the grant, and they last for ten years.

The ECO scheme is only available in England, Scotland, and Wales. If you live in Northern Ireland, you must apply to their scheme, the Warm Homes Grants.

Applying for an ECO grant is simple, and many installers will assist where they can.

As mentioned, there are two central grants that UK citizens can apply for. The second scheme is the Boiler Upgrade Scheme (BUS).

The Boiler Upgrade Scheme (BUS)

The BUS is designed to help certain homeowners switch their heating source from fossil fuels to more environmentally friendly ones such as heat pumps or biomass boilers.

When referring to fossil fuel heating systems, this includes:

• Oil
• Gas
• Electric
• And LPG (liquefied petroleum gas).

Who Is Eligible For The BUS?

At the moment, only people who reside in England and Wales can apply for the BUS. In Scotland, you can check Home Energy Scotland for a grant; in Northern Ireland, you’ll need to contact the Northern Ireland Energy Advice to find out more.

You must also own the property to be eligible for this grant. Unfortunately, it is not available to renters.

The second most important criterion to meet is that you’re currently replacing your old fossil fuel system. The BUS provides funding for three low-carbon heating systems which include:

• £7500 towards the cost and installation of an air source heat pump system.
• £7500 towards the cost and installation of a ground source heat pump. The contribution must also cover water source heat pumps.
• And £5000 off the cost of installing a Biomass boiler.

To apply for this grant, you will need the assistance of the installer who must also ensure that their work is done within 120 days of your application for the grant.

Another requirement you have to meet to be eligible for the BUS is that your property must have a valid EPC. If you need help finding your old EPC, you can ask a certified MCS (Microgeneration Certification Scheme) installer to issue a new one.

At the moment, you won’t be eligible for the BUS if your property is:

• A newly developed property
• Social housing
• Or if it has already been given funding or support for a heat pump or biomass boiler.

If your property has received a grant to make it more energy efficient, such as installing new insulation, you can still apply to the BUS. This leads us to the following requirement: whether your home has an installation capacity of up to 45kWth (kilowatt-thermal), which is a measurement of potential heat output from the installed system.

If you are waiting on your developer to complete your new home but also know the heating is going to be via fossil fuels, you cannot apply to the BUS. However, if you move in after the development has been completed, you could potentially submit an application.

If you’ve built your own property either by yourself or using a building contractor, you can apply for the BUS. However, it will not be eligible if the building is housing a business or organisation.

If you are a homeowner looking to specifically apply to the BUS for a discount on a biomass boiler, you will only be able to apply if:

• The property is off the gas grid
• It is in a rural location
• And if the biomass boiler has an emissions certificate showing that polluting emissions are minimal.

Currently, you cannot apply to the BUS for a biomass boiler if your property is self-built.

To apply, you can contact a suitable MCS certified installer for quotes. The installer will also help confirm whether you’re eligible for the grant. Always make sure you have seen and agreed on the quote before the installer submits it to the BUS.

If accepted, the value of the supplied grant will be taken off your installation cost.

Buy A New Boiler From Us on Finance

While buying a boiler on finance isn’t free, it is a financial option allowing UK citizens to upgrade to a newer, more efficient boiler.

Our team can install a new boiler in your home within 48 hours and for those who still have questions, you can chat with our WarmZilla assistants in the bottom right-hand corner.