How Much Is The Boiler Upgrade Scheme Going To Cost Me?

For homeowners looking to replace their old fossil fuel heating system, the Boiler Upgrade Scheme (BUS) is a government-backed grant that can be applied for.

The UK is legally committed to achieving net-zero greenhouse gas emissions by 2050, which means the entire nation must completely abandon fossil fuel heating.

Grants like BUS are meant to entice homeowners to take the leap and install new, greener heating solutions.

However, how much do these new green heating solutions cost, and what requirements do you need to meet to apply for a BUS grant?

What Are The Requirements To Qualify For A BUS Grant?

There are several key requirements homeowners need to meet to qualify for a BUS grant, namely, where you’re located.

The BUS grant is open to applicants only residing in England and Wales.

Other requirements include:

Property Ownership And Type

To apply for a BUS grant, you must own the property, whether it is your home, holiday house, rental, or business property.

However, the scheme is only applicable to domestic and smaller non-domestic properties, excluding large commercial buildings.

If you plan to install a biomass boiler, your property is only eligible if it is located in a rural area with no access to the gas grid.

Also, the property is not self-built; however, in particular situations, you may be eligible for BUS if:

• You or the original owner built it yourself or paid a builder to do it.
• A business has never owned the property.
• You can prove to the installer that your property is self-built. A copy of the title deed will work.

Replacing Fossil Fuel Systems

The homeowner needs to plan to replace an existing fossil fuel heating system to qualify for the BUS grant.

Systems that fall under these fossil fuel systems include:

• Gas
• Oil
• LPG
• And electric heaters

Currently, electric heating systems rely on a power grid that utilises fossil fuels to generate electricity.

Also, a major requirement is that the new greener system completely replace the old system rather than supplement it.

Valid Energy Performance Certificate (EPC)

To qualify for a BUS grant, your property must have a valid EPC, which is valid for 10 years.

If you are unsure of your EPC status, you can double-check here.

An EPC is a legal report that assesses your property’s energy efficiency on a scale from A (most energy efficient) to G (least energy efficient).

Also included in an EPC is:

• Estimated energy costs for heating, lighting, and hot water
• Recommendations for improving energy efficiency (e.g., insulation, double glazing)
• Environmental impact rating (carbon dioxide emissions)

EPCs must also be issued by an accredited domestic energy assessor.

Depending on location and property size, these inspections can cost between £60 and £120 for a domestic property.

As of 2024, your home doesn’t need to meet specific insulation requirements, but improvements are still recommended.

Installer And System Certification

Before you decide to find application documents for a BUS grant, .

The installer also must be certified by the Microgeneration Certification Scheme (MCS) and an approved member of a consumer code, such as the Renewable Energy Consumer Code or HIES Consumer Code.

Also, the system installed must meet minimum efficiency and capacity standards while remaining under the maximum installation capacity of 45 kWth, which covers the vast majority of these properties.

The overall system capacity for any shared ground loop system must not exceed 300 kWth.

Timings And Funding Restrictions

When applying for a BUS grant, your installers must ensure that the new system is working within 120 days of submitting the application.

Additionally, homeowners can’t use another public subsidy programme for funding the same project (the new boiler) or have received financial assistance before submitting their BUS grant application.

Lastly, you can only apply once for assistance from BUS.

If you have already received government funding or support for a heat pump or biomass boiler, you will not qualify and will need to pay for the full installation.

Also, grants are available on a first-come, first-served basis. Funding is limited per financial year

Now that we understand the requirements, what does the BUS scheme cover?

What Does The BUS Scheme Cover?

The scheme offers English and Welsh residents financial support for the installation of three types of environmental heating systems, including:

• Air Source Heat Pump (ASHP)
• Ground Source Heat Pump (GSHP)
• And biomass boilers

ASHP and GSHP work by extracting heat from their surroundings.

ASHP takes its heat from the outside air (even in cold weather conditions), while GSHP extracts heat from the ground surrounding buried pipe work.

Due to the need to bury pipes in the ground, GSHPs are typically more expensive than ASHPs, but are generally considered more efficient.

The BUS scheme provides up to £7,500 toward the supply and installation cost of either option.

For biomass boilers, you can qualify for financial assistance of up to £5,000 towards installation costs.

After the BUS scheme has been approved and some of the installation costs financed, what is the average amount homeowners can expect to pay for the completion of their new heating system?

How Much More Do You Need To Pay?

With three qualifying heating systems, costs can vary significantly, due mainly to the extensive work some boilers require.

What’s The Average Cost Remaining On Installing ASHP?

The estimated average total cost of installing an ASHP system in England and Wales typically ranges between £10,000 and £14,000.

This estimate includes the following:

If your home is small and well-insulated, it may lower these costs.

Older homes that require additional expenses, such as replacing pipework and radiators, start to add up.

To give you a rough idea of what you could be liable to pay after installation, it can range from £2,500 to £6,500 for a larger, more extensive job.

What’s The Average Cost Remaining On Installing GSHP?

As mentioned, GSHPs are usually more expensive than ASHP systems. This is due to:

• Requiring groundworks
• Specialist installation
• More equipment
• It disrupts the site’s access
• And generally, a longer installation timeframe.

The average cost of installing a GSHP system in England and Wales ranges from £18,000 to £35,000.

This wide range of costings depends on several key factors, like:

• Type of ground loop (horizontal vs vertical)
• Property size and heat demand
• Soil conditions and drilling costs
• And the extent of system upgrades needed (radiators, hot water cylinder, etc.)

The type of ground loop (the pipeline laid in the ground) will contribute to the overall costs.

As a general rule, horizontal loops are less expensive, but they require a larger land area and have pipes buried in trenches between one and two meters deep.

While vertical loops are ideal for space-limited properties, they are more expensive due to the additional drilling required.

Exact costs may vary based on drilling depth and ground conditions.

Also, this estimate includes the following:

What’s The Average Cost Remaining On Installing A Biomass Boiler?

The average total cost of installing a biomass boiler system in England and Wales typically ranges from £10,000 to £20,000.

This variation in cost is due to several factors, but generally, the estimates are as follows:

Other costs that can influence the overall price for installing a biomass boiler include:

• Manual vs automatic feed (automatic systems are pricier)
• Type of fuel (wood pellets, chips, or logs)
• Size of the property and system capacity
• And fuel storage type (internal vs external silo)

To give you a rough idea of what you could be liable to pay after installation, it can range from £10,500 to £27,500 for a larger, more extensive job.

Now that we’ve reviewed the estimated out-of-pocket costs, let’s review what you should do next if you’re interested in applying for the BUS scheme.

What You Should Do Next

If you’re keen to replace your property’s old fossil fuel system, you can take the following steps:

• Get quotes from several MCS-certified installers. Typically, these installers will apply for the BUS voucher and include the grant in their overall quote.
• Ensure your home has a valid EPC (issued within the last 10 years).
• Consider if your house needs additional insulation or upgrades.

For those just needing to replace their current gas boiler, we can help.

Let WarmZilla Help

At WarmZilla, we make boiler replacement stress-free and straightforward. Just answer our online survey, and we’ll match you with the best boiler options for your home within minutes.

Once you choose your preferred model, we’ll arrange professional installation within 48 hours, with no hidden costs, guaranteed.

Gas Safe registered engineers handle all installations, and we offer flexible finance options on top-rated boiler brands to make your upgrade even easier.