BOILER UPGRADE SCHEME GRANT - Update From Ofgem
At the end of last week, Ofgem issued an update on the progress towards the launch of the new Boiler Upgrade Scheme. Here’s a recap of what’s been announced:
Boiler Upgrade Scheme Key Dates
Key dates for the Boiler Upgrade Scheme have been released and are as follows:
1st April 2022 – Commissioning date – Eligible low carbon heating systems that are commissioned on or after this date will be entitled to support under the Boiler Upgrade Scheme.
11th April 2022– Account creation opens - This enables MCS installers to open an account for the scheme. At this stage, Alto Energy will be verified upfront and once an account is set up we will not need to go through this process again. This will make applying for vouchers a smoother process.
23rd May 2022 – Voucher applications open – Alto Energy will be able to apply for vouchers for grants from this date. We will also be able to redeem them and receive payment, provided the heat pumps have been successfully commissioned such that we can raise the MCS certificate against them.
Image by the Department of Business, Energy & Industrial Strategy (BEIS) detailing the BUS voucher and redemption process.
Information for Customers
My Project Is Already underway
If you heat pump project is already underway and will be commissioned between 1st April and 23rd May, Alto Energy will apply for your voucher when the scheme opens for voucher applications, week commencing 23rd May. In order to process this, we will contact you beforehand to explain the process, and to obtain your permission to apply for a voucher on your behalf. In addition to this, you will be required to confirm your consent for the voucher application directly to Ofgem (they will contact you by email as part of the process). Once the voucher has been issued, we will then redeem the voucher as quickly as possible. We are assured by Ofgem that payments will be made weekly.
Please note that whilst BEIS have confirmed that the eligibility criteria are virtually identical to that of the Renewable Heat Incentive, issuing of vouchers is subject to availability and eligibility, both of which are at Ofgem’s sole discretion. Therefore Alto Energy are not in a position to be able to guarantee the grant amounts.
My Project Has Not Yet Started
If your heat pump project has not yet started but you intend to proceed with a Boiler Upgrade Scheme grant, then Alto Energy will apply for a voucher on your behalf. In order to do this, we will need to obtain your permission to apply for a voucher on your behalf. We will issue you with a form to complete in order to provide this permission. You will then need to confirm with us when the heat pump is going to be installed. We will only apply for the voucher once an installation timeframe has been confirmed, this is to minimise the risk of vouchers being awarded but then expiring because they have not been redeemed in the required timeframe.
If you wish to install your heat pump before the 23rd May (i.e. before we are able to apply for your voucher), then this is still possible, however you will be required to make full payment for your heat pump equipment in advance.
Please note that whilst BEIS have confirmed that the eligibility criteria are virtually identical to that of the Renewable Heat Incentive, issuing of vouchers is subject to availability and eligibility, both of which are at Ofgem’s sole discretion. Therefore Alto Energy are not in a position to be able to guarantee the grant amounts.
What Is The Boiler Upgrade Scheme Grant?
The Boiler Upgrade Scheme is a new Government scheme to encourage homeowners and business owners to replace their fossil fuel boilers and install low carbon heating systems, like air source heat pumps and ground source heat pumps. The scheme is scheduled to start from 1st April 2022.
“Air Source Heat Pump Grant - £5,000
Ground Source Heat Pump Grant - £6,000”
Homeowners or business will receive a grant of £5,000 for installing an air source heat pump, or £6,000 for installing a ground source heat pump. As an MCS accredited installer, Alto Energy will administer the grant with Ofgem on your behalf, and deduct the full grant amount from your quotation. In this way, the amount you pay upfront for your heat pump will be much closer to the amount you would pay for a traditional fossil fuel system, making it easier for you to access the significant carbon savings and running cost savings.
Who Is Eligible For The Boiler Upgrade Scheme Grant?
WHAT TECHNOLOGIES ARE ELIGIBLE FOR THE BOILER UPGRADE SCHEME?
In short – heat pumps.
The Boiler Upgrade Scheme grant will support the following technologies:
Air source heat pump systems - £5,000 grant
Ground source heat pump systems - £6,000 grant
Heat pump systems with a capacity of 45kW or less will be eligible for the scheme. All projects will need to be completed by an MCS approved installer, like Alto Energy, and have an MCS certificate issued for the project by the MCS approved installer.
WHAT PROPERTIES ARE ELIGIBLE FOR THE BOILER UPGRADE SCHEME?
The Boiler Upgrade Scheme is only available in England and Wales.
All existing domestic and non-domestic buildings are eligible for the Boiler Upgrade Scheme. As with previous grant schemes there will be a requirement for any basic energy efficiency measures to have been completed prior to the heat pump installation. This means that if you have cavity walls they must be filled, and you need a minimum of 270mm rockwool insulation (or equivalent thermal resistance) in the loft. In order to demonstrate this, you will need to have an up to date Energy Performance Certificate (“EPC”) which does not show these measures as being required.
As well as the existing housing stock, the Government also recognises the need to prevent fossil fuel systems being installed in the first place, and to this end new self-build homes are also eligible for the Boiler Upgrade Scheme. In order to be eligible, self-build homes must meet the Ofgem definition of “Custom Build”, which can be found on the Ofgem website.
HYBRID SYSTEMS AND PARTIAL HEATING
In order to be eligible for the Boiler Upgrade Scheme grant, the heat pump must be designed to provide all of the heating and hot water to the property. The scope of the property will be defined by the EPC for that property.
The following situations will not be eligible for a grant:
Hybrid installations with a back-up boiler
Heating only heat pumps, where the heat pump just provides heating and not the hot water
Installations where the heat pump only covers part of the load defined on the EPC
How Do I Get The Boiler Upgrade Scheme Grant?
The entire Boiler Upgrade Scheme grant process is led by the MCS accredited installer. So, if you chose Alto Energy for your heat pump project, we will apply for and administer the grant on your behalf.
The process for obtaining your grant is the following:
Alto Energy will produce an outline quotation for your project.
Once you’re happy that you want to proceed with a heat pump, you pay us to complete the full MCS designs for your property. If it’s a new build or major renovation project we can do this from plans, otherwise we will need to carry out a site survey to gather detailed information about your project.
After the designs are completed, we will issue a final quotation.
Once you accept the quotation, we will apply to Ofgem for your Boiler Upgrade Scheme grant once we have all the information we need.
The contract can then proceed. The payments you make to us will be the quote amount less the grant amount
Once the project is finished, we will redeem the voucher and we are paid the grant directly by Ofgem
Any Questions?
If you have questions about the Boiler Upgrade Scheme grant, then please do not hesitate to get in touch with our team.