If you own a UK property and are considering upgrading your heating system, now is the time to do so. The government has implemented a boiler upgrade scheme encouraging you to opt for low-carbon heating systems.
This blog will explain everything you need to know about the government boiler scheme, from eligibility to make a claim.
What is The Boiler Upgrade Scheme?
The boiler upgrade scheme is part of the UK’S heating and building strategy. The strategy aims to decarbonise homes, commercial, industrial, and public sector buildings by 2050.
The schemes provide grants to help property owners fund the costs and installation of:
- An air-source heat pump
- A biomass boiler
- A ground source heat pump
Existing low-carbon heating systems cannot be replaced with funding.
How Much Can I Claim?
The amount claimable depends on the type of low-carbon heating system. Please refer to our table below
| Type of low carbon-heating system | Amount claimable |
|---|---|
| An air-source heat pump | £5,000 off the cost and installation |
| A biomass boiler | £5,000 off the cost and installation |
| A ground source heat pump | £6,000 off the cost and installation |
The new heating system must:
- Be installed and thoroughly checked by your installer on or after April 1, 2022
- It needs to meet your property’s needs for heating and hot water.
- Replace a system that uses fossil fuels to heat
- It is required to fulfil certain minimum efficiency criteria and other technical standards, which your installer will know.
When can I make a claim?
The boiler upgrade scheme will be from 2022 to 2025
Boiler upgrade scheme eligibility
Property Owner Eligibility
You can apply if you:
- Reside in the UK & Whales
- Own the property
Owners of second homes and private rental properties qualify for this scheme.
Property Eligibility
Your property is eligible if it’s domestic or a non-domestic small property that has:
- A maximum installation capacity of 45kWth
- A current certificate of energy performance (EPC), without any outstanding suggestions for cavity wall or loft insulation
Need to check your EPC report? Click here
Self-build Properties
A self-build needs the following to qualify:
- It has been constructed primarily using the initial owner’s labour or resources.
- No company or organisation ownership
Your installer will require confirmation that your home was self-built,
Property that Does Not Qualify
- Social buildings
- Newly built properties
- Homes where a heat pump or biomass boiler has previously received government financing or assistance
How to make a claim
Decided which heating system you want? Great, now let’s look at the following steps
Step one:
Find an MCS-certified installer in your area
Step two:
The installer will inform you if your installation is eligible for a grant.
Step three:
You reach an agreement on a price for the installation.
Step four:
The grant application is made by the installer.
Step five:
When Ofgem sends you an email, you confirm that the installer is working for you.
Conclusion
The boiler upgrade scheme is an excellent way for property owners to save money whilst supporting the UK’S heating and building strategy.
Pearl Accountants are specialists in accounting for Landlords. We provide various services, such as managing your tax and filing your annual accounts, helping you stay on top. Contact us today!
Shoaib Aslam is the co-founder of Pearl Chartered Accountants, a UK-based chartered accountancy firm that has multiple locations across London. They are experts in helping startups and established businesses with all aspects of growth, strategy, scaling up, accounting and tax planning.
