The Boiler Upgrade Scheme

So, what’s happening?

As part of the Government’s commitment to reduce greenhouse gas emissions to Net Zero by 2050, it has announced plans to encourage households to replace gas boilers with low carbon heating options, including heat pumps. At present in the UK, 22 million homes are heated by natural gas. However, the Government has set 2035 as the time after which it wants no new gas boilers to be sold and they are introducing a scheme to incentivise people to replace their boilers. So, what does this mean for you? In this article, we explain the Boiler Upgrade Scheme and how it will work.

What is the scheme?

The proposal is that a £5,000 grant will be offered from April 2022 to those living in England and Wales as part of the £450 million Boiler Upgrade Scheme. The Prime Minister Boris Johnson has enthusiastically stated that the new grants will help homeowners make the switch from gas boilers to low carbon heating options sooner, without costing extra, making ‘Going Green’ a better choice when a boiler needs upgrading. Information regarding how to apply for the £5000 grant will be given by the Government closer to when the scheme begins in April 2022. This grant will cover any energy efficient heating system, including heat pumps.

What is a Heat Pump? How Do They Work?

A heat pump is an electric device that extracts warmth from the air outside, a water source or the ground and then transfers it to our homes at a higher temperature. This produces heat that can then be used to heat our homes and water. At its most basic, it is a reverse air conditioning unit, which is mainly used to cool.

Pumps that extract warmth from the air – ‘air source heat pumps’ – are similar in appearance to air-conditioning units and are installed outside of a property. The size of the pump will depend on how much heat is needed to be generated for the size of your home.

Heat pumps that extract warmth from the ground – ‘ground source heat pumps’ – will need enough outside space so that shallow trenches or boreholes can be dug to accommodate them.

Are Heat Pumps Energy Efficient?

Heat pumps require electricity to run, but their energy-efficiency credentials come from the fact that they don’t burn fuel to generate heat. A heat pump will be most effective in well-insulated properties. In addition, the electricity network is undergoing large decarbonisation projects making it more environmentally friendly.

Are there Alternatives to a Heat Pump?

With many different types of properties in the UK, there will need to be differing types of new, low-carbon heating solutions, including hydrogen-ready boilers. Hydrogen-ready boilers are like gas boilers but can burn both natural gas and hydrogen. Linking one to the central heating system would mean a significant reduction to the carbon emissions from a residential property.

Are Heat Pumps Expensive to Buy?

In short, yes. Presently, a heat pump reportedly costs anywhere between £5,000 to £18,000. The cost all depends on the type of pump and size of your property. With the cost of living steadily rising, this figure seems alarming. The good news is that the Government expects prices to fall at a significant rate by 2025. As an example of this, renewable energy group, Octopus Energy have reported on their website that they believe that they can reduce the cost of heat pumps to be in line with the cost of natural gas boilers by April 2022 when bought with funds from the government grant.

The government is committed to decarbonising our homes and the boiler upgrade scheme is one of the initiatives to facilitate this goal. Do your research but a £5,000 grant is significant and could help you get started on your property’s green journey.

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