Ofgem published its consultation response on 7 April 2022, setting out its final administrative position for the Boiler Upgrade Scheme (BUS)1. The scheme, formerly known as the Clean Heat Grant, was assigned to Ofgem as intended administrator in October 20211.
The BUS will launch on 23 May 2022 to aid the decarbonisation of buildings through providing upfront capital grants to support the installation of heat pumps and biomass boilers in homes and some non-domestic buildings1. Ofgem consulted on its proposed administrative approach from 16 December 2021 and received 44 responses from a variety of stakeholders, including installers, property owners, suppliers, consultancies, and industry and trade associations1.
"The document below is our consultation response which sets out our final administrative position for the BUS"
The response summarises stakeholder views, presents the points raised and responds to that feedback, outlining the proposed administrative approach for each aspect of the scheme and, where relevant, how the approach has changed1.
Why it matters for households
The BUS is designed to reduce the upfront cost of installing a heat pump or biomass boiler through a capital grant1. For a household considering a change in how it heats its home, the administrative arrangements determine when an installer can register and when an application can be made. Ofgem's role as administrator sits within the wider regulation and policy framework that governs how energy schemes are run and overseen1.
What happens next
The BUS will open to installers to create an account on 11 April 2022, and Ofgem has published guidance on how to set up an account1. The scheme will open for applications on 23 May 20221. Ofgem will publish comprehensive procedural draft guidance for installers before the scheme opens to applications and will invite stakeholders to provide feedback on that draft1. Ofgem will hold an event on 11 April to talk through its consultation decision and the account creation process, with further stakeholder engagement events planned in the lead up to scheme launch; details, including dates and how to sign up, will follow1.