The Boiler Upgrade Scheme digital service was updated in May 2023 so that all stages of the application process can be completed by installers digitally, according to Ofgem's annual report on the scheme's first year1. The scheme, which provides upfront capital grants towards approved heat pumps and biomass boilers in homes and small non-domestic buildings in England and Wales, opened to applicants on 23 May 20221.
Installers were able to create an installer account from 11 April 2022, ahead of the scheme opening for applications on 23 May 20221. The digital service passed its Government Digital Standards beta assessment in November 20221. Applications for the scheme are made online on the gov.uk website1.
"In May 2023, further improvements were made to the digital service enabling all stages of the application process to be made by installers digitally."
The application process runs in two stages. Installers submit an initial voucher application, where Ofgem checks pre-installation eligibility criteria; if successful, a voucher is issued1. After an installation is commissioned, the installer submits a voucher redemption application, and once the remaining eligibility requirements are met the grant is paid1. Vouchers can be redeemed within the validity period for the relevant grant amount once an installation is commissioned and all evidence required for redemption is provided1.
In the first year to 31 March 2023, Ofgem received 15,768 stage 1 applications and issued 11,998 vouchers worth almost £69.1 million, rejecting 1,362 applications that failed eligibility checks, with 161 withdrawn1. It received 10,320 stage 2 applications, from which 9,983 grant payments worth almost £50.2 million were made, and rejected 58 stage 2 applications1.
| Measure | Figure |
|---|---|
| Stage 1 applications received | 15,768 |
| Vouchers issued | 11,998 (almost £69.1 million) |
| Stage 1 applications rejected | 1,362 |
| Stage 2 applications received | 10,320 |
| Grant payments made | 9,983 (almost £50.2 million) |
| Stage 2 applications rejected | 58 |
Of the grants paid, 96.3% were for air source heat pumps, 2.4% for ground source heat pumps, 1.1% for biomass boilers and 0.1% for shared ground loop ground source heat pumps1. Gas boilers made up 46.3% of the heating systems replaced and oil boilers 22.9%, with fossil fuelled systems accounting for 74.1% of grants paid; 15.9% of installations replaced no heating system, all in eligible self-build properties1. Of installations where information was provided, 99.6% were in domestic buildings1.
Over the first year, 1,055 installers created a BUS installer account, of which 915, or 86.7%, submitted applications1. The top 30 installers were responsible for 6,001 applications, or 38.1%, while 148 installers submitted a single application each1. Ofgem conducted 405 statistical audits during the year and assessed that 95.6% of those audited and closed to date were complying with scheme rules, noting that remedial action may bring more into compliance1.
Why it matters for households
The Boiler Upgrade Scheme is the first grant-based scheme Ofgem has administered providing fixed support for consumers installing eligible heat pumps and biomass boilers1. For a household, the practical effect of the May 2023 change is that the paperwork between the installer and the scheme administrator no longer has to leave the digital service at any stage, which bears on how quickly a voucher can move from application to redemption and payment. The Boiler Upgrade Scheme pays a fixed sum towards an eligible installation, and the grant amount depends on the technology installed. Eligibility turns on the property and the system, including the rules for homes with a gas boiler and the requirements for biomass boilers. Because applications are made by installers rather than householders, the application process depends on using an installer registered with the scheme, and the installer's role shapes what a household can expect. Ofgem's audit figures show that compliance checks continue after payment-stage applications, so evidence of the installed plant matters to whether a grant is confirmed.
What happens next
The government announced on 30 March 2023 its intention to extend the scheme until 2028, a three-year extension set out in the "Powering Up Britain: Net Zero Growth Plan"1. Ofgem states that the most recent update to the report was published on 26 June 20231. The report also cites the target of deploying 600,000 heat pumps per year by 2028 and plans to end new gas grid connections by 20251.
Sources1 cited
- BUS Annual Report - 2022-23, ofgem.gov.uk