The consultation on the Boiler Upgrade Scheme closed on 12 October 2023 and received a total of 205 responses from companies, trade bodies, industry professionals and members of the public1.
Air source heat pump grants increased from £5,000 to £7,500, and ground source heat pump grants from £6,000 to £7,5001. The scheme, introduced in 2022, provides upfront capital grants in England and Wales that reduce the installation cost of heat pumps and biomass boilers1.
DESNZ committed to several changes to the scheme's rules1:
| Change | Outcome |
|---|---|
| EPC requirement | A valid EPC issued within the last 10 years remains necessary, but the requirement for that EPC to have no outstanding loft and cavity wall insulation recommendations is removed |
| Off gas grid and self-build properties | Grant levels will not be varied for these properties when the regulations come into force, though varying them remains an option for the future |
| Biomass boilers | A biomass boiler with an integrated cooking function that cannot be separately controlled will be eligible |
| Commissioning dates | Applications will be ineligible if the system was commissioned more than 120 days ahead of the application |
On the EPC change, Elmhurst Energy's Technical Development Director, Andrew Parkin, said:
"Whilst Elmhurst welcomes the news that the Boiler Upgrade Scheme continues to use the EPC, it is very disappointing to see that the accepted 'Fabric First' approach is being abandoned here."
Elmhurst also noted that a valid EPC is one less than 10 years old that accurately represents the energy performance of the property, and that changes to a property may mean an EPC no longer does so1.
Why it matters for households
The grant uplift to £7,500 applies to both air source and ground source heat pumps, which changes the arithmetic on the upfront cost of a heat pump installation for homes in England and Wales. The removal of the insulation condition means a home whose EPC recommends loft or cavity wall insulation is no longer barred from the grant on that basis alone, though a valid EPC is still required and the eligibility rules still apply. Elmhurst's response argues that installing insulation first can reduce a property's heating demand, allowing a smaller heat pump and potentially lower running costs, and warns that a heat pump sized before later insulation work may end up oversized1. That is a view from an industry body, not a scheme rule.
What happens next
DESNZ said it would announce the timeline for the changes in the coming weeks and would continue to work with stakeholders as it prepares to introduce them1. The date the regulations come into force has not been reported.
Sources1 cited
- Boiler Upgrade Scheme Consultation Outcome - Elmhurst Energy, elmhurstenergy.co.uk