What is the Boiler Upgrade Scheme?

The Boiler Upgrade Scheme was announced in October 2021 as part of the Heat and Buildings Strategy – the government’s plan to decarbonise homes and workplaces across the UK.

Heating accounts for almost a quarter of all UK carbon emissions and the Boiler Upgrade Scheme is intended to be the first step away from gas and oil boilers towards mass deployment of low carbon heating systems.

The government has set out targets to ensure all new heating systems in the UK are low carbon by 2035, including air source heat pumps (ASHPs), ground source heat pumps (GSHPs) and hydrogen ready boilers which are still under development.

The Boiler Upgrade Scheme aims to part fund 90,000 new heat pump installations over a 3-year period from April 2022, replacing the domestic Renewable Heat Incentive (RHI) which closes to new applications at the end of March 2022.

Should I invest in a heat pump?

Heat pumps can provide highly efficient heating and hot water in a wide variety of homes if the system is well designed by a competent and qualified heat pump installer.

They are more environmentally friendly than traditional systems such as gas or oil because they use naturally occurring heat from the ground or air, rather than burning fossil fuels to generate heat.

Heat pumps require electricity to move heat through the system and into the home, but for every unit of electricity it consumes it will produce 3 or 4 units of heat, making it much more efficient than a gas central heating system, which loses energy during the combustion process.

Are heat pumps expensive to run?

The potential for day-to-say savings depends on several factors, such as the size of the home, the type of heat emitters used, the fabric of the home and the existing heating system. But if you have suitable insulation and the heat pump system is correctly sized and based on accurate heat loss calculations then you should see lower running and maintenance costs.

If you want to try before you buy, our Daikin Sustainable Home Centre will be open soon where you can the latest heat pumps in action, discuss your retrofit, renovation or self-build with a heat pump expert and connect with trusted heat pump installers.

We’re having a launch day on the 3^rd March where you can meet with our experts, view heat pumps and take part in a workshop where you can find out more about this low carbon alternative to gas central heating.

The event is free, book your space here.

How much funding can I get?

Through the Boiler Upgrade Scheme, homeowners can get vouchers up to £5,000 for ASHP installations and £6,000 for GSHP installations, bringing the upfront cost of installing a new ASHP system closer the cost of a replacement boiler.

A new boiler could cost anywhere from £1,500 – £3,500 compared to an ASHP at around £8,000 – £11,000. With the full Boiler Upgrade Scheme Grant, you could be looking at paying £3,000 – £6,000 for your new heat pump system depending on the size of your home and the existing heating system.

The majority of the funding under the Boiler Upgrade Scheme is focussed on ASHPs because they are suitable for most existing properties.

Will I need to replace my radiators?

Not necessarily. A good heat pump installer will start with what’s already there, so you may be advised to add radiators to account for lower flow temperatures, or you may decide that installing new radiators and/or underfloor is worth it for the increased efficiency. It’s a fine line, but your heat pump installer will advise you on the best course of action.

Am I eligible for the Boiler Upgrade Scheme?

You may be eligible for a grant under the Boiler Upgrade Scheme if:

You are a homeowner or private landlord
You live in England or Wales (Scotland operates domestic energy efficiency improvements through Home Energy Scotland)
You have a valid EPC issued within the last 10 years
Your home has adequate loft and/or cavity wall insulation

Can self-builders apply for heat pump funding?

The Boiler Upgrade Scheme primarily covers existing homes (excluding new builds and social housing), however, if you are planning a custom or self-build you could be eligible for funding. You will not have to provide an EPC and will be given a three-month period to complete the installation.

Where can I find out more about heat pumps?

Our purpose-built showroom is fully kitted out with the latest Daikin heat pumps so you can see the technology in action. A heat pump expert will be on hand to answer your questions and you can connect with local installers to get your project off the ground.

Come to the grand opening on the 3^rd March to find out more!