Boiler Upgrade Scheme Annual Report: Unveiling the results

Ofgem has recently released the first ever Boiler Upgrade Scheme (BUS) annual report. The comprehensive report provides a one-year update on the Boiler Upgrade Scheme activity since it launched in May 2022 up until 31st March 2023.

Launched on 23rd May 2022, the Boiler Upgrade Scheme incentivises people to install low-carbon heating systems as they replace their old boilers over the next decade. The report includes some interesting sections, such as,

  1. Voucher summary,
  2. Grants analysis, and
  3. Installer profile.

In this blog post we unveil the results and provide a summary of some of the key points in the annual report.

Summary of Boiler Upgrade Scheme Voucher Applications

The BUS grant application is a two-stage process. To summarise the process, stage one consists of an installer submitting a voucher application and stage two consist of the installer submitting a voucher redemption application following the commissioning of an installation. To read about the application process in further detail, please click here.

The BUS annual report provides some interesting statistics about the voucher application process.

Summary of grant application process and year 1 volumes

  • 15,768 voucher applications were submitted by installers
  • 11,998 vouchers were issued by Ofgem
  • 10,320 voucher redemption applications were submitted by installers
  • 9,983 grant payments were received by installers

Out of the 15,786 voucher applications submitted by installers, 95.9% of these were for air source heat pumps.

Applications received by technology type

  • 15,127 air source heat pump applications received
  • 181 biomass applications received
  • 447 ground source heat pump applications received
  • 13 ground source heat pump (shared ground loop) applications received

Expired vouchers

  • 9,771 vouchers were issued with the expiry date of 31/03/2023
  • 1,511 vouchers became expired
  • 5% of vouchers issued became expired

Analysis of grants paid

In year 1 of the Boiler Upgrade Scheme, Ofgem paid grants worth £50,167,000 supporting the installation of 9,983 low carbon heating systems. As mentioned above, a large number of installations under the BUS were air source heat pumps.

Grants paid by technology type

  • 9,617 grants paid were for air source heat pumps
  • 243 grants paid were for ground source heat pumps
  • 114 grants paid were for biomass boilers
  • 9 grants paid were for ground source heat pumps (shared ground loop)

Regional distribution of BUS installations

  • South West England had 19.6% of the total BUS installations
  • South East England had 18.4% of the total BUS installations
  • East of England had 13.5% of the total BUS installations
  • North East of England had 2.7% of the total BUS installations
  • London had 4% of the total BUS installations
  • Wales had 6.2% of the total BUS installations

Replaced heating systems

A key aim of the BUS is to replace fossil fuel heating systems with lower carbon alternatives. Below are details of the heating systems replaced by installations under the BUS.

  • 4,626 gas heating systems
  • 2,289 oil heating systems
  • 880 direct electric heating systems
  • 359 LPG heating systems
  • 124 coal heating systems
  • 113 ‘other’ heating systems
  • 1,592 no replacement of heating systems

Domestic vs non-domestic

  • 8,710 grants paid for domestic installations
  • 37 grants paid for non-domestic installations

Installation costs

Below are details of the average total quote by technology type for grants paid.

  • £13,590 for air source heat pump
  • £16,716 for biomass
  • £26,594 for ground source heat pump
  • £18,465 for shared ground loop ground source heat pump

Profile of Boiler Upgrade Scheme installers

The BUS annual report has gathered information about information on the installers who have created an account under the Boiler Upgrade Scheme.

  • Within the first year, 1,055 installers successfully created a BUS installer account.
  • Out of the 1,055 installers who created a BUS installer account, 915 of these have submitted applications under the BUS.
  • The top 30 installers were responsible for 6,001 of applications under the BUS. There were 148 installers with a single application each.

The Boiler Upgrade Scheme annual report has provided a detailed snapshot of the Scheme’s progress from its launch in May 2022 to the close of the first year on 31st March 2023. Each section in the report has unveiled many valuable insights that offer the industry a deeper understanding of the Scheme’s impact. To read the full report, please click here.

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