Insights from Ofgem’s Boiler Upgrade Scheme Quarterly Report

The Boiler Upgrade Scheme (BUS) is a UK Government initiative to reduce the cost of low carbon heating technologies to make them more affordable for consumers. This is achieved through offering grants to homeowners to support the installation of air source heat pumps, ground source heat pumps and biomass boilers. Further details about the BUS can be found here.

Ofgem provides quarterly updates on the BUS. The quarterly report covering the period from 1st August 2023 – 31st October 2023 has recently been released. We have summarised the key points below.

Vouchers:

The BUS voucher application consist of two stages:

Stage 1: The installer submits a voucher application. If this application is accepted, the voucher is issued by Ofgem.

Stage 2: Following the successful commissioning of an installation, the installer submits a voucher redemption application. Once the application is successful, a grant payment is made to the installer.

Voucher applications:

See below for a summary of the number of voucher applications received, number of vouchers issued, and the value of vouchers issued from August 2023 – October 2023.

Voucher applications receivedVouchers issuedValue of vouchers issued
Aug 2023 to Oct 20236,0052,568£15,763,000

Grants paid:

See below a summary of the number of voucher redemption applications received, the number of grants paid and the value of grant payments.

Voucher redemption applications receivedGrants paidValue of grant payments
Aug 2023 to Oct 20232,5082,332£11,745,000

Installations:

The table below provides information on the installations for which grants have been paid at the completion of stage two.

Air source heat pumpsGround source heat pumpsBiomassGround source heat pumps (shared ground loop)
Aug 2023 to Oct 20232,22785200

The table below shows the number and types of heating systems that have been replaced by new installations.

GasOilDirect electricLPGOtherCoalNone
Aug 2023 to Oct 20231,048435229573128504

What does the data tell us about the Boiler Upgrade Scheme?

The Boiler Upgrade Scheme has received positive feedback and interest since it started, and that trend continues. The data in Ofgem’s recent Boiler Upgrade Scheme Quarterly Report suggests that homeowners continue to take advantage of the Scheme and switch to low carbon heating technologies.

The data shows that air source heat pumps consistently stay the top choice in the Boiler Upgrade Scheme, followed by ground source heat pumps and biomass boilers in most cases.