Boiler Upgrade Scheme

  • RHI scheme remains till 31st ,March 2022 but disappointedly is to be scrapped and replaced by the Boiler Upgrade Scheem that will cap any grant at £5000 – 

  • Government sets out plan to drive down the cost of low carbon heating technologies like heat pumps, working with industry to ensure that in future they are no more expensive to buy and run for consumers as fossil fuel boilers

  • households to benefit from £5,000 government grants through £450 million Boiler Upgrade Scheme to help install low-carbon heating systems, part of more than £3.9 billion of new funding to decarbonise heat and buildings

  • £60 million innovation fund launched to make clean heat systems smaller and easier to install and cheaper to run

  • funding supports government’s confirmed ambition for all new heating systems installed in UK homes from 2035 to be low carbon

  • Recent volatile gas prices across the world have demonstrated the need for the UK to build a secure, home-grown energy sector which supports households to reduce their reliance on fossils fuels such as using gas boilers, while protecting consumers and businesses from unforeseen price spikes.

  • Over the coming years, industry leaders expect electric heat pumps will cost the same as gas boilers to buy and run. UK manufacturers are already making electric heat pumps more attractive to consumers and more affordable and the government wants to incentivise consumers to make the switch as quickly as possible.

  • To ensure electric heat pumps will be no more expensive to run than gas boilers, ministers want to reduce the price of electricity over the next decade by shifting levies away from electricity to gas. A call for evidence is expected to be published with decisions made in 2022.