What is the Boiler Upgrade Scheme?

Heated homes don’t have to be overly expensive, neither for the wallet nor, for that matter, the environment. And that is where the Boiler Upgrade Scheme by the UK government comes in: to make the switch from old, inefficient heating systems to their modern, eco-friendly alternatives, such as heat pumps or biomass boilers.
Since its launch in May 2022, it has proved really popular, with applications, as of date, in excess of 55,000 to date, and in September 2024 it saw a huge uptake of over 3,200+ applications!!
Equally, if your boiler is particularly old, then depending upon individual circumstances you may be able to claim support under the ECO4 boiler replacement scheme as well. This fully funds the cost of updating your old boiler.
Boiler Upgrade Scheme
It is part of the scheme by the UK government to enhance greener homes and buildings. As such, all households throughout England and Wales will benefit from having grants to install low-carbon heating systems. It involves huge heat pumps and biomass boilers, which have so far been cleaner and more efficiently reliable compared to traditional installations with fossil fuel-driven boilers.
The scheme provides:
- Up to £7,500 against the cost of air source and ground source heat pump installation.
- Biomass boiler: £5,000.
To ensure efficiency, the heating system must meet specific standards, and grants are only available through registered installers. And just in 2024, that budget was extended to £180 million showing how serious the government is about the reduction of emissions on home heating.
How Does it Work?
The Boiler Upgrade Scheme will go a long way toward paying for a new heat pump or biomass boiler if you are upgrading. Here’s how it works:
- You can’t apply directly. Your installer, who must be registered under the scheme, applies on your behalf.
- The grants are provided in the form of vouchers. These cater for a maximum of £7,500 for heat pumps and £5,000 for biomass boilers. Vouchers remain valid for three to six months depending on the system.
- Quick and secure process. Checks are put in place to ensure vouchers are used appropriately and guard against fraud.
What is the Boiler Replacement Scheme?
The ECO4 scheme covers the Boiler Replacement Scheme, which focuses on the installation of better-efficient boilers in low-income households.
Under the scheme, eligible homeowners and tenants can benefit from the free boiler grant scheme, allowing outdated boilers to be replaced with modern, highly efficient ones—completely free of charge.
Here’s what’s covered:
- New energy-efficient boilers boast values of up to 94% efficiency.
- Full installation costs, with no upfront cost.
- Additional upgrades in some cases, such as insulation or smart heating controls.
Government Announces Improvements to Boiler Upgrade Scheme
The UK Government has made the Boiler Upgrade Scheme even more attractive under its Warm Homes Plan. Here is what’s new:
- An extra £30 million added to how much it funds the scheme until March 2025.
- An increase in funding of £295 million for 2025/26.
- Making the installation of air source heat pumps in England easier by removing the planning restrictions: for example, heat pumps no longer have to be installed more than one metre from your property’s boundary.
Signs Your Old Boiler Needs an Upgrade
Here are some clear signs it’s time to consider an upgrade:
1. Frequent Breakdowns and Repairs
If you’re having to phone an engineer a lot, those repair bills mount up. You might save money in the long run by replacing your boiler.
2. High Energy Bills
A sudden rise in energy costs without using more often points to an inefficient boiler that’s wasting energy.
3. Water Leakages
Water pooling around your boiler isn’t just messy; it’s a sign of a deeper mechanical problem that needs urgent attention.
4. Strange Noises
Whistling, banging, or gurgling are usually the sounds that indicate that something is wrong internally in the boiler.
5. Uneven Heating
Are some rooms colder than others? That may mean your boiler is not heating your home efficiently, and it’s time for an upgrade.
Who Qualifies for the Boiler Upgrade Scheme?
The Boiler Upgrade Scheme is open to homeowners and small business property owners in England and Wales. To be eligible, you must:
- Own your property – this includes homes and small businesses.
- Currently use a fossil fuel heating system (such as a gas boiler) or an electric system without a heat pump.
- Have an EPC from the last ten years.
- Ensure your property’s heating capacity doesn’t exceed 45kWth, which covers most homes.
Requirements for Installers
Your installer should be certified under the Microgeneration Certification Scheme (MCS) and be a member of a recognized consumer code, such as the Renewable Energy Consumer Code (RECC).
How Does the Boiler Upgrade Scheme Benefit You?
Here’s how the Boiler Upgrade Scheme can make the difference:
- Lower Energy Bills: Newer systems tend to be more efficient and use less energy overall for the same purpose, thus saving money over time.
- Savings at the Front End: The scheme covers up to £7,500 and considerably cuts down the installation cost.
- Eco-Friendly Heating: With it replacing the fossil fuel system, carbon emissions decrease and go toward a greener planet.
- Future-Proof Your Home: Heat pumps and biomass boilers will be integral to the UK’s low-carbon heat transition. That said, your home will already be future-proof by this fact alone.
How Do I Apply for the Boiler Upgrade Scheme?
Application to the Boiler Upgrade Scheme is easy. The process flows from the following.
1. Find an Installer
Search for MCS-accredited installers within your locality. This is the best way you can get competitive quotes probably from three or more installers.
2. Check Your Eligibility
The installer will assess your property and let you know if you qualify for a grant.
3. Agree on Quote
Once eligibility is confirmed, agree on a quote from your installer. You never have to worry about claiming it later, as it will be deducted upfront – an amount up to £7,500.
4. Let the Installer Handle It
Your installer will apply for the grant and complete the installation.
The Bottom Line
The Boiler Upgrade Scheme makes swapping to a modern, energy-efficient heating system more affordable than ever. With grants in the thousands and the added savings of lower bills and reduced carbon emissions, it’s good for your wallet and a win for the environment.
If you’re considering upgrading your heating, this scheme is a golden opportunity to do so at a minimal upfront cost. So don’t wait – find a certified installer today and start your journey toward a greener, more cost-efficient home!