The government’s previously announced changes to the regulations surrounding its Boiler Upgrade Scheme are now in place. As of 8 May 2024, households no longer need to have cavity wall or loft insulation installed to qualify for BUS grants of up to £7,500 towards a new heat pump system. This could potentially reduce the costs associated with installation in a semi-detached property by approximately £2,500.
Tamara Birch, senior writer for The Eco Experts, explains: “By removing the requirement to install cavity wall or loft insulation, families are given greater choice on how they improve their home. The government said by doing this, households will be able to spread out the costs of changes at a pace that works for them, but warns properties should still be well-insulated to keep costs down.”
In the latest episode of The Eco Experts’ Positive Energy Podcast, What the hell is a Heat Pump?, Bean Beanland, director for growth & external affairs at The Heat Pump Federation, explains that insulation is still important, and that “we should all be reducing our energy demand by insulating. But, what’s now recognised is that insulation is not a prerequisite for successful heat pump deployment”.
Daniel Särefjord, CEO of Aira UK, says: “Heat pumps do the same job as gas or oil boilers, they heat water and distribute this around your home to keep your property and water warm. The difference is that heat pumps are four times more efficient and technologically more advanced than gas or oil boilers.
“For households that previously required loft or cavity wall insulation to secure the BUS grant, this policy change will make the installation of a heat pump £2,500 cheaper on average, allowing people to choose when to upgrade their home insulation and making heat pump ownership even more budget friendly.”
Since its launch in 2022, BUS has had 36,741 applications and has now paid out close to £127 million in vouchers to customers. The number of applications for the Boiler Upgrade Scheme increased by 75% in February 2024, compared to February 2023, according to recent government data.
