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Boiler Upgrade Scheme - Progress Report with Latest Stats and Obstacles (Updated 26 September 2024)
- From: Kevin Smith
- Published 24 October 2024
The UK government continues to back the move to keep the country on a way toward cleaner, greener energy source through the Boiler Upgrade Scheme (BUS) – launched in order to assist low-income households to replace traditional gas and oil boilers with much more energy-efficient and environmentally friendly heating options such as heat pumps, and biomass boilers. Launched in 2022, the new scheme has been under constant effort by reducing carbon emissions towards net zero by 2050 in the UK.
As of 26th September 2024, the most recently updated statistics on Boiler Upgrade Scheme will reflect an excellent view of the impact and progress of this scheme. Let’s dive a little deeper into recent statistics, trends, and implications.
Core Metrics
1. Total Grants Issued
The BUS programme has issued more than 60,000 grants to-date. That is 15,000 up from last year’s 45,000 grants. The uptick in interest by the public in renewable heating systems reflects a steady rise, one fueled in part by government incentives and growing awareness of climate change.
2. Total Heat Pump Installations
Out of total installations, 55,000 were air source heat pumps (ASHP). It emerged as a leading scheme in the installation category. Ground source heat pumps (GSHP) comprise about 7,500 installations. Only around 500 installations of biomass boilers were there. Air source heat pumps (ASHP) are obviously more accepted and a favourite choice. This might be because of the cost factor due to which air source heat pumps are more reasonably priced compared to the installation of ground-source systems (GSHPs).
3. Total Funding Allocated
A total of £390 million has been spent to date as the average grant per installation stands at £6,500. This forms a significant portion of the comparative costs of conversion to renewable heating technologies for home-owners and business owners alike.
4. Geographical Distribution
The South East and South West of England have recorded the highest uptake of grants, with these regions accounting for almost 40% of all installations. Scotland and Wales have recorded fewer installations although, admittedly these are improving in the last quarter.
5. Carbon Emissions Reduction
The BUS has ensured that around 250,000 tonnes of CO2 in emissions are curbed every year. This amount is just about to increase because many installations are underway and nearing completion. It will naturally help the UK achieve its climate goals for 2030 and 2050.
6. Installations in Residential vs. Commercial Buildings
The majority have been for domestic properties, while 10% have been in small businesses. Homeowners are still the primary beneficiaries, though growing interest from the commercial sector, particularly in rural areas where there is a greater proportion of oil-fired systems in use.
Recent Trends and Developments
Some trends have emerged from the latest statistics that offer insights into the future projections regarding the Boiler Upgrade Scheme:
1. Increased Public Awareness
Increased public awareness about climate change and energy efficiency is another factor that has led to the increase in recent applications. In addition to government-directed campaigns that made people opt for renewable heating options, expensive energy prices have forced more homeowners in the UK to adopt renewable heating options.
Upgrade Your Boiler For Free
If you or any of your household is on benefits, you may be eligible for boiler upgrade grant.
2. Rising Energy Costs
In recent times, ever-rising fossil fuel costs have increased the attractiveness of renewable heating systems even further. Homeowners in the UK are desperate to cut energy costs, and their interest towards the Boiler Upgrade Scheme has been further increased as it offers premium options to individuals who want to transition to more energy efficient systems.
3. Technological Advancements
Technological advancements in both heat pump efficiency and in biomass boiler systems have made the installations less costly and uncomplicated. There are new modern systems that are quite efficient, cheap, and more adoptive.
4. Government Targets
The UK government has high targets to deploy 1 million heat pumps by 2028. While installation rates under the Boiler Upgrade Scheme are encouraging so far, scaling up will require more support, including better supply chains and the need for trained installers.
5. Supply Chain Issues
Although there is a good uptake, there are a few supply chain issues that have to be addressed. For example, in several areas, availability of heat pumps as well as certified installers has been a bottleneck, causing delayed installations. The government has noted this and is working with industry partners on how they can resolve this.
6. Rural vs. Urban Divide
The uptake has been greater in the rural areas where off-grid properties are predominantly oil/gas heated. In contrast, urban areas where the gas network is greater, the switch to renewable heating systems has been slower.
Obstacles and Objections
The Boiler Upgrade Scheme has certainly been pretty successful at points, but it also has some challenges and criticism:
1. Differential Awareness Across Population
While awareness is on the rise, individuals belonging to certain strata, specifically families below the poverty line and older individuals are unaware or unsure of how to access the BUS programme. Further outreach toward targeted groups is required to ensure that these groups benefit from the free government grants.
2. Initial Costs
Although the grants are in place, for many people, their main barrier is still the initial cost of installing a heat pump or a biomass boiler. Installation costs for air source heat pumps (ASHP) average out at £10,000, so although a grant of £5,000 is available, the homeowners must cover a large portion by themselves.
3. Performance in Cold Weather
In terms of its performance in very cold weather, there is still a bit of cause for concern. While modern heat pump models are considerably more efficient than older models, a number of homeowners in colder climates did report problems with keeping their homes heated during the winter months.
4. Shortage of Qualified Installers
The shortage of skilled installers remains a challenge. More skilled engineers are required for the successful implementation of this programme.
5. Administrative Delays
There were some complaints from applicants that they received delays in receiving the approval of the grant, which delayed the installation work. Reducing bureaucratic holdups by facilitating the application process will be essential as the scheme expands.
Upgrade Your Boiler For Free
If you or any of your household is on benefits, you may be eligible for boiler upgrade grant.
The Future of the Boiler Upgrade Scheme
The Boiler Upgrade Scheme will be one of the most prominent aspects of the UK’s energy transition plan. The government has widely announced its plans to extend the scheme beyond 2025, possibly increasing funding and opening the scheme up to more people.
These are some of the initiatives that could make the scheme even more effective include:
1. Wider Coverage Expands Eligibility
Increasing the number of properties that will be accepted under the scheme as well as business-oriented proposals may expand the reach of the programme. For instance, grants for larger commercial buildings could drive higher uptake across the business sector.
2. Increased Grants
With energy costs likely to rise up, grants expansion will likely bring more households into the process. Larger grants, especially for low-income households, will help incentivise adoption.
3. Partnership with Private Sector Companies
Private sector companies can be partnered with to fund further research and development in renewable heating technologies, which will reduce their costs and improve system efficiency.
4. More Training Programmes
A government-subsidised training programme for installers can help alleviate this installer shortage problem so that expansion of the scheme is not hampered by a lack of qualified engineers.
5. Integration with Other Schemes
The Boiler Upgrade Scheme can be integrated with other green energy initiatives offered by the UK government, including grants for the installation of solar panels, or subsidies for energy storage, to deliver a coherent scheme towards the decarbonisation of homes.
The Bottomline
The Boiler Upgrade Scheme (BUS) has greatly contributed to efforts towards the promotion and implementation of renewable heating technologies in the UK. With more than 60,000 grants already awarded and significant reduction in carbon emissions, it has built a great basis for future growth. However, supply chain issues, installer shortages, and initial high costs associated with current solutions stand as some of the challenges to be identified to ensure sustained growth and achievable delivery in ambitious targets in the country. The Boiler Upgrade Scheme will still serve as a pivotal component on the way to Britain’s greener and sustainability-oriented future as the plan evolves.
Frequently Asked Questions
The Boiler Upgrade Scheme has succeeded in awarding thousands of grants to homeowners across the UK. The number is at an actual count dependent on the exact funding period, but a lot has been devoted by the government to the scheme, and it is expected that this number will continue rising in the near future.
For homeowners, the Boiler Upgrade Scheme must be eligible, with which homeowners must meet some criteria. These generally include an existing gas boiler that has exceeded 15 years, eligibility for the Boiler Upgrade Scheme, and the house should be located in England or Wales, with energy efficiency standards set for the new heating system.
Although the Boiler Upgrade Scheme has a great number of benefits, there are many barriers that may influence take-up. First of all, the installation cost of a new heating system is arguably one of the most important perceived barriers, even if the government is supposed to provide a grant. This may discourage some potential homebuyers from switching, as they feel that these heat pumps are unreliable and will not work very well. Lastly, installers might not be readily available in many regions, which make installation take much more time.
