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Introduction

The newly introduced BUI scheme aims to incentivize households in England and Wales to transition to ASHPs, GSHPs, or biomass boilers through upfront grants. With a total allocation of £450 million and an annual cap of £150 million, the initiative seeks to partially fund the installation of up to 60,000 renewable heat sources over the next six years.

1) Eligibility Criteria by Property

Eligibility criteria differ based on technology, as outlined below. Importantly, households are not required to undergo a whole-house retrofit assessment. Similar to the existing RHI scheme, households must possess an Energy Performance Certificate (EPC) less than 10 years old, with no pending recommendations for loft or cavity wall insulation.

(Note: Lack of loft or cavity wall insulation doesn't hinder voucher application; however, installation is mandatory within the voucher period before the actual setup.)

ASHP and GSHP

• Replacement of any fossil fuel boiler or direct electric heating system qualifies.

• Custom new builds are eligible without needing an EPC.

• Listed property or conservation area exemptions align with those of the RHI.

Biomass

• Eligible only for rural homes outside areas with 10,000 or more people.

• Exclusive to off-grid homes; those on mains gas in rural areas are ineligible.

• A relevant emissions certificate is mandatory for the biomass boiler.

2) Eligible Technologies

MCS-accredited ASHPs, GSHPs, and biomass boilers meet the eligibility criteria. ASHPs and GSHPs must exhibit a minimum efficiency of 2.8 SCOP in-home.

3) Exclusions

Hybrid systems, combining a gas or oil boiler with a heat pump, do not qualify. 'Heat-only' systems, where the heat pump or biomass boiler solely provides space heating while hot water is supplied by a fossil fuel boiler, are ineligible. Exceptions include immersions for hot water topping up and anti-legionella protection. Solar thermal is permissible if the heat pump or biomass boiler caters to full space and water heating demands.

4) How the Voucher Scheme Works

The voucher scheme comprises two stages, fully 'installer-led':

Stage 1: Voucher Application

• Seek a quote from an MCS registered installer, initiating the voucher application.

• The installer leads the application process, deducting the voucher value from the installation cost.

Stage 2: Voucher Redemption

• Upon completion, the MCS installer submits evidence for payment directly to them.

5) Time Limits

Vouchers for ASHP and biomass have a 3-month time limit, while GSHP vouchers have a 6-month limit. Quarterly caps may be introduced if funding depletion is anticipated before the fiscal year-end, with widely publicized updates. In the presence of a cap, vouchers may exhaust before the quarter ends, requiring applicants to wait for the next quarter.

6) Consumer Protection

Consumer protection measures under BUI align with those of the RHI. Utilizing certified companies ensures consumer protection. Refer to our consumer protection blog for comprehensive steps and checks for complete assurance.

7) Post Installation Requirements

In summary, no post-installation requirements exist. Households are not obligated to report on system performance, and smart metering/monitoring, though encouraged, currently lacks funding support.