The government has announced an increase to the Boiler Upgrade Scheme (BUS) grant for properties heated by oil and LPG, taking the total grant to £9,000. It says that this move will help those households and small businesses in England and Wales most impacted by rising energy prices, particularly in rural areas, to electrify their heating and provide greater certainty over energy bills.
Heat Pump Association UK, Chief Executive, Charlotte Lee, said: “The Boiler Upgrade Scheme plays a vital role in supporting households and small businesses to adopt heat pumps. Many who rely on heating oil have faced significant price uncertainty in recent months and lack the protection of the energy price cap.
“The £1,500 uplift for oil users will make the transition to heat pumps more affordable, helping to shield families and small businesses from volatile fossil fuel costs in the years ahead.”
Paul Rose, CEO of OFTEC, and Ken Cronin, CEO, UKIFDA, commented: “We welcome the government’s recognition that off-grid households using heating oil face unique challenges and higher costs to transition to heat pumps. Increasing the Boiler Upgrade Scheme grant to £9,000 is a positive step.
“However, the fact remains that, even with this additional funding, oil heated households still face a significant financial shortfall. The government’s own estimates put the switching cost at nearly £20,000. Most oil heated households simply do not have the disposable income available. Unfortunately, it will therefore often be wealthier households who will most benefit from this increase in grant funding.
“That’s not to say these households should remain on kerosene. Far from it, we want the government to support a wider range of low carbon technologies to ensure households have a choice that suits their current circumstances. Importantly, we need options that do not include the high upfront costs associated with heat pumps.
“Renewable liquid fuels, such as Hydrotreated Vegetable Oil (HVO), therefore need to be part of the mix.”
Image: Paul Rose, CEO of OFTEC, and Ken Cronin, CEO, UKIFDA (Oftec)
