To make homes more energy-efficient and reduce carbon emissions, the UK Government has recently made significant changes to the Boiler Upgrade Scheme. The changes aim to make heat pumps a cleaner and more efficient alternative to gas boilers as well as more affordable for households.
Benefits at a Glance
These new government regulations will make it easier and more affordable for homeowners to install heat pumps.
What has changed?
- Lower costs: By skipping mandatory cavity wall and loft insulation, homeowners can save up to £2,500 on heat pump installation. This makes heat pumps more affordable.
- Flexibility: Households can now install heat pumps and add insulation later at their convenience. This gives them the flexibility to improve energy efficiency at their own pace.
- Choice: Homeowners now have more choice about when and how they make improvements to their homes.
- Competition: The government has taken steps to make the heat pump market more competitive. This will increase the chances of customers getting better prices and better services.
- Clean Heat Market Mechanism: CHMM, which encourages the use of heat pumps, has now been postponed until April 2025. This means that homeowners have more time to install heat pumps.
Making Heat Pumps More Attractive
The Boiler Upgrade Scheme is now offering a grant of up to £7,500 towards the cost of installing a heat pump. Previously, homeowners were required to install cavity wall and loft insulation to qualify. But now this condition has been removed, making a heat pump a more attractive option for many families.
Focus on Affordability
The government now realizes that housing improvements cost a lot. Hence, they are now facilitating households to gradually pay off the cost of home improvements. This means you can now install a heat pump first and then pay to add insulation.
This new approach will make improving energy efficiency for homes easier and more manageable.
Addressing Market Concerns
The Energy Security Secretary has recently expressed concern over rising boiler prices and lack of competition in the market. This is causing trouble to the customers and they are not getting good boilers at the right price.
To address this issue, the Competition and Consumer Protection Authority (CMA) will be reviewing the boiler industry. The CMA will examine whether the industry is functioning effectively and delivering fair results to consumers.
Clean Heating on Hold
The Clean Heat Market Mechanism, a market-based incentive scheme for heat pump adoption, has now been postponed until April 2025.
The government is thinking of giving priority to consumer protection while taking this decision. To ensure that families benefit from this scheme, it will be carefully and properly implemented.
Continued Support for Energy Efficiency
The Government is committed to helping you improve the energy efficiency of your home. You can get support through a number of help schemes such as the Improved Boiler Upgrade Scheme, the Great British Insulation Scheme and the Energy Company Obligation (ECO) scheme. The plans aim to help 700,000 households with insulation and other energy-saving measures by March 2026.
How you can get help:
- Do an energy assessment for your home: This will give you a better idea of what you can do to reduce your home’s energy costs.
- Find out about assistance programs that are right for you. You can find more information on websites such as https://energysavingtrust.org.uk/.
- Apply for grants and financing. Grants and financing are available for many aid programs.
New Gas Boiler Standards
If you’re not ready to switch to a heat pump just yet, don’t worry. From 2026 new gas boiler standards will come into force which will help make your home heat cleaner and more efficient.
What do these new standards include?
- From 2028, heating controls will become more efficient, allowing you to make better use of your heat and save money.
- Combi boilers will improve energy efficiency, which can reduce your energy bill and reduce your impact on the environment.
The government is also focusing on increasing competition in the heating market. This will give you a better chance of choosing the right boiler for your needs and budget.
Overall, the government’s goal is to make clean and efficient home heating more accessible and affordable for families.