Government announces key amendments to the Boiler Upgrade Scheme

On Tuesday 18^th November the Government published their consultation outcome of “Boiler Upgrade Scheme and certification requirements for clean heat schemes”. The Department for Energy Security and Net Zero have announced a number of key amendments to the Boiler Upgrade Scheme. Elmhurst take a look at what those changes are and what it means for industry.

What did the consultation cover and what was the outcome?

The Consultation asked for thoughts on the following proposed changes:

• allowing new heat pump purchase options alongside the BUS grant
• expanding eligibility for LCH technologies
• reviewing potential barriers to the consumer installation journey
• enhancing consumer protection by simplifying certification requirements and requiring installers to deduct grants upfront

Key Outcomes

• Grants will now be extended to support installation of air to air heat pumps in domestic properties with a value of £2500, Heat batteries will also begin to supported with a value of £2500, once appropriate product, design and installation standards have been implemented.
• The requirement that heat pumps can’t use heat in air expelled by an appliance will be removed allowing for Exhaust air heat pumps installations.
• More heat pump installations in combination with other electric heating appliances will also be allowed.
• Enhanced consumer protections – An assessment will be done on the MCS Customer Commitment Scheme as a consumer code before determining whether to approve it for the scheme.
• Third party ownership agreements will be allowed under BUS, enabling more people to be able to install low carbon heating technologies. All third party ownership would need to comply with rigorous eligibility requirements to ensure high quality installations and sufficient consumer protections.
• Finally there will be a requirement introduced for installers to deduct the grant amount from the upfront costs of the heat pump or biomass boiler installation.

Will an EPC still be required to qualify for the Boiler Upgrade Scheme?

The most impactful change to the BUS will be the relaxation of the requirement to provide a valid EPC from 2026/7 onwards. It is believed that this will broaden scheme access although the alternative form of evidence is yet to be decided.

EPC’s are still viewed as a clear and accessible tool that supports property owners to understand their energy performance and identify opportunities to make improvements on their energy bills and reduce carbon emissions. EPC’s also play a vital role in administration of the scheme and serve as a means of validating other scheme eligibility criteria. A post installation EPC plays a vital part in this validation.

A hybrid model will therefore be deployed whereby valid EPC’s will be required at the point of application for properties where an EPC already exists. Helping to reduce administration burdens for an installer and OfGEM and to maintain continuity for properties that already hold a valid EPC.

Where an EPC does not exist at the point of application, applicants will be permitted to provide alternative forms of evidence to OfGEM. It is not yet clear what this will look like but it has been said it will be proportionate and clearly defined. Elmhurst would argue that this could confuse consumers and undermine the value of EPCs as a trusted, certified document. What is the alternative to an EPC? We believe in the long run this will prove to be more expensive and time consuming to source than readily available assessments and certificates.

Elmhurst’s Thoughts

We are disappointed with the outcome of this consultation and believe strongly that EPC’s should remain part of the eligibility criteria for BUS. We are keen to see the details around the ‘alternative evidence’ that will be required by OfGEM but we still feel strongly that an EPC is the most efficient course of action for people applying for the scheme.

The RdSAP methodology was updated earlier this year, with recommendations for Heat pumps now occurring in line with Government methodology. EPC reform is also around the corner with the new look EPC supporting decarbonised heat and smart technologies making it even more suitable for BUS.

We would also advocate for any heat pump installations should be accompanied by a Heat Loss assessment, carried out by a competent Heat loss assessor, to ensure it is suitable and properly sized for that property.

Further information:

https://www.elmhurstenergy.co.uk/product/heat-loss-assessor/

https://www.elmhurstenergy.co.uk/blog/2025/10/14/the-growing-demand-for-heat-loss-assessors-in-the-uk/