In short, the BUS is a government grant to help people install a heat pump or a biomass boiler.
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It aims to support the decarbonisation of heat in buildings and provide upfront capital grants in England and Wales to support the transition to clean energy heating systems.
How much is available?
The BUS covers three low-carbon heating energy systems. Previously, the grant was £5,000, but it was increased to £7,500 on 23 October 2023.
Air source heat pump: £7,500 towards installation cost
Ground source heat pump: £7,500 towards installation cost
Biomass boiler: £5,000 off the installation cost
Who can apply for the BUS?
It’s open to homeowners and owners of small business* (SME) properties in England and Wales only.
To apply, you will need to:
Have a valid Energy Performance Certificate (EPC)
Own your property
Have a property with an installation capacity of up to 45 kWhth (kilowatt-thermal). This covers most homes.
A property that’s already been given government funding or support for a heat pump or biomass boiler.
*SME business installations are subject to a 20% VAT, whereas residential customers are currently exempt from VAT.
How is the grant paid?
The grant is paid directly to your installer upon proof of installation, and they handle the entire application process for you. The grant amount is then deducted from your final invoice, so you only pay the difference, not the full amount. This makes the process seamless and more affordable for you.
How much funding is available?
On 18th December 2023, the government announced £1.5 billion in additional funding for the BUS and extended it for another three years until 2028.