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The new heat pump grant – boiler upgrade scheme (BUS)

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Graham Hendra
(@grahamh)
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 I wrote this to stop getting questions about the damn BUS scheme, its a quick guide, it's not comprehensive but i hope it helps. 

BUS a quick guide

On 31st March 2022 the RHI grant for heat pumps ends, the new Heat pump grant scheme starts on 23rd May 2022 Its called Boiler upgrade Scheme or the BUS scheme.

There are a few simple rules:

The BUS scheme is a voucher for £5000 for an air source heat pump. You cannot get the grant as a homeowner, its paid to the installer, they will pass the saving onto you.

The installer must be MCS accredited as must the heat pump. MCS is a quality standard, installers must go through a process to get this accreditation, it is not a simple job and can be costly. If your installer is not MCS accredited, or you buy a non MCS heat pump there will be no grant. MCS accreditation is not easy to get, its not a 5-minute job, contact easy mcs who will help you through.

You only get the grant if you are removing a fossil fuel boiler and replacing it with a heat pump, you cannot keep your boiler.  The boiler upgrade scheme covers all boilers which burn fossil fuels, gas, LPG and Oil, it also covers electric storage heaters and electric boilers. It does not cover replacing an old heat pump with a new one.

The £5000 voucher is not dependant on the installed price, you get £5000 if the heat pump installation is £1 or £50000.

The performance of the heat pump is not taken into consideration for the BUS, only efficient systems will get through, but the hurdle of efficiency is very low COP of 2.8. No one makes a heat pump that poor anymore.

The homeowner will need to have an Energy performance certificate for the house, it must be valid, and it must show that you have 200mm of loft insulation and cavity wall insulation in the house. The government are keen to only support you if you have done some insulation work to your house, paying people to heat houses which are thermal disasters would not be a good idea so, If your house does not have cavity wall insulation AND loft insulation 200mm thick the EPC will highlight this. There will be no grant until these two simple jobs are complete and the new EPC shows its done. If you don’t have cavities or a loft you do not have to have this work done.

You can find your EPC here https://www.gov.uk/find-energy-certificate If you can’t find your EPC, you have to have a new one, they cost about £50. Mr google will help you find a local EPC assessor.

In the Bus scheme the voucher benefits the owner of the heating system, not the owner of the building so if you want to get a heat pump installed in a rented property as long as the landlord doesn’t mind you get the benefit of the grant.

There is still some uncertainty about commercial buildings and the BUS, watch this space.

 

The BUS process is complex as expected but here goes. The homeowner contacts an mcs heat pump installer who surveys the house and works out the best system. This is a complex and rigid process, but the MCS installer knows how to do it. They will quote and then register the quote with the BUS website. Ofgem who run the BUS scheme will contact the homeowner to check they have been quoted and are happy, if they are the installer will be told to proceed and a voucher will be put aside for the job. Once the job is installed the installer will invoice the homeowner the cost of the heat pump minus £5000. The homeowner will be asked to confirm to Ofgem that they are happy. When they confirm they are the voucher will be issued to the installer, they will or should receive the £5000 within a week from Ofgem.

The risk for installers is that if the job is not completed or the homeowner is unhappy, they won’t sign the “I’m happy” form so the installer will not get the last £5000 of the job.

On 11th April installers can go to the Ofgem BUS website and register for a BUS voucher account. Installers can start applying for vouchers on the 23rd of May 2022. If an installation is installed before May 23rd, it can be registered for a voucher after May 23rd but the installer will potentially be out of pocket until the voucher is paid.

Heat pump expert


   
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Mars
 Mars
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Very helpful. Thanks for sharing Graham.

Buy Bodge Buster – Homeowner Air Source Heat Pump Installation Guide: https://amzn.to/3NVndlU

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(@alec-morrow)
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well intentioned but ill conceived…just keeping the cost of heat pumps high!

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(@kev-m)
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From my own experience of GHG, I can see a lot of installers just slapping up to £5k on the price.  A couple of things I would do to stop this: 

- restrict the scheme to use of ASHPs and other hardware where manufacturers/importers publish real prices online

- requirement for detailed quotes that separate out hardware and labour

- vetting by MCS of quotes for 'reasonableness'

My GHG was for loft insulation so at least is was easy to work out how much the installers were ripping off the scheme (they doubled the price but I got it for a third so I was happy-ish)  

 


   
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cathodeRay
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I don't see this working very well either. In many, maybe even most, installations, the rads will need upgrading, because the scheme requires the ASHP retrofit to replace a fossil fuel boiler, and the rads will be fossil fuel sized, and too small for an ASHP, or if replacing electric storgae heaters they will need both rads and all the associated pipework etc. This sort of installation is going to cost £10,000 upwards, so the homeowner will be £5,000 upwards out of pocket, assuming they have that sort of amount of cash lying around. They will then get MCS approved quotes that say they don't needs new rads (of my four MCS quotes, two said I didn't need the rads upgraded) and so can save several thousands pounds, which naturally they will do, and so get a system that fails to heat their home adequately. Some will realise they need new rads, and will either swallow the cost, others will decide to stick with fossil fuels for the time being. I also agree with @kev-m, without very transparent pricing, and someone to check quotes, there are very strong incentives for installers to inflate prices with these types of scheme.   

Midea 14kW (for now...) ASHP heating both building and DHW


   
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 mjr
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Posted by: @grahamh

On 31st March 2022 the RHI grant for heat pumps ends, the new Heat pump grant scheme starts on 23rd May 2022

Why a nearly 2-month gap?

Posted by: @grahamh

The performance of the heat pump is not taken into consideration for the BUS, only efficient systems will get through, but the hurdle of efficiency is very low COP of 2.8. No one makes a heat pump that poor anymore.

Is that published book COP (or SCOP?) or as-installed COP? I'm sure we've seen a few installations on these forums and others which would struggle to achieve 2.8 even on a mild sunny day thanks to badly-sited external units, buffer tanks and fixed high flow temperatures controlled by on/off thermostats.


   
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(@alec-morrow)
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@mjr it’s taking a long time for the penny to drop about on-off thermostats!

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Saz
 Saz
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At the moment tenants have no absolutely rights when it comes to issues with their heat pumps as they do not own the pump so at least if they have bought/contributed to the system themselves they would it seems, but what would happen if their landlord wanted the house back? I can also see how this scheme might drive up standards regarding installation but I do also agree with @mjr re the COP, mine struggles to get anywhere near the published COP, even in September. Mine has a buffer vessel and is a high temp system which I'm also not happy about as I have UFH and radiators sized for a low/standard temp system in a well-insulated new build. I was literally crying over my fuel bill BEFORE the price rise.


   
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(@batalto)
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@saz went don't you just lower the flow temperature?

12kW Midea ASHP - 8.4kw solar - 29kWh batteries
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Current weather compensation: 47@-2 and 31@17
My current performance can be found - HERE
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Saz
 Saz
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If it's not something I can do using the basic controller then I'm not permitted to do it myself via the installer menu. I asked the last engineer that was here to alter it to 45 degrees for the heating but my rads are still hot and the UFH has hot spots. I know the UFH runs most efficiently on lower temps, rads may need slightly higher (but I do have large Stelrad K2) but my consumption is still an issue. I have already asked for the heat curve to be lowered once also. Wierdly The flow temp from my UFH is lower than the return also, even shortly after it clicks on before room up to temp. This heat pump can manage the legionella cycle w/o the use of an immersion but the immersion is still wired into it. So many questions! Very little answers. Meters pick up what? when no heat or hot water being called for.


   
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Saz
 Saz
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Tenants should have the right to have their systems optimised for them so that they can live in comfort but in the most efficient way possible. We may not own the pump, but we are the bill payers. In my opinion ASHP's need alot of tweaking after install, and we should have the right to alter certain settings to suit our needs without compromising anything. Is it not well known that high temp systems are less efficient for new builds? My system has had endless leaks and pressure drops also. It has been a nightmare for me and I actually want to be positive about ASHP's but am finding it very difficult at the moment.


   
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Graham Hendra
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@mjr i have no idea, ask Ofgem, im just telling you how its going to work. Ofgem know all the answers 

Heat pump expert


   
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