10 minute read
News focus: Heat in Buildings Strategy
Boiler Upgrade Scheme: how will it work?
Grants of up to £6,000 will be available from spring 2022 to encourage homeowners to change their fossil fuel boilers to appliances that use a low-carbon heat source. Registered Gas Engineer looks at the detail of how the government anticipates the scheme will operate.
The Boiler Upgrade Scheme will be available in England and Wales from spring 2022 until 2025, providing grants for installing low-carbon heating in homes and some non-domestic settings. The details of how it’s likely to work were released alongside publication of the Heat and Buildings Strategy just ahead of last month’s COP26 in Glasgow.
Regulations will be brought in ahead of the launch and the government says it will be working closely with the scheme’s administrator Ofgem on the detail, having consulted with potential users.
The Heat and Buildings Strategy sets out the government’s ambition to install 600,000 heat pumps a year by 2028 and scale up low-carbon heating. As part of this, the £450 million Boiler Upgrade Scheme replaces the Clean Heat Grant and will run for three years. Ofgem will be responsible for handling enquiries, reviewing applications, making payments and monitoring compliance.
How much is the grant?
The scheme will provide grants of £5,000 towards the installation and capital costs of air source heat pumps and biomass boilers, and grants of £6,000 for ground source heat pumps. The scheme will support systems up to 45kW.
Applying for the grant
Application will be in two stages and installer-led for both application and redemption. Installers – not their customers – will need to provide a quote at the voucher application stage. They will need to get approval from their customers as part of the process. Installers will then redeem the voucher after the installation has been completed: the government says it’s committed to ensuring prompt payment.
Vouchers will be valid for three months for air source heat pumps and biomass boilers, and six months for ground source heat pumps. Unused vouchers that expire or are returned will be ‘recycled’ and the public will be able to see whether vouchers are available.
The government says it will work closely with Ofgem on the detail of the scheme’s administration and function, learning from the experiences of the Renewable Heat Incentive and the Green Homes Grant.
Qualifications
Installers – and the installed system – must be MCS-certified or equivalent and a member of a consumer code such as RECC (the Renewable Energy Consumer Code) or HIES. They will need to show evidence of their certification when they apply for the voucher, and MCS certificates will need to be submitted when the voucher is redeemed.
MCS is expected to consult on reducing admin costs for membership ahead of the scheme’s launch. It’s due to introduce a revised Heat Pump Standard (MIS 3005), through which installers can be certified in design or installation or both.
Installers will not need to be registered with TrustMark.
Compliance
Installers will need to provide certain information at the time of application – for example, showing that a biomass installation is in a rural area. After work has been completed, they will need to provide further evidence to redeem the voucher, such as an MCS certificate.
Ofgem will have powers to make on-site checks before the grant is paid to confirm eligibility of the installed system. The scheme administrator will also have the powers to:
At a glance
• The property must be suitable for the installation and have a valid EPC • Installers must provide a quote when they apply for the grant • Installers must be MCS-certified or equivalent • Installers will redeem the voucher after installation is complete • Complete installation must be MCS-certified • Vouchers are valid for 3 months for air source heat pumps and biomass boilers, and 6 months for ground source heat pumps • The scheme will be administered by Ofgem.
• Require corrective action where non-compliance is identified. • Revoke vouchers or recoup grant payments from installers where corrective action is not taken, or in cases of serious non-compliance.
Property suitability and technologies
To ensure installations are only undertaken in suitable properties, a valid Energy Performance Certificate (EPC) less than 10 years old must be shown. There must be no
Boiler Upgrade Scheme: how will it work?
The Boiler Upgrade Scheme grant CANNOT be used for:
X New-build properties X Hybrid systems comprising a heat pump and fossil fuel boiler X Solar thermal – unless installed as part of a heat pump or biomass system that is funded by the scheme as long as the heat pump or biomass boiler is able to meet the full space and water heating demand X Systems used for process heating X Biomass stoves that radiate heat into the room X Biomass boilers in urban areas.
outstanding recommendations for loft or cavity wall insulation. If the homeowner wants to have insulation fitted at the same time, then a new EPC showing that the work has been carried out can be shown when the voucher is redeemed.
3Heat pumps will only be eligible where they replace existing fossil fuel systems or direct electric systems and must have a minimum SCOP of 2.8 – an increase on the 2.5 rating required for domestic RHI.
3Biomass boilers must be capable of using a liquid to deliver heat. Biomass boilers will only be supported in rural areas and where they replace existing fossil fuel systems, where that system is not fuelled by mains gas, or direct electric systems.
Heat meters and those that specifically measure the electricity usage of heat pumps are NOT required, although the government says it recognises the benefits that smart meters could bring, especially to enable access to ‘time of use’ tariffs. ■
Scotland targets fuel poverty as well as zero carbon
The Scottish government also published its Heat in Buildings Strategy in the autumn, setting out its pathway to net zero by 2045 – five years earlier than targeted in England and Wales.
The Strategy will require more than 1 million homes and the equivalent of 50,000 nondomestic buildings to convert to zero heat emissions by 2030.
The government has fuel poverty in its sights too, outlining steps to reduce greenhouse gas emissions and to remove poor energy performance as a driver of fuel poverty.
Interim targets have also been set for a 75 per cent reduction in carbon emissions by 2030, and 90 per cent by 2040.
It’s also set statutory fuel poverty targets requiring that, in 2040, no more than 5 per cent of households are fuel poor, no more than 1 per cent are in extreme fuel poverty and that the Agency’s will raise public understanding and awareness, coordinate delivery of investment and coordinate national, regional and local government delivery of heat decarbonisation and energy efficiency.
Zero Carbon Buildings Minister Patrick Harvie said ahead of the strategy’s launch: “As we take these bold steps to reduce
fuel poverty gap is no more than £250 (2015 prices).
The Scottish government has committed to publish a refreshed Energy Strategy as well as an Energy Just Transition Plan in spring 2022. It says it will use this to further refine its approach to heat in buildings.
It’s also going to create a National Public Energy Agency to accelerate the change in how people heat and use energy in homes and buildings. The emissions from our homes and buildings, we must do so in a way that leaves no one behind. This strategy sets out the guiding principles that will ensure our actions to decarbonise heat do not have a detrimental impact on rates of fuel poverty and instead serve to tackle social inequalities.
“This is a huge transition, affecting communities, businesses and households all across Scotland and we must work collaboratively – across public and private sectors, across parliament, and across governments, to deliver it.
“Our strategy also makes it clear that, to deliver the transformational change required, the UK government must take urgent action in reserved areas to support the just transition to decarbonised heating. Our Strategy commits to phasing out the need to install new or replacement fossil fuel boilers, and to consult on introducing new legislation and regulations to underpin this transition and ambitious investment programme, but equivalent action from the UK government in reserved areas, such as on energy pricing, will be essential to deliver these commitments.
“It is essential that homes and buildings achieve a good standard of energy efficiency and by 2033 we want to see all homes meeting at least an EPC band C standard, where feasible and cost effective. This will help ensure energy costs in future are affordable and that our actions continue to remove poor energy efficiency as a driver of fuel poverty.” ■
What does the industry think of the government’s Heat and Buildings Strategy? While many have welcomed the long-awaited details, others think it doesn’t go far enough to help the UK reach net zero by 2050.
Government should be going further
Iain Bevan, commercial manager of Heating & Renewables, Daikin UK
Gas engineers overlooked again
“Once again, installers have been largely overlooked: we are the ones who must retrain – but at what cost to us? Although the sentiment behind this free government money is all well and good, without decent, well-trained installers doing the job correctly, there will be a lot of end users with cold homes come winter 2022.”
Andy Gibbs, gas engineer
Pleased to see £5,000 grant
“We firmly believe that all viable technologies have a place, including electrification, hydrogen, and deployment of low-carbon heat networks. BEIS is wise to leave these options open as it is abundantly clear that no single solution will deliver net zero.
Incentivise low-carbon installers
“The number of heat pump installers needs to increase substantially in order to support the ambitions laid out in the Heat and Buildings Strategy. But this does, however, come at a cost to installers as they have to lose valuable income when undertaking training courses. We urge the government to take the necessary steps to recognise and incentivise those wishing to embark on the necessary training to become low-carbon installers.”
Mark Wilkins, technologies and training director, Vaillant
A framework to move forwards
“Given the diversity of the UK building stock and consumer base, we are delighted that the strategy encompasses a mix of policies to promote heat pumps, hydrogen heat, heat networks and energy efficiency, as well as new funding, giving the industry a framework to push forward with innovative solutions.”
Graham Russell, managing director, Viessmann
Karen Boswell, managing director, Baxi Heating
Doesn’t set the world alight
“The grant hardly sets the world alight and is insufficient to the scale of the challenge we face in terms of reaching net zero. It subsidises 30,000 heat pumps being installed each year and is well short of the support needed to get to 600,000 heat pumps installed each year by 2028. My suspicion is that the Chancellor is putting the brakes on the Prime Minister’s flight of green fantasy.”
Mike Foster, CEO, Energy and Utilities Alliance
Huge let-down
Frances O’Grady, general secretary, TUC
Home suitability not addressed
“When considering a heat pump, there are many factors to assess, which are not considered here, such as the property’s suitability. A home may need to be adapted to accommodate a heat pump, such as resizing radiators and making space for hot water cylinders, which carry cost implications.
“Therefore, the proposed grants may help with the cost to purchase a heat pump, but there will still be costly investment required from homeowners in existing properties.
Carl Arntzen, CEO, Worcester Bosch
