Boiler Upgrade Scheme in Swansea

The UK Government introduced the Boiler Upgrade Scheme (BUS) in April 2022 to help homeowners install low-carbon heating systems. The grant is designed to reduce the upfront cost of renewable heating technologies such as Air Source Heat Pumps (ASHPs).

  1. Properties with cavity walls must have them insulated — usually free of charge, with some exceptions.
  2. Accessible loft spaces must also be insulated, which may also be free.
Air Source Heat Pump Grants in Swansea

The scheme launched in April 2022 with funding to support 90,000 installations across England and Wales. Originally planned for three years (around 30,000 systems per year), the programme has been extended due to slow uptake.

Air Source Heat Pump grants

Through the Boiler Upgrade Scheme, eligible homeowners can receive:

  • £7,500 off the cost of an Air Source Heat Pump
  • £7,500 off the cost of a Ground Source Heat Pump
  • £7,500 off the cost of a Biomass Boiler*

* Biomass Boilers are only available in rural areas and off the mains gas grid.

Air Source Heat Pumps BUS scheme

You may qualify if you:

  1. Live in Wales or England
  2. Own your property
  3. “New Build” properties will not normally qualify. However, if you are “building your own home”, that will qualify.
  4. Have a system with an installation capacity up to 45kWth (covers most homes)
  5. Have a valid Energy Performance Certificate (EPC)* with no outstanding recommendations for loft or cavity wall insulation**
  6. Are replacing an existing fossil fuel system (oil, gas, LPG, or electric)
  7. Are not replacing an existing low-carbon system

* If you don’t have an EPC, we can arrange one for you.
** Certain insulation exemptions apply.

Who Qualifies for a Boiler Upgrade Grant?

An ASHP looks similar to an air conditioning unit (see examples on this page) and works like a fridge in reverse. It extracts heat from the outside air — even at temperatures as low as -18°C — and transfers it into your home to heat your water and radiators.

Your fuel source is the air around you — free, renewable, and endlessly available. The unit runs on electricity.

What Is an Air Source Heat Pump?

An Air Source Heat Pump usually costs between £8,000 and £15,000, depending on the make, model, and property requirements (e.g., radiators, hot water cylinder, system size, etc).

After applying the £7,500 grant, most installations cost around £6,500.

An ASHP typically lasts 20–25 years — roughly twice as long as a gas boiler.

You may also qualify for Solar Panel grants, helping reduce running costs through free electricity generation.

  • The outdoor unit is similar in size to an air conditioning system.
  • It needs a good airflow and about 80cm x 80cm (3ft x 3ft) of indoor space for a hot water cylinder.
  • If you already have a system boiler or electric heating, you may already have this cylinder.

For BUS applicants, your property must:

  • Have a valid EPC, and
  • Does not have outstanding insulation recommendations.

If an EPC states that a cavity wall is not insulated, then under the rules of the BUS, it will have to be insulated. This is not the case with solid walls.

You might qualify for a cavity wall insulation grant, which does not require income thresholds or government benefits. The qualifying criteria are that your EPC rating is a D, E, F, or G, and that your Council Tax banding is an A, B, C, D or E.

This also applies to loft insulation, where there is no more than 100mm of existing insulation.

An ASHP is typically 300–400% more efficient than a mains gas boiler.

While it uses electricity (currently more expensive per kWh), the system extracts free heat energy from the air, making it highly efficient.

If you currently use coal, oil, or LPG, the savings can be significant — up to £500 per year compared to an older gas boiler.

Electricity costs should decrease over time as renewable generation increases, and solar panels can help offset running costs.

  • Low maintenance – annual servicing only
  • Lower carbon footprint – supports net zero goals
  • No fuel deliveries (oil, LPG, coal)
  • Durable components with long warranties
  • Reduced energy bills, especially if combined with Solar Panels
  • Cost: £8,500–£15,000 before grants
  • Space: Requires outdoor (Air Source Heat Pump) and indoor installation (Hot Water Tank) areas
  • Noise: Around 45 decibels (similar to a library); may increase slightly in very cold weather when the Air Source is working harder.
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