This is alongside new purchase and ownership models which could spread the cost of a heat pump over several years, or give households the opportunity to lease one for a monthly fee.
The Government has launched a consultation on the proposals, which it says are designed to give homeowners more choice over how they can implement cheaper, lower carbon heating.
Demand for heat pumps is surging, with March seeing the biggest month for applications to the BUS so far. Just over 4,000 applications were received to the fund, which offers grants of up to £7,500 towards the cost of heat pump installation.
This represents an increase of 88% on the same month last year. Families with a heat pump can save around £100 on their average energy bills when used with a smart tariff, the government says.
The BUS consultation was launched as part of a range of new measures announced under the Warm Homes Plan.
The announcement also included plans to train up to 18,000 skilled workers to install heat pumps and insulation, fit solar panels and work on heat networks through the extension of the Heat Training Grant, and launch of the Warm Homes Skills programme.
Minister for Energy Consumers Miatta Fahnbulleh said: “Our Warm Homes Plan will mean lower bills and warmer homes for millions of families – helping drive better living standards as part of the Plan for Change.
“Following a record-breaking month for applications to our Boiler Upgrade Scheme, we are now proposing to give working families more choice and flexibility to pick the low-carbon upgrades that work best for them.
‘Clean power army’ plans
The government has opened a competition for training providers and further education colleges to secure £8m to deliver 9,000 retrofit training places across England, with a further £9.3m expected to be allocated over a second phase.
There will be four work packages covering courses in:
- Fabric insulation and solar panel installation
- Skills for working on non-domestic buildings
- Retrofit assessor and retrofit co-ordinator qualifications
- Shorter entry-level courses for those new to the retrofit sector.
Sturge Mazzocchi, Head of Solar Careers Programme at Solar Energy UK, said: “The residential solar power market saw 22,623 MCS registrations in March alone, a number that has not been exceeded for a decade.
“But the availability of skilled professionals has the potential to hold us back. That’s why Solar Energy UK launched Solar Careers UK earlier this year, to encourage more people to join our fast-growing industry.
“I look forward to collaborating with the government and training providers to maximise the programme’s take-up.”
Boosting the heat battery market
Businesses such as tepeo have long been calling for heat batteries to be included in the Boiler Upgrade Scheme as a viable alternative for homes where a heat pump is not suitable.
The company’s CEO, Johan du Plessis, previously told REI that this change would help boost the heat battery sector.
MCS is also working on developing a new installation standard for heat batteries, or thermal energy storage systems.
The scheme’s CEO, Ian Rippin, said: “It’s crucial that homeowners are supported in making the move to low carbon technology. Alongside financial support, this means giving consumers confidence in the ability of these technologies to heat and power their homes.
“As the UK’s quality mark for renewable energy technologies like heat pumps, MCS sets product and installation standards to give consumers that confidence, and it is a requirement of the Boiler Upgrade Scheme that installations are MCS certified.
“To provide assurance for alternative low carbon heating systems, MCS is currently developing an installation standard for thermal energy storage systems (TESS), or heat batteries. This is to ensure consumers investing in renewable heating systems can be confident in the quality of their installation, across a range of technology types.”
Other reactions to the Warm Homes Plan updates
Heat Pump Association
Charlotte Lee, CEO at the Heat Pump Association, said: “Following a record year for UK heat pump sales in 2024, we warmly welcome today’s announcements, which will continue to support growth in the sector and increased deployment of clean heating.
“The additional funding to support those wishing to become qualified to install heat pumps and heat networks is especially welcome, alongside proposals to expand the Boiler Upgrade Scheme to make clean heating solutions an accessible option for more consumers.”
Heat Geek
Aadil Qureshi, CEO of Heat Geek, said: “Installers are the bedrock of this transition. They not only fulfil customer demand, but help guide and advise homeowners. More funding for programmes that deliver high quality training and good installation outcomes are essential for the future of this industry.”
Octopus Energy
Greg Jackson CBE, Founder and CEO of Octopus Energy, said: “Britain has a huge opportunity to create thousands of good jobs as part of our energy transition. At Octopus, we’re playing our part by training 4,000 new low-carbon heating apprentices by 2030, but the industry needs thousands more if we’re going to reach our climate targets.
“It’s good to see backing for training that will get anyone, no matter if they’re school leavers or career changers, into these high-impact jobs.”
Energy UK
Ned Hammond, Deputy Director (Customers) at Energy UK, said: “Expanding the Boiler Upgrade Scheme and giving families greater choice in the types of low-carbon heating systems available to them is a really positive move.
“Underpinning this is the need for a skilled and dedicated installer supply chain, so it’s fantastic to see government extending its support for skills and training as part of today’s announcement.
“The government’s figures show that 71% of installers benefitting from the Heat Training Grant said it made all the difference in their decision to upskill into heat pump systems. Extending the subsidy out to 2030 would help further with bringing in the thousands of new entrants we need into the heat pump and heat networks sectors.”
Image credit: iStock
