Stiebel Eltron UK has welcomed the government’s decision to increase the Boiler Upgrade Scheme (BUS) grant to £9,000 for households currently heating with oil or LPG.
The uplift, confirmed by the Department for Energy Security and Net Zero, has now taken effect and applies to air source and ground source heat pump installations in England and Wales.
It represents a £1,500 increase on the standard £7,500 grant available to mains gas homes. Stiebel Eltron noted that it is aimed at the estimated 1.7 million off-gas-grid households across the two nations.
The change forms part of a wider set of measures designed to weaken the link between gas and electricity prices, the company said. These include a rise in the Electricity Generator Levy from 45% to 55% and a new voluntary long-term contract for low-carbon generators. The contract covers around a third of Britain’s power supply, offered only where it delivers clear value for money for consumers.
John Felgate, managing director of Stiebel Eltron UK, said: “We welcome this additional support to help homeowners adopt more environmentally friendly alternatives. Making more heat pumps available and affordable for homeowners looking to move away from oil and LPG is a step in the right direction.
“Incentivising the replacement of oil and LPG appliances means higher carbon reduction per installation and greater fuel cost resilience.
“For consumers, it’s important they understand that choosing the right heat pump still depends on the home. Property size, insulation levels and hot water demand all shape which system suits a household best, and that’s where manufacturers, such as ourselves, can add real value.
“We work closely with our installer network to match homeowners with the right heat pump option before any work begins. That way they can adopt it seamlessly and see the technology hit the ground running without issue.
“This grant increase adds much needed momentum to the shift towards net zero homes, and we will continue to support homeowners and installers through that transition, from choosing the right product to providing aftercare needed following its installation.”