For many households that want a low-carbon heating system, they will need to upgrade their current heating system (e.g. radiators and pipework) as well as possible upgrades to the fabric of their home such as insulation. The current funding landscape separates these two aspects, with different schemes and eligibility criteria. A complex and unapproachable subsidy landscape and lack of funding to increase the efficiency of existing systems may be preventing some uptake of the current boiler upgrade scheme.

The administrative burden of the boiler upgrade scheme may be increasing the cost to install heat pumps, and preventing some smaller installers from registering to deliver the scheme, although this isn’t a problem for larger installers who currently deliver the bulk of the work.

• While the current documentation and standards may be causing tension, all parties agree ensuring performance and consumer protection is important.
• There is a discrepancy between the standards expected of low-carbon heating and fossil fuel systems that could be contributing to price differentiation and consumer journey issues.

The simplicity of the BUS scheme is building confidence in the heat pump market, but its narrow scope may be a barrier to innovation.

• The scheme is very limited in terms of the technologies incentivised.
• The structure of the subsidy may limit business models, such as those that enable a household to ‘rent’ their heat pump.

The scheme is generous for the ASHP and early adopter/able-to-pay market, but there are equitability concerns about how many homeowners may be able to access the grant. Even with the generous grant, some households will not be able to fund works required to install a heat pump, or may not be able to afford potentially higher running costs.

Awareness of the BUS scheme is currently low, and assumptions on eligibility may be reducing uptake. It is complex for households to find out which schemes they are eligible for and how schemes can work together.