Rebates and Incentives

Renewable Heat Incentive vs Boiler Upgrade Scheme: Which Heat Pump Grant Suits You?

A Clear Comparison for Smarter Savings

Switching to greener heating isn’t just a trend—it’s how you tame spiralling energy bills and shrink your carbon footprint. With two major uk renewable heating schemes on offer, it can feel like juggling acronyms and grant amounts. That’s where this guide steps in: we’ll break down the Renewable Heat Incentive (RHI) and the Boiler Upgrade Scheme (BUS) side by side, so you can pick the best heat pump grant for your home or business.

Whether you’re drawn to the steady, long-term payments of RHI or the streamlined lump sum from BUS, understanding the fine print is key. Plus, you’ll see how Megawave air source heat pumps—packed with eco-friendly R290 refrigerant and backed by expert installation—can slot into either scheme with ease. Ready to explore? Discover uk renewable heating schemes with Megawave: Eco-Friendly Heating Revolution for Innovative Air Source Heat Pump Solutions.

RHI vs BUS at a Glance

To kick things off, here’s the nutshell version:

  • Renewable Heat Incentive (RHI)
    • Quarterly payments over seven years
    • Based on kilowatt-hours generated
    • Suits retrofit and new build

  • Boiler Upgrade Scheme (BUS)
    • One-off grant payment
    • £7,500 per air or ground source heat pump
    • Simpler application, quicker funding

What is the Renewable Heat Incentive (RHI)?

Introduced to boost renewables, the Domestic RHI rewards homeowners for clean heat output. You install an approved system and receive quarterly payouts for seven years. Typical tariffs hover around:

  • Air source heat pump: 10.85 p/kWh
  • Ground source heat pump: 21.16 p/kWh
  • Solar thermal: 21.36 p/kWh

That works out to roughly £1,000 per year for air source and up to £2,200 for ground loops, based on average usage. Over seven years, you could recoup up to £7,000 with an air source heat pump and over £15,000 with a ground source system. Not bad for tapping into free ambient energy.

What is the Boiler Upgrade Scheme (BUS)?

From April 2022, the BUS replaced RHI for new applicants. It’s simpler: a flat £7,500 grant towards the purchase and installation of a heat pump—air or ground source. No quarterly paperwork. Just one application, one payment, and you’re off. It’s perfect if you like clarity and a quick tick-box process.

Key Differences at a Glance

Feature RHI BUS
Payment style Quarterly over 7 years One-off grant
Maximum support (ASH) ~£7,000 total £7,500
Administrative load Moderate (regular meter readings, claims) Low (single application)
Flexibility Retrofit/new build, all zones Retrofit/new build, all zones
Complexity Higher Lower

Tailoring the Grant to Your Home

Not every home is the same. Your ideal scheme depends on factors like existing heating, budget, and appetite for paperwork.

Property Type and Fuel Source

  • Gas-free areas? Both schemes welcome you.
  • Mains gas properties? Still eligible if you choose a renewable install.
  • New builds vs retrofits? RHI covers both; BUS is equally open.

If your loft insulation is a bit thin or windows let in drafts, consider topping up before installing a heat pump. It maximises efficiency—and grant money goes further.

Installation Costs vs Financial Benefit

Sticker shock? A typical air source heat pump install starts around £6,000–£8,000. Factor in labour, controllers, potential radiators or underfloor heating. Here’s where it gets interesting:

  • RHI pays you back gradually—ideal if you can budget the upfront cost.
  • BUS slashes your initial outlay by £7,500, making the net cost much lower from day one.

If you’d like a crystal-clear estimate, why not Get your heat pumps installation quotation today. You’ll see exactly how each scheme changes your numbers.

Long-Term Carbon and Cost Savings

Beyond grants, heat pumps cut your energy bills. Air source units reach 300% efficiency—every kWh of electricity delivers three kWh of heating. Couple that with R290 zero-carbon refrigerant, and you’re looking at serious cuts to both CO₂ and pound signs. Over time, that adds up to hundreds of pounds saved annually versus a traditional boiler.

How Megawave Maximises Your Grants

Megawave isn’t just another heat pump. It’s engineered for peak performance under both RHI and BUS, featuring:

  • Zero-carbon R290 refrigerant for greener operation
  • Smart controls to fine-tune heating and integrate with home automation
  • Expert MCS-compliant installation and commissioning support
  • Flexible finance packages to spread any remaining costs

Want to see how Megawave slots into your space? Begin your heat pumps installation quotation process now.

Steps to Apply and Next Moves

Applying is straightforward once you know the drill:

  1. Choose your system (air or ground source heat pump).
  2. Ensure your installer is MCS certified (Megawave installations tick this box).
  3. Submit your RHI or BUS application with proof of installation.
  4. Sit back and watch the payments—or grant—land in your account.

Need help with paperwork or commissioning? The Heat Pumps team guides you at every turn, ensuring compliance and a smooth claim.

Halfway through your project and want to revisit how these uk renewable heating schemes fit your plan? Learn about uk renewable heating schemes with Megawave: Eco-Friendly Heating Revolution for Innovative Air Source Heat Pump Solutions.

Customer Testimonials

“We swapped our old gas boiler for a Megawave air source heat pump under the BUS. The £7,500 grant made the decision easy, and our heating bills have dropped by 40%. Installation was smooth, and the team handled the grant application.”
— Joanna M., Kent

“Opting for RHI meant we get quarterly payments that nearly match our electricity bill. The Megawave system runs quietly, even on frosty mornings. And that R290 refrigerant? Just one more reason we feel good about the switch.”
— Liam S., Devon

“The Heat Pumps team offered great finance options until our Green Homes Grant landed. They walked us through every step of the RHI claim. Now our home is cosy, low-carbon, and future-proof.”
— Priya K., Birmingham

Picking the Right Scheme for You

At the end of the day, both the Renewable Heat Incentive and the Boiler Upgrade Scheme are powerful tools in the move to low-carbon living. If you’re comfortable with a steady income over several years, RHI might be your match. If you prefer simplicity and an immediate grant, BUS is hard to beat.

Whichever route you choose, Megawave air source heat pumps deliver top-tier efficiency, expert support, and a future-focused refrigerant. Ready to take the next step? Start exploring uk renewable heating schemes with Megawave: Eco-Friendly Heating Revolution for Innovative Air Source Heat Pump Solutions

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