Future support for low carbon heat
Read the full outcome
Detail of outcome
Government response to the Clean Heat Grant proposals
The government response to this consultation covers the Clean Heat Grant proposals within ‘Future support for low carbon heat’ consultation.
Having considered the responses the government intends to proceed with the scheme formally named the Clean Heat Grant and now known as the Boiler Upgrade Scheme (BUS).
The response sets out decisions on the BUS, including:
- grant levels
- eligibility criteria
- types of heating systems, capacity and building requirements
- financial mechanisms, including annual budget caps and budget data
The response was published on 19 October 2021.
Boiler Upgrade Scheme Impact Assessment, February 2022
We have published an updated Impact Assessment to reflect the post-consultation policy development and changes to the proposals that were announced in the October 2021 Government response to the Clean Heat Grant proposals (now known as the Boiler upgrade Scheme). Please send any questions about it to: heatconsultation@beis.gov.uk.
Draft Statutory Instrument, published December 2021
In order to provide industry with more detail of the Boiler Upgrade Scheme requirements ahead of its launch, we have published the draft statutory instrument (SI) which implements the Scheme. The Scheme supports the installation of heat pumps and biomass boilers in domestic and small non-domestic buildings in England and Wales.
The draft SI is subject to amendment ahead of being laid in Parliament in 2022. Please send any questions about it to: heatconsultation@beis.gov.uk.
Government response to the consultation, the GGL and the GGSS
The government response to this consultation covers:
- this consultation, the Future support for low carbon heat
- the Green gas levy (GGL) consultation
- the Green Gas Support Scheme (GGSS): digestate management consultation
Having considered the responses to all 3, the government intends to proceed with the launch of the GGSS and GGL as detailed in the government response.
The response sets out decisions on the GGSS, including:
- the approach to tariff length and tiering
- tariff guarantees and commissioning windows
- sustainability criteria for the scheme
- financial mechanisms, including annual budget caps, tariff reviews, degression and capital costs data
- interaction with other government schemes, including the Renewable Transport Fuel Obligation Scheme (RTFO)
- eligibility criteria for biomethane producers
Decisions on the GGL are also set out in the government response and include:
- the scope of the levy
- frequency of levy payments and the collection of meter point data
- impacts on bill payers
- a comprehensive cost control framework
- a robust compliance and enforcement package, including mutualisation, financial penalties, interest rates and public reporting
- the rationale for launching with a per meter point levy design
- the intention to transition to a volumetric levy design as soon as feasibly possible
We published further details on the intended budget management mechanisms of the Green Gas Support Scheme.
The response was published on 17 March 2021.
Detail of feedback received
This consultation received 167 responses relating to the Green Gas Support Scheme.
Of these, approximately 57 were from within the anaerobic digestion and energy industries and 11 were from members of the public. The remaining responses were from a mixture of academics, NGOs and think tanks, businesses, trade bodies, and other organisations.
The remainder of responses were directed primarily at the Clean Heat Grant, a response to which will be issued in due course.
We also received a set of 517 similar responses coordinated by environmental NGO Biofuelwatch.
In May 2020 we provided additional information on 2 proposals in the consultation in Green gas: ensuring value for money.
The Clean Heat Grant: Further policy design proposals consultation received 30 responses
Original consultation
Consultation description
Heating of homes, businesses and industry is responsible for a third of the UK’s greenhouse gas emissions, and decarbonisation of heat is one of the biggest challenges we face in meeting our climate targets.
This consultation sets out proposals for:
- a Green Gas Support Scheme (GGSS): increasing the proportion of green gas in the grid through support for biomethane injection
- a Clean Heat Grant: support for heat pumps and in certain circumstances biomass, through an upfront capital grant to help address the barrier of upfront cost
- budget control and financial management of the spending proposals for green gas and buildings technologies
- participant compliance
29 May 2020: ‘Green Gas: Ensuring value for money’ consultation section
We have provided further information on 2 proposals in this section:
- requesting more detailed costing information
- tariff review
We are working with devolved administrations to implement these proposals across Great Britain.
We have published the Impact Assessment to accompany these proposals.
Interaction with the Renewable Heat Incentive (RHI) schemes
In the March 2020 budget, the government announced:
- an extension to the domestic RHI for a further year to 31 March 2022
- the introduction of a flexible, third allocation of tariff guarantees on the non-domestic RHI. The non-domestic RHI will close to new applications on 31 March 2021
Alongside this consultation we have also published:
- a consultation on the Non-domestic Renewable Heat Incentive: ensuring a sustainable scheme
- an outline of Changes to the Renewable Heat Incentive (RHI) schemes
Please do not send responses by post to the department during the coronavirus lockdown period as we will not be able to access them.
Documents
Updates to this page
Last updated 16 February 2022 + show all updates
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Published the consultation final stage impact assessment for the Boiler Upgrade Scheme.
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Added draft Boiler Upgrade Scheme SI.
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Published the government response to the Clean Heat Grant proposals within the ‘Future support for low carbon heat’ consultation.
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Final stage impact assessment replaced: analysis updated to use the most up to date Green Book carbon values.
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Added final consultation impact assessment.
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Removed final stage consultation IA: we are adding points for clarification to the description of the analysis for the Green Gas Levy.
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Added final consultation impact assessment.
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We have published the government response to this consultation.
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Further information added on 2 proposals within the ‘Green Gas: Ensuring value for money through tariff changes' section of the consultation.
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First published.