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House with Installed Solar Panels Under Government Incentives

Low Carbon Heating and Energy Incentive

With the Government committing to legally binding carbon reduction targets, you can take advantage of a heating and energy incentive. There are a number of schemes to help you save money. They are as follows:

Incentive Requirements – MCS Certification

To gain access to any of the Government incentives available, the installation must abide by the Government’s Microgeneration Certification Scheme. The Microgeneration Certification Scheme (MCS)  is a guarantee to the customer that the installations carried under the scheme will be to a recognised standard of competence. As a result, for a renewable installation to be eligible for the Boiler Upgrade Scheme or the Smart Export Guarantee incentives, it must be undertaken by an MCS Certified Installer using equipment certified under the scheme.

At Energy By Design, we are MCS certified biomass boiler and heat pump installers.

Incentive 1: The Boiler Upgrade Scheme

The Boiler Upgrade Scheme (BUS) is another of the government’s financial incentives to encourage a switch to renewable heating systems. It provides a one off payment of either £5,000 or £6,000 depending on technology chosen to help pay for the upfront costs.

Helping the UK Reduce its Carbon Emissions

The Boiler Upgrade Scheme is for heating systems in single homes. The renewable heating system would need to be in a property capable of getting a domestic Energy Performance Certificate (EPC).  The EPC is used as proof that the levels of insulation within the property are up to standard. This primarily looks at loft and cavity wall insulation. If you cannot insulate your loft or your cavity walls, because you have solid walls as an example, then you will need to provide supporting evidence within your application.  Providing you meet the eligibility criteria your chosen installer will make an application on your behalf. Self build properties are eligible but new builds aren’t.

Eligibility for Boiler Upgrade Scheme

We can help you choose eligible renewable heating system types for the Boiler Upgrade Scheme, such as:

For more information on the Boiler Upgrade Scheme, please go to Boiler Upgrade Scheme – GOV.UK (www.gov.uk)

Incentive 2: SEG – Smart Export Guarantee

The SEG launched on 1 January 2020 and is one of the government-backed initiative incentives.

Incentives to Get Paid For Electricity You Generate

The SEG requires some electricity suppliers to pay small-scale generators for low-carbon electricity which they export back to the National Grid, providing certain criteria are met.

Each electricity suppliers will determine the rate at which they will pay individuals for the electric that they export and also the length of the contract. It is worth shopping around to make sure you get the best deal. Most suppliers will insist on the installation having be installed by an MCS installer to ensure the work was carried out to a high standard.

Incentive 3: 0% VAT

At present, a rate of 0% VAT is currently available for installation of renewable systems including solar PV, solar thermal and heat pumps.

The VAT rate will stay at 0% until 31st March 2027 when it will revert back to 5% subject to the 60% threshold test.

For further information and if you have any questions about your eligibility for these incentive schemes, please contact one of our team at energy BY DESIGN.


Our supply, survey and installation service covers the following areas: Bournemouth, Christchurch, Dorchester, Poole, Romsey, Salisbury, Southampton, Wimborne and Winchester and other areas in Dorset in Hampshire. Site surveys outside a 30 mile radius of Wimborne will incure a charge a £25 which is deductable should you accept our quotation. We are also pleased to invite enquiries from further afield.