PS22234 BUS (Boiler Upgrade Scheme) Evaluation Report

Award outcome

Description

***** THIS IS AN AWARD NOTICE, NOT A CALL FOR COMPETITION ***** This procurement is being concluded following a mini competition under the Crown Commercial Services Research & Insights DPS RM6126 Background to the programme As part of global efforts to tackle climate change, the Government has committed to reducing the UK's carbon emissions to net zero by 2050. In order to reach this ambitious target, virtually all heating in buildings will need to be decarbonised. This is because one third of the UK's carbon emissions are generated by fossil fuels being burnt to heat homes and businesses. There are various low carbon heating systems available which can replace fossil fuel heating in buildings, including but not limited to heat pumps and biomass boilers. The Boiler Upgrade Scheme (BUS) is part of a package of measures designed to incentivise property owners to switch to low carbon heat systems. Under the scheme, installers can apply on behalf of a property owner for a grant towards the cost of installing a heat pump or (in certain limited circumstances) a biomass boiler. To be eligible, the new system must be replacing a fossil fuel heating system such as an oil or gas boiler, or a direct electric heating system such as storage heaters. Existing heat pump or biomass systems are not eligible to be replaced. The scheme is targeted at privately owned residential homes. Currently, the low carbon heating sector is relatively small, and generally cannot compete on cost with conventional heating technologies such as gas boilers. The aim of BUS is to increase the amount of low carbon heating systems being installed by using a financial incentive, which will stimulate demand and grow the supply chain. Subsidies are required now to narrow the cost gap between conventional and low carbon heating systems and stimulate sector growth, which is expected to lead to a reduction in the market price of low carbon heating technologies. This will help to lay the groundwork for a gradual, widespread replacement of fossil fuel heating systems with low carbon heating systems in the future. The requirements for the delivery of an evaluation of the BUS scheme, encompassing process, impact, outcome and economic elements. The evaluation will complement BEIS's internal ongoing monitoring of the scheme. The BUS evaluation aims are to: 1. Examine the extent to which the BUS met its objectives. 2. Provide evidence of the impacts achieved by the scheme to support both benefits reporting and design of future policies. 3. Provide evidence to understand the barriers and opportunities experienced during delivery to support policy improvements and the design of future policies. 4. Support an assessment of the value-for-money of the BUS policy.

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