Boiler Upgrade Scheme 2026 Adds Thermal Storage
A new set of regulations made on 21 October 2026 and in force from 22 October 2026 makes a targeted change to UK clean heating law. The Boiler Upgrade Scheme (Amendment to the Energy Act 2008 etc.) Regulations 2026 update the Energy Act 2008 and tighten parts of the Boiler Upgrade Scheme rules, turning a technical legal change into something more practical for the heat transition. This is not a wholesale redesign of support for low-carbon heating. It is a narrower move, but one with a clear direction: widen the legal space for cleaner technologies and make scheme administration easier to understand.
The most notable change is in section 100(4) of the Energy Act 2008. Thermal energy storage systems are now added to the list of eligible technologies, but only where the stored energy comes wholly or partly from a renewable source. In plain terms, the law now explicitly recognises storage as part of the clean heat picture, not just the equipment that generates heat. That matters because a lower-carbon heating system works best when energy can be used at the right time, not only when it is produced.
The regulations also make a smaller but important adjustment to the Boiler Upgrade Scheme in England and Wales. Regulation 22 of the 2022 rules is amended so the scheme administrator can take one action, or a combination of actions, when recovering money that is due. The safeguard is clear in the text. Any recovery must not exceed the total amount of the payments in question. For households, installers and the wider sector, that kind of wording may sound dry, but it helps set firmer boundaries around how public money is managed.
There is also a tidy-up in the language used in notices under the scheme. Where relevant, notices must now specify the amount that must be repaid and, where offsetting applies, the amount that will be recovered through that route. That is a modest administrative fix, yet it points to a bigger issue in clean heat policy: trust depends not only on grants being available, but on the rules being readable and consistent when something goes wrong. Clearer recovery rules can reduce confusion for participating businesses and scheme users alike.
The explanatory note keeps the wider purpose of the Boiler Upgrade Scheme unchanged. The scheme supports heat pumps and biomass boilers for space and water heating in domestic properties and small non-domestic properties, provided the installation is not replacing an existing renewable heating system. So this amendment does not suddenly open the door to a brand-new grant offer on every technology. What it does is strengthen the legal framework around a scheme that already sits at the centre of efforts to move homes and small buildings away from fossil-fuel heating.
The territorial split is worth noting. The amendment adding thermal energy storage to the Energy Act extends to England and Wales and Scotland, while the changes to the Boiler Upgrade Scheme regulations extend to England and Wales only. That reflects the way UK energy law and devolved policy often overlap. It also means readers should separate two questions that are often blurred in public debate: what the law now recognises as an eligible clean technology, and how a particular support scheme is administered on the ground.
Ministers have said no full regulatory impact assessment was produced because no effect on the private or voluntary sectors is foreseen. That signals the government sees this as a technical instrument rather than a major policy intervention. Even so, technical changes can shape delivery. Adding thermal energy storage to the legal list and clarifying how the Boiler Upgrade Scheme handles recovery creates a slightly stronger base for practical clean heat rollout. The next challenge is the one households and installers will notice most: turning legal clarity into simpler guidance, reliable grant administration and more confidence to invest in low-carbon heating.