Boiler Upgrade Scheme: Get £7,500 Off a Heat Pump
The government's Boiler Upgrade Scheme (BUS) pays up to £7,500 towards replacing your gas or oil boiler with a heat pump, or £5,000 towards a biomass boiler. Your installer applies on your behalf and the grant comes straight off your bill.
£7,500
Air source heat pump
£7,500
Ground source heat pump
£5,000
Biomass boiler
Mar 2028
Scheme runs until
Quick summary
What is the Boiler Upgrade Scheme?
The Boiler Upgrade Scheme (BUS) is a government grant for homeowners in England and Wales who want to ditch their gas or oil boiler for a low-carbon heating system. It launched in April 2022 and runs until at least March 2028.
You get £7,500 towards an air source or ground source heat pump, or £5,000 towards a biomass boiler. Ofgem administers the scheme, and the grant comes straight off your installation invoice. You never touch the money yourself.
No means testing. Your income does not matter. Your MCS-certified installer handles the whole application.
What the Grant Covers
The BUS grant covers three types of low-carbon heating. How much you get depends on what you install.
Air source heat pump
Air-to-water systems only. Air-to-air (like split AC units) does not qualify.
£7,500
Ground source heat pump
Including water source and shared ground loop systems.
£7,500
Biomass boiler
Must be in a rural property off the gas grid. Additional restrictions apply.
£5,000
The grant increased in October 2023. Air source and ground source heat pump grants went up from £5,000 to £7,500. If you were quoted before October 2023, make sure your installer is applying the current higher amount.
Eligibility Checklist
You need to tick every box below. Miss one and you will not qualify. The good news: there is no means testing, so income is irrelevant.
Property in England or Wales
The scheme only covers England and Wales. Scotland runs its own Home Energy Scotland scheme with separate grants and interest-free loans for renewable heating.
You must own the property
Homeowners, landlords, and owners of second homes are all eligible. Tenants cannot apply directly. The property owner must apply through their chosen installer.
Replacing an existing fossil fuel heating system
You must be switching from gas, oil, LPG, electric storage heaters, or coal heating. If your property already has a renewable heating system, you cannot claim the grant.
Valid Energy Performance Certificate (EPC)
Your property must have a valid EPC lodged on the register. Any rating qualifies. If you do not have one, you will need to get an EPC assessment first (typically £60 to £120).
Not a new build
New builds are not eligible. The scheme is specifically for existing homes replacing fossil fuel heating.
No previous grant under the scheme
Each property can only receive one Boiler Upgrade Scheme grant. If your property has already had a BUS grant, you cannot apply again.
MCS-certified installer
Your installer must be MCS-certified. This is non-negotiable. Only MCS-certified installers can submit grant applications to Ofgem. Find one at mcscertified.com.
Not eligible: Social housing, new builds, properties that have already received a BUS grant, hybrid heat pumps, and air-to-air systems. If you are a social housing tenant, ask your housing provider about the Social Housing Decarbonisation Fund instead.
How to Apply (Step by Step)
You do not apply yourself. Your MCS-certified installer handles everything through Ofgem. In practice, this is how it works.
- 1
Get quotes from MCS-certified installers
Contact 2 to 3 MCS-certified installers in your area. They will survey your property, assess what system suits your home, and provide quotes. You can find MCS installers at mcscertified.com/find-an-installer.
- 2
Choose an installer and agree the quote
Compare quotes, check reviews, and choose your installer. The quote should clearly show the full cost before the grant, the BUS grant deduction, and the amount you pay. Make sure 0% VAT is applied to the heat pump and installation.
- 3
Your installer applies to Ofgem
Your installer submits the grant application through Ofgem's online portal. They will need your property details, EPC reference, and confirmation of your existing heating system. You do not need to do anything at this stage.
- 4
Ofgem issues a voucher
If the application is approved, Ofgem issues a voucher. This usually takes a few working days. The installation must then be completed within 120 days of the voucher being issued.
- 5
Installation and payment
The heat pump or biomass boiler is installed and commissioned. Your installer redeems the voucher with Ofgem and receives the grant directly. You only pay the balance. The grant money is never something you handle yourself.
Official sources: Full details on gov.uk/apply-boiler-upgrade-scheme. The scheme is administered by Ofgem. Find an MCS installer at mcscertified.com.
What You Actually Pay After the Grant
The grant comes straight off your bill. Here is what you actually end up paying after the BUS grant and 0% VAT.
| System | Typical cost | BUS grant | You pay |
|---|---|---|---|
| Air source heat pump | £8,000 - £18,000 | -£7,500 | £500 - £10,500 |
| Ground source heat pump | £15,000 - £35,000 | -£7,500 | £7,500 - £27,500 |
| Biomass boiler | £10,000 - £19,000 | -£5,000 | £5,000 - £14,000 |
Prices include installation but not extras like radiator upgrades or insulation. All at 0% VAT. Worth knowing: ground source heat pumps cost more upfront but have lower running costs and tend to last longer.
Want a detailed cost breakdown? Check our full boiler cost guide or heat pump cost guide for prices by system type, property size, and region. You can also try our boiler cost calculator for a quick estimate.
Frequently Asked Questions
How much is the Boiler Upgrade Scheme grant?
The Boiler Upgrade Scheme provides £7,500 towards an air source or ground source heat pump, or £5,000 towards a biomass boiler. The grant is deducted directly from your installation invoice by your MCS-certified installer. You only pay the difference.
Can I apply for the Boiler Upgrade Scheme myself?
No. You cannot apply directly. Your MCS-certified installer applies to Ofgem on your behalf after you agree a quote. If approved, Ofgem issues a voucher and the grant amount is deducted from your invoice. You never handle the grant money yourself.
Is the Boiler Upgrade Scheme available in Scotland?
No. The Boiler Upgrade Scheme is only available in England and Wales. Scotland runs its own Home Energy Scotland grant and loan scheme, which offers interest-free loans and cashback for renewable heating systems. Contact Home Energy Scotland on 0808 808 2282 for details.
Do new builds qualify for the Boiler Upgrade Scheme?
No. New build properties are not eligible for the Boiler Upgrade Scheme. The grant is only for existing properties that are replacing a fossil fuel heating system such as a gas boiler, oil boiler, LPG system, electric storage heaters, or coal heating.
How long does the Boiler Upgrade Scheme run until?
The Boiler Upgrade Scheme has been extended to March 2028. It originally launched in April 2022 and was initially due to end in 2025. The government extended it to give more homeowners time to switch to low-carbon heating.
Written by James Carter, Less.co.uk energy specialist
Last updated: · Based on gov.uk and Ofgem data · Methodology
Ready to claim your Boiler Upgrade Scheme grant?
Get free quotes from MCS-certified installers who handle the BUS application for you. The grant is deducted directly from your invoice.
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