Boiler Upgrade Scheme — 2026 Guide
What it covers
Heat pumps
Who qualifies
Any homeowner
Grant value
£7,500
Open until
March 2030
What is the Boiler Upgrade Scheme?
The Boiler Upgrade Scheme (BUS) is a straightforward government grant: if you own your home and are replacing a fossil fuel heating system with a heat pump, you get £7,500 off the cost. No income test, no complex eligibility criteria.
The grant is available across England and Wales and runs until March 2030, giving homeowners a long window to plan and budget for an upgrade. It is part of the UK government's strategy to phase out new gas boiler installations by 2035.
What does it cover?
Who qualifies?
You must:
- Own the property (not a tenant)
- Be in England or Wales
- Be replacing a fossil fuel system (gas, oil, LPG, or electric)
- Use an MCS-certified installer
- Not have received a BUS grant for the same property before
No EPC requirement. Any rating qualifies, though your installer may recommend addressing insulation issues before installation to maximise heat pump efficiency.
How much can you get?
The BUS pays £7,500 towards an air source or ground source heat pump. This is deducted directly from your installation quote — the installer claims it from the government on your behalf.
A typical air source heat pump installation costs £10,000–£15,000 before the grant, meaning you'd pay £2,500–£7,500. Ground source systems are more expensive, typically £20,000–£35,000, but the same £7,500 is deducted.
How to apply
- 1
Find an MCS-certified installer
Only MCS-certified installers can claim the BUS grant. Use our free checker and we'll match you with a local installer.
- 2
Get a quote
The installer will survey your property and provide a quote with the £7,500 BUS grant already deducted.
- 3
Installer applies on your behalf
Your installer submits the BUS application — you don't deal with any paperwork.
- 4
Installation
Work is completed, typically within 1–3 months of approval.
- 5
Installer claims the grant
After installation, the installer claims the £7,500 from OFGEM. You only pay the remaining balance.
Frequently asked questions
What is the Boiler Upgrade Scheme?
The Boiler Upgrade Scheme (BUS) is a government grant that pays £7,500 towards the cost of installing an air source or ground source heat pump, replacing fossil fuel heating. It runs until March 2030.
Do I need to be on benefits to apply?
No — the BUS has no means test. It is available to any homeowner in England or Wales who is replacing an existing fossil fuel heating system (gas, oil, LPG or electric).
How is the £7,500 paid?
The grant is paid directly to the MCS-certified installer — you never receive the money yourself. It is deducted from the total cost of installation, so you only pay the remaining balance.
What heating systems qualify for replacement?
Gas boilers, oil boilers, LPG boilers, and electric storage heaters all qualify for replacement. You cannot use the BUS to replace an existing heat pump.
Can I use the BUS if I am on oil or LPG heating?
Yes — oil and LPG properties are ideal candidates for the Boiler Upgrade Scheme. Switching to a heat pump removes your dependence on volatile fuel prices.
Does my property need a good EPC rating for the BUS?
There is no EPC requirement for the BUS — any rating qualifies. However, your installer will recommend that you address major heat loss issues (like poor insulation) before installing a heat pump, as this affects its efficiency.
What is an MCS-certified installer?
MCS (Microgeneration Certification Scheme) is the quality standard for heat pump installers. Only MCS-certified installers can apply for the BUS grant on your behalf — this protects you as a homeowner.
Check your BUS eligibility now
Free check, takes 2 minutes. We'll match you with a local MCS-certified installer.
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