Boiler Upgrade Scheme

  • Receive a £7,500 government grant for installing a new heat pump.
  • Available for both homes and businesses to apply.
  • Your installer will handle the grant application for you.
  • Check your eligibility and learn how to apply on this page.

More about the Boiler Upgrade Scheme

The Boiler Upgrade Scheme is a UK government initiative aimed at decarbonising homes and small non-domestic buildings in England and Wales by promoting low-carbon heating solutions.
 
The National Audit Office notes that heating the UK’s 28 million homes generates 18% of the nation’s greenhouse gas emissions, and the BUS seeks to lower this impact. It offers grants of up to £7,500 to property owners to swap fossil fuel heating for efficient options like air source heat pumps (ASHPs) or ground source heat pumps (GSHPs), or £5,000 for biomass boilers. Eligible homes and businesses can offset the cost and installation of these systems, with installers assisting in the grant application process.
 
To get a free quote for an ASHP, simply fill out a form, and an MCS-certified installer will contact you to help with both the quote and grant application.

Why move to a heat pump?

Switching to a heat pump lets you ditch gas, cut your carbon footprint by up to 44%, and pair it with solar panels for sustainability. A £7,500 government grant is available—your installer applies for you, and you can check eligibility now.
How in-demand is the Boiler Upgrade Scheme?

By the end of November 2024, 62,191 applications had been made to the BUS since its start in May 2022. For December 2024, the data indicates 3,304 applications were received in that month alone.

Boiler upgrade scheme

How does the Boiler Upgrade Scheme function?

The Boiler Upgrade Scheme works on a “first-come, first-served” basis, meaning customers need to quickly express interest to air source or ground source heat pump installers.
 
Installers then request the £7,500 grant on behalf of the customer, deducting it directly from the installation cost. This streamlined process is easier for homeowners compared to the discontinued Green Homes Grant, which required individuals to apply for energy upgrades themselves. Note that the scheme doesn’t support hybrid heat pump setups, such as those paired with gas boilers. 
  • Operates on a “first-come, first-served” basis, so customers must promptly contact air source or ground source heat pump installers.
  • Installers apply for the £7,500 grant for customers and subtract it from the heat pump installation cost.
  • Simplifies the process for homeowners compared to the old Green Homes Grant, which required self-applications for energy upgrades.
  • Does not cover hybrid heat pump systems, like those combined with gas boilers.
  • Limits individual system capacity to 45kWth and shared ground loops to 300kWth.

Am I Eligible for the Boiler Upgrade Scheme?

As of October 2024, Ofgem streamlined the eligibility rules for the Boiler Upgrade Scheme (BUS). Here’s what you need to qualify:

  • Property Ownership: You must own the property—whether it’s your home, a business, a second home, or one you rent out to tenants.
  • Heating System: You must be replacing a fossil fuel heating system, such as oil, gas, electric, or LPG.
  • EPC Certificate: A valid Energy Performance Certificate (EPC) is required, unless it’s a custom-built home (see below).
  • Exclusions: The scheme isn’t available if your property has previously received public funding for a heat pump or biomass boiler (e.g., via the Energy Company Obligation scheme), is classified as social housing under the Housing and Regeneration Act 2008, or is a new build—unless the new build has an existing fossil fuel boiler installed.

For custom-built homes, no EPC is needed if you’re the original builder and the property meets current eco-friendly building standards. The home must also never have been owned by a business. If you tick all these boxes, an installer can apply for a £7,500 discount on an air source or ground source heat pump on your behalf.

To qualify for a £5,000 biomass boiler discount, additional criteria apply:

  • Location: Your property must be in a rural area (under 10,000 residents) and off the gas grid.
  • Emissions Standards: The boiler needs an emissions certificate proving low pollution levels, aligning with government efforts to protect air quality—though biomass still beats gas boilers for climate impact.

If you meet these requirements, an installer can help secure your grant and reduce the upfront cost of going low-carbon.

How to apply for the Boiler Upgrade Scheme

Until the Boiler Upgrade Scheme ends in 2028, installers can request a voucher for a heat pump or biomass boiler installation on a first-come, first-served basis.

Once the voucher is issued, they have three months (120 days) to install an air source heat pump or biomass boiler at your property, or six months for a ground source heat pump.

After completing the installation, they can redeem the voucher to lower the total cost.

The government states this method “ensures a simpler, smoother experience for consumers while providing installers with certainty.”

You can begin collecting quotes now, and once you settle on a price, your installer will handle the grant application for you.