Boiler Upgrade Scheme (2026)

Boiler Upgrade Scheme (BUS)

The Boiler Upgrade Scheme (BUS) helps homeowners replace old fossil fuel boilers with low-carbon heating systems like air source heat pumps, with a Government contribution of up to £7,500.

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Quick Answer: What is Boiler Upgrade Scheme and how does it work?

The Boiler Upgrade Scheme (BUS) is a UK government grant for homes and small buildings in England and Wales. It helps replace fossil-fuel heating systems, such as gas, oil, LPG or electric, with low-carbon options like heat pumps. Eligible customers can get up to £7,500 off an air-source or ground-source heat pump. The process is installer-led: an MCS-certified installer checks eligibility, applies for the voucher, and deducts the grant from the installation cost.

How much can you get through the Boiler Upgrade Scheme?

The grant amount depends on the type of low-carbon heating system being installed.

Heating system Grant amount
Air source heat pump £7,500
Ground source heat pump £7,500
Water source heat pump £7,500
Air to air heat pump £2,500
Biomass boiler £5,000

“From 21 July 2026 to 31 March 2027, eligible homes and small business properties currently heated by oil or LPG may be able to receive up to £9,000 towards an air source or ground source heat pump. This temporary increase is aimed at helping off-gas-grid properties make the switch to cleaner heating.”

What is the Boiler Upgrade Scheme?

The Boiler Upgrade Scheme is a government grant designed to help property owners in England and Wales move away from fossil fuel heating and switch to cleaner, low-carbon heating systems.

 

Instead of paying the full cost of a new system yourself, the scheme can contribute towards eligible installations such as air source heat pumps, ground source heat pumps, air-to-air heat pumps and biomass boilers. According to GOV.UK, fossil fuel heating systems include oil, gas, electric and LPG systems.

Air source heat pump grant

The scheme is not a “free boiler” offer and it does not pay for a like-for-like gas boiler replacement. It is there to reduce the upfront cost of installing approved low-carbon heating, with the grant usually applied through an MCS-certified installer and deducted from your final quote.

 

In simple terms, it helps make the switch to greener heating more affordable.

Who can apply for the Boiler Upgrade Scheme?

The Boiler Upgrade Scheme works through an approved installer, not directly through the homeowner. First, you choose an MCS-certified installer to check your property and recommend an eligible low-carbon heating system, such as an air source heat pump, ground source heat pump or biomass boiler.

 

If your property qualifies, the installer applies for the grant on your behalf. Once the voucher is approved, the grant amount is taken off your installation cost, so you pay the remaining balance.

 

In simple terms, the installer handles the application, the government supports part of the cost, and you get a cleaner heating system installed in your property.

Boiler Upgrade Scheme Eligibility

You’ll usually be eligible if:

01

You own a property in England or Wales.

02

You are replacing an existing fossil fuel heating system, such as gas, oil, LPG or electric heating.

03

You choose an eligible low-carbon system, such as an air source heat pump, ground source heat pump or biomass boiler.

04

Your installation is carried out by an MCS-certified installer.

05

Your property has a valid Energy Performance Certificate, known as an EPC, where required.

06

The new system meets the scheme’s technical and installation requirements.

07

You have not already received certain other government funding for the same heating upgrade.

Boiler Upgrade Scheme

BUS FAQs

Answers to the most asked questions about the Boiler Upgrade Scheme, including the £7,500 Government contribution, eligibility, heat pump installation, how to apply, and what the grant covers. Speak to Simple Green Energy.

Need help with BUS?

Speak with Simple Green Energy to check whether your home may be suitable for an air source heat pump under the Boiler Upgrade Scheme.

Check BUS eligibility
The Boiler Upgrade Scheme, also known as BUS, is a UK Government initiative that helps property owners in England and Wales replace old fossil fuel heating systems with low-carbon heating, such as air source heat pumps.
The Government currently offers £7,500 towards an eligible air-to-water air source heat pump or ground source heat pump, £5,000 towards a biomass boiler, and £2,500 towards an air-to-air heat pump. The grant is limited to one grant per property.
You may be eligible if you own the property and are replacing an existing fossil fuel or electric heating system, such as gas, oil, LPG or electric heating. The scheme can apply to homes, second homes, rental properties and some business properties.
No. The Boiler Upgrade Scheme is not a benefits-based grant. Eligibility is mainly based on property ownership, the existing heating system, the type of low-carbon heating being installed, and whether the installation meets the scheme requirements.
You do not usually apply directly yourself. You choose an MCS-certified installer, agree a quote, and the installer applies to Ofgem on your behalf. If approved, the grant amount is deducted from your quotation and invoice.
The grant helps reduce the upfront cost, but it may not always cover the full installation price. The final cost depends on your property, heating design, hot water requirements, radiator upgrades, pipework, controls, and installation complexity.
The grant is not available for hybrid heat pump systems, most new-build properties, social housing, or properties that have already received government funding for a heat pump or biomass boiler. The new system must also meet the property’s full heating and hot water requirements.