Boiler Upgrade Scheme

Yes, you can get a heat pump through the Boiler Upgrade Scheme (BUS), provided your property and proposed heating system meet the scheme’s eligibility rules.

For eligible properties in England and Wales, the scheme currently offers £7,500 towards an air-to-water heat pump. If your property is off the gas grid, currently uses oil or LPG, and meets the other requirements, the grant can increase to £9,000 until 31 March 2027.

The important point is that the grant is not available simply because you want to install a heat pump. Your existing heating system, property type, installer and the heat pump itself all need to satisfy the scheme’s conditions.

Which Heat Pumps Qualify?

The Boiler Upgrade Scheme supports several low-carbon heating technologies, including air-to-water, air-to-air and ground source heat pumps.

For most homeowners replacing a conventional wet central-heating system, an air source heat pump means an air-to-water system. This extracts heat from outdoor air and transfers it into water for space heating and, where designed to do so, domestic hot water.

The current grant levels are:

  • £7,500 for an air-to-water heat pump
  • £7,500 for a ground source heat pump
  • £2,500 for an air-to-air heat pump
  • £9,000 for eligible off-gas-grid air-to-water or ground source heat pumps replacing oil or LPG heating until March 2027

Only one BUS grant can be redeemed per property.

Who Can Qualify For The Grant?

The basic eligibility test is relatively straightforward. You must own the property, and the new system must replace an existing fossil-fuel or eligible electric heating system. This can include properties you live in, second homes and properties rented to tenants.

The scheme covers properties in England and Wales. Residential and certain non-residential properties can qualify for air-to-water and ground source heat pumps, while air-to-air heat pumps are restricted to residential properties under BUS.

Already having made energy-efficiency improvements does not automatically prevent you from qualifying. For example, previous funding for insulation does not by itself rule out a BUS application.

What Heating System Are You Replacing?

This is one of the most important parts of the eligibility check.

The BUS-funded heat pump must replace an existing fossil-fuel or electric heating system. That can include heating based on gas, oil, LPG or electricity, subject to the scheme’s detailed rules.

However, BUS is not intended to subsidise the replacement of an existing low-carbon heating system. You also cannot use the grant for a hybrid arrangement that combines a heat pump with fossil-fuel heating.

That distinction matters if you are considering keeping your existing boiler as a permanent backup.

Can You Get £9,000 Instead Of £7,500?

Some households can.

From 21 July 2026, eligible off-gas-grid properties can receive an increased grant of £9,000 for an air-to-water or ground source heat pump. To qualify for this uplift, the property must not have a mains gas connection and the existing heating system must be fuelled by oil or LPG.

Simply not using gas is not enough. Ofgem’s rules specifically address whether the property has a mains gas connection, including situations involving capped or clamped meter points.

This higher grant is currently available until 31 March 2027.

Does Your Home Need To Be Perfectly Insulated?

No. Having already improved your insulation does not make you eligible on its own, but previous energy-efficiency work also does not automatically disqualify you.

A heat pump still needs to be properly designed for the property’s heat demand. The installer should assess the building and size the system so it can meet the home’s heating requirements.

This is more useful than treating insulation as a simple pass-or-fail requirement. Improving insulation can reduce heat loss and may make the property easier to heat efficiently, but the BUS eligibility decision remains based on the scheme’s specific criteria.

Are New Builds Eligible?

Most new-build properties are excluded from BUS.

There is an important exception for qualifying self-build properties. A self-build can be eligible where it was built mainly using the labour or resources of the first owner, has never been owned by a business or organisation and meets the other scheme conditions.

A completed new-build property that already has a fossil-fuel boiler may also fall under different rules from a property that is still being constructed. GOV.UK advises owners of finished new builds to check whether they qualify.

What About Social Housing?

Social housing is not eligible for a Boiler Upgrade Scheme grant.

This is one of the reasons it is worth checking your property circumstances before spending time comparing installation quotations. BUS has specific rules covering property ownership and use, so not every residential property falls within the scheme.

Does The Heat Pump Have To Meet Technical Standards?

Yes. The heat pump itself needs to meet the technical requirements set out under the scheme. For air-to-water and ground source heat pumps, Ofgem specifies a minimum seasonal coefficient of performance (SCOP) of 2.8. The system must also be capable of meeting the property’s full space-heating requirements.

This means choosing a product simply because it appears on a product list is not enough. Ofgem explains that its Product Eligibility List identifies products that meet certain MCS standards, but being listed does not by itself guarantee that the complete installation qualifies for BUS.

Your installer is responsible for ensuring the installation meets the scheme’s requirements.

How Do You Apply For The Boiler Upgrade Scheme?

Homeowners do not normally submit the BUS application themselves.

The process starts by finding an MCS-certified installer and obtaining a quotation. Once you agree to the work and confirm your eligibility, the installer applies for the BUS voucher through Ofgem on your behalf.

The grant is then deducted from the installation cost. It should appear clearly on both the quotation and the final invoice rather than being paid to you as a separate cash payment.

You will also need to provide the required consent and verification information as part of the application process.

How Long Do You Have To Complete The Installation?

Timing matters once the application is underway.

The installer must commission and install the heat pump within 120 days of applying for the grant for it to remain eligible.

This is worth discussing with the installer before agreeing to a quotation. If equipment availability, property work or installation scheduling could cause a delay, you should understand how the installer plans to manage the project within the BUS timeframe.

What If You Already Received Government Funding?

Previous support does not automatically prevent you from applying, but the same heat pump installation cannot receive overlapping public funding.

For example, Ofgem states that a property is not eligible where it has already received government funding or Energy Company Obligation funding for the purchase or installation of the heat pump or biomass boiler.

The key question is therefore what the previous funding paid for, rather than simply whether you have ever received an energy-efficiency grant.

Is The Boiler Upgrade Scheme Worth Considering?

For homeowners planning to replace an old fossil-fuel heating system, BUS can make the upfront cost of a heat pump substantially easier to manage.

But the grant should not be the only consideration. A heat pump needs to be correctly sized and designed for the property, and the installation may involve changes to radiators, hot-water arrangements, controls or electrical equipment.

A good installer should explain these requirements before you commit.

If you want to apply for boiler upgrade scheme funding, start by speaking to an MCS-certified installer and asking for a property assessment rather than assuming you qualify from the grant amount alone. The installer can check the heating system, property and proposed heat pump against the current BUS rules and handle the voucher application if everything is eligible.

The Simple Eligibility Check

You may be able to get a heat pump through the Boiler Upgrade Scheme if you own an eligible property in England or Wales, are replacing an existing fossil-fuel or eligible electric heating system, and use an MCS-certified installer.

For an air-to-water heat pump, the standard grant is currently £7,500. If you are off the gas grid and replacing oil or LPG heating, the available grant can rise to £9,000 until March 2027.

The safest approach is to have the installer confirm your eligibility before work begins and make sure the grant is clearly shown as a deduction from the installation price. That gives you a much clearer picture of both your eligibility and the actual cost of making the switch.

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