UK 2026 / May 2026
Boiler Upgrade Scheme (BUS) GBP 7,500 grant
The UK's headline heat pump grant. Important caveat: despite the name, BUS does NOT fund gas boiler replacements. It funds the switch FROM a gas / oil / LPG / electric boiler TO an air source heat pump, ground source heat pump, or (in rural off-grid contexts) a biomass boiler.
Grant amounts
| System type | Grant | Typical install cost | Net household cost |
|---|---|---|---|
| Air source heat pump (ASHP) | GBP 7,500 | GBP 8,000 - GBP 14,000 | GBP 500 - GBP 6,500 |
| Ground source heat pump (GSHP) | GBP 7,500 | GBP 18,000 - GBP 35,000 | GBP 10,500 - GBP 27,500 |
| Biomass boiler (off-grid rural) | GBP 5,000 | GBP 12,000 - GBP 25,000 | GBP 7,000 - GBP 20,000 |
Eligibility
- Property in England or Wales (Scotland, Northern Ireland have devolved equivalents)
- Property owner (owner-occupier, landlord, or small business). Tenants apply via the landlord.
- Valid EPC issued in the last 10 years with no outstanding recommendation for loft insulation or cavity wall insulation
- The new system must be installed by an MCS certified installer using MCS certified equipment. Find installers at mcscertified.com
- Replacing a fossil-fuel heating system (gas, oil, LPG, electric direct heating). Not replacing an existing heat pump.
- For biomass boiler grants: property must be in a rural location (Ofgem defined) and off the mains gas grid
- No household income test. The grant is available regardless of income or benefit status.
How to apply
BUS is an installer-led grant - you don't apply directly. The flow is:
- Confirm your EPC is valid and has no outstanding insulation recommendations. If recommendations exist, complete them first.
- Search for MCS certified installers at mcscertified.com/find-an-installer. Get 2-3 quotes.
- The MCS installer applies for the BUS voucher on your behalf at gov.uk/apply-boiler-upgrade-scheme.
- Ofgem issues the voucher (typically 1-2 weeks).
- Install carried out by the MCS installer (3-5 day typical for ASHP).
- Installer redeems the voucher with Ofgem (3 month window from issue). Grant amount is deducted from your final quote.
Common reasons applications are rejected
- EPC older than 10 years
- EPC has outstanding loft / cavity wall insulation recommendations
- Property is in Scotland or Northern Ireland (different schemes apply)
- Installer is not MCS certified at the time of voucher application
- Property is a new-build (different routes apply, but BUS specifically excludes new builds)
- Replacing an existing heat pump (not from a fossil fuel)
Devolved equivalents
Scotland
Home Energy Scotland Grant + Loan: up to GBP 7,500 grant plus an optional interest-free loan. Administered by Energy Saving Trust under Scottish Government commission.
Northern Ireland
Affordable Warmth Scheme for low-income households + Boiler Replacement Allowance via NI Direct. No direct BUS equivalent for heat pumps.
FAQ
What is the Boiler Upgrade Scheme?
A UK government grant of GBP 7,500 toward heat pump installation (ASHP or GSHP) or GBP 5,000 for biomass boilers in rural off-grid properties. England and Wales only. Administered by Ofgem.
Does BUS pay for gas boilers?
No. Despite the misleading name, BUS is for heat pumps and biomass only. Gas boiler replacements are funded via ECO4 for eligible low-income households or via household finance for everyone else.
Who is eligible?
Property owners in England or Wales with a valid EPC (no outstanding insulation recommendations). No income test. Must use an MCS certified installer.
How do I apply?
Your MCS certified installer applies on your behalf via gov.uk/apply-boiler-upgrade-scheme. You don't apply directly.
How long does BUS last?
Funded to 2028 under current commitments. Future direction is being shaped by DESNZ as part of the Heat and Buildings Strategy.
Need a gas boiler instead? Try ECO4 free boiler if eligible, or 0% finance options. Modelling the switch to heat pump? gas vs heat pump cost.