Boiler Upgrade Scheme 2026: The Complete Guide to the £7,500 Heat Pump Grant
The Boiler Upgrade Scheme provides £7,500 towards an air source heat pump. You do not apply directly. Your MCS-certified installer handles the application and deducts the grant from your quote. Here is everything you need to know.
See your costs after the grant
Our heat pump calculator shows your installation cost after the £7,500 BUS grant, plus annual running costs and payback period.
In this guide
How much is the grant? Who is eligible? How to apply (step by step) Timeline from enquiry to installation Finding an MCS-certified installer What you actually pay after the grant Should you insulate first? Other grants you can combine with BUS Frequently asked questionsHow much is the grant?
£7,500 for an air source heat pump. £6,000 for a ground source heat pump. The grant also covers biomass boilers at £7,500, though these are less common for domestic properties.
The grant is paid directly to your installer by Ofgem. You never handle the money. Your installer deducts the grant from your total quote, so you only pay the balance. For example, if your air source heat pump installation costs £10,000, you pay £2,500.
The scheme is funded until April 2028 with a budget of £295 million for 2025/26. Grants are allocated on a first-come, first-served basis. Uptake has been increasing year on year, so there is a realistic possibility that funding could be exhausted before the deadline.
Who is eligible?
To qualify for the BUS grant, you must meet all of the following criteria.
You must own the property. Both owner-occupiers and landlords qualify. Tenants cannot apply (the landlord must apply instead). Social housing is excluded.
You must be replacing a fossil fuel heating system. This includes gas boilers, oil boilers, LPG boilers, and electric storage heaters. Homes with no existing central heating also qualify. You cannot use BUS to replace an existing heat pump.
The property must be in England or Wales. Scotland has a separate scheme (Home Energy Scotland). Northern Ireland has its own programmes.
You must have a valid EPC. An Energy Performance Certificate must be lodged for the property. It does not need to show a specific rating, it just needs to exist. If you do not have one, commission an EPC assessment (£60 to £120) before your installer can apply. Check at gov.uk/find-energy-certificate.
The property must not have received a previous BUS grant. One grant per property, ever.
New-build homes are excluded. The scheme is only for existing properties.
How to apply (step by step)
You do not apply directly to Ofgem or GOV.UK. The application is made by your installer. Here is the process.
Step 1: Check your EPC. Go to gov.uk/find-energy-certificate and search for your property. If no EPC exists, arrange one (£60 to £120).
Step 2: Get quotes from MCS-certified installers. MCS certification is mandatory. Installers without it cannot access the grant. Get at least three quotes to compare prices. See the finding an installer section below.
Step 3: Choose your installer. Your installer will conduct a heat loss survey, design the system, and provide a detailed quote showing the BUS grant deduction.
Step 4: Your installer applies to Ofgem. They submit the application through the BUS portal with your property details, EPC reference, and proposed system. Ofgem reviews and issues a voucher (typically within 3 to 5 working days).
Step 5: Installation. Once the voucher is issued, the installer proceeds with installation. This typically takes 2 to 5 days depending on the complexity.
Step 6: Installer claims the grant. After commissioning and registering the installation with MCS, the installer claims the grant from Ofgem. You have already paid only your share at this point.
Timeline from enquiry to installation
Expect the full process to take 4 to 12 weeks from first enquiry to a working heat pump. The breakdown is roughly: getting quotes (1 to 3 weeks), choosing an installer and scheduling (1 to 3 weeks), Ofgem voucher processing (3 to 5 working days), and installation (2 to 5 days). Busy periods like autumn can extend wait times.
Finding an MCS-certified installer
Only MCS-certified installers can access the BUS grant. The official MCS installer directory is at mcscertified.com/find-an-installer. Search by your postcode to find certified installers in your area.
When comparing quotes, check that the quote clearly shows the BUS grant deduction, the total you will pay, the heat pump brand and model, the estimated annual running cost, and the warranty terms. A good installer will also provide a detailed heat loss calculation showing why they recommend a specific system size.
Beware of pressure tactics
Some installers use high-pressure sales techniques, claiming the grant is about to run out or that prices are about to increase. While the scheme does have a budget limit, you should never feel rushed into signing. Get multiple quotes, compare them carefully, and take your time.
What you actually pay after the grant
Typical out-of-pocket costs after the £7,500 BUS grant for an air source heat pump range from £0 to £5,500 depending on property size and system complexity. A straightforward installation in a well-insulated 3-bedroom semi-detached house might cost £2,000 to £3,000 after the grant. A larger detached house requiring radiator upgrades could cost £4,000 to £5,500.
Use our heat pump calculator to get a personalised estimate based on your property type, or see our boiler vs heat pump comparison for a full 15-year cost analysis.
Should you insulate first?
Yes, if your home is poorly insulated. Improving your insulation before installing a heat pump means you need a smaller, cheaper system, the heat pump runs more efficiently (lower bills), and your home is more comfortable at lower flow temperatures.
Many households can get free insulation through ECO4 before applying for the BUS grant, effectively getting both improvements at minimal cost. This is the most cost-effective approach: insulate for free through ECO4, then install a heat pump with the £7,500 BUS grant.
Other grants you can combine with BUS
The BUS grant can be combined with 0% VAT on the installation (saving roughly £1,000 to £2,000), local authority top-up grants (where available), and the Smart Export Guarantee if you also have solar panels.
BUS cannot be combined with ECO4 for the same measure (you cannot get both BUS and ECO4 for the heat pump itself). However, you can use ECO4 for insulation and BUS for the heat pump on the same property. Check our grant eligibility checker for all available schemes.
Frequently asked questions
How do I apply for the Boiler Upgrade Scheme?
You do not apply directly. Contact an MCS-certified heat pump installer who applies on your behalf through the Ofgem portal. The £7,500 is deducted from your installation quote. You need a valid EPC first.
Who is eligible for the Boiler Upgrade Scheme?
Homeowners and landlords in England and Wales replacing a fossil fuel heating system. You need a valid EPC, must own the property, and the home must not have received a previous BUS grant. New builds and social housing are excluded.
How much is the BUS grant in 2026?
£7,500 for an air source heat pump. £6,000 for a ground source heat pump. Use our calculator to see your total cost after the grant.
How long does the Boiler Upgrade Scheme last?
Funded until April 2028. Grants are first-come, first-served with a budget of £295 million for 2025/26. Uptake is increasing, so do not assume funding will last until the deadline.
Can landlords get the BUS grant?
Yes. Landlords who own the property apply through an MCS-certified installer, the same process as owner-occupiers. The property must have a valid EPC and be replacing a fossil fuel heating system. Improving your heating also boosts your EPC rating by 10 to 15 points.
Data sources
Information from GOV.UK Boiler Upgrade Scheme guidance and Ofgem BUS administration data. Verified March 2026. See our full methodology.