Boiler Upgrade Scheme: How to Claim £7,500 Towards a Heat Pump
The short answer
- £7,500 off an air source or ground source heat pump, or £9,000 until 31 March 2027 when replacing oil or LPG
- £3,500 to £8,000 is what you pay for a typical 3-bed semi costing £11,000 to £15,500 installed
- No income or benefits test: owners in England and Wales qualify, and the MCS installer applies and deducts the grant
The Boiler Upgrade Scheme (BUS) provides a grant of £7,500 towards the cost of an air source or ground source heat pump, or £9,000 until 31 March 2027 if the home is heated by oil or LPG and has no mains gas connection. For a typical 3-bed semi, where the whole air source heat pump job costs £11,000 to £15,500 installed, the £7,500 grant brings it down to £3,500 to £8,000. The scheme runs to 2030 and is open to property owners in England and Wales replacing fossil fuel or electric heating, with no income test and no benefits test. This guide covers eligibility, how to apply, what the grant covers, and how to combine it with other funding for the lowest possible cost.
How much is the grant?
£7,500 for a heat pump, or £9,000 when replacing oil or LPG. The £9,000 rate runs until 31 March 2027, and a typical 3-bed semi at £11,000 to £15,500 comes down to £3,500 to £8,000.
See how many grants have been paid in your area on the map of heat pumps by council.
| Technology | Grant amount | Typical installed cost, 3-bed semi | Your cost after grant |
|---|---|---|---|
| Air source heat pump | £7,500 | £11,000 to £15,500 | £3,500 to £8,000 |
| Air source heat pump, replacing oil or LPG with no mains gas (until 31 March 2027) | £9,000 | £11,000 to £15,500 | £2,000 to £6,500 |
| Ground source heat pump | £7,500 (£9,000 replacing oil or LPG) | Usually well above air source, because of the ground loop | Quote less the grant |
| Air-to-air heat pump | £2,500 | Depends on how many rooms it serves | Quote less £2,500 |
| Biomass boiler (rural, off the gas grid) | £5,000 | Quote from an MCS installer | Quote less £5,000 |
Read the detail
The data behind this table
Air source costs are the middle half of what installers recorded for a heat pump the size of a typical 3-bed semi (9 kW) under the Boiler Upgrade Scheme, median £12,700, including the system itself, labour and VAT (DESNZ, August 2026). Larger homes need bigger systems at higher cost. Use our heat pump calculator for a personalised estimate.
The grant is deducted directly from your installer's invoice. You never receive the money yourself and you never need to pay the full amount upfront. You pay only the balance after the grant is applied.
Who is eligible?
Owners in England and Wales replacing fossil fuel or electric heating. The installer must be MCS certified; landlords qualify, social housing and most new builds do not, and since 28 April 2026 you no longer need a valid EPC.
Read the detail
The BUS is available to property owners in England and Wales who meet the following criteria:
You must be replacing fossil fuel or electric heating. This includes gas, oil and LPG boilers, coal or other solid fuel, and electric heating such as storage heaters or panel radiators. You cannot get a grant to replace a system that is already low carbon, such as an existing heat pump, and a home with no heating system at all does not qualify.
You no longer need a valid EPC. Since the scheme's amended regulations came into force on 28 April 2026, the installer records the certificate number if the home has a valid EPC, or the details of an expired one, but a missing certificate no longer stops the application. You can look yours up on the GOV.UK EPC register.
The heat pump must be installed by an MCS-certified installer. MCS certification ensures the installer meets quality standards and the system is designed correctly for your property. Find certified installers through the MCS directory.
Most new builds are excluded. A new build that the developer is still building is not eligible, but if you move into a finished new build with a fossil fuel boiler you may be able to get the grant. A self build is eligible if you or the original owner built it, or paid a builder to, and it has never been owned by a business.
Landlords can apply, social housing cannot. The grant covers second homes and homes you rent out, as long as you own them. Social housing is excluded. If you own a rental property with fossil fuel or electric heating, you can claim the BUS grant to install a heat pump. Read our EPC guide for landlords for how a heat pump affects your rental obligations.
Insulate before applying
Better insulation means a smaller, cheaper heat pump. Loft insulation and cavity wall insulation should be done before the heat pump is installed. If you qualify for ECO4, get the free insulation first, then apply for BUS. This reduces your heat pump cost and running bills.
How to apply
Your MCS installer applies, not you. Get three quotes, agree one, confirm your consent when Ofgem contacts you, then pay only the balance after the grant.
Read the detail
Step 1: Insulate your home. Address loft insulation, wall insulation, and draught-proofing first. This is not a BUS requirement, but it is strongly recommended. Your MCS installer will assess heat loss and may recommend insulation before sizing the heat pump.
Step 2: Get MCS installer quotes. Use the MCS directory to find certified heat pump installers in your area. Get at least three quotes. Each should include a full heat loss calculation specific to your property.
Step 3: Choose your installer and agree the quote. The quote should clearly show the total cost, the BUS grant deduction, and the balance you pay. Check that the installer is applying for the correct grant amount.
Step 4: Your installer applies for the grant. The installer submits the application through the Ofgem BUS portal. Ofgem then contacts you to confirm the installer is acting for you, and you have to confirm your consent before the voucher is issued.
Step 5: Installation. Once the voucher is issued, the installer has three months to finish an air source heat pump, or six months for a ground source heat pump, or it has to apply again. If the system was fitted first, the application has to be made within 120 days of commissioning. The installer commissions the system, sets up controls, and shows you how to operate it.
Step 6: Payment. You pay the installer the balance after the grant deduction, and the installer claims the grant from Ofgem once the system is installed and checked. The installer must not ask you to pay the deducted amount. You do not need to handle any grant paperwork beyond the consent.
What does the grant cover?
It is a fixed sum off the quote for the whole job. Recorded costs cover the system, labour and VAT; ask whether the cylinder and radiator upgrades are included, and budget separately for insulation.
Read the detail
The BUS grant is a fixed sum taken off the installer's quote for the whole job. The installed costs recorded under the scheme, which our figures use, cover the system itself, labour and VAT, as installers report them on the MCS certificate. Ask whether your quote includes the hot water cylinder and any radiator upgrades your home needs. Insulation is a separate cost.
For a full cost breakdown including radiators and insulation, see our guide to heat pumps in old houses or use the heat pump calculator.
Cost breakdown with the BUS grant
£3,500 to £8,000 out of pocket for a 3-bed semi. The whole job is £11,000 to £15,500 before the £7,500 grant, or £2,000 to £6,500 with the £9,000 oil or LPG grant.
| Item | Cost |
|---|---|
| Air source heat pump, whole job (9 kW system, labour and VAT) | £11,000 to £15,500 |
| BUS grant deduction | -£7,500 |
| Total out of pocket | £3,500 to £8,000 |
| Total out of pocket with the £9,000 oil or LPG grant | £2,000 to £6,500 |
| Radiator upgrades | Where needed; ask whether your quote includes them |
Read the detail
Here is what a typical heat pump installation looks like for a 3-bed semi-detached house, with and without the grant.
The data behind this table
The middle half of real installs for a heat pump of this size under the Boiler Upgrade Scheme, median £12,700 (DESNZ, August 2026). Homes needing extensive radiator or pipework changes sit at the higher end.
Running costs after switching
Cheaper than gas only on a heat pump tariff. A 3-bed semi costs £666 a year on an 18.7p heat pump tariff against £877 for gas, but £937 on a standard tariff.
Read the detail
At the Ofgem price cap for October to December 2026, a heat pump at the measured median efficiency of 2.78 costs about £60 a year more than a gas boiler on a standard tariff, and about £210 a year less on a heat pump tariff such as Cosy Octopus, about 18.7p per kWh with most heating in the cheap hours. Here is the comparison for a 3-bed semi with 9,900 kWh annual heat demand.
| System | Annual cost |
|---|---|
| Gas boiler (90% efficiency) | £877 |
| Heat pump (standard tariff, 26.32p/kWh) | £937 |
| Heat pump (heat pump tariff, 18.7p/kWh) | £666 |
The data behind this table
Based on the Ofgem price cap for October to December 2026: gas 7.97p and electricity 26.32p per kWh, with a heat pump tariff such as Cosy Octopus, about 18.7p per kWh with most heating in the cheap hours. Heat pump efficiency 2.78, the median measured across 428 air source heat pumps in the Electrification of Heat trial. Standing charges excluded; if you disconnect from gas altogether you also stop paying the gas standing charge of about £108 a year. Read our heat pump running costs guide for full details.
Switching to a heat pump tariff is essential for making a heat pump cheaper to run than gas. Read our guide to the best heat pump tariffs for current options. Use our boiler vs heat pump calculator for your specific property.
Combining BUS with other grants
Stack them where you qualify. Eligible households can get ECO4 insulation until 31 December 2026, and 0% VAT until 31 March 2027 is worth about £550 to £780 on an £11,000 to £15,500 job.
Read the detail
The BUS grant can be combined with other funding to reduce your total retrofit cost even further.
BUS plus ECO4: Use ECO4 to fund free insulation (loft, cavity wall, or solid wall), then BUS to fund the heat pump. ECO4 closes on 31 December 2026. In England, the council-run Warm Homes: Local Grant can also sit alongside the BUS, but not for the same measure.
BUS plus 0% VAT: Heat pump installations carry 0% VAT until 31 March 2027, after which they return to the 5% reduced rate. On an £11,000 to £15,500 job that is worth about £550 to £780. Your installer applies it, so there is nothing to claim.
BUS plus solar panels: Installing solar panels alongside a heat pump provides cheap daytime electricity to power the heat pump, further reducing running costs. Solar panels also qualify for 0% VAT.
Check all available funding with our grant eligibility checker.
Common questions and concerns
A correctly designed heat pump keeps the whole home at 21°C. Most installs fall under permitted development, and the extra £1,500 for oil and LPG homes ends on 31 March 2027, so there is no advantage in waiting.
Read the detail
Will a heat pump heat my home adequately?
Yes, if correctly designed. An MCS installer performs a room-by-room heat loss calculation to size the system. With adequate insulation and appropriately sized radiators, a heat pump keeps your whole home at 21°C. See our guide for old houses for specific advice on period properties.
What about noise?
Modern air source heat pumps are quiet enough for most gardens, and permitted development rules set a noise limit at your neighbour's nearest window that the installer checks when choosing where the unit goes. Anti-vibration pads reduce transmitted vibration, and our heat pump noise guide covers the rest.
Do I need planning permission?
Most installations fall under permitted development. Listed buildings and conservation areas have restrictions. Read our planning permission guide for the full rules.
What happens if the scheme runs out of money?
The BUS has been extended and expanded. The Warm Homes Plan funds it with £2.7 billion from 2025/26 to 2029/30, regulations that came into force on 28 April 2026 extended it to 2030, and the budget for 2026 to 2027 is £400 million. Funding is set year by year, and the extra £1,500 for oil and LPG homes ends on 31 March 2027, so if you are ready there is no advantage in waiting.
Frequently asked questions
How much is the Boiler Upgrade Scheme grant?
£7,500 for an air source or ground source heat pump, rising to £9,000 until 31 March 2027 if the home is heated by oil or LPG and has no mains gas connection. Air-to-air heat pumps get £2,500 and biomass boilers in rural, off gas homes £5,000. It is taken off your installer's invoice, so for a typical 3-bed semi costing £11,000 to £15,500 installed you pay £3,500 to £8,000. Use our calculator to see your cost after the grant.
Who is eligible for the Boiler Upgrade Scheme?
Anyone who owns a property in England or Wales, including landlords and second home owners, and is replacing fossil fuel or electric heating with a heat pump fitted by an MCS-certified installer. There is no income or benefits test, and since 28 April 2026 you no longer need a valid EPC. Social housing and most new builds are excluded.
How do I apply for the BUS grant?
You do not apply yourself. Your MCS-certified installer applies through Ofgem once you have agreed a quote, and Ofgem contacts you to confirm your consent. Once the voucher is issued the installer has three months to finish an air source heat pump, or six months for ground source, and you pay only the balance after the grant.
When does the Boiler Upgrade Scheme end?
The scheme runs to 2030. The Warm Homes Plan funds it with £2.7 billion to 2029/30, and the budget for 2026 to 2027 is £400 million. The extra £1,500 for oil and LPG homes ends sooner, on 31 March 2027. Read our heat pump guide for old houses to prepare your property first.
Can I combine BUS with ECO4 or other grants?
Yes. Use ECO4 for free insulation until 31 December 2026 and BUS for the heat pump. You also pay 0% VAT on the installation until 31 March 2027. In England the Warm Homes: Local Grant can fund other measures in the same home, but not the same measure twice. Check our grant eligibility tool for the full picture.
Data sources
Grant rules come from GOV.UK, the 2026 amendment regulations and Ofgem, installed costs from the Boiler Upgrade Scheme statistics for August 2026, efficiency from the Electrification of Heat trial and prices from the Ofgem price cap.
Show every source
BUS grant details from GOV.UK and the Boiler Upgrade Scheme (England and Wales) (Amendment) Regulations 2026. Scheme administration from Ofgem. Budget from the Warm Homes Plan and DESNZ, April 2026. Installed costs from the Boiler Upgrade Scheme statistics, August 2026. Heat pump efficiency from the Electrification of Heat trial. Energy prices from Ofgem price cap, October to December 2026. Heat pump tariff of 18.7p per kWh from our heat pump tariffs guide: Cosy Octopus at October 2026 rates with 60% of heating in the cheap hours and 10% in the 4pm to 7pm peak.