Boiler Upgrade Scheme: How to Claim £7,500 Towards a Heat Pump
The Boiler Upgrade Scheme (BUS) provides a grant of £7,500 towards the cost of an air source or ground source heat pump. For a typical air source heat pump costing £9,000 to £13,000 installed, the grant reduces your out-of-pocket cost to as little as £1,500. The scheme runs until April 2028 and is available to all homeowners in England and Wales replacing an existing fossil fuel heating system. 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?
| Technology | Grant amount | Typical installed cost | Your cost after grant |
|---|---|---|---|
| Air source heat pump | £7,500 | £9,000 to £13,000 | £1,500 to £5,500 |
| Ground source heat pump | £7,500 | £15,000 to £35,000 | £7,500 to £27,500 |
Costs are for a typical 3-bed house. Larger or older properties may require 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?
The BUS is available to homeowners in England and Wales who meet the following criteria:
You must be replacing a fossil fuel heating system. This includes gas boilers, oil boilers, LPG systems, coal fires, and direct electric heating. If your current system runs on fossil fuel, you qualify.
Your property must have a valid EPC. The EPC does not need to meet a minimum rating, but it must exist and be valid (within 10 years). If you do not have one, an assessment costs £60 to £120 and can be arranged quickly. Check 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.
New builds are excluded. The scheme is for existing homes only. Self-builds that replace an existing property may qualify if the original property had fossil fuel heating.
Landlords can apply. If you own a rental property with fossil fuel 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
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. You will need to confirm your consent electronically. Approval typically takes a few working days.
Step 5: Installation. Once approved, the installer schedules and carries out the work. A typical air source heat pump installation takes 2 to 3 days. 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. The installer claims the grant directly from Ofgem. You do not need to handle any grant paperwork beyond the initial consent.
What does the grant cover?
The BUS grant contributes towards the total installed cost of the heat pump system. This includes the heat pump unit itself, the hot water cylinder (if needed), installation labour, commissioning, and the MCS certificate. It does not cover radiator upgrades, underfloor heating, or insulation, which are separate costs.
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
Here is what a typical heat pump installation looks like for a 3-bed semi-detached house, with and without the grant.
| Item | Cost |
|---|---|
| Air source heat pump (8 to 10 kW, installed) | £9,000 to £12,000 |
| BUS grant deduction | -£7,500 |
| Hot water cylinder (if needed) | £800 to £1,500 |
| Radiator upgrades (if needed) | £2,000 to £4,000 |
| Total out of pocket (heat pump only) | £1,500 to £4,500 |
| Total including radiators and cylinder | £4,300 to £10,000 |
Costs are for a 3-bed semi with existing gas central heating. Properties needing extensive radiator upgrades or pipework modifications will be at the higher end.
Running costs after switching
At the Q1 2026 Ofgem price cap, a heat pump with a COP of 2.9 on a standard tariff costs slightly more to run than a gas boiler. On a dedicated heat pump tariff, it costs less. Here is the comparison for a 3-bed semi with 15,000 kWh annual heat demand.
| System | Annual cost |
|---|---|
| Gas boiler (90% efficiency) | £1,127 |
| Heat pump (standard tariff, 24.5p/kWh) | £1,267 |
| Heat pump (heat pump tariff, ~16p/kWh) | £828 |
Based on Ofgem Q1 2026 rates. Heat pump tariff assumes Octopus Cosy or equivalent. 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
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. This combination can deliver a complete home energy retrofit at minimal cost if you qualify for ECO4.
BUS plus 0% VAT: Heat pump installations qualify for 0% VAT until March 2027, saving an additional £1,800 to £2,600 on a typical installation. This applies automatically when using a VAT-registered installer.
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
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 maintains 21 degrees throughout your home. See our guide for old houses for specific advice on period properties.
What about noise?
Modern air source heat pumps operate at 40 to 50 dB at one metre, roughly equivalent to a quiet conversation. The planning limit is 42 dB at your nearest neighbour's window, which most units meet at typical boundary distances. See recommended anti-vibration pads to reduce transmitted vibration, and read our heat pump noise guide.
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 current funding runs until April 2028. If demand exceeds supply, the scheme may close early or be replaced. Applying sooner reduces this risk.
For optimal heat pump control, see recommended smart thermostats designed for heat pump systems. Track your energy usage with recommended energy monitors to confirm your savings after installation.
Frequently asked questions
How much is the Boiler Upgrade Scheme grant?
£7,500 for both air source and ground source heat pumps. It is deducted from your installer's invoice. Use our calculator to see your cost after the grant.
Who is eligible for the Boiler Upgrade Scheme?
Any homeowner in England or Wales replacing fossil fuel heating with a heat pump, installed by an MCS-certified installer. New builds are excluded. Landlords can apply.
How do I apply for the BUS grant?
Your MCS installer applies on your behalf through the Ofgem portal. You confirm consent electronically. Approval takes a few working days. You pay only the balance after the grant.
When does the Boiler Upgrade Scheme end?
April 2028. Apply well before the deadline. 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 and BUS for the heat pump. You also benefit from 0% VAT until March 2027. Check our grant eligibility tool for the full picture.
Data sources
BUS grant details from GOV.UK. Scheme administration from Ofgem. Cost data from Energy Saving Trust. Energy prices from Ofgem Q1 2026 price cap.