Can you get a grant to replace an oil or LPG boiler?
If your home is off the gas grid and you rely on oil, LPG, or electric storage heaters, you might be wondering what financial help is available when your old boiler needs replacing. Government grants for heating systems have changed significantly in recent years, with a clear shift away from fossil fuels.
The main off gas boiler grant in 2026 is the Boiler Upgrade Scheme, offering a flat £7,500 toward an air-source heat pump. It does not cover like-for-like oil or LPG boiler replacements, but typical annual savings vs oil are £400–£700.
- The Boiler Upgrade Scheme offers a flat £7,500 for an air-source heat pump.
- BUS does not cover like-for-like oil or LPG boiler replacements.
- Typical homeowner top-up after grant is £2,000 – £7,000.
- Annual running cost saving vs oil boiler is £400 – £700.
- Eligibility requires an EPC rating of D or above in England or Wales.
- Can you get a grant to replace an oil or LPG boiler?
- Quick numbers what the BUS grant covers and what it doesn't
- The eligibility checklist for an off-gas boiler grant in 2026
- How the heat-loss calculation determines your grant-eligible system size
- The direct answer can you get a grant for an oil or LPG boiler replacement?
- How to verify an MCS-certified heat pump installer for your grant claim
- The timeline from application to installation what to expect in 2026
The direct answer is that the main grant available for off-gas homes in 2026 is the Boiler Upgrade Scheme (BUS), which offers a flat £7,500 toward an air-source heat pump (GOV.UK, 2026). This grant covers a significant portion of the installation cost, but it does not pay for a like-for-like replacement of an oil or LPG boiler, and the final amount you pay depends on your property’s heat-loss calculation.
Quick numbers what the BUS grant covers and what it doesn’t
The table below shows the typical costs and savings for a 3-bedroom off-gas home installing an air-source heat pump under the BUS scheme in 2026.
| Cost item | Typical range for a 3-bedroom off-gas home | Source |
|---|---|---|
| Grant amount | £7,500 | GOV.UK, Boiler Upgrade Scheme statistics (January 2026) |
| Average total installation cost | £9,000 – £14,500 | MCS register installation data (2026) |
| Typical homeowner top-up | £2,000 – £7,000 | Energy Saving Trust, “Heat pump running costs” (2026) |
| Annual running cost saving vs. oil boiler | £400 – £700 | Energy Saving Trust (2026) |
| Annual running cost saving vs. LPG boiler | £300 – £600 | Energy Saving Trust (2026) |
These figures are estimates and will vary based on your home’s insulation levels, the size of the heat pump needed, and your current energy tariff. The grant is deducted from the installation invoice, so you pay the installer the balance after the £7,500 discount is applied.
The eligibility checklist for an off-gas boiler grant in 2026
To qualify for the BUS grant, you must meet several conditions. The property must be in England or Wales and have an Energy Performance Certificate (EPC) rating of D or above, or evidence that all recommended loft and cavity wall insulation measures are complete (GOV.UK, 2026).
You must own the property or have written consent from your landlord if you are a tenant. The installer must be certified under the Microgeneration Certification Scheme (MCS) and registered with TrustMark (TrustMark, 2026). The existing heating system must be a fossil-fuel boiler (oil, LPG, or mains gas). Electric storage heaters do not qualify for the BUS grant.
The grant is applied as a discount at the point of installation, not as a cash-back payment to you. The installer claims the £7,500 from Ofgem after the work is completed, and you pay the remaining balance to the installer (GOV.UK, 2026).
How the heat-loss calculation determines your grant-eligible system size
The size of the heat pump you need is not based on floor area alone. Your installer must perform a room-by-room heat-loss calculation following the MCS 020 standard (MCS, 2026). This calculation takes into account the age of your property, insulation levels, window type, and the number and size of radiators.
A system sized below 45kW qualifies for the full £7,500 grant. Larger systems, such as those needed for very large homes or commercial buildings, may not be eligible. If the calculation shows your home needs a 12kW heat pump but the installer quotes a 14kW unit, the grant still applies as long as the installed system is 45kW or less (DESNZ, 2026).
This calculation is critical because an undersized heat pump will struggle to heat your home in winter, while an oversized one will cycle on and off inefficiently, increasing running costs. heat pump sizing guide
The direct answer can you get a grant for an oil or LPG boiler replacement?
Yes, you can get a grant to replace an oil or LPG boiler, but only if you install an air-source heat pump. The BUS grant is not available for a like-for-like boiler swap, even if you are off the gas grid (GOV.UK, 2026).
There is no separate “off-gas boiler grant” from UK government schemes as of 2026. The only dedicated off-gas heating grant is the BUS heat pump grant. Homeowners on low incomes with an EPC rating of E, F, or G may also qualify for the Energy Company Obligation (ECO4), which can fund heat pumps or insulation for off-gas homes (Ofgem, 2026). ECO4 is not a cash grant but a scheme where energy suppliers arrange and pay for qualifying improvements.
If you are replacing an oil or LPG boiler with another fossil-fuel boiler, no government grant is available in 2026.
How to verify an MCS-certified heat pump installer for your grant claim
Your installer must be registered with the Microgeneration Certification Scheme (MCS) and listed on the MCS register at mcsregister.com. They must also hold TrustMark registration, which is a requirement for BUS grant claims (TrustMark, 2026).
Ask for a written quote that includes the heat-loss calculation, the system design, and the total cost before the grant is applied. The quote should clearly state the MCS certificate number of the installer. You can verify this number on the MCS register to confirm the installer is authorised to claim BUS grants on your behalf (MCS, 2026).
The installer should also have public liability insurance of at least £2 million. If they cannot provide evidence of this, consider finding another installer. how to choose a heat pump installer
The timeline from application to installation what to expect in 2026
Once you receive a quote from an MCS-certified installer, they apply for the grant through the BUS portal on your behalf. Approval typically takes 5 to 10 working days (Ofgem, 2026).
Installation must be completed within 3 months of grant approval, or the grant lapses and you would need to reapply. The £7,500 is deducted from the invoice at the point of installation, so you pay the installer the balance on completion of the work (GOV.UK, 2026).
If the installer fails to complete the work, you do not lose the grant. Ofgem can reassign it to another MCS-certified installer to finish the job. This safeguard protects homeowners from losing the grant if their original installer goes out of business or fails to deliver (Ofgem, 2026).
Frequently Asked Questions
Yes, through the Boiler Upgrade Scheme (BUS) you can get £7,500 toward an air-source heat pump, but not for a like-for-like oil boiler replacement. Source: GOV.UK (2026).
It is called the Boiler Upgrade Scheme (BUS), administered by Ofgem. It provides a flat £7,500 grant for air-source heat pumps in off-gas homes. Source: GOV.UK.
After the £7,500 grant, typical homeowner top-up ranges from £2,000 to £7,000, based on average installation costs of £9,000 to £14,500. Source: Energy Saving Trust (2026).
Yes, your property must have an Energy Performance Certificate (EPC) rating of D or above, or provide evidence of exemption. Source: Ofgem.
No, there is no grant for like-for-like LPG boiler replacements. The BUS only covers heat pumps, which typically save £300–£600 per year on running costs. Source: Energy Saving Trust.
