The Boiler Upgrade Scheme replaces your old heating system with a heat pump or biomass boiler, and you apply through your installer, not the government directly
The Boiler Upgrade Scheme (BUS) provides upfront grants of £7,500 for air source heat pumps, £7,500 for ground source heat pumps, and £5,000 for biomass boilers in England and Wales. You do not apply to Ofgem or GOV.UK directly, your installer submits the application on your behalf and deducts the grant from your final bill.
The grant is subtracted from the installer’s quote before you pay, so you never handle the money or wait for a reimbursement. The scheme is designed to make low-carbon heating more affordable by covering a significant portion of the installation cost upfront (GOV.UK, 2026).
To qualify, your property must meet specific eligibility criteria, and you must use an MCS-certified installer. The entire process, from application to payment, is handled by your installer through Ofgem’s online portal.
Eligibility your property must have an EPC with no outstanding loft or cavity wall insulation recommendations
Your home must have a valid Energy Performance Certificate (EPC) issued within the last 10 years. The EPC must show no outstanding recommendations for loft insulation (less than 250mm) or cavity wall insulation. If these recommendations appear, you must install them first or provide evidence from a surveyor that they are not feasible for your property (GOV.UK, 2026).
The property must be in England or Wales. Scotland has separate schemes administered by Home Energy Scotland. The BUS is not available for new-build properties, it is designed for existing homes replacing fossil fuel heating systems.
You must also own the property or have the landlord’s written permission to apply. The system must be installed at your primary residence, not a second home or holiday let.
Quick numbers grant amounts, typical costs, and savings side by side
| System type | BUS grant (2026) | Typical installed cost (after grant) | Estimated annual saving vs gas boiler | Typical installation time |
|---|---|---|---|---|
| Air source heat pump | £7,500 | £5,000–£10,000 | £150–£400 | 2–5 days |
| Ground source heat pump | £7,500 | £12,000–£18,000 | £250–£500 | 5–10 days |
| Biomass boiler | £5,000 | £8,000–£14,000 | £100–£300 | 1–3 days |
Costs and savings vary widely depending on house size, insulation levels, and your current heating fuel. The figures above are based on Energy Saving Trust data and MCS installer surveys for a typical three-bedroom semi-detached home (Energy Saving Trust, 2026).
The application process your installer submits to Ofgem, you receive confirmation within 5 working days
Your MCS-certified installer completes the online application through the Ofgem BUS portal. You must sign a consumer declaration confirming the system is for your primary residence and not a new-build property. The installer provides your EPC, system details, and installation quote as part of the application.
Ofgem processes applications within 5 working days and issues a grant offer letter to the installer. You do not receive the money directly, the installer claims the grant after installation, and you pay only the difference between the full quote and the grant amount (Ofgem, 2026).
If your application is rejected, the installer must explain why and you can appeal through Ofgem’s complaints process. Common reasons for rejection include missing EPC recommendations or incorrect installer certification.
compare heat pump running costs vs gas boiler
You must use an MCS-certified installer, this is the only way to qualify for the grant
All heat pumps and biomass boilers must be installed by a company certified under the Microgeneration Certification Scheme (MCS). This ensures the installer meets technical and consumer protection standards. To find an installer, search the MCS database at mcscertified.com or use the Energy Saving Trust’s “Find a certified installer” tool.
The installer must also be TrustMark-registered for additional consumer protection. TrustMark is a government-endorsed quality scheme covering work in and around your home. You can verify an installer’s status on the TrustMark website before agreeing to any work (TrustMark, 2026).
Do not accept an installer who claims to be “accredited” but is not on the MCS register. Without MCS certification, you cannot claim the BUS grant, and the installation may not meet building regulations.
The heat pump or biomass boiler must meet minimum efficiency standards
Air source heat pumps must have a Seasonal Coefficient of Performance (SCOP) of at least 2.8. The SCOP measures how efficiently the pump converts electricity into heat over a full year, a SCOP of 2.8 means it produces 2.8 units of heat for every 1 unit of electricity. Ground source heat pumps must have a SCOP of at least 3.0 (MCS, 2026).
Biomass boilers must have a seasonal efficiency rating of at least 75% and meet Ecodesign requirements for emissions and energy use. All systems must be listed on the MCS product database or the Energy Technology List. Your installer will confirm the product meets these standards before submitting the application.
If the system does not meet the minimum efficiency standards, the application will be rejected and you will not receive the grant.
What happens after installation commissioning, paperwork, and the 3-year occupancy rule
Your installer must commission the system and provide you with an MCS certificate. This certificate is essential if you sell your home, buyers and their solicitors will ask for it as proof the system was installed correctly. It also helps with any future grant applications for other energy efficiency measures.
The BUS grant is tied to the property, not the owner. If you sell within 3 years of installation, the new owner must continue using the system. You should inform your solicitor about this condition when selling. Keep all paperwork, EPC, MCS certificate, installer invoice, and grant offer letter, for at least 7 years for audit purposes (Ofgem, 2026).
If you move out without the new owner continuing to use the system, Ofgem may ask for the grant to be repaid. This is rare but worth noting if you plan to sell within the first few years.
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