The Boiler Upgrade Scheme offers £7,500 off an air-source heat pump, compared to £0 under the previous £5,000 cap.
The Boiler Upgrade Scheme (BUS) provides a flat-rate grant of £7,500 to homeowners in England and Wales who replace a fossil-fuel heating system with an air-source heat pump. This is a single, non-means-tested payment deducted from the installer’s invoice, meaning the homeowner never handles the grant cash. The £7,500 figure was confirmed in the Autumn Budget 2023 and applies to all applications submitted from 23 October 2023 onwards (GOV.UK, 2026). The grant is not a loan and does not need to be repaid, provided the installation meets the scheme’s technical requirements.
The BUS grant offers £7,500 off an air-source heat pump in England and Wales, deducted from the installer's invoice. You cannot apply yourself; the MCS-certified installer handles the application before installation begins.
- Get £7,500 off an air-source heat pump via BUS grant.
- Grant applies only in England and Wales, not Scotland.
- Must replace gas, oil, LPG, or electric storage heaters.
- Installer must be MCS-certified and registered with Ofgem.
- Homeowner never handles cash; installer deducts from invoice.
- The Boiler Upgrade Scheme offers £7,500 off an air-source heat pump, compared to £0 under the previous £5,000 cap.
- Eligibility starts with your current heating system and property type
- The installer must be MCS-certified and registered with the scheme
- Quick numbers grant amounts, typical costs, and savings
- How to confirm your eligibility in three steps
- What the grant does and does not cover
- The application process is handled entirely by your installer
Eligibility starts with your current heating system and property type
You must be replacing an existing fossil-fuel heating system that is the primary heating source for the property. Acceptable systems include gas, oil, LPG, or electric storage heaters. The property must be a domestic building in England or Wales, covering owner-occupied homes, privately rented homes, and social housing. New-build homes are ineligible for the BUS grant (Ofgem BUS guidance, 2026). There is no income cap or property value limit, making the grant available to all qualifying homeowners regardless of their financial circumstances. If you live in Scotland, you should check the separate Home Energy Scotland loan and grant scheme, as BUS does not apply there.
The installer must be MCS-certified and registered with the scheme
The heat pump installation must be carried out by an installer certified under the Microgeneration Certification Scheme (MCS) and registered on the MCS Installer Database. The installer must also be registered with the BUS scheme through Ofgem’s portal, which is a separate step from MCS certification. Homeowners cannot apply for the grant themselves; the installer submits the application on their behalf before the installation begins. You can verify an installer’s MCS certification on the MCS website (MCS, 2026) and check their BUS registration by asking for their scheme reference number.
Quick numbers grant amounts, typical costs, and savings
| Metric | Value | Source |
|---|---|---|
| Grant amount | £7,500 | GOV.UK, 2026 |
| Typical installation cost (air-source heat pump) | £12,000–£15,000 | Energy Saving Trust, 2026 |
| Average annual running cost saving vs gas boiler | £200–£400 | Energy Saving Trust, 2026 |
| Typical payback period (with grant) | 10–15 years | Energy Saving Trust, 2026 |
| Annual carbon saving | 1,500–2,000 kg CO₂ | DESNZ, 2026 |
How to confirm your eligibility in three steps
Step 1: Check your current heating system and property age, the grant is for replacing fossil-fuel systems in existing homes only. Step 2: Find an MCS-certified installer who is registered with the BUS scheme, use the MCS Installer Database and ask for their BUS registration confirmation. Step 3: Ask the installer for a full quote that includes the £7,500 grant deduction, the grant is applied to the invoice, so the final price you pay should be the installer’s quote minus £7,500. The installer will handle the application and grant redemption; you only need to confirm the installation is complete and meets the scheme’s standards. compare the BUS grant to the Great British Insulation Scheme
What the grant does and does not cover
The £7,500 grant covers the full cost of the heat pump system, including the outdoor unit, indoor unit, hot water cylinder (if needed), and installation labour. The grant does not cover additional work such as upgrading radiators, installing underfloor heating, or replacing pipework, which may be required for the heat pump to work efficiently. The grant also does not cover the cost of a new hot water cylinder if the existing one is incompatible, though this is often included in the installer’s quote. The scheme is capped at one grant per property, so you cannot claim multiple grants for different heating systems in the same home. read our guide on heat pump running costs
The application process is handled entirely by your installer
The installer submits the grant application to Ofgem via the BUS portal before starting the installation. This provides details of the property, the existing system, and the proposed heat pump. Ofgem reviews the application and issues a grant reference number within 5–10 working days, which the installer must have before work begins. After installation, the installer submits evidence (e.g., MCS certificate, commissioning report, and photos) to Ofgem to claim the £7,500 grant. The homeowner does not need to fill out any forms or contact Ofgem directly; the installer manages the entire process from application to payment. If you are considering a ground-source heat pump instead, note that the BUS offers a separate £7,500 grant for those systems too, though installation costs are typically higher at £20,000–£30,000 (Energy Saving Trust, 2026).
Frequently Asked Questions
The BUS grant gives £7,500 off an air-source heat pump, deducted from the installer's invoice. The installer applies on your behalf before installation starts, and the grant does not need to be repaid. Ofgem administers the scheme for England and Wales.
You are eligible if you own a domestic property in England or Wales and replace a fossil-fuel heating system (gas, oil, LPG, or electric storage heaters). There is no income cap, but new-build homes are excluded. Check Ofgem BUS guidance for full criteria.
No, you cannot apply directly. The MCS-certified installer must submit the application through Ofgem's portal before installation. The homeowner never handles the grant cash; it is deducted from the final invoice.
The BUS grant is £7,500 for an air-source heat pump, confirmed in the Autumn Budget 2023 and effective since 23 October 2023. This is a flat rate, not means-tested, and applies to all eligible installations in England and Wales.
No, the BUS grant does not apply in Scotland. Homeowners in Scotland should check the separate Home Energy Scotland loan and grant scheme, which offers different support for heat pumps and other renewables.
