The Boiler Upgrade Scheme grant is £7,500 for most households from April 2026
If you are considering replacing an old gas, oil, or LPG boiler with a low-carbon heating system, the Boiler Upgrade Scheme (BUS) is the main government subsidy available in England and Wales. The question most homeowners ask is straightforward: how much is the boiler upgrade scheme grant?
The Boiler Upgrade Scheme grant is £7,500 from April 2026 for most households in England and Wales. The discount is applied directly to your installer's quote, not paid as cash to you.
- Check if your EPC has no outstanding loft or cavity wall insulation recommendations.
- The £7,500 grant is deducted from your installer's quote, not paid as cash.
- You must own the property in England or Wales to qualify for the scheme.
- Additional work like radiator upgrades or a new hot water cylinder is not covered.
- Only MCS-certified installers can claim the grant from Ofgem after commissioning.
- The Boiler Upgrade Scheme grant is £7,500 for most households from April 2026
- How the grant is paid, the discount comes off your installer’s quote, not as a cash payment
- Who qualifies for the full £7,500 grant, property and homeowner eligibility rules
- Who does NOT qualify, the main reasons applications are rejected
- Quick numbers, typical costs and savings after the grant
- How to confirm your eligibility before applying, the three-step check
- The installer must be MCS-certified, how to verify and why it matters
- What the grant does not cover, the extra costs you must budget for
From April 2026, the standard grant for an air-source heat pump rose to £7,500, up from £5,000 in previous years. For ground-source heat pumps (including water-source) and biomass boilers (eligible only in rural properties not connected to the gas grid), the grant amount is also £7,500 (GOV.UK Boiler Upgrade Scheme, DESNZ, updated April 2026).
How the grant is paid, the discount comes off your installer’s quote, not as a cash payment
You do not apply for a cash lump sum paid into your bank account. Instead, the £7,500 grant is deducted from the total installation cost by your MCS-certified installer before you pay. The installer claims the grant from Ofgem after the system is commissioned and has passed its quality checks, and you pay only the remaining balance to the installer.
It is important to understand that the grant covers only the heat pump or biomass boiler and its standard installation. It does not cover additional enabling work such as radiator upgrades, a new hot water cylinder, pipework modifications, or electrical supply upgrades (Ofgem Boiler Upgrade Scheme: Guidance for Installers and Homeowners, 2026 version).
Who qualifies for the full £7,500 grant, property and homeowner eligibility rules
To qualify for the full £7,500, you must meet several conditions set by the Department for Energy Security and Net Zero (DESNZ). First, you must own the property in England or Wales (Scotland and Northern Ireland run separate, different schemes). Second, the property must have a valid Energy Performance Certificate (EPC) with no outstanding recommendations for loft insulation or cavity wall insulation, this is known as the “fabric-first” rule. Third, the grant is specifically for replacing an existing fossil-fuel heating system (gas, oil, LPG, or electric storage heaters) with a heat pump or, in limited cases, a biomass boiler (GOV.UK Boiler Upgrade Scheme: Eligibility, DESNZ).
If you live in a rural property not connected to the mains gas grid, you may also qualify for a biomass boiler grant of £7,500, but this is not available to homes on the gas network. The property must also have a valid EPC that does not list loft or cavity wall insulation as a “cost-effective” recommendation that remains uninstalled.
Who does NOT qualify, the main reasons applications are rejected
Not everyone who applies will receive the grant. The most common reasons for rejection include being a landlord or a new-build property developer, the scheme is for owner-occupiers only, with very limited exceptions for self-build homes. If your EPC has outstanding loft or cavity wall insulation recommendations that you have not installed, your application will be rejected. Also, if you have already received a BUS grant for a previous property, you cannot apply again for a different home (Ofgem Boiler Upgrade Scheme: Application Rejection Reasons, 2026 data release).
Also, you cannot claim the grant for a system installed before you receive a valid BUS reference number from Ofgem. The installation must not be part of a new-build property’s first occupation, and the system must replace an existing fossil-fuel heating system, not supplement it.
Quick numbers, typical costs and savings after the grant
| Item | Typical figure | Source |
|---|---|---|
| Total cost of air-source heat pump installation (before grant) | £10,000–£14,000 | Energy Saving Trust (EST) “Heat Pump Cost Report” (2026) |
| Grant amount (April 2026) | £7,500 | DESNZ “Boiler Upgrade Scheme” page |
| Typical homeowner cost after grant | £2,500–£6,500 | Calculation from EST figures |
| Annual running cost saving vs gas boiler (typical 3-bed home) | £200–£400 | EST “Heat Pump Running Costs” (2026) |
| Annual running cost saving vs oil boiler | £300–£500 | EST (2026) |
These figures assume a well-insulated home with a properly sized heat pump. Actual costs and savings will vary depending on your property’s size, insulation levels, and your existing heating fuel. heat pump running costs vs gas boiler
How to confirm your eligibility before applying, the three-step check
Before contacting an installer, you can run a quick three-step check to avoid disappointment. Step 1: Check your EPC on the GOV.UK EPC register. Look at the “Recommendations” section and ensure that loft insulation and cavity wall insulation are either already installed or not listed as “cost-effective” recommendations that remain outstanding. Step 2: Find an MCS-certified installer via the MCS Installer Database (mcs.org.uk) who covers your postcode, only MCS-certified installations qualify for the grant. Step 3: Ask the installer to run a formal BUS eligibility check. They will confirm if your property meets the fabric-first rule and if any exceptions apply, such as a hard-to-treat cavity wall where insulation is not feasible (GOV.UK Boiler Upgrade Scheme: How to Apply; MCS Installer Database).
If your EPC shows outstanding insulation recommendations, you must install them before applying for the BUS grant, or you will be rejected.
The installer must be MCS-certified, how to verify and why it matters
Only installations carried out by an MCS-certified contractor qualify for the BUS grant. You cannot use a non-MCS installer and attempt to claim the grant later, the application will be rejected. To verify an installer, search the MCS Installer Database by postcode and check that their MCS certificate number is current and covers the type of heat pump or biomass boiler you want installed.
The installer must also be registered with TrustMark for consumer protection. If the installation involves removing a gas boiler, the installer should also be on the Gas Safe Register. For flue work, check for FENSA registration (MCS Standards; TrustMark Boiler Upgrade Scheme: Installer Requirements).
What the grant does not cover, the extra costs you must budget for
The £7,500 grant covers the heat pump unit, its standard installation, and basic controls. It does not cover “enabling works” such as new radiators, pipework upgrades, a new hot water cylinder, or electrical supply upgrades. Typical extra costs include a new hot water cylinder (£800–£1,500), larger radiators (£500–£1,500), and an electrical supply upgrade (£400–£800) (Ofgem Boiler Upgrade Scheme: What Costs Are Included; Energy Saving Trust Heat Pump Installation: Additional Costs, 2026).
You also cannot claim the grant for a system that is part of a new-build property’s first occupation, or for a system installed before you receive a valid BUS reference number from Ofgem. Budget for these extras when comparing quotes from installers. heat pump installation costs breakdown
Frequently Asked Questions
From April 2026, the grant is £7,500 for air-source heat pumps, ground-source heat pumps, and biomass boilers. This was increased from £5,000 in previous years, according to GOV.UK.
No, you do not receive a cash payment. The £7,500 is deducted from your installer's quote before you pay, and the installer claims the money from Ofgem after the system is commissioned, as per the Ofgem guidance for homeowners.
You must own your property in England or Wales and have a valid Energy Performance Certificate (EPC) with no outstanding loft or cavity wall insulation recommendations. The Energy Saving Trust confirms these eligibility rules.
The £7,500 grant covers the heat pump or biomass boiler and its standard installation only. It does not cover radiator upgrades, a new hot water cylinder, pipework modifications, or electrical supply upgrades, as stated in the Ofgem guidance for installers.
No, the Boiler Upgrade Scheme is only for England and Wales. Scotland and Northern Ireland have separate schemes, according to the Department for Energy Security and Net Zero.
You do not apply directly. You get quotes from MCS-certified installers, who include the £7,500 grant in their price. The installer handles the application to Ofgem, according to the Energy Saving Trust.
No, the scheme only covers low-carbon heating systems like heat pumps and biomass boilers. It is not available for gas, oil, or LPG boilers, as confirmed by GOV.UK.
