The Boiler Upgrade Scheme gives you £7,500 off a heat pump, not a gas boiler
The Boiler Upgrade Scheme (BUS) is a UK government grant that pays a fixed upfront sum towards the cost of installing a renewable heating system. Many homeowners searching for “how much is the boiler upgrade scheme” expect a discount on a new gas boiler, but the grant is not for boilers at all.
The Boiler Upgrade Scheme pays £7,500 off an air source or ground source heat pump. It does not cover gas boilers. After the grant, you typically pay £1,500–£4,500 for an air source heat pump.
- The BUS gives £7,500 off an air or ground source heat pump.
- Gas, oil, and LPG boilers are not covered by the scheme.
- Typical air source heat pump cost after grant is £1,500–£4,500.
- Ground source heat pumps leave you paying £6,500–£12,500 after grant.
- Apply via Ofgem; you must own the property and have an MCS installer.
- The Boiler Upgrade Scheme gives you £7,500 off a heat pump, not a gas boiler
- The total cost of a heat pump after the £7,500 grant
- Quick numbers grant amounts and typical payouts
- How much is the boiler upgrade scheme the direct answer for homeowners
- Eligibility criteria who can apply for the £7,500 grant
- How to verify an installer and the certification you need
- What the grant covers and what it does not cover
- How to apply and the timeline for receiving the grant
The direct answer is that the Boiler Upgrade Scheme pays a fixed grant of £7,500 towards the cost and installation of an air source heat pump, and the same £7,500 for a ground source heat pump, as of April 2026 (GOV.UK, 2026). It does not cover gas, oil, or LPG boilers; the grant is specifically for renewable heating systems. The scheme is administered by Ofgem and funded by the UK government through the Department for Energy Security and Net Zero (DESNZ).
The total cost of a heat pump after the £7,500 grant
The £7,500 grant reduces the upfront cost significantly, but the final amount you pay depends on the type of heat pump and your property. According to the Energy Saving Trust, the average installed cost of an air source heat pump in the UK is between £9,000 and £12,000 (Energy Saving Trust, 2026). After the £7,500 grant, a typical homeowner pays between £1,500 and £4,500 out of pocket.
Ground source heat pumps cost more to install, typically £14,000 to £20,000, leaving a homeowner cost of £6,500 to £12,500 after the grant. A biomass boiler, which is eligible only for homes off the gas grid, costs £10,000 to £15,000 installed, and after the £7,500 grant the homeowner pays £2,500 to £7,500. These figures are based on MCS (Microgeneration Certification Scheme) installation averages for 2026 (MCS, 2026).
Quick numbers grant amounts and typical payouts
| Grant type | Maximum grant amount (2026) | Typical installed cost | Typical homeowner pays after grant | Eligibility note |
|---|---|---|---|---|
| Air source heat pump | £7,500 | £9,000–£12,000 | £1,500–£4,500 | All properties |
| Ground source heat pump | £7,500 | £14,000–£20,000 | £6,500–£12,500 | All properties |
| Biomass boiler (off-gas grid) | £7,500 | £10,000–£15,000 | £2,500–£7,500 | Off-gas grid only |
Source: GOV.UK “Boiler Upgrade Scheme” (DESNZ, 2026); Energy Saving Trust cost guides (2026).
How much is the boiler upgrade scheme the direct answer for homeowners
The Boiler Upgrade Scheme gives you £7,500 off the cost of a new heat pump installation, not a boiler. You do not need to repay the grant; it is deducted from the installer’s invoice before you pay, so you only pay the remaining balance. The scheme runs until at least 2028, but funding is limited and allocated on a first-come, first-served basis (GOV.UK “Boiler Upgrade Scheme: how to apply”, 2026).
If you are replacing a gas boiler with a heat pump, the £7,500 grant is the only government subsidy available for this purpose in England and Wales. There is no separate grant for a new gas boiler under this scheme. Compare heat pump running costs vs gas boiler costs
Eligibility criteria who can apply for the £7,500 grant
You must own a property in England or Wales. Scotland has a separate scheme called Home Energy Scotland, which offers different grant amounts. Your home must have a valid Energy Performance Certificate (EPC) with no outstanding recommendations for loft or cavity wall insulation. If your EPC recommends topping up loft insulation or installing cavity wall insulation, you must complete those measures before applying for the BUS grant (GOV.UK “Boiler Upgrade Scheme: eligibility”, 2026).
The heat pump must be installed by an MCS-certified installer, and you must apply for the grant before installation begins. Retrospective applications are not accepted. The property must also have a valid EPC rating of D or above in most cases, though exceptions apply for some off-gas homes.
How to verify an installer and the certification you need
The installer must be registered with the Microgeneration Certification Scheme (MCS) to qualify for the grant. You can check the MCS Installer Database at mcsinstaller.com for accredited companies in your area. The installation must comply with Building Regulations, and the installer should provide an MCS certificate and a Commissioning Certificate after completion (MCS “Find an Installer” tool, 2026).
TrustMark registration is also recommended as an additional quality assurance mark. TrustMark is a government-endorsed scheme that vets tradespeople for competence and customer service (TrustMark, 2026). Using an unaccredited installer will void the grant.
What the grant covers and what it does not cover
The £7,500 covers the heat pump unit, installation, and any necessary ancillary work such as a new hot water cylinder or pipework adjustments. It does not cover the cost of a new gas boiler, oil boiler, or electric boiler. It also does not cover the cost of replacing radiators or underfloor heating, though these may be needed for optimal heat pump performance (GOV.UK “Boiler Upgrade Scheme: what you get”, 2026).
If your home requires new radiators to work efficiently with a heat pump, that cost is separate and not covered by the grant. The same applies to any electrical upgrades needed to support the heat pump system. Heat pump radiator sizing guide
How to apply and the timeline for receiving the grant
You apply through the Ofgem portal after receiving a quote from an MCS-certified installer. The installer typically submits the application on your behalf; you must provide your property details and EPC number. Ofgem aims to process applications within 8–12 weeks, and the grant is paid directly to the installer, not to you (Ofgem “Boiler Upgrade Scheme: application guidance”, 2026).
The installer will deduct the £7,500 from your final invoice once Ofgem confirms the grant payment. If the application is rejected, you will need to address the reason (e.g., outstanding insulation recommendations) and reapply. The scheme has a limited annual budget, so early application is advised. How to get a heat pump quote
Frequently Asked Questions
The Boiler Upgrade Scheme pays a fixed £7,500 grant towards an air source or ground source heat pump. According to GOV.UK (2026), this amount applies to installations from April 2026.
No, the Boiler Upgrade Scheme does not cover gas, oil, or LPG boilers. The grant is for renewable heating systems only, as confirmed by Ofgem.
After the £7,500 grant, a typical air source heat pump costs you £1,500 to £4,500. Ground source heat pumps cost £6,500 to £12,500, based on Energy Saving Trust averages for 2026.
You must own your home in England or Wales and have a valid MCS certificate for the installation. The scheme is administered by Ofgem and excludes new-build properties.
You apply through an MCS-certified installer who submits the grant on your behalf. Ofgem then pays the £7,500 directly to the installer, reducing your upfront cost.
