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Boiler Upgrade Scheme: your questions answered (2026)
The Boiler Upgrade Scheme (BUS) takes £7,500 off an air or ground source heat pump in England and Wales. Here's who qualifies, how the money reaches you and what to watch out for.
How much is the grant?
| Technology | Grant |
|---|---|
| Air source heat pump | £7,500 |
| Ground source (including water source) heat pump | £7,500 |
| Air-to-air heat pump | £2,500 |
| Biomass boiler (rural, off-gas properties only) | £5,000 |
| Extra if you're replacing oil or LPG heating, until March 2027 | +£1,500 |
From GOV.UK "Boiler Upgrade Scheme: what you can get". Check the current figures before committing.
Who is eligible?
- Properties in England and Wales. Scotland has its own Home Energy Scotland grant and loan, and Northern Ireland is not covered.
- Owners, including landlords and owners of second homes, and small businesses. New-build homes are generally excluded unless they are self-builds.
- The new system must replace fossil-fuel heating (gas, oil, LPG or direct electric) and meet the scheme's technical standards.
- Your installer must be MCS certified and registered for BUS.
Check your own situation with our Boiler Upgrade Scheme checker, which also estimates your net cost.
How does the application work?
- Get quotes from MCS-certified installers, ideally including a heat loss survey.
- Agree a quote. Your installer applies to Ofgem for the grant, not you.
- Ofgem emails you to confirm you agreed to the installer applying. Reply promptly.
- Once the voucher is issued, the heat pump must be installed and commissioned within 120 days of the application.
- The grant is paid to the installer and taken off your bill.
What will I actually pay?
Our working estimate for a typical air source installation is £12,500 before the grant, so about £5,000 after it. Some installers now advertise prices lower than this. With no VAT on heat pumps in Great Britain until 31 March 2027, the quote you see is the final price. Compare running costs against gas in our heat pump running cost calculator and read the full heat pump vs gas boiler comparison.
Watch out for
- Installers asking for large deposits before the voucher is issued.
- Quotes without a room-by-room heat loss calculation. An undersized or oversized pump runs less efficiently. See our heat pump size estimator.
- Cold-call or doorstep "free heat pump" offers. BUS is never applied for by cold-callers on your behalf without a quote you've agreed.
FAQs
How much is the Boiler Upgrade Scheme grant in 2026?
£7,500 for air or ground source heat pumps, £2,500 for air-to-air heat pumps and £5,000 for eligible biomass boilers, plus £1,500 extra when replacing oil or LPG until March 2027.
Do I apply for the Boiler Upgrade Scheme myself?
No. Your MCS-certified installer applies to Ofgem on your behalf, and Ofgem contacts you to confirm.
Is the Boiler Upgrade Scheme available in Scotland?
No. BUS covers England and Wales. Scotland has the Home Energy Scotland grant and loan scheme.
Do I need loft or cavity wall insulation?
The previous insulation requirement was removed, but installers will still assess heat loss, and good insulation makes a heat pump cheaper to run.
Can I get BUS if I already have a heat pump?
No. It is for replacing fossil-fuel or direct electric heating, not for replacing an existing heat pump.
Related calculators
Sources
- GOV.UK – Boiler Upgrade Scheme: what you can get
- GOV.UK – Boiler Upgrade Scheme: check if you're eligible
- GOV.UK – Boiler Upgrade Scheme: how to apply
- Ofgem – Boiler Upgrade Scheme
- MCS – Find a certified installer
- HMRC – VAT on energy-saving materials and heating equipment (Notice 708/6)
Estimates only, not financial advice. Results use average UK figures and the assumptions shown. Your real costs depend on your home, tariff, region and installer quotes. Always get several quotes from certified installers and check current tariff rates before deciding. Don't rely on these results alone: see our disclaimer.