What is the Boiler Upgrade Scheme?

The Boiler Upgrade Scheme, also known as the BUS, is a Government-funded initiative that supports the installation of low carbon heating. The aim is to reduce carbon emissions and help households move away from traditional fossil fuel boilers. Grants are available for heat pumps and, in some cases, biomass boilers. If you qualify, the grant is paid directly to the installer, which reduces the upfront cost of the project.

How Much Funding is Available?

The amount you can claim depends on the heating technology you choose.

• £7,500 (gas properties) / £9,000 (off-grid) for air source heat pumps
• £7,500 (gas properties) / £9,000 (off-grid) for ground source heat pumps
• £5,000 for biomass boiler installations

Time Limited: These grants are time limited. The £7,500 grant for homes currently on mains gas runs until March 2028. The £9,000 grant for off-grid oil and LPG homes runs until March 2027. This information is correct as of August 2026.

Who Can Apply for the Boiler Upgrade Scheme?

The Boiler Upgrade Scheme is available for eligible properties in England and Wales. In most cases, you must own the property and use an MCS-certified installer for the installation. Eligibility depends on the property, the heating system being replaced and the low-carbon heating technology being installed.

If your property is off the gas grid and currently heated by oil or LPG, you may qualify for the increased £9,000 heat pump grant.

Our renewable energy team can assess your existing heating system and explain which BUS grant may apply to your property.

Why Choose a Heat Pump?

Heat pumps offer an efficient and reliable way to heat your home. Air-to-Water heat pumps work by extracting heat from the air or ground and converting it into usable heating and hot water. While they use electricity, they can deliver several units of heat for every unit of electricity used, which makes them highly efficient.

Benefits include:

• Lower running costs compared with oil or LPG
• Reduced carbon emissions
• Long-term energy savings
• Suitable for most property types
• Works well with underfloor heating and modern radiators

Because the heat pump grant can significantly reduce the upfront installation cost, many homeowners find the switch more affordable than they expected.

Some homeowners also choose to combine a heat pump with solar panels, battery storage or underfloor heating to make their home more energy efficient and less reliant on the grid. When installed at the same time, these technologies can also benefit from 0% VAT.

What About Biomass Boilers?

Biomass boilers burn wood pellets or logs to provide heating and hot water. They can be a good option for rural homes, especially where heat pumps are not practical. The £5,000 grant helps offset the cost, although running costs depend on fuel prices and storage space.

Biomass is most suitable for:

• Rural or off-grid properties
• Homes with high heat demand
• Properties with space for fuel storage
• Buildings where a heat pump is not viable due to design or fabric limitations

How the Grant Application Process Works

The Boiler Upgrade Scheme has been designed to be straightforward. The installer manages the application, so the process is simple for the customer. Here is how it works:

1. Survey and system design:We assess the property and confirm heat pump or biomass suitability.
2. Grant application: We submit the application on your behalf and secure the grant allocation.
3. Installation: Once the grant is approved, the installation can begin. The grant value is deducted from the final invoice.
4. Completion and sign-off: You receive all documentation, including system certificates and handover information.

This process ensures your grant is protected and paid directly towards the installation cost. Further details on the application can be seen on the official Government website.

What Does a Heat Pump Installation Involve?

Heat pump installations typically involve:

• Removal of the existing boiler
• Fitting the outdoor heat pump unit
• Installing a new hot water cylinder (if required)
• Upgrading radiators if needed for optimum performance
• Adjusting system controls for efficient running
  

Ground source heat pumps require ground loops or boreholes, which involve additional planning.

Biomass installations include fitting the boiler, flue system, and fuel storage area.

Every project is designed to suit the property, ensuring the heating system performs efficiently once installed.

Visit our Renewable Energy page to learn more about Heat Pumps, Biomass and other eco green building solutions.

Is My Property Suitable for a Heat Pump?

Most homes can have a heat pump, especially if they are well insulated. During the survey we assess:

• Insulation and heat loss
• Radiator sizes
• System layout
• Space for the outdoor unit
• Existing heating controls
• Hot water requirements

If adjustments are needed, we explain them clearly so you understand the options available.

How Long Will the Boiler Upgrade Scheme Be Available?

The Boiler Upgrade Scheme is a Government-funded scheme and grant values can change over time.

The increased £9,000 grant for eligible off-gas-grid properties heated by oil or LPG is currently available until 31 March 2027. The Government has confirmed that the level of support will be reviewed ahead of the next financial year.

If you are considering replacing an oil or LPG heating system with a heat pump, it is worth exploring your options while the higher grant value is available.

Request a Heat Pump or Biomass Grant Assessment

The Boiler Upgrade Scheme offers significant financial support, but the grant may not be available indefinitely. If you are considering a heat pump or renewable energy solutions, now is an ideal time to explore your options.

Our renewable energy team can assess your property, design the system, and manage the grant application process for you.