Boiler Upgrade Scheme grant
Up to £9,000 off a heat pump, applied for by us
The Boiler Upgrade Scheme is a government grant that takes £7,500 off the cost of an air source or ground source heat pump in England and Wales. Homes heated by oil or LPG with no mains gas connection can get £9,000 until March 2027. You don't apply yourself: your MCS certified installer does it, and the grant comes straight off your quote. Here's who qualifies and how it works.
How much you can get in 2026
Gov.uk lists these grant amounts, one grant per property:
- £7,500 towards an air source (air-to-water) heat pump
- £7,500 towards a ground source heat pump, including water source and shared ground loops
- An extra £1,500 on either, making £9,000, until March 2027 if your home is heated by oil or LPG and has no mains gas connection
- £2,500 towards an air-to-air heat pump
- £5,000 towards a biomass boiler, in rural off-gas homes only
Do you qualify?
You're eligible if you own the property and you're replacing a fossil fuel heating system. That includes oil, gas, LPG and electric heating. Second homes, properties you let to tenants and business premises all count. Having had insulation or other energy efficiency funding before doesn't rule you out.
It isn't available for most new builds, for social housing, for hybrid systems (a heat pump alongside a boiler), or for replacing an existing low carbon system. Properties that have already had government funding for a heat pump or biomass boiler are also excluded. The maximum system size is 45kWth for a single heat pump, far bigger than a normal home needs.
How the application works
The scheme is run by Ofgem and it's installer-led. Once you've agreed our quote, we apply on your behalf. Ofgem may contact you to confirm we're acting for you, and they may phone or visit later to check the installation. MCS can carry out its own checks too.
The heat pump has to be installed and commissioned within 120 days of the application, so we plan the work around that window. When it's done, we claim the grant. You pay the price on your quote, which already has the grant taken off.
Why the installer matters
Only MCS certified installers can apply. That's a scheme rule, not a sales line. MCS certification means the system is designed to set standards, including a proper heat loss calculation and noise assessment.
A grant doesn't fix a badly sized system, so the survey still matters most. Our air source heat pump installation page explains how we design, and our heat pump cost page shows what people typically pay before and after the grant.
Is there a free boiler grant?
Not through this scheme. Despite the name, the Boiler Upgrade Scheme doesn't pay towards a new boiler, gas or otherwise. It's a UK government heat pump grant that helps property owners move from fossil fuel heating to low carbon heating systems such as heat pumps, and in some rural off-gas homes, biomass boilers.
So if you were hoping for a free boiler grant to replace a gas boiler like for like, this isn't it. Help of that kind depends on your circumstances and comes through other routes. If a heat pump is on the table, though, the BUS grant comes straight off the price.
Off the gas grid? You could get £9,000
If your home has no mains gas and runs on an oil boiler or LPG, the grant rises to £9,000 for an air-to-water or ground source heat pump. Ofgem lists this higher rate as available from 21 July 2026 until 31 March 2027.
Plenty of rural homes across the South West sit off the gas grid, so this matters here more than in most places. If you're weighing up a new oil boiler against a heat pump, our guide to oil boilers vs heat pumps sets out the trade-offs.
What the grant does to your upfront cost
The cost of installing a heat pump is mostly paid upfront: the unit, the cylinder, any radiator upgrades and the labour. Because the installer applies for the grant on your behalf, the grant comes off the price before you pay, so you are never out of pocket waiting for a refund.
Ofgem also points out that heat pumps perform best in a well-insulated home. If your property has an Energy Performance Certificate, its 'changes you could make' section is a useful starting point before the survey.
What happens, step by step
Check
We confirm you own the property and are replacing fossil fuel heating, and look for anything that could rule you out.
Quote
We survey, design the system and give you a fixed price with the grant already off.
Apply
We submit the application. Ofgem contacts you to confirm we're acting for you.
Install and claim
We fit and commission the heat pump, register it with MCS and claim the grant.
What is included
- Eligibility check before we quote
- Quote with the grant already deducted
- Full application to Ofgem on your behalf
- Installation and commissioning inside the scheme window
- MCS certificate and grant redemption paperwork
Boiler Upgrade Scheme grant FAQs
Do I get the money paid to me?
No. The grant is paid to the installer and taken off your bill, and it shows on your quote and invoice. Installers are required to deduct it from the upfront price, so you never have to wait for a refund.
My home is heated by oil. How much can I get?
If you have no mains gas connection, £9,000 towards an air source or ground source heat pump until March 2027. After that, unless the rules change again, it goes back to the standard £7,500. Worth acting on if you're already thinking about it.
Do I need to insulate my loft first?
Not to qualify. The old rule about outstanding loft and cavity wall insulation recommendations on your EPC was removed in May 2024. Insulating is still a good idea, because it can mean a smaller heat pump and lower bills.
Can I get the grant for a hybrid system?
No. Gov.uk says hybrid systems such as a gas boiler with an air source heat pump aren't eligible. If you're weighing that up, our hybrid heat pump page compares the two.
Does it cover solar thermal panels?
No. The scheme covers heat pumps and, in limited cases, biomass boilers. Solar thermal isn't included, although it is zero-rated for VAT until 31 March 2027.
Is the Boiler Upgrade Scheme still available?
Yes. As of November 2026, gov.uk and Ofgem both list it as open to homeowners in England and Wales, with the £9,000 off-gas rate running until 31 March 2027. Scheme rules and amounts can change, so we check the current rates on the day we quote.
Is the Boiler Upgrade Scheme available in Scotland?
No. The scheme only covers England and Wales. Gov.uk says people in Scotland may be able to get an interest-free loan or a grant for energy efficiency improvements through a separate route, and the Northern Ireland boiler replacement scheme has closed.
Get a fixed price for your home
Tell us about the job and we will arrange a free survey.