If you’re looking into the Boiler Upgrade Scheme, you may be wondering whether you can get government funding to replace your existing boiler or heating system with a lower-carbon alternative.

Yes, the Boiler Upgrade Scheme is a real government-backed scheme for eligible homes and small non-domestic properties in England and Wales. It can help towards the cost of installing an eligible heat pump or, in limited cases, a biomass boiler.

Important: You do not apply directly yourself. The application is made by an MCS-certified installer, and the grant is deducted from the price you pay.

The Boiler Upgrade Scheme can provide up to £7,500 towards eligible heat pumps, with increased support of up to £9,000 for some off-gas-grid oil or LPG properties from 21 July 2026 to 31 March 2027.

⚠️ ECO4 has closed to new applications — here’s the help you can get nowECO4 grants are no longer available. See the grants and funding you can get now.

What Is the Boiler Upgrade Scheme?

The Boiler Upgrade Scheme, often shortened to BUS, is a government scheme designed to help property owners switch from fossil fuel heating to low-carbon heating systems.

It was introduced to reduce the upfront cost of installing technologies such as heat pumps. The scheme is administered by Ofgem and applies to eligible properties in England and Wales.

The scheme is different from the ECO4 scheme because it is not mainly based on household income or benefits. It is also different from the Warm Homes Loan Scheme, because the Boiler Upgrade Scheme is a grant, not a loan.

How Much Can You Get?

The amount available depends on the type of heating system being installed.

  • Air source heat pump: up to £7,500
  • Ground source heat pump: up to £7,500
  • Water source heat pump: up to £7,500
  • Biomass boiler: up to £5,000, where eligible
  • Eligible off-gas-grid oil or LPG properties: up to £9,000 for some heat pump installations from 21 July 2026 to 31 March 2027

Who Can Apply for the Boiler Upgrade Scheme?

You may be able to use the Boiler Upgrade Scheme if:

  • Your property is in England or Wales.
  • You own the property.
  • You are replacing an existing fossil fuel or electric heating system.
  • The new system is an eligible low-carbon heating system.
  • The installation is carried out by an MCS-certified installer.
  • The installer applies within the required scheme timescales.

The scheme can apply to homes and some small non-domestic buildings. Landlords may also be able to use the scheme if the property meets the rules.

What Heating Systems Are Covered?

The Boiler Upgrade Scheme can support several low-carbon heating systems.

Air Source Heat Pumps

Air source heat pumps take heat from the outside air and use it to heat your home and hot water. These are one of the most common installations supported by the scheme.

Ground Source Heat Pumps

Ground source heat pumps use pipework buried underground to collect heat from the ground. They can be more expensive to install, but may be suitable for some properties with enough outdoor space.

Water Source Heat Pumps

Water source heat pumps use heat from a suitable nearby water source. They are less common and depend heavily on the property location.

Biomass Boilers

Biomass boilers may qualify in limited circumstances, usually where the property is in a rural location and not connected to the gas grid.

How Do You Apply?

The Boiler Upgrade Scheme is installer-led. This means your installer applies for the grant on your behalf.

The usual process is:

  • Find an MCS-certified installer
  • Get a quote for the work
  • Agree the installation with the installer
  • The installer applies to Ofgem for the grant voucher
  • You confirm your consent and application details
  • The installer completes the installation
  • The grant is deducted from the amount you pay

Not sure where to start? We’re here to help you find a trusted MCS-certified installer in your area.

Is the Boiler Upgrade Scheme Free?

Most installations are fully funded through the Boiler Upgrade Scheme. In some cases, the complexity of the installation may mean a customer contribution is required. If so, this will be clearly explained and agreed with you before any work takes place

Latest Boiler Upgrade Scheme Changes

The scheme has changed several times since it launched.

  • The scheme has been extended to 2028
  • Heat pump grants increased to £7,500
  • Some previous EPC insulation requirements were removed
  • Applications must be made within the required timescales
  • Some off-gas-grid oil or LPG properties may qualify for up to £9,000 from 21 July 2026 to 31 March 2027

What Should You Check Before Agreeing?

Before agreeing to a heat pump installation, you should check:

  • Whether the installer is MCS-certified
  • Whether the property is suitable for the proposed system
  • The full cost before and after the grant
  • What happens if the grant application is rejected
  • Whether extra work is needed, such as radiator upgrades or insulation
  • What warranties and guarantees are included

What If the Installation Goes Wrong?

If you’re unhappy with your installation, you should first contact your installer and give them the opportunity to resolve the issue.

If the problem can’t be resolved, you can raise a complaint through the installer’s MCS certification scheme, which provides an independent process to help resolve disputes where appropriate.

Depending on your circumstances, you may also have rights under the Consumer Rights Act 2015.

We’ll always be on hand to answer your questions and help point you in the right direction throughout the process.