The Boiler Upgrade Scheme (BUS) is the main government grant
for replacing an old fossil-fuel boiler with low-carbon heating in England and
Wales. It gives you a fixed grant — up to
£7,500 — towards a heat pump or biomass boiler,
taken straight off the price by your installer. With ECO4 and the Great
British Insulation Scheme now closed to new applications, BUS is one of the
clearest routes still open, and the government has confirmed funding for it
until 2030. This guide explains how much you can get, who qualifies, and
exactly how to apply.

How much is the Boiler Upgrade Scheme grant?

The grant is a fixed amount depending on the technology you install:

  • £7,500 off an air source heat pump
  • £7,500 off a ground source heat pump (including water
    source and shared ground loop systems)
  • £5,000 off a biomass boiler
  • £2,500 off an air-to-air heat pump (residential
    properties only)

There is an enhanced £9,000 rate for air source or
ground source heat pumps in eligible properties that are
off the gas grid, available until 31 March 2027. You do not
receive the money yourself — it is deducted from what your installer
charges you.

Who is eligible?

To qualify you must:

  • Be in England or Wales.
  • Own the property you are applying for. This includes a
    second home, a property you rent out to tenants, or a small business
    premises — so landlords qualify.
  • Be replacing a fossil-fuel heating system — oil, gas,
    electric or LPG.

The scheme does not cover:

  • most new-build properties (though a finished new build with an existing
    fossil-fuel boiler can qualify);
  • social housing;
  • properties that have
    already had government funding or support for a heat pump or biomass
    boiler    .

Do I need insulation or a certain EPC first?

You do not need to have already insulated your home to get a BUS grant, and
having previously received other energy-efficiency funding (such as free
insulation) does not disqualify you. That said, a heat pump
works best in a well-insulated home, so your installer will assess the
property and may recommend insulation to get the best performance and running
costs.

How to apply for the Boiler Upgrade Scheme

BUS is installer-led, which is the most important thing to
understand. You do not fill in a government form yourself. Instead:

  1. Choose an installer who is MCS certified (the
    Microgeneration Certification Scheme). You can find one on the
    MCS register.
  2. Get a quote for your heat pump or biomass boiler.
  3. The installer
    applies to Ofgem for the grant on your behalf, confirms you
    are eligible, and takes the grant value off your quote.
  4. The installer must commission and install the system within
    120 days of applying for the grant, or it will not be
    eligible.

Because the installer handles the paperwork and the money, you never pay the
grant amount and claim it back — it simply reduces your bill. Always get
more than one quote, and check the installer is genuinely certified before you
sign anything.

Worked example

Say you own a three-bedroom house on the gas grid and get a quote of
£11,000 to supply and install an air source heat pump.
Your MCS-certified installer applies for the Boiler Upgrade Scheme and the
£7,500 grant is taken off, so you pay
£3,500.

If the same house were off the gas grid and qualified for the
enhanced rate, the £9,000 grant would leave you paying
£2,000 — and, in that case, only if the quote
were higher than the grant would you pay anything at all.

Can I combine it with other help?

You cannot get a second grant for the same heat pump, but you can look at
separate support for insulation and wider costs. If you are on a lower income,
the Warm Homes: Local Grant may
pay for insulation and, in some cases, a heat pump as a fully funded package
instead — you would use one route or the other, not both for the same
measure. See all the options on our
home energy grants overview.

Scotland, Wales and Northern Ireland

BUS covers England and Wales. In Scotland,
Home Energy Scotland
offers its own grants and interest-free loans for heat pumps. In
Northern Ireland, support is delivered through the
NI Housing Executive. Welsh households can use BUS and may also qualify for the Welsh
Government’s
Nest scheme.

Frequently asked questions

Is the Boiler Upgrade Scheme still open in 2026?

Yes. Unlike ECO4 and GBIS, which have closed to new applications, BUS is open
and the government has confirmed funding for it until 2030.

Do I get the money or does the installer?

The installer applies for and receives the grant, and discounts your bill by
that amount. You never handle the grant money.

Can landlords apply?

Yes. You can apply for a property you rent out to tenants, a second home, or a
business premises, as long as you own it and it is not social housing.

Does a new gas boiler qualify?

No. The grant is only for replacing a fossil-fuel system with a heat pump or
biomass boiler — not for installing another gas or oil boiler.

Do I need an EPC?

The current scheme does not require you to have insulation installed first,
and previous energy-efficiency funding does not disqualify you. Your installer
will assess your home and advise on the best set-up.

Sources

Last reviewed: September 2026. Grant amounts and rules change —
confirm the current position on GOV.UK and Ofgem before you apply. Next
step: compare all the grants you can still get on our
home energy grants overview.