Costs & grants
Boiler Upgrade Scheme explained: grants in 2026
Published · Written by Towsty Editorial Team
If you’ve started looking into heat pumps, one number keeps appearing: £7,500. And more recently, £9,000. That’s the Boiler Upgrade Scheme (BUS) — a government grant in England and Wales that cuts the upfront cost of replacing fossil-fuel heating.
Here’s what’s on offer in 2026, who can get it, and how the discount reaches your invoice. You can also check the current Boiler Upgrade Scheme guidance on GOV.UK.
The scheme is only for England and Wales. Scotland has separate support through Home Energy Scotland, while Northern Ireland has different local energy-efficiency schemes.
What the grant is (and isn’t)
BUS is a one-off discount that comes off the price of your heat pump installation. It isn’t a rebate you claim back, and it isn’t a loan. Your installer applies for it on your behalf, and the amount is deducted from your invoice before you pay a penny.
The 2026 grant values are:
- £7,500 towards an air source or ground source heat pump, the standard amount for most homes
- £9,000 for off-gas-grid homes currently heated by oil or LPG, a time-limited top-up available from 21 July 2026 until 31 March 2027
- £2,500 towards an air-to-air heat pump
- £5,000 towards an eligible biomass boiler
Hybrid heat pump systems, such as a heat pump kept alongside a gas boiler, are not eligible.
Who qualifies
You’re likely eligible if:
- You own your home in England or Wales (landlords qualify too, per property)
- You’re replacing a fossil fuel system — gas, oil, LPG or direct electric
- You use an installer who is MCS-certified
Most developer-built new homes and social housing are not eligible. A finished new build that you move into with fossil-fuel heating may qualify, and self-builds can qualify when they meet the scheme’s ownership rules. You cannot use BUS to replace an existing low-carbon heating system.
Listed buildings and properties in conservation areas can still apply, though you may need planning permission for the outdoor unit. Your installer will walk you through that if it applies.
Biomass has narrower rules: the property must be rural, off the gas grid and use an eligible low-emission boiler. It is not available for self-build properties.
Do I need an EPC or insulation first?
The current BUS eligibility rules do not require a valid EPC or make loft and cavity-wall insulation recommendations a condition of the grant. Your installer still needs to confirm that the property and proposed system meet the scheme rules.
Good insulation still helps a heat pump run efficiently; that hasn’t changed. But it’s no longer a locked door you must open before the grant is even on the table.
If you are unsure what your home might need first, read our guide to heat pump suitability.
The £9,000 window: worth knowing about
If your home has no mains gas connection and currently runs on oil or LPG, the grant includes an extra £1,500 — taking the total to £9,000 for an eligible air source or ground source heat pump.
The uplift is time-limited and is currently available until 31 March 2027. A heat pump project takes time to survey, design and install, so leave enough time for your installer to complete the work within the scheme deadline.
How the application works
The paperwork sits with your installer, not you. Once they’ve surveyed your home and designed your system, they:
- Confirm your property is eligible
- Apply to Ofgem on your behalf
- Ask for your consent through a short online message from Ofgem
- Deduct the grant from your quote so you pay the reduced price
- Claim the grant back from Ofgem after installation
Your only real job is to respond promptly when the consent message lands, and to make sure the quote clearly shows the grant discount applied.
Before an installer can design the system and apply, they need to assess your property. Our guide explains what happens during a heat pump survey.
Boiler Upgrade Scheme summary
BUS can remove a substantial amount from the upfront cost of a heat pump. Your installer handles the application, Ofgem confirms your consent, and the approved grant appears as a discount on your quote and invoice.