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Boiler Upgrade Scheme (BUS) — 2026 Guide

The Boiler Upgrade Scheme (BUS) is a UK government grant that pays up to £7,500 towards the cost of replacing an old fossil-fuel boiler with a low-carbon heat pump or biomass boiler. The grant is paid directly to your MCS-certified installer, who deducts it from your quote — you never see the money, you just pay less.

Max grant (heat pump)
£7,500
Biomass boiler grant
£5,000
Where
England & Wales
Who pays
Installer claims; you pay less

Who is eligible?

To qualify for the Boiler Upgrade Scheme your property must be in England or Wales and have a valid Energy Performance Certificate (EPC) dated within the last ten years. Properties with an outstanding recommendation for loft or cavity wall insulation on the EPC must have that work done first (or have it assessed as unsuitable) before the grant can be claimed.

There is no means-test — any homeowner or landlord in England or Wales can apply, regardless of income. You must be replacing an existing fossil-fuel heating system (gas, oil or electric storage heaters); new-build properties are not eligible.

What does it cover?

  • Air-source heat pumps (ASHPs) — up to £7,500
  • Ground-source heat pumps (GSHPs) — up to £7,500 (also covers water-source heat pumps)
  • Biomass boilers — up to £5,000 (rural areas only, off-gas-grid properties)

How to apply

  1. 1Find an MCS-certified installer — only MCS-registered businesses can claim the BUS grant on your behalf.
  2. 2Get a quote that shows the BUS voucher deducted from the total cost.
  3. 3Your installer applies for the voucher through the Ofgem portal before installation begins.
  4. 4Ofgem issues a 3-month voucher. Installation must be completed within that window.
  5. 5After installation, the installer redeems the voucher and receives the grant. You pay the net amount only.

2026 updates

Grant values were increased in 2023 and have remained at £7,500 / £5,000 since. The scheme is planned to run until at least 2028 as part of the UK's Heat Pump Investment Roadmap. Always check the current gov.uk guidance before applying, as eligibility rules can change.

Common questions about Boiler Upgrade Scheme

Can I get the Boiler Upgrade Scheme grant for a new build?

No. BUS is only available when replacing an existing fossil-fuel heating system in an existing property. New-build homes are not eligible.

Do I need to do anything before my installer applies?

You need a valid EPC (within the last 10 years). If your EPC recommends loft or cavity wall insulation, you'll need to get that done (or have it assessed as not suitable) before the voucher is issued.

How long does the process take?

Ofgem usually issues the voucher within a few days of the installer's application. The voucher is valid for 3 months, so installation must complete within that window. Most installs take 1–3 days once equipment is on order.

Does the grant cover the full cost of a heat pump?

Rarely in full. A typical air-source heat pump installation costs £8,000–£15,000 depending on property size. The £7,500 BUS grant covers a significant portion, but most homeowners still contribute the balance.

Can landlords apply for BUS?

Yes — landlords can apply for BUS on rental properties, and there is no cap on the number of properties. The property must be in England or Wales and meet the standard EPC and insulation requirements.

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