Boiler Upgrade Scheme (BUS) Guide 2026

What is the Boiler Upgrade Scheme?

The Boiler Upgrade Scheme (BUS) is a UK government grant launched in May 2022 to help homeowners and small businesses in England and Wales install low-carbon heating systems. The scheme provides upfront grants to reduce the cost of heat pumps and biomass boilers.

The goal is to make heat pumps cost-competitive with gas boilers and encourage the transition to renewable heating. The scheme is part of the UK's commitment to reach net-zero carbon emissions by 2050.

How Much Can You Get?

The Boiler Upgrade Scheme provides the following grants:

• £7,500 for air source heat pumps (ASHP)
• £7,500 for ground source heat pumps (GSHP)
• £5,000 for biomass boilers (less common for domestic properties)

The grant is applied directly to your installation cost. This means you don't need to pay the full amount upfront and then claim the grant back. Your MCS-certified installer handles the application and receives the grant directly, reducing your final bill.

Eligibility Criteria

To qualify for the Boiler Upgrade Scheme, you must meet the following criteria:

✅ Property Requirements

• Location: Property must be in England or Wales(Scotland and Northern Ireland have separate schemes)
• Property type: Residential properties, including houses, flats, park homes, and boats (if used as a primary residence)
• Ownership: You must own the property (homeowners and landlords are eligible)
• EPC: Valid Energy Performance Certificate required, usually with a rating of D or above (exceptions apply for properties where an EPC is not required)
• Existing heating: You must be replacing an existing fossil fuel heating system (gas, oil, LPG, or electric) or installing heating in a new build/self-build

✅ Installation Requirements

• MCS-certified installer: Installation must be carried out by an MCS-certified installer
• MCS-certified equipment: Heat pump must be MCS-certified
• Capacity:Heat pump must meet at least 90% of the property's heating and hot water demand
• Not funded elsewhere: The same installation cannot be funded by other government grants (e.g., ECO4)

❌ Ineligible Properties

• Properties in Scotland or Northern Ireland (separate schemes available)
• Social housing (covered by other funding mechanisms)
• New builds with planning permission granted after April 1, 2022 (subject to Future Homes Standard)
• Second homes or holiday lets (primary residences only)

How to Apply for the Boiler Upgrade Scheme

The application process is straightforward and handled by your MCS-certified installer. Here's how it works:

Important Dates and Deadlines

• Scheme start date: May 23, 2022
• Scheme end date: March 31, 2028 (or when funding is exhausted)
• Grant increase: The grant increased from £5,000 to £7,500 on October 23, 2023
• Application processing: Typically 2-7 days
• Voucher validity: 3 months from approval date

Combining with Other Support

While you can't combine BUS with other government grants for the same installation, you can access additional support:

• ECO4:If you're on certain benefits, you may qualify for ECO4 funding instead, which can cover the entire cost. Check ECO4 eligibility first.
• Home Upgrade Grant (HUG): Available for off-gas grid homes in some areas, but not in combination with BUS.
• Council grants: Some local councils offer additional grants or interest-free loans for energy efficiency improvements (insulation, windows, etc.) that can be used alongside BUS.
• Green Homes Finance: Low-interest loans from some energy suppliers to help spread the remaining cost.

EPC Requirements

Most properties need an EPC rating of D or aboveto qualify for BUS. If your property has a lower rating (E, F, or G), you'll typically need to improve it first through insulation, double glazing, or other energy efficiency measures.

Exceptions:

• Properties with no loft or cavity walls may qualify with a lower EPC
• Listed buildings and properties in conservation areas may have exemptions
• New builds and self-builds don't need an existing EPC

Your installer will advise on whether your property meets the EPC requirement and, if not, what improvements are needed.

Scotland and Northern Ireland

The Boiler Upgrade Scheme covers England and Wales only. Scotland and Northern Ireland have their own grant schemes:

Scotland

• Home Energy Scotland Grant: Up to £7,500 for heat pumps (£9,000 in remote areas), plus additional funding for insulation
• Social Housing Net Zero Heat Fund: For social housing landlords

Northern Ireland

• Boiler Replacement Scheme: £1,000 grant for replacing old oil/gas boilers with efficient oil/gas boilers (not heat pumps)
• Heat pump support is available through the Northern Ireland Sustainable Energy Programme

Frequently Asked Questions

Can I apply for the grant myself?

No, only MCS-certified installers can apply for BUS grants on behalf of customers. This ensures the installation meets all technical requirements and quality standards.

Can I get the grant for a second property?

The grant is available for one installation per property, not per person. So if you own multiple properties, you can get the grant for each one, but only if they are all primary residences at the time of application. Second homes and holiday lets are not eligible.

What happens if I need to cancel after the voucher is issued?

Vouchers are valid for 3 months. If you cancel or don't proceed with the installation within this period, the voucher expires and the funding is returned to the scheme. You can reapply later if needed.

Does the grant cover radiator upgrades?

The £7,500 grant covers the heat pump and installation only. However, if you need to upgrade radiators to larger models for optimal heat pump performance, your installer should include this in their quote. The good news is that many homes can keep existing radiators, though you may need to add a few or upgrade some to larger sizes.

Can landlords get the grant?

Yes, landlords can apply for BUS grants for rental properties, as long as the property is used as a tenant's primary residence. The landlord (property owner) must make the application through an MCS installer.