Main Grant Available Now
£7,500 Boiler Upgrade Scheme (BUS)
✅ You qualify if:
❌ You DON'T qualify if:
Example: Heat pump installation costs £12,000. With BUS grant, you pay £4,500. Installer claims £7,500 from government. Simple.
| Installation Component | Typical Cost | Covered by Grant? |
|---|---|---|
| Heat pump unit (outdoor) | £3,500-£5,500 | ✅ Yes |
| Hot water cylinder (250L) | £800-£1,200 | ✅ Yes |
| Installation labor | £2,000-£3,000 | ✅ Yes |
| Controls & thermostat | £400-£800 | ✅ Yes |
| Pipework & fittings | £500-£1,000 | ✅ Yes |
| Heat Loss Survey (required) | £300-£600 | ✅ Yes |
| Radiator upgrades (if needed) | £1,000-£3,000 | ⚠️ Partial |
| Insulation upgrades | £1,000-£5,000 | ❌ No (separate ECO4 grant) |
💡 Key Point
The £7,500 grant covers the heat pump system itself. If your home needs insulation upgrades (loft, walls), apply for separate ECO4 grant (see below). Most homes with EPC C or better don't need extra insulation.
What: Free or subsidized insulation (loft, cavity wall, solid wall)
Who: Low-income households OR homes with EPC D-G rating
Amount: £2,000-£10,000 depending on work needed
Combine with BUS: Get insulation first (ECO4), then heat pump (BUS grant)
Check ECO4 eligibility →What: Up to £9,000 for heat pumps (Scotland only)
Who: Scottish homeowners (income limits apply)
Amount: £7,500 base + £1,500 rural uplift
Note: Different scheme than BUS (Scotland not eligible for BUS)
Home Energy Scotland →What: Free heat pump + insulation (income-tested)
Who: Welsh homeowners on means-tested benefits
Amount: Up to £12,000 (covers full cost)
Note: If you qualify for Nest, use that instead of BUS (better coverage)
Nest Scheme Wales →What: £2,500 towards heat pump (NI only, smaller than BUS)
Who: NI homeowners replacing old heating
Amount: £2,500
Note: NI not eligible for £7,500 BUS grant
NI Housing Executive →| Installation Type | Total Cost | BUS Grant | You Pay |
|---|---|---|---|
| Standard 3-bed semi (no upgrades needed) | £11,000 | -£7,500 | £3,500 |
| 3-bed semi + 2 new radiators | £12,500 | -£7,500 | £5,000 |
| 4-bed detached (premium system) | £14,000 | -£7,500 | £6,500 |
| 2-bed terrace (compact system) | £9,500 | -£7,500 | £2,000 |
| Rural property (ground source) | £24,000 | -£7,500 | £16,500 |
Typical cost after grant: £2,000-£6,500 for most homes (air source heat pump). Ground source heat pumps cost more (£15,000-£20,000 after grant) but have higher efficiency.
Get Heat Loss Survey
MCS-certified installer visits your home, measures heat loss, recommends correct heat pump size. Required for BUS grant. Cost: £300-£600 (covered by grant).
Get Written Quote
Installer provides detailed quote including heat pump model, installation cost, and grant deduction. Quote valid for 6 months.
Installer Applies for Grant
You don't apply yourself. Installer submits application to Ofgem (BUS administrator) with your property details and Heat Loss Survey.
Grant Approval (2-4 Weeks)
Ofgem reviews application, checks MCS certification, approves grant. You receive confirmation email.
Installation Scheduled
Work must be completed within 6 months of grant approval. Typical install takes 2-4 days.
Pay Reduced Price
You pay installation cost MINUS £7,500 grant. Installer claims £7,500 from government separately.
Q: Is there an income limit for BUS grant?
A: No. BUS grant has no income limits. Everyone who qualifies gets £7,500, regardless of household income.
Q: Can landlords get BUS grant?
A: Not currently. BUS is for owner-occupiers only. Landlords may qualify for different schemes in future.
Q: Do I need to pay upfront and claim back?
A: No. Installer deducts £7,500 from your invoice. You only pay the reduced amount. Installer claims grant from government.
Q: What if my home needs insulation work?
A: BUS grant covers the heat pump. Apply for separate ECO4 grant for insulation (can combine both grants).
Q: Can I get grant for second property or holiday home?
A: Only for your main residence. Not available for second homes or buy-to-let properties.
Q: Is the £7,500 grant taxable?
A: No. BUS grant is not taxable income.
Current status (2026): BUS grant is funded until March 2028. Budget: £450 million total.
Risk of running out: Low to medium. Uptake increased significantly in 2025-2026, but budget still has capacity for 40,000+ heat pumps.
Our advice: Don't panic, but don't wait until 2028. If you're planning heat pump installation, apply in 2026-2027 to ensure grant availability. Government may extend scheme if demand is high.
Our calculator shows you:
Main grant: £7,500 Boiler Upgrade Scheme (England & Wales, no income limit)
Installer applies: You don't apply yourself, MCS-certified installer does it
Typical cost after grant: £2,000-£6,500 (air source heat pump)
Available until: March 2028 (or until funding runs out)
Stack grants: Combine BUS (heat pump) + ECO4 (insulation) for maximum savings
Regional schemes: Scotland £9,000, Wales Nest (free for eligible), NI £2,500