The Boiler Upgrade Scheme provides upfront grants towards replacing an existing fossil-fuel heating system with an eligible heat pump or, in limited circumstances, a biomass boiler.
The scheme operates in England and Wales. An MCS-certified installer applies on the property owner's behalf and deducts the approved grant from the installation price.
The grant is a fixed contribution, not a promise of a free heating system. You must pay any remaining installation cost after the grant has been deducted.
Scheme overview
What is the Boiler Upgrade Scheme?
The Boiler Upgrade Scheme, often shortened to BUS, is a government grant scheme designed to reduce the upfront cost of installing lower-carbon heating.
It can support the replacement of eligible gas, oil, LPG (liquefied petroleum gas) or direct electric heating. It does not normally fund the replacement of an existing low-carbon heating system.
Funding
How much is the Boiler Upgrade Scheme grant in 2026?
| Heating system | Grant | Important condition |
|---|---|---|
| Air-to-water heat pump | £7,500 | The product, design and installation must meet scheme standards. |
| Ground or water-source heat pump | £7,500 | Includes eligible shared-ground-loop systems. |
| Biomass boiler | £5,000 | Limited to qualifying rural, off-gas-grid properties. |
| Eligible air-to-air heat pump | Check current rate | Domestic eligibility and additional system requirements apply. |
Grant amounts and temporary uplifts can change. Your installer should confirm the amount available for your technology, property and application date.
Core rules
Who is eligible for the Boiler Upgrade Scheme?
You may qualify if you own an eligible property in England or Wales and are replacing qualifying fossil-fuel or electric heating.
- Homeowners living in their main residence
- Private landlords
- Owners of second homes
- Owners of eligible business properties
- Some people building their own home
Read the full Boiler Upgrade Scheme eligibility guide for the detailed property and technology rules.
Restrictions
Which properties do not qualify?
- Most developer-led new builds that do not have eligible existing heating.
- Social housing.
- Properties already given government funding for the same heat pump or biomass boiler.
- Installations replacing an existing low-carbon system.
- Hybrid systems that retain a fossil-fuel boiler as part of the proposed installation.
A completed new-build property with eligible existing heating may be treated differently. Some genuine self-build homes can also qualify.
Extra conditions
Special rules for biomass boilers
Biomass funding is more restricted than heat-pump funding. The property must generally be rural and off the mains gas grid, while the boiler must meet the required emissions standards.
Biomass support is not available for eligible self-build properties. An installer should check rural status, the gas-grid position, fuel storage and emissions certification before recommending this route.
Application process
How do you apply?
The property owner does not submit the main application. The process is handled by an eligible MCS-certified installer.
- Contact suitable MCS-certified installers and request property assessments and written quotations.
- Confirm eligibility for the property, existing heating and proposed technology.
- Choose an installer and agree a quotation showing the grant deduction.
- The installer applies to Ofgem on your behalf.
- Confirm your consent when Ofgem contacts you.
- The installer completes and commissions the work before redeeming the voucher.
Do not allow installation work to begin until the installer has explained the grant process, payment schedule and what happens if the application is refused or expires.
Your contribution
Does the grant cover the full installation cost?
Not necessarily. The grant is a fixed contribution. The balance depends on the system, the property's heat demand and any additional work required.
- New or larger radiators
- A suitable hot-water cylinder
- Pipework or electrical upgrades
- Groundworks or boreholes
- New heating controls
Compare the complete scope of work, warranties and aftercare—not only the headline price.
Property efficiency
Do you need an EPC or insulation first?
Older articles may contain outdated EPC and insulation requirements. Even where insulation is not a condition of the grant, reducing heat loss can improve comfort and help a correctly sized heat pump operate efficiently.
Ask the installer to explain the heat-loss calculation, system sizing and any recommended property improvements before you proceed.
Common questions
Boiler Upgrade Scheme 2026 FAQs
Can I apply for the grant myself?
No. An MCS-certified installer submits the application. Ofgem then contacts the property owner to confirm consent.
Can landlords use the scheme?
Private landlords can qualify when they own an eligible property and the proposed installation meets the rules. Social housing is excluded.
Can the grant replace a gas boiler?
Yes, an eligible owner may receive support to replace gas heating with an approved low-carbon system.
Does BUS provide a free heat pump?
No. It provides a fixed grant. The owner pays any remaining eligible installation cost.