Boiler Upgrade Scheme (BUS): Heat Pump Grants Explained for UK Homes

Written-by

Janet Richardson

Reviewed-by

Richard Burdett

Updated on

Jul 31, 2026

Boiler Upgrade Scheme (BUS): Heat Pump Grants Explained for UK Homes

At a glance: The Boiler Upgrade Scheme (BUS) offers UK homeowners in England and Wales a £7,500 government grant to reduce the upfront cost of installing air source or ground source heat pumps. 

The scheme also provides grants of up to £5,000 off the cost and installation of biomass boilers for eligible homes.

From 28 April 2026, eligible homeowners in England and Wales can claim a £2,500 Boiler Upgrade Scheme grant towards the installation of an air-to-air heat pump. 

In April 2026, the Government also announced a temporary increase in Boiler Upgrade Scheme funding for oil and Liquefied Petroleum Gas (LPG) fuelled homes. If your home is heated by one of these fuels, you could be eligible for a £9,000 grant. The grant has been increased from the standard £7,500 to £9,000 towards the installation of an air source or ground source heat pump. This targeted, temporary uplift is available only for eligible off-grid properties in England and Wales that rely solely on oil or LPG for heating. The higher £9,000 BUS grant applies to new voucher applications submitted starting on July 21, 2026, and will remain available until March 31, 2027. 

All applications should be handled by MCS certified installers.

What is the Boiler Upgrade Scheme? The Boiler Upgrade Scheme (BUS) heat pump grant was introduced in England and Wales to help homeowners afford the upfront costs of installing low carbon heating systems such as heat pumps. The government created the scheme in 2022, and it's expected to run through to at least 2028. It's designed to encourage property owners to install low carbon heating to support the decarbonisation of buildings.

Upfront capital grants will be provided to help with the installation of heat pumps and in limited cases, biomass boilers, in homes and some non-domestic buildings. 

The grant will only cover biomass boilers in rural locations with populations of 10,000 people or less and in properties that are not connected to the gas grid. Your home must also meet high emissions standards to have a biomass boiler installed, which the government says is “to mitigate any negative impact on air quality.” The aim is to increase the deployment of low carbon heating across England and Wales. 

Who is Administering the BUS Scheme?

The Department for Business, Energy & Industrial Strategy (BEIS) has been replaced by the Department for Energy Security and Net Zero (DESNZ) and is responsible for the scheme policy and legislation and has named Ofgem as the administrator for the Boiler Upgrade Scheme. Ofgem has published guidance for installers on creating BUS accounts and (has published) comprehensive procedural guidance for the scheme since its launch in May 2022.

When can you apply?

Low carbon heating systems such as air source or ground source heat pumps and in some cases biomass systems that were commissioned on or after the 1st of April 2022 are entitled to support under the scheme. Installers who want to submit applications for grants under the scheme are required to create a BUS installer account. Applications for these types of low carbon heating have been open since the 23rd May 2022 and will remain open until the 31st December 2027.

Although the £2,500 Boiler Upgrade Scheme grant for eligible air-to-air heat pumps is now part of the scheme, grant-funded installations cannot yet proceed because the Microgeneration Certification Scheme (MCS) is still finalising the certification framework and product accreditation needed to support applications.

The higher £9,000 BUS grant for eligible off-grid properties in England and Wales that rely solely on oil or LPG for heating, applies to new voucher applications submitted starting on July 21, 2026, and will remain available until March 31, 2027.

Is your Property Eligible?

Key Rules and Eligibility 

To qualify for the BUS grant, you must meet a few specific requirements: 

Property Type: You must own your home (including second homes) in England or Wales. Landlords can apply for privately rented properties. 
Your property has an installation capacity of up to 45 kWth (this applies to most homes).
Most new builds are not eligible for Boiler Upgrade Scheme (BUS) grants, with limited exceptions. Social housing is also generally excluded. 
BUS grants for air source & ground source heat pumps are available for both eligible domestic and non-domestic buildings (up to 45 kWth capacity).
The Boiler Upgrade Scheme’s grant for air-to-air heat pumps is for residential properties only. 

Replacing Your Existing Heating: Heat pumps must replace an existing fossil fuel heating system or inefficient electric heating rather than supplement it. 

No Low-Carbon Heating Replaced: You cannot use the BUS grant to replace a heating system that is already low-carbon. 

Grant Limits and Combined Support: The BUS grant can only be claimed once per property. However, the good news is that you can claim for both an air-to-air heat pump and a thermal (heat) battery under the UK's Boiler Upgrade Scheme (BUS), and together they can provide £5,000 off your installation costs. 
You may still be eligible for the BUS grant if you’ve already used other funding schemes for insulation, doors or even windows. 

Energy Performance Certificate (EPC): If your property does not have an EPC, you no longer need to get one to receive a grant under the Boiler Upgrade Scheme (BUS). Your installer can provide alternative evidence to prove eligibility, such as a recent utility bill and photographs of your existing heating system. 
As of May 8th, 2024, the government dropped the required insulation criteria. Prior to this date, properties needed to have 200mm+ loft insulation and cavity wall insulation where applicable. If you would like to know more about these changes, click here.    

MCS Certified Installer: Your installer must be certified by the Microgeneration Certification Scheme (MCS). You can find an MCS certified installer in your area here. 
Before a grant can be claimed, the installer must carry out a room-by-room heat loss calculation to ensure the heat pump is correctly sized.

Planning Permission: Receiving a Boiler Upgrade Scheme grant does not automatically mean planning permission isn't required. 
Most domestic air source, ground source, and air-to-air heat pumps can be installed under permitted development rights without a full planning application, provided they meet specific strict criteria on size, noise, and location.
Properties in Conservation Areas, World Heritage Sites, or National Parks may still require planning permission. 
Listed buildings or scheduled monuments will require Listed Building Consent before any heat pump installation.

How Long Do Your Vouchers Last?

To ensure the vouchers are used in a timely manner and so that unused vouchers can be recycled, applicants have a set validity period. The validity period is three months for air source and air to air heat pumps and biomass boiler vouchers, and six months for ground source heat pump vouchers. You can still apply for the BUS if you have received separate funding for energy efficiency upgrades such as insulation, doors or windows.

How does the Scheme Work for Property Owners in the UK?

Homeowners cannot apply directly — all applications must be submitted by an MCS certified installer on your behalf.

Your installer will apply for the grant on your behalf. The value of the grant will be discounted off the price you pay. Voucher redemption will be handled by the installer, who will confirm proof of the installation and process the completed paperwork. It is advisable to get quotes from more than one installer to make sure you’re getting the best value for money. See our full guide to getting quotes for heat pumps. 

• Find an MCS certified installer in your area who can carry out the work. (The MCS quality assurance scheme ensures that installers are competent, and the products they use meet the correct standards.)
• The installer will advise you whether an installation is eligible for a grant.
• You agree a quote for the installation.
• Your installer applies for the grant.
• You confirm that the installer is acting on your behalf when you’re contacted by Ofgem.

What Installers Need to do to Join the Scheme

• Installers will need a verified installer account in order to make BUS applications.
• If you are already an MCS accredited heating installer, you can get a head start by creating your BUS account now.
• Ofgem strongly encourages installers to read the detailed guidance about creating a BUS installer account.

The person who creates the account must:

• Have the legal authority to act on behalf of the business.
• Agree to be the business’s ‘authorised representative’ for the scheme. An authorised representative is someone whose identity has been checked and who is Ofgem’s first point of contact should Ofgem ever need to speak to someone about the account.
• If your business is a limited company, the person creating the account must be a company director or company secretary who is listed on the Companies House register. If you are a sole trader, you will not be registered on Companies House. However, Ofgem will still need to verify your identity.
• The authorised representative will need to download and complete the editable BUS installer account form.
• The form then needs to be emailed along with all supporting evidence to accountcreation@ofgem.gov.uk.

The full supporting evidence requirements are listed on the BUS account form. They include:

• A valid form of photo identity, e.g., Passport or driving license
• A proof of address e.g., a recent utility bill
• A business bank account statement from the last 3 months

All data and documents will be stored and handled in line with the BUS privacy policy.