Boiler Upgrade Scheme: Up to £9,000 Heat Pump Grant
BUS provides £7,500 for most air-to-water or ground source heat pumps, or £9,000 when they replace oil or LPG heating in an eligible off-gas grid home (21 July 2026 to 31 March 2027). Eligible residential air-to-air heat pumps receive £2,500. Your MCS-certified installer applies on your behalf and deducts the grant from the price.
How the Boiler Upgrade Scheme Works
The Boiler Upgrade Scheme (BUS) is administered by Ofgem on behalf of the UK Government. When you hire an MCS-certified installer to replace your existing boiler or electric heating system with a qualifying heat pump, your installer applies for a grant voucher directly to Ofgem. The voucher amount is deducted from your invoice — you pay only the remainder.
For applications properly made from 21 July 2026 to 31 March 2027, £9,000 is available for an air-to-water or ground source heat pump replacing oil or LPG heating in an eligible off-gas grid property. Most other eligible air-to-water and ground source installations receive £7,500; residential air-to-air heat pumps receive £2,500. Eligible rural off-gas biomass boilers can receive £5,000. The final price depends on your property, heating system and installer quote.
Application Process (Step by Step)
Eligibility Requirements
Important: BUS is available only in England and Wales. Scotland has separate support. Northern Ireland’s Boiler Replacement Scheme closed in 2023; check current local support rather than assuming a BUS equivalent is available.
Check the official Ofgem BUS eligibility guidance for the current rules.
10-Year Cost Comparison: Gas Boiler vs Heat Pump
| Cost Factor | New Gas Boiler | ASHP (after BUS grant) |
|---|---|---|
| Installation Cost | £2,500–£3,500 | £3,000–£8,000 |
| Annual Running Cost (typical 3-bed semi) | £1,100–£1,400 | £900–£1,200 |
| Maintenance (annual service) | £80–£120 | £150–£200 |
| 10-Year Running Total | £11,800–£15,200 | £10,500–£14,000 |
| 10-Year Total (inc. install) | £14,300–£18,700 | £13,500–£22,000 |
| Carbon (tCO2e over 10yr) | ≈ 19 tonnes | ≈ 6 tonnes |
Based on Q1 2026 energy rates. ASHP running costs assume SPF of 2.8. Gas costs assume 6.99p/kWh (Ofgem Q1 2026 standing + unit). Results vary by property.
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