UK Government Grant — Updated September 2026

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.

£9,000
Eligible Off-Gas Oil/LPG (until 31 Mar 2027)
£7,500
Most Hydronic Heat Pumps
2029/30
BUS Funding Committed Through

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)

1
Get a free quote
Request quotes from MCS-certified installers through our matching service.
2
Installer confirms eligibility
Your chosen installer checks property details, existing heating and heat pump suitability; a valid EPC is no longer required.
3
Installer applies for the voucher
Your MCS-certified installer submits a BUS voucher application to Ofgem.
4
Voucher issued
Once approved, the installer has 3 months to complete an air source installation, or 6 months for ground source.
5
Installation completed
Your heat pump is installed and commissioned to MCS standards.
6
Grant deducted from invoice
The applicable grant is deducted from the installation price. You pay the remaining balance.

Eligibility Requirements

Valid EPC Required?
No — not for applications from 28 April 2026
Insulation Required?
No — recommendations do not block BUS
Property Location
England and Wales only
Existing Heating
Replacing fossil fuel or electric heating, not a heat pump
Installer Certification
MCS-certified only
Ownership
Owner-occupier or landlord

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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