Energy Grants and Schemes UK 2026/27 — ECO4, GBIS and More

Boiler Upgrade Scheme Explained — Grants for Heat Pumps and Biomass

How the Boiler Upgrade Scheme works, eligibility, grant amounts for heat pumps and biomass boilers, and how to apply. Complete UK guide for 2026.

If you are planning insulation, heating upgrades, and grant-backed home improvements together, use the Energy Efficiency Hub as your main route map.

The Boiler Upgrade Scheme (BUS) provides government grants of up to £7,500 to help homeowners in England and Wales switch from gas, oil, or LPG boilers to low-carbon heating systems like heat pumps.

Read more: See our Energy Grants guide for a complete overview of this topic.

Grant Amounts

TechnologyGrant amountTypical installed costYou pay (approx.)
Air source heat pump£7,500£10,000–£18,000£2,500–£10,500
Ground source heat pump£7,500£15,000–£35,000£7,500–£27,500
Biomass boiler£5,000£10,000–£20,000£5,000–£15,000

The grant is deducted from the installer’s quote — you never receive the money directly.

Eligibility

RequirementDetails
Property locationEngland or Wales
Property ownershipYou must own the property (homeowners and landlords)
Existing heatingMust be replacing a fossil fuel system (gas, oil, LPG, electric — not another heat pump)
EPCMust have a valid EPC dated within the last 10 years
InsulationEPC must not recommend loft or cavity wall insulation (or you must have completed these first)
Property typeExisting buildings only — new builds are excluded
Social housingExcluded (has separate schemes)
Previous BUS grantOnly one grant per property

Who Cannot Get a BUS Grant?

ExcludedReason
New build propertiesSeparate building regulations apply
Social housingCovered by Social Housing Decarbonisation Fund
Properties already with a heat pumpSystem must replace fossil fuel heating
Properties with outstanding insulation recommendations on EPCMust insulate first
Scotland and Northern IrelandHave separate schemes

The EPC Requirement

Your property needs a valid EPC. Crucially, the EPC must not recommend loft insulation or cavity wall insulation as improvements. If it does, you need to either:

SituationWhat to do
EPC recommends loft insulationInstall loft insulation (£300–£600), then get a new EPC
EPC recommends cavity wall insulationInstall cavity wall insulation (£500–£1,500), then get a new EPC
Solid wall property (no cavity)This recommendation will not appear — no action needed
No valid EPCGet one (£60–£120)

This is the most common reason applications are rejected, so check your EPC at gov.uk/find-energy-certificate before proceeding.

How to Apply

You do not apply directly. The process works through your installer.

StepWhat happens
1. Check eligibilityConfirm you meet the criteria above
2. Get quotesContact MCS-certified installers (at least 3 is recommended)
3. Choose an installerAgree a quote — installer applies for voucher
4. Voucher issuedOfgem reviews and issues voucher (usually 2–4 weeks)
5. InstallationInstaller completes the work
6. PaymentYou pay the installer the total minus the grant — installer redeems voucher from Ofgem

Finding MCS-Certified Installers

Only MCS-certified installers can apply for BUS vouchers. Search at mcscertified.com to find accredited installers in your area.

TipWhy it matters
Get at least 3 quotesPrices vary significantly
Check MCS accreditationNon-MCS installers cannot access the grant
Ask about the full processGood installers handle the voucher application for you
Check installer reviewsMCS certification does not guarantee quality of work
Confirm what is includedEnsure quote covers radiator upgrades, hot water, controls

What the Grant Covers

CoveredNot covered
Supply and installation of heat pump or biomass boilerRadiator upgrades (may be needed for heat pumps)
Commissioning and controlsUnderfloor heating installation
Removal of old systemElectrical upgrades (may be needed)
Hot water cylinder (if part of system)Insulation improvements

Some installers include radiator upgrades and ancillary work within their quote, effectively using the grant to reduce the total package price.

Air Source Heat Pump — What to Expect

FactorDetails
Running cost vs gas boilerRoughly similar at current electricity/gas prices
Lifespan20–25 years
MaintenanceAnnual service recommended (£100–£200)
NoiseLow hum from outdoor unit — comparable to a fridge
Space neededOutdoor unit roughly 1m x 1m, plus indoor cylinder
Performance in cold weatherModern units work efficiently down to –15°C or below
RadiatorsMay need upsizing as heat pumps run at lower flow temperatures
Hot waterUsually via a hot water cylinder (combi heat pumps are emerging)

Running Cost Comparison

Heating systemFuel cost per kWhEfficiencyEffective cost per kWh of heat
Gas boiler7p90%7.8p
Oil boiler6–8p85%7–9.4p
Air source heat pump24p electricity300% (COP 3.0)8p
Ground source heat pump24p electricity400% (COP 4.0)6p
Direct electric heating24p100%24p

Heat pumps are most cost-effective when they achieve a high Coefficient of Performance (COP), which depends on the system design and property insulation.

BUS Budget and Availability

DetailStatus
Scheme launchApril 2022
Current end dateMarch 2028 (extended from original 2025 end date)
Budget£1.5 billion over the scheme lifetime
DemandApplications have increased significantly — vouchers are not guaranteed indefinitely

Apply sooner rather than later if you are interested, as the scheme could be modified or budgets reallocated.

Alternatives If You Do Not Qualify

SituationAlternative
In ScotlandHome Energy Scotland grant and loan scheme
In Northern IrelandNorthern Ireland Sustainable Energy Programme (NISEP)
Social housingSocial Housing Decarbonisation Fund
New buildDeveloper should install compliant heating under building regs
Want to keep gas boilerNo BUS grant, but consider a hydrogen-ready boiler for future
Cannot afford remainder after grantSome local authorities offer additional top-up grants

Common Questions

QuestionAnswer
Can I combine BUS with other grants?Generally not with ECO4 or GBIS for the same measure, but check with your installer
Do I need planning permission for a heat pump?Usually not — most are permitted development, but check if listed or in a conservation area
How long does installation take?2–5 days typically for an air source heat pump
Will I need a bigger electricity supply?Most homes do not, but your installer will check
Can I get a grant for a hybrid heat pump?Not through BUS — hybrids combine a heat pump with a gas boiler and are not eligible

Related guides:

Sources

  1. Energy Saving Trust