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Boiler Upgrade Scheme UK 2026: Complete Guide to the £7,500 Heat Pump Grant

Full 2026 guide to the UK Boiler Upgrade Scheme: £7,500 air-source / £2,500 air-to-air / £9,000 off-grid uplift, eligibility, MCS contractor, vs Warm Homes: Local Grant and ECO4.

May 20, 202611 min

Boiler Upgrade Scheme UK 2026: Complete Guide to the £7,500 Heat Pump Grant

The Boiler Upgrade Scheme (BUS) is the UK government's flagship grant for replacing fossil-fuel boilers with low-carbon heat pumps. Since its launch in May 2022, it has provided a flat-rate, upfront discount on the installation of qualifying heat pumps and biomass boilers in England and Wales. Following the Boiler Upgrade Scheme (England and Wales) (Amendment) Regulations 2026 (SI 2026/390, made on 19 March 2026 and in force from 28 April 2026), the BUS now also covers air-to-air and exhaust-air heat pumps, has dropped the EPC requirement, and from July 2026 will provide an uplifted £9,000 grant for off-gas homes switching from oil or LPG (Infinity Energy — BUS £9,000 uplift).

This guide explains exactly how much you can get, who is eligible, how the installer-led application works, and how BUS compares with the Warm Homes: Local Grant (WH:LG, the replacement for HUG2), ECO4 and the Great British Insulation Scheme (GBIS).

Table of contents

What is the Boiler Upgrade Scheme?

The Boiler Upgrade Scheme is a UK government grant administered by Ofgem on behalf of the Department for Energy Security and Net Zero (DESNZ). Its purpose is to accelerate the replacement of fossil-fuel heating systems — gas, oil, LPG and inefficient electric — with low-carbon heat pumps and biomass boilers in residential and small non-residential properties in England and Wales.

The legal basis is The Boiler Upgrade Scheme (England and Wales) Regulations 2022 (SI 2022/565), substantially amended by SI 2026/390 which entered into force on 28 April 2026 (Logic4training — BUS amendments 2026 ; Ofgem — Boiler Upgrade Scheme).

The 2025 Spending Review extended the scheme to 2030, with a confirmed annual budget of £295 million for 2025/26 (Aquila Plumbing — BUS heat pump grant). The BUS is installer-led — the homeowner does not apply directly; instead, an MCS-certified installer submits the application, applies the grant as an upfront discount on the invoice, and recovers the grant from Ofgem.

BUS grant amounts in 2026

The BUS provides a flat-rate, upfront discount that the installer deducts directly from the invoice. The 2026 amounts are:

Technology BUS grant (2026) Indicative € equivalent Notes
Air-source heat pump (ASHP) — air-to-water £7,500 ~€8,800 Standard grant for residential & non-residential
Ground-source heat pump (GSHP) £7,500 ~€8,800 Includes water-source heat pumps
Exhaust-air heat pump £7,500 ~€8,800 Added by the 2026 Amendment Regulations
Air-to-air heat pump £2,500 ~€2,950 New from 28 April 2026; residential only
Biomass boiler £5,000 ~€5,900 Restricted to rural off-grid properties
Off-gas uplift (oil / LPG → heat pump) £9,000 ~€10,580 From 1 July 2026; replaces the £7,500 ASHP/GSHP grant

Sources: Ofgem — BUS property owners ; Infinity Energy — £9,000 uplift ; Logic4training — BUS amendments.

Why £9,000 for off-grid homes from July 2026?

About 1.7 million UK homes are not connected to the gas grid and still rely on oil or LPG — fuels that are significantly more expensive and carbon-intensive than mains gas. To accelerate the transition for these "harder-to-treat" properties, the government announced an uplifted grant of £9,000 for off-gas homes switching from oil or LPG to an air-source or ground-source heat pump, in force from 1 July 2026. The uplift is a direct increase of the existing £7,500 grant — not an additional payment — and applies to both residential and non-residential properties off the gas grid.

Why £2,500 for air-to-air heat pumps?

Air-to-air heat pumps (sometimes called air-conditioning heat pumps or split systems) provide space heating through air ducts or wall units rather than through a wet central-heating system. They are significantly cheaper to install — typical UK install cost is £3,000-£6,000 — but they do not provide hot water, so a separate hot-water solution is needed (often an electric immersion or a small heat-pump water heater). The £2,500 grant introduced in April 2026 is calibrated to cover roughly the same proportion (~50%) of installation cost as the £7,500 air-to-water grant.

Eligibility: property, owner and installer requirements

Who can apply?

You can apply for the BUS if you are:

  • An owner-occupier of an eligible property in England or Wales.
  • A private landlord (residential or small commercial).
  • A self-builder completing a new build (limited cases).
  • A small business (non-residential capacity ≤ 45 kWth).

Social housing tenants and social landlords are excluded, with the exception of certain community-led housing.

Property requirements

The property must be in England or Wales (Scotland and Northern Ireland have their own schemes — see below).

Importantly, the EPC requirement was removed by the 2026 Amendment Regulations from 28 April 2026 (EPCGuide — BUS April 2026 changes for landlords). Previously, applicants had to provide a valid EPC with no outstanding loft insulation or cavity wall insulation recommendations. This was abolished to remove a significant barrier — surveys showed that the EPC requirement was disqualifying many otherwise eligible homes.

The property must have a fossil-fuel or inefficient electric heating system being replaced (or no heating system at all, in the case of new builds).

Installer certification: MCS is mandatory

The installer must be MCS-certified (Microgeneration Certification Scheme). MCS is the UK quality assurance scheme for small-scale renewable energy installations and is the only certification recognised under the BUS regulations.

Find a certified installer through the MCS installer database or the Ofgem BUS list of installers. The installer must also use MCS-certified equipment.

What about cumulability with other grants?

BUS cannot be combined with ECO4 for the same measure, but it can be combined with:

  • VAT 0% relief on the supply and installation of energy-saving materials (until 31 March 2027 under the Government's VAT relief, then 5%).
  • The Great British Insulation Scheme (GBIS) for separate insulation measures (closed to new applications since 31 January 2026; scheme ends 31 March 2026).
  • Warm Homes: Local Grant in limited cases where the WH:LG covers fabric measures and BUS covers the heat pump.

How to apply: the installer-led process step by step

Unlike most European grants, the BUS uses an installer-led model — the installer applies on your behalf and applies the grant as an upfront discount. You never have to submit a formal application yourself or wait for reimbursement.

The standard process is:

  1. Choose an MCS-certified installer. Get at least three quotes from installers on the MCS database. Make sure the quote line-items the BUS grant explicitly.
  2. Heat-loss survey and design. The installer conducts a heat-loss survey, sizes the heat pump, and prepares a system design according to MIS 3005 (the MCS heat pump standard).
  3. Quotation including BUS discount. The installer issues a quote showing the gross cost, the BUS grant deduction (£7,500, £2,500 or £9,000), and the net amount payable by you.
  4. Pre-installation BUS application by installer. The installer applies to Ofgem before installation begins. Ofgem checks the property eligibility and the installer's MCS status.
  5. Homeowner consent (14 days). You receive an email from Ofgem and have 14 days to confirm your consent to the grant being applied to your property.
  6. Installation. Installation typically takes 2-5 days for an air-source heat pump, 5-10 days for a ground-source system.
  7. Commissioning and MCS certificate. The installer issues an MCS certificate. The grant is paid from Ofgem to the installer; you pay only the net amount.

The full installer guidance is available in Ofgem's BUS Installer Guidance v5 (draft PDF).

BUS vs Warm Homes: Local Grant vs ECO4 vs GBIS

The BUS is one of four major DESNZ-funded schemes for residential energy retrofit in England (and partially in Wales and Scotland). They serve different audiences and are largely cumulable across measures, though never on the same measure.

Scheme Target audience Income threshold Eligible works Max grant Status 2026
Boiler Upgrade Scheme (BUS) Owner-occupiers, landlords, self-builders None Heat pumps, biomass boilers £9,000 (off-grid) / £7,500 (ASHP/GSHP) / £2,500 (air-to-air) Extended to 2030
Warm Homes: Local Grant (WH:LG) Owner-occupiers in England Household income ≤ £36,000/yr OR specific postcodes Insulation, ASHP, solar PV, smart controls Up to £30,000 per home Active; £500m / 3 years
ECO4 Households in fuel poverty / on benefits Means-tested benefits Whole-house: insulation, heating, ventilation, solar £10,000-£25,000 typical Extended to 31 December 2026
Great British Insulation Scheme (GBIS) EPC D-G, Council Tax bands A-D (E&W) / A-E (Scotland & Wales) Two groups: general + low-income Single insulation measure (cavity wall, loft, room-in-roof) £1,000-£5,000 typical Applications closed 31 January 2026; scheme ends 31 March 2026

Sources: Ofgem — ECO ; Ofgem — GBIS ; gov.uk — Warm Homes Local Grant.

When to use BUS vs the alternatives

  • You want a heat pump and have the rest of the cash to fund → BUS. Fastest, no income test, no fabric work required.
  • You're on a low income or a means-tested benefit → ECO4 is the priority route. It can fund the full retrofit (insulation + heating + ventilation) at no cost to you.
  • Your household income is ≤ £36,000 and your home is rated EPC D-G → Warm Homes: Local Grant, applied via your local authority. Funds insulation + ASHP + smart controls.
  • You want a single insulation measure with no income test → GBIS was the answer, but it has closed to new applications. From April 2026, the only no-income-test insulation route is the Warm Homes Plan (announced January 2026) or the ECO4 Flex eligibility flexibility.

Combining grants in practice

A common combination in 2026 is ECO4 for insulation + BUS for the heat pump for low-income households — the ECO4 obligation covers the fabric upgrade, then BUS funds the heat pump. Another is WH:LG for insulation + BUS for the heat pump for income-eligible households not on means-tested benefits.

Scotland, Wales and Northern Ireland alternatives

The BUS covers England and Wales only. Scotland and Northern Ireland have their own dedicated schemes.

Scotland — Home Energy Scotland Grant and Loan

Scotland's flagship scheme is the Home Energy Scotland Grant and Loan, administered by Energy Saving Trust on behalf of the Scottish Government (Home Energy Scotland — Grant and Loan). It offers more generous packages than BUS:

  • Heat pumps (air, ground, water): grant £7,500 + interest-free loan £7,500 = £15,000 total.
  • Solid wall insulation: grant up to £7,500 + loan £2,500.
  • Loft / cavity / underfloor insulation: grant up to £1,500 + loan £500.
  • Rural & island uplift: +£1,500 on both heating and energy-efficiency grants (total possible: up to £18,000 in rural areas).

There is no income test for the standard Home Energy Scotland Grant and Loan — it's a universal scheme open to owner-occupiers in their primary residence. For low-income households, the parallel Warmer Homes Scotland scheme funds the full retrofit package (mygov.scot — Warmer Homes Scotland).

Wales — Nest (Welsh Government Warm Homes Programme)

Wales runs Nest (Welsh Government Warm Homes Programme), a fully-funded retrofit package for low-income households (gov.wales — Nest). Eligibility requires a means-tested benefit and an EPC rating of E or below. Welsh homeowners can also access the BUS for heat pumps (Wales is in the BUS perimeter alongside England) and ECO4 + GBIS until they close.

Northern Ireland — Affordable Warmth and NISEP

Northern Ireland runs two main schemes:

  • Affordable Warmth Scheme (AWS) administered by the Northern Ireland Housing Executive, with grants up to £7,500 (or up to £10,000 for solid walls) for households with gross income < £23,000 (NIHE — Affordable Warmth Scheme).
  • Northern Ireland Sustainable Energy Programme (NISEP) administered by the Utility Regulator, with grants delivered through 11 Scheme Managers (Utility Regulator — NISEP 2026/27). Income thresholds are < £28,000 (single) or < £35,000 (couple/family).

A new Warm Healthy Homes Strategy 2026-2036 was launched on 5 February 2026 with £150m of funding over 5 years (Inside Housing — NI warm homes strategy).

FAQ

Do I need an EPC to apply for BUS in 2026? No. The EPC requirement was abolished by the BUS Amendment Regulations 2026 on 28 April 2026. You no longer need a valid EPC with no outstanding insulation recommendations.

Can I get BUS and ECO4 for the same heat pump? No. The two grants cannot be combined on the same measure. However, you can use ECO4 for insulation and BUS for the heat pump in the same retrofit project.

How long does it take to receive the grant? The grant is applied as an upfront discount on the installer's invoice — you never see the cash. The installer recovers the grant from Ofgem within a few weeks of commissioning.

Is the BUS taxable? No. The BUS grant is not taxable income for the homeowner. For landlords, the grant reduces the qualifying expenditure for capital allowances and tax relief.

What if my installer is not MCS-certified? You cannot use BUS. Only MCS-certified installers using MCS-certified equipment can apply. Switch to an MCS-certified installer before signing any contract.

Can a tenant apply for BUS? No. Only the property owner (owner-occupier, landlord, or self-builder) can apply. Tenants should ask their landlord to apply or look at Affordable Warmth (NI), Nest (Wales) or ECO4 instead.

What if my heat pump quote is below £7,500 net of grant? You still qualify for the full £7,500 grant. The grant is a flat rate, not a percentage of cost. In practice, with the BUS some homeowners now pay close to £4,500-£5,000 for an air-source heat pump installation.

Conclusion

The Boiler Upgrade Scheme in 2026 is the most generous, most accessible UK heat pump grant in a decade: £7,500 for air-source and ground-source, £2,500 for air-to-air, and a forthcoming £9,000 uplift for off-grid homes from July 2026. With the EPC requirement abolished and the scheme extended to 2030, the application process is now faster and broader than ever. For low-income households, BUS combines naturally with ECO4 or the Warm Homes: Local Grant; in Scotland, the parallel Home Energy Scotland Grant and Loan offers up to £15,000 per home.

To check your eligibility and explore the full UK grant landscape in one go, visit our UK country page or run a quick estimation on the UK simulator.

Sources