Updated Boiler Upgrade Scheme guidance

Boiler Upgrade Scheme Guide 2026

The Boiler Upgrade Scheme can reduce the upfront cost of an eligible heat pump or biomass installation in England and Wales. This guide explains the current grant values, who can qualify, the evidence you may need and what your installer does.

Rules checked against Ofgem guidance on 13 September 2026
Installer-led application
MCS-certified installation
Upfront quote discount
England and Wales

The short answer

What is the Boiler Upgrade Scheme?

The Boiler Upgrade Scheme, usually shortened to BUS, is a government grant scheme supporting eligible low-carbon heating installations in England and Wales. Despite its name, it does not pay for a replacement gas, oil or LPG boiler.

The property owner chooses an installer who is MCS certified for the relevant technology. The installer designs and quotes for the system, applies to Ofgem on the owner’s behalf and deducts the grant from the amount the customer pays. Ofgem contacts the owner to confirm consent and eligibility declarations, then pays the installer after the eligible installation has been commissioned and the voucher is redeemed.

The grant is not paid into your bank account. Ofgem requires the full grant value to appear as an upfront discount on the installer’s quotation and final invoice. Your contract with the installer remains separate from your consent to the Ofgem application.

Current grant values

How much can you get through BUS?

The relevant amount depends on the technology and, for the temporary £9,000 uplift, the property’s gas-grid status and existing heating fuel.

Air-to-water£7,500

Standard support for an eligible air-to-water heat pump installation.

Ground or water source£7,500

Standard support for eligible ground source, water source and shared-ground-loop systems.

Air-to-air£2,500

Support for an eligible air-to-air system meeting the scheme’s full requirements.

Biomass£5,000

Limited to eligible rural, off-gas-grid properties and subject to additional rules.

The uplift is narrower than “off gas”

  • Coal, direct electric and storage-heater replacements do not receive the £9,000 uplift.
  • A capped or clamped mains-gas supply does not qualify.
  • A property with a record of an existing gas meter point does not qualify.
  • Heat-network properties and new builds do not qualify for the uplift.

Interactive grant guide

Check the grant that may apply

Select the proposed technology and the heating system being replaced. This gives an initial indication—not an Ofgem eligibility decision.

1. What do you plan to install?

2. What heating system is being replaced?

£7,500

Standard heat-pump grant may apply

Subject to the property, installer, product and full scheme requirements.

The £9,000 indication also assumes there is no mains-gas meter-point record or heat-network connection and the property is not a new build. Ofgem decides eligibility from the submitted application and evidence.

Eligibility

Who can qualify for the Boiler Upgrade Scheme?

Eligibility rests on the property, the system being replaced, the proposed technology, ownership and the installation route—not simply household income or postcode.

Core requirements for most retrofits

  • The property is in England or Wales.
  • The installation replaces an existing fossil-fuel or non-heat-pump electric heating system.
  • The proposed product and installation meet BUS technical rules.
  • An appropriately certified MCS installer installs and commissions the system.
  • The heat pump is sized to meet the property’s full space-heating requirement.
  • The owner will legally own the installed system.

Common exclusions

  • Replacing an existing heat pump or another low-carbon heating system.
  • Hybrid systems combining a heat pump with a fossil-fuel boiler.
  • Most new-build properties, except qualifying self-builds.
  • Social housing, including relevant shared-ownership arrangements.
  • Duplicate public funding for the same heat pump or biomass installation.
  • Third-party ownership arrangements that leave the customer without legal ownership.

EPC and evidence

Do you need a valid EPC?

Valid EPC available

Use the current certificate number

Since 28 April 2026, a valid EPC is no longer an absolute requirement for a BUS application. However, if a valid EPC exists, the installer must provide its certificate number. Ofgem defines a valid EPC as the most recent certificate and no more than ten years old.

Find an EPC on the government register.

No valid EPC

Alternative evidence can be submitted

Your installer will normally need evidence of the property’s energy supply and the heating system being replaced. This may include a recent utility bill or fuel receipt, photographs of the existing system and an expired EPC reference where available.

Ofgem may request different or additional evidence where the normal documents are unavailable or inconsistent.

Do not remove the old heating system before it has been properly recorded. Photographs, fuel evidence, model details and the property’s heating history can be important, particularly when no valid EPC exists or the £9,000 uplift is being considered.

Application journey

How the BUS process works

Select each stage to see who acts and what you should expect.

Before an application

Establish whether the system is suitable

An MCS installer assesses the property, completes the required design work and identifies the equipment, emitters, hot-water storage, controls and installation work. A grant does not make an unsuitable or poorly designed system suitable.

Enerus begins with a room-by-room heat-loss calculation and whole-system design rather than selecting output from floor area alone.

Compare the routes

Which BUS-funded technology is relevant?

TechnologyCurrent grantKey eligibility pointImportant practical issue
Air-to-water heat pump£7,500 standard; £9,000 uplift where eligibleMust replace eligible fossil-fuel or electric heating and meet the full space-heating requirement.Needs a complete water-based heating and hot-water design, including emitters, cylinder and controls.
Ground/water source heat pump£7,500 standard; £9,000 uplift where eligibleIncludes eligible water-source and shared-ground-loop arrangements.Groundworks, land, permissions, boreholes or shared-loop contracts can add complexity and programme time.
Air-to-air heat pump£2,500Residential properties only and subject to the full-space-heating rules; no £9,000 uplift.The proposal must address whole-property heat distribution and the separate domestic-hot-water arrangement.
Biomass boiler£5,000Only eligible rural, off-gas-grid properties; not eligible self-builds.Must provide space heating and hot water as a standalone system and meet additional emissions requirements.

Design before grant

A voucher does not design the heating system

BUS is financial support, not a performance guarantee. Heat-pump output changes with outdoor and flow temperatures, and the home’s room-by-room heat loss determines how much heat must be delivered.

A useful proposal should explain:

  • room-by-room design heat loss and design temperatures;
  • heat-pump capacity at the required operating condition;
  • radiator or underfloor-heating output;
  • hot-water demand, cylinder capacity and reheat strategy;
  • pipework, system volume, water quality and electrical supply;
  • weather compensation, room reference and user controls;
  • noise, planning, access and service clearances.

Timescales, VAT and payment

Details that change the real project cost

Programme

Voucher validity

Ofgem’s published property-owner guidance states that an approved project normally has three months to complete the installation, or six months for a ground source heat pump. Do not treat approval as open-ended.

Tax treatment

0% VAT

Ofgem currently states that qualifying installations of energy-saving materials, including heat pumps and biomass boilers, are zero-rated for VAT until 31 March 2027. The installer remains responsible for applying the correct VAT treatment to the actual scope.

Your contract

Deposits and finance

The BUS grant is not a deposit fund and does not remove the need for a clear payment schedule. Check when deposits, stage payments and the final balance become due. Finance arrangements must leave you as the legal owner of the installed heat pump or biomass boiler to meet the current scheme rule.

Common questions

Boiler Upgrade Scheme FAQs

Is the Boiler Upgrade Scheme still available in 2026?

Yes. Ofgem is administering BUS in England and Wales. Grant values and deadlines can change, so check the current Ofgem property-owner page before relying on any article or quotation.

Is the grant £7,500 or £9,000?

The standard grant for eligible air-to-water and ground source heat pumps is £7,500. A temporary £9,000 grant applies to qualifying off-gas-grid properties replacing oil or LPG with one of those technologies, for eligible applications from 21 July 2026 to 31 March 2027.

Does coal qualify for the £9,000 heat-pump grant?

No. Replacing coal can meet the general existing-heating requirement for a standard eligible heat-pump application, but Ofgem restricts the £9,000 uplift to qualifying off-gas-grid properties replacing oil or LPG.

Do I need an EPC for the Boiler Upgrade Scheme?

Not necessarily. From 28 April 2026, a valid EPC is no longer mandatory. If a valid EPC exists, its number must be supplied. Without one, the installer submits alternative evidence such as recent utility or fuel documents and photographs of the heating system.

Can I apply for the Boiler Upgrade Scheme myself?

The ordinary process is installer-led. An MCS-certified installer applies to Ofgem on your behalf. Ofgem then contacts you directly for consent and eligibility confirmation.

Is the grant means tested?

BUS is not presented as an income-assessed grant. Eligibility is based on the property, owner, existing heating, proposed technology, installer and the other scheme requirements.

Can landlords use the Boiler Upgrade Scheme?

Private landlords and owners of eligible non-domestic properties can potentially use BUS. Social housing and relevant shared-ownership arrangements are excluded under the current rules.

Can I keep my gas or oil boiler as backup?

The scheme does not fund a hybrid system combining a heat pump with a fossil-fuel boiler. Any supplementary heating arrangement must satisfy the BUS rules, and the heat pump must still be sized to meet the full space-heating requirement.

Can I get the £9,000 uplift by capping my gas supply?

No. Ofgem states that capped or clamped mains-gas supply meter points are still considered mains-gas fuelled for the uplift, and a record of an existing gas meter point also prevents the property meeting that off-gas definition.

Can a new-build property receive BUS funding?

Most new builds are excluded. A qualifying self-build can be eligible where it was built mainly using the first owner’s labour or resources, has never been owned by a business or organisation and is not part of an excluded development. The £9,000 uplift excludes new-build properties.

Does BUS cover the entire installation cost?

Usually not. It is a fixed contribution deducted from the quotation. The customer pays the remaining balance, including eligible system-design and installation work beyond the grant value.

What happens if Ofgem asks for more evidence?

Your installer normally coordinates the response and may ask you for fuel bills, photographs, ownership documents or other information. Respond promptly: Ofgem can pause or reject an application when required declarations or evidence are not supplied.

Authoritative sources

Check the official scheme guidance

BUS rules are administered by Ofgem and can change. These primary sources should take precedence over summaries published by installers, comparison websites or news articles.

Start with the property

Could a BUS-supported heat pump suit your home?

Enerus can review the property, existing heating, likely grant route and the technical work needed before a complete proposal is prepared.