Boiler Upgrade Scheme New Build: Who Qualifies in 2026?
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Quick answer: does a new build qualify for the Boiler Upgrade Scheme?
Most developer-built new homes do not qualify for the Boiler Upgrade Scheme while they are being built. A qualifying self-build can receive BUS support for a heat pump if it was built mainly using the first owner’s labour or resources, has never been owned wholly or partly by a business or organisation, and is not part of an excluded property development. A completed and occupied new-build home with an existing fossil-fuel or qualifying electric heating system may also be able to qualify later as a retrofit. Eligibility is not pre-approved: an MCS-certified installer submits the application and Ofgem confirms whether the requirements are met.
Boiler Upgrade Scheme New Build: Does a New-Build Property Qualify in 2026?
If you own, are buying or are building a new home in England or Wales, Boiler Upgrade Scheme eligibility depends on how the property was built, who owned it during construction and whether it already has a heating system.
Most homes being built by a commercial developer do not qualify while they are under construction. However, a genuine self-build or qualifying custom-build can be eligible for heat-pump funding. A completed developer-built home may also qualify later as a retrofit if it is occupied and has an existing qualifying heating system that will be replaced.
That distinction matters because a home can be called “new build” in everyday language while falling into a different category under BUS. This guide explains the practical tests, likely evidence and next steps.
Considering a heat pump for a new or recently completed home? Compare property-specific quotes and ask the installer to confirm the BUS eligibility route before committing.
Boiler Upgrade Scheme new-build eligibility at a glance
| Property situation | Likely BUS position | Why |
|---|---|---|
| Developer-built home still under construction | Not eligible | BUS does not normally fund the original heating system in a commercial new build |
| Completed, occupied developer-built home with existing gas, oil, LPG or qualifying electric heating | May qualify as a retrofit | The application can be assessed as replacement of an existing heating system |
| Genuine self-build or qualifying custom-build | May qualify for a heat pump | Specific self-build rules create an exception |
| New build already heated by a heat pump | Generally not eligible for another BUS-funded heat pump | BUS does not fund replacement of an existing heat pump used for space heating |
| Self-build seeking biomass support | Not eligible | Biomass is excluded for self-build properties |
Why most developer-built new homes do not qualify
The Boiler Upgrade Scheme is primarily designed to support low-carbon heating in existing buildings. Ofgem says most new-build properties are not eligible, with an exception for qualifying self-builds.
In practical terms, a developer cannot normally use BUS to subsidise the original heating system in a home it is constructing for sale. The official GOV.UK Boiler Upgrade Scheme eligibility guidance states that new-build properties which a developer is still building are not eligible.
This is the key point for buyers purchasing off-plan or before completion. Even if a heat pump would suit the property, BUS is not normally available to fund the developer’s initial installation.
For the wider scheme position, including the latest grant changes, see our Boiler Upgrade Scheme 2026 updates guide.
Can a completed new build qualify later?
Potentially, yes. This is where the simple statement “new builds are not eligible” can mislead.
GOV.UK says that if you move into a finished new build with a fossil-fuel boiler, you may be able to get a heat-pump grant. Ofgem’s current installer guidance describes retrofit installations as installations in occupied properties with an existing heating system.
For a retrofit, the system being replaced must be fossil-fuel based, such as gas, oil or LPG, or a qualifying electric system that does not include a heat pump. Examples include storage heaters, electric panel heaters and electric boilers.
So, if you buy a completed house from a developer, move in and later replace its gas boiler with an eligible heat pump, the application may be assessed as a retrofit rather than as part of the original development.
Approval is not automatic. Ofgem confirms eligibility after the installer applies and supplies any required evidence. See our Boiler Upgrade Scheme requirements guide for the broader eligibility checklist.
What if the new build already has a heat pump?
If the home already uses a heat pump for space heating, BUS will not normally fund replacing it with another heat pump.
Ofgem’s current retrofit rules require the previous system to be fossil-fuel based or an electric system that does not include a heat pump. If the previous system includes a heat pump providing space heating, the property is not eligible under that retrofit rule.
The scheme also does not provide a retrospective payment simply because you buy a new home with low-carbon heating already installed.
When does a self-build qualify for BUS?
Self-builds are the main exception to the new-build exclusion. However, “self-build” has a specific BUS meaning and does not require you to carry out all the building work yourself.
Ofgem says eligible self-builds can include DIY projects and custom-builds where an individual contracts a builder. To qualify, the property must:
- have been built principally using the labour or resources of the first owner, including finance that owner is responsible for;
- never have been owned wholly or partly by a non-individual, such as a company; and
- not form part of an excluded property development.
Under the self-build route, the property must not have been occupied or used before commissioning of the eligible heat pump and must not already have an existing heating system. This makes the self-build route different from a retrofit.
What is an excluded property development?
The rule prevents commercial developments from being treated as self-builds simply because plots are sold separately.
Ofgem describes excluded developments as cases where multiple buildings are constructed on a plot acquired from someone who decided or offered the plans or specifications, and the buildings are then built wholly or mainly to those plans.
A property may fall outside that definition if the owner had primary input into the plans and specifications. Ofgem notes that changes to internal layout alone would not normally be enough.
This distinction is especially relevant to serviced plots and custom-build developments where buyers choose from a limited selection of pre-designed homes.
What evidence may a self-builder need?
The MCS-certified installer submits the BUS application, but Ofgem may ask for evidence showing how the property was owned, financed and built.
| Evidence type | Examples Ofgem says may be accepted |
|---|---|
| Ownership/build | Title deeds, sale contract, solicitor letter or build contract |
| Funding | Self-build mortgage or loan, self-build VAT documentation |
| Construction | Invoices for substantial materials or structural labour |
| Project records | Self-build insurance, builder contracts, planning or building-control documents |
| Payments | Financial records showing relevant invoice payments |
Ofgem describes this list as indicative rather than exhaustive. Keeping records throughout the project can therefore make a later application considerably easier.
How much can an eligible self-build receive?
Under the current 2026 rules, the standard BUS grant is £7,500 for an eligible air-to-water or ground source heat pump. Residential air-to-air heat pumps can receive £2,500.
Self-builds cannot receive the £5,000 biomass boiler grant. They are also excluded from the temporary £9,000 off-gas-grid uplift. Ofgem’s July 2026 installer guidance specifically states that self-build properties may still qualify for the standard £7,500 grant, subject to meeting the full eligibility criteria.
If you are considering an air-to-water system, our Boiler Upgrade Scheme air source heat pump guide covers that route in more detail.
Do you need an EPC?
A valid EPC is no longer a standing BUS requirement for applications properly made from 28 April 2026.
For retrofit applications, an existing valid EPC number is supplied where one exists. If there is no valid EPC, the installer can use alternative evidence.
For self-builds, an EPC does not by itself prove that the project meets the self-build ownership and development tests.
How to check your position before committing
- Identify the route. Is the property still being built by a developer, completed and occupied, or a genuine self-build?
- Check the existing heating system. Retrofit funding requires an eligible fossil-fuel or non-heat-pump electric system to be replaced.
- Check self-build ownership history. Company ownership or an excluded development can prevent eligibility.
- Use an MCS-certified installer. BUS is installer-led and the installer applies for the voucher.
- Ask for the grant as an upfront discount. It should appear on the quote and final invoice.
- Do not treat the grant as confirmed until Ofgem assesses the application.
Ofgem says installers must be MCS-certified, apply on the property owner’s behalf and pass the grant value on as an upfront discount.
Our guide to how the Boiler Upgrade Scheme works explains the process, while our Boiler Upgrade Scheme application guide covers the application stage.
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Frequently asked questions
Find clear answers to common questions about the Boiler Upgrade Scheme for new-build and self-build homes, including completed new builds, custom-builds, ownership rules, the £9,000 uplift, biomass eligibility, air-to-air heat pumps, electric heating, EPCs, evidence requirements and installer applications.
No. Most developer-built homes are excluded while being constructed, but qualifying self-builds are an exception. A completed and occupied developer-built home may also qualify later as a retrofit.
Potentially. GOV.UK states that someone moving into a finished new build with a fossil-fuel boiler may be able to receive a grant to replace it with a heat pump.
It can. The property must meet the BUS self-build tests, including first-owner resources or labour, no ownership by a non-individual and exclusion from certain multi-property developments.
Yes. Ofgem specifically recognises qualifying custom-builds where an individual contracts a builder to construct the home.
No. Using the first owner’s financial resources can qualify, including eligible finance for which the owner is responsible.
Normally not under the self-build exception. Ofgem requires an eligible self-build never to have been owned wholly or partly by a non-individual, such as a company.
Possibly, but the development structure matters. A project can fail the test if multiple homes are substantially built to plans or specifications decided or offered by the person selling the plot.
No. Ofgem’s current guidance excludes self-build properties from the temporary £9,000 off-gas-grid uplift. Eligible self-builds may instead qualify for the standard £7,500 grant.
No. BUS funding for self-build properties is limited to eligible heat pumps; biomass boilers are excluded.
Residential air-to-air heat pumps can attract a £2,500 BUS grant where the property and installation satisfy the relevant requirements.
Generally not. An occupied retrofit property is not eligible where the previous space-heating system already includes a heat pump.
Potentially. Current retrofit rules allow replacement of qualifying electric heating that does not include a heat pump, including electric boilers, panel heaters and storage heaters.
A valid EPC is no longer a standing eligibility requirement for applications properly made from 28 April 2026. Where a valid EPC exists for a retrofit, its certificate number is still provided.
Evidence can include title deeds, build contracts, self-build finance documents, structural-material invoices, self-build insurance and planning or building-control records.
Your MCS-certified installer applies on your behalf. Ofgem then contacts you as necessary to confirm consent and identity before assessing the application.
Conclusion:
A “new build” is not automatically eligible or automatically excluded from the Boiler Upgrade Scheme. The outcome depends on the project stage and the route under which Ofgem assesses the property.
A developer-built home still under construction is normally outside BUS. A genuine self-build can qualify for heat-pump support if it meets the ownership, funding and development tests. A completed, occupied developer-built property may also qualify later as a retrofit when an existing fossil-fuel or qualifying electric heating system is being replaced.
Before relying on BUS funding, ask an MCS-certified installer to identify the correct route and gather any evidence Ofgem may require. If the property appears suitable, compare properly surveyed heat-pump quotations with the grant shown clearly as an upfront deduction.
