Boiler Upgrade Scheme Explained: Homeowner Guide 2026
Check Your Eligibility for Boiler Upgrade Scheme (BUS)
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Quick Answer
The Boiler Upgrade Scheme is an England-and-Wales government grant that reduces the upfront price of eligible low-carbon heating. You do not normally apply to Ofgem yourself. An MCS-certified installer assesses eligibility, agrees a quotation with you and applies for the BUS voucher on your behalf. The grant is then deducted from the amount you pay.
As of September 2026, the standard grant is £7,500 for eligible air-to-water and ground source heat pumps, £2,500 for residential air-to-air heat pumps and £5,000 for biomass boilers. Eligible properties without a mains-gas connection that are replacing oil or LPG can receive £9,000 for an air-to-water or ground source heat pump until 31 March 2027. Check the official GOV.UK Boiler Upgrade Scheme grant amounts for the current categories.
Boiler Upgrade Scheme Explained: Complete Homeowner Guide
The Boiler Upgrade Scheme (BUS) can reduce the upfront cost of replacing eligible fossil-fuel or electric heating in England and Wales. In 2026, standard support is £7,500 for air-to-water and ground source heat pumps, £5,000 for qualifying biomass boilers and £2,500 for residential air-to-air heat pumps. Some off-gas-grid properties replacing oil or LPG can receive £9,000 for an air-to-water or ground source heat pump until 31 March 2027.
This guide explains eligibility, grant values, the application process and what to check before accepting a quote.
Compare Quotes: Once you know which BUS route may suit your property, compare properly surveyed quotations on a like-for-like basis before choosing an installer.
Current Boiler Upgrade Scheme Grant Amounts
| Technology | Standard BUS grant | Important 2026 point |
|---|---|---|
| Air-to-water heat pump | £7,500 | £9,000 for qualifying off-gas oil/LPG replacements until 31 March 2027 |
| Ground or water source heat pump | £7,500 | £9,000 for qualifying off-gas oil/LPG replacements until 31 March 2027 |
| Air-to-air heat pump | £2,500 | Residential properties only |
| Biomass boiler | £5,000 | Restricted to qualifying rural, off-gas properties |
The grant is per property, not per appliance. Hybrid systems combining a fossil-fuel boiler with a heat pump are not eligible. The new system must also meet scheme technical requirements.
What Is the Boiler Upgrade Scheme?
BUS is an upfront capital-grant scheme administered by Ofgem for the UK Government. It helps property owners in England and Wales move from existing fossil-fuel or electric heating to eligible low-carbon systems.
BUS is installer-led. Your installer applies for the voucher, Ofgem asks you to confirm consent and eligibility details, and the grant appears as a deduction from your quotation and invoice. The official Ofgem guidance for property owners explains the scheme requirements in detail.
The scheme has been extended to 2030, with around £2.7 billion allocated through 2029/30 under the Warm Homes Plan.
Getfreequote.co.uk already covers the latest Boiler Upgrade Scheme 2026 updates separately, so this guide focuses on the evergreen homeowner process rather than duplicating every policy announcement.
Who Is Eligible for the Boiler Upgrade Scheme?
At a high level, you normally need to own the property and be replacing an eligible existing heating system. Owner-occupiers, private landlords, second-home owners and owners of some non-domestic buildings can qualify.
The property must be in England or Wales. Most new-build properties and social housing are excluded. Eligible self-builds can qualify for heat-pump support if they meet the scheme rules, although self-build properties cannot receive the biomass grant. See the official GOV.UK BUS eligibility guidance for detailed exceptions.
| Situation | Normally eligible? | Key point |
|---|---|---|
| Owner-occupied home replacing gas, oil, LPG or eligible electric heating | Yes, if other rules are met | Installer checks the property and proposed system |
| Private rental property | Potentially | The property owner participates through the installer |
| Second home | Potentially | Ownership and system rules still apply |
| Eligible self-build | Potentially for heat pumps | Biomass is excluded |
| Social housing | No | BUS does not cover social housing |
| Most developer-built new homes | No | Limited exceptions apply |
| Replacing an existing heat pump | No | BUS does not fund replacement of existing low-carbon heating |
Previous funding for insulation does not automatically make you ineligible. However, BUS generally cannot duplicate public funding for the same low-carbon heating installation.
Do You Need an EPC for the Boiler Upgrade Scheme in 2026?
A valid Energy Performance Certificate is no longer a standing BUS eligibility requirement for applications properly made from 28 April 2026.
If a property has a valid EPC, the installer provides its certificate number. If there is no valid EPC, current Ofgem rules allow alternative evidence to demonstrate relevant property details.
This is a significant change from older BUS guidance. Be cautious with pages that still say a current EPC or specific loft and cavity-wall insulation measures are always mandatory.
Insulation can still reduce heat loss and improve real-world heating performance, even when it is not a grant condition. Ofgem continues to encourage homeowners to consider suitable energy-efficiency improvements.
How Does the £9,000 Boiler Upgrade Scheme Grant Work?
From 21 July 2026 to 31 March 2027, the grant rises from £7,500 to £9,000 for an eligible air-to-water or ground source heat pump where both conditions apply:
- The property has no mains-gas connection.
- The existing heating system uses oil or LPG.
The uplift does not apply to every off-gas property. For example, qualifying homes replacing coal or direct electric heating remain within the £7,500 heat-pump grant categories under the current grant-value notice. Air-to-air heat pumps remain at £2,500.
If you use oil or LPG, application timing matters because the £9,000 uplift is currently temporary.
What Heating Systems Can BUS Pay For?
For most homeowners replacing a conventional boiler, the main BUS option is an air-to-water heat pump. It takes heat from outside air and transfers it into water for radiators or underfloor heating, usually alongside a hot-water cylinder. Energy Saving Trust explains this basic operating principle in its air source heat pump guidance.
Refrigerant absorbs low-temperature heat at the evaporator. A compressor raises its pressure and temperature, the condenser transfers heat into the home’s heating water, and an expansion valve lowers pressure so the cycle can repeat.
For the detailed refrigeration cycle, compressor, condenser, winter performance and defrost behaviour, read how air source heat pumps work. For a broader homeowner introduction, see air source heat pump explained.
Ground-source systems collect heat through buried pipework or boreholes. Biomass boilers qualify only in restricted rural, off-gas situations. Air-to-air heat pumps, added to BUS in 2026, heat rooms through indoor fan units and qualify only in residential properties.
A £2,500 BUS grant for heat batteries has also been announced, but government material states that it will become available only once the required legislation and technical standards are in place. Homeowners should therefore not treat it as a live grant yet.
How to Apply for the Boiler Upgrade Scheme
The homeowner process is simpler than many people expect:
- Get quotations from MCS-certified installers. BUS applications must go through an installer certified for the relevant technology.
- Confirm the proposed installation is eligible. The installer checks your property, existing heating and technical requirements.
- Agree a quotation. The quote should show the BUS grant as a deduction rather than expecting you to claim it back afterwards.
- The installer applies to Ofgem. Ofgem then contacts you to confirm consent and key eligibility information.
- Ofgem issues the voucher if approved. Air-to-water, air-to-air and biomass vouchers are generally valid for three months. Ground-source vouchers are valid for six months.
- The installer completes and commissions the system. After commissioning and MCS certification, the installer redeems the voucher.
- Ofgem pays the installer. You pay the agreed customer contribution shown on the final quotation and invoice.
Grant approval is not a substitute for checking the quotation. Compare system design, included building work, warranties, controls and aftercare as well as price.
How Much Will You Pay After the BUS Grant?
Energy Saving Trust currently gives an indicative typical installation cost of around £12,000 for an air source heat pump. Against a standard £7,500 BUS grant, that would leave around £4,500. An eligible £9,000 off-gas grant would reduce the same illustrative figure to around £3,000.
These are examples, not quotations. Costs vary with heat loss, system size, radiator and cylinder work, electrics and access. Ground-source installations can cost substantially more because trenches or boreholes may be required.
BUS also does not guarantee lower running costs. Bills depend on heat demand, seasonal efficiency, flow temperature, tariff and controls. See Getfreequote.co.uk’s air source heat pump running costs guide or compare an air source heat pump vs gas boiler before assuming a particular saving.
Is the Boiler Upgrade Scheme Worth It?
If you already need to replace an ageing heating system and your property suits a heat pump, BUS can materially reduce the upfront cost. The temporary £9,000 uplift can be especially significant for eligible oil- and LPG-heated homes.
However, the grant should not decide the technology for you. A £7,500 discount on the wrong system is still a poor investment.
Ask for a room-by-room heat-loss calculation, proposed flow temperature, radiator schedule, hot-water plan and realistic seasonal-efficiency estimate before signing. MCS’s heat-load guidance emphasises that room-by-room heat-loss calculations are central to correctly sizing heat-pump systems.
A useful comparison should show the total post-grant cost, included work, sizing method, running-cost assumptions and any likely extras.
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Frequently asked questions
Find clear answers to common questions about the Boiler Upgrade Scheme in 2026, including grant amounts, eligibility, £9,000 support, EPC rules, landlords, second homes, new builds, air-to-air heat pumps, biomass boilers, voucher validity and installer applications.
The standard grants are £7,500 for eligible air-to-water and ground-source heat pumps, £2,500 for residential air-to-air heat pumps and £5,000 for qualifying biomass boilers.
Eligible properties without a mains-gas connection that are replacing oil or LPG can receive £9,000 towards an air-to-water or ground-source heat pump.
Under the current rules, the temporary uplift is available until 31 March 2027.
No. An eligible MCS-certified installer normally makes the voucher application to Ofgem on your behalf. You then confirm your consent and eligibility details.
Private landlords can potentially qualify because property owners applying for rental properties are included within the scheme, subject to the normal eligibility rules.
Potentially, yes. GOV.UK specifically includes property owners applying for second homes, provided the property and proposed installation meet the wider requirements.
A valid EPC is no longer a standing requirement for applications properly made from 28 April 2026. Where no valid EPC exists, alternative evidence may be required.
Those measures are no longer automatic BUS eligibility conditions. However, reducing heat loss can still improve comfort and heat-pump performance.
Most developer-built new properties are excluded. Certain eligible self-build properties can qualify, and a completed new home later replacing an existing fossil-fuel system may qualify in specific circumstances.
Certain self-build properties can receive heat-pump support if they meet the ownership and development criteria. Biomass boilers are not eligible in self-build properties.
Yes. Eligible residential air-to-air heat pumps currently receive a £2,500 BUS grant.
Not yet according to current government material. Its introduction depends on the necessary legislation and appropriate product and installation standards.
Potentially. Biomass support is £5,000 but is restricted to qualifying rural properties without a gas-grid connection and subject to emissions and system requirements.
No. Hybrid systems combining a fossil-fuel boiler with a heat pump do not qualify.
No. The scheme does not normally fund replacement of an existing low-carbon heating system.
Yes, potentially. Previous government help with energy-efficiency improvements such as insulation does not automatically exclude you.
Ofgem gives installers three months to complete most BUS-funded installations after approval and six months for ground-source heat pumps.
Normally, no. Ofgem pays the grant through the installer, while the grant value is deducted from the amount shown on your quotation and invoice.
No. BUS covers England and Wales. Scotland has separate home-energy funding arrangements.
No. Running costs depend on the property's heat demand, heat-pump efficiency, electricity tariff, controls and the heating system being replaced.
Conclusion:
The Boiler Upgrade Scheme is best understood as an upfront discount applied through an eligible installer, not a cashback scheme for homeowners.
In September 2026, it provides £7,500 for eligible air-to-water and ground-source heat pumps, £2,500 for residential air-to-air heat pumps and £5,000 for qualifying biomass boilers. Certain off-gas oil and LPG properties can receive £9,000 until 31 March 2027.
Before proceeding, confirm the grant category first, then compare the complete system design and final customer cost. If the numbers work for your property, BUS can remove a substantial part of the initial cost of switching to low-carbon heating.
Compare Free Quotes: Get property-specific quotations and compare what each installer includes before you commit.
