Boiler Upgrade Scheme 2026: How to Get Your £7,500 Heat Pump Grant
The Boiler Upgrade Scheme (BUS) is the UK government’s flagship grant for replacing fossil-fuel heating with a heat pump. In 2026 it pays £7,500 off the installed cost of an air source heat pump — automatically deducted from your quote before you pay a penny. You don’t apply for it yourself; your MCS-certified installer claims it on your behalf. Here’s everything you need to know to get that money off your bill.
What Is the Boiler Upgrade Scheme?
The Boiler Upgrade Scheme (BUS) was introduced in April 2022 and replaced the older Renewable Heat Incentive (RHI). It’s administered by Ofgem on behalf of the Department for Energy Security and Net Zero (DESNZ). The scheme provides upfront capital grants to homeowners and some landlords who replace their fossil-fuel heating system with a low-carbon alternative.
Unlike the old RHI — which paid out over seven years — BUS is a one-off discount applied directly to your installation invoice. The installer claims the money from Ofgem; you simply pay the reduced amount. This makes it far simpler to access and understand.
BUS Grant Amounts in 2026
| Technology | Grant Amount |
|---|---|
| Air source heat pump (ASHP) | £7,500 |
| Ground source heat pump (GSHP) | £7,500 |
| Biomass boiler | £5,000 |
The £7,500 figure applies to both air source and ground source heat pumps — a significant uplift from the original £5,000 and £6,000 grants introduced in 2022. The government increased the amounts in 2023 to accelerate uptake, and that level has been maintained for 2026. You can check the latest confirmed amounts on the Ofgem BUS page.
Who Qualifies for the BUS Grant?
Eligibility criteria are stricter than many people expect. You need to meet all of the following conditions:
- Property type: The property must be in England, Scotland, or Wales. It must be an existing building — new builds do not qualify. Domestic properties (homes) qualify; commercial properties generally don’t, though some landlords with domestic rental properties can apply.
- Current heating system: You must be replacing a fossil-fuel heating system — gas, oil, LPG, or direct electric — with the heat pump. If you already have a heat pump, you cannot claim BUS for a like-for-like replacement.
- No outstanding EPC recommendation: If your home has an EPC with a recommendation to add loft or cavity wall insulation, that work must be completed before BUS is paid. Properties without an EPC (e.g., listed buildings) are exempt from this requirement.
- MCS-certified installer: The installer must hold a current MCS (Microgeneration Certification Scheme) certificate for heat pump installation. Only MCS-certified installers can make BUS applications.
- MCS-certified product: The heat pump unit itself must appear on the MCS product register.
Landlords can apply for BUS, but only for properties they own and rent out in England, Scotland, or Wales. Social housing landlords are excluded. Landlords are also required to have a valid EPC of D or above (or be exempt) and cannot use the grant for holiday lets.
The Insulation Requirement Explained
This catches many homeowners off guard. If your EPC report lists loft insulation or cavity wall insulation as a recommended improvement, Ofgem requires that work to be done before the BUS grant is released to your installer. The logic: there’s little point subsidising a heat pump in a draughty house.
Solid wall insulation is not required, even if it appears on your EPC — only loft and cavity wall recommendations trigger the requirement. If your walls are solid (common in Victorian and Edwardian homes), you won’t be penalised for not having external or internal wall insulation.
In practice, loft insulation is cheap (often £300–£500 for a full loft), so if that’s the only thing standing between you and £7,500, get it done first. Cavity wall insulation can be trickier — some older cavities aren’t suitable — but if it’s genuinely not possible, your installer can provide evidence and Ofgem will consider exceptions.
How to Claim: Step by Step
The good news: you don’t need to deal directly with Ofgem. The application is your installer’s job. Here’s how the process works in practice:
- Get quotes from MCS-certified installers. Always verify MCS status on the MCS installer finder — don’t just take the company’s word for it. Check their certificate covers heat pumps (not just solar), and confirm it hasn’t lapsed.
- Confirm BUS eligibility. A reputable installer will check whether your property qualifies before you commit. They’ll review your EPC for outstanding recommendations and confirm the heat pump model is on the MCS product register.
- Sign a contract and pay the reduced amount. Your installer quotes you the full installation price, then deducts £7,500 from your invoice. You pay only the reduced amount. There’s no waiting for a rebate cheque.
- Installer submits the BUS application to Ofgem. The installer does this via the Ofgem portal after installation. They upload certificates, photos, and commissioning data. Ofgem then reimburses the installer — not you.
- Installation is MCS-certified and commissioned. Your system is registered with MCS and you receive an MCS certificate — this is also required for any future house sale and for some home insurance policies.
Ofgem’s processing time is typically 4–8 weeks. If the installer is rejected, they may come back to you — so understand what you’ve signed. A legitimate installer won’t ask you to pay the full amount and then promise a rebate later; the £7,500 should always be off the invoice upfront.
What Does £7,500 Actually Cover?
A typical air source heat pump installation in the UK costs £10,000–£15,000 all-in (unit, labour, new cylinder, radiator upgrades if needed, and commissioning). After the £7,500 BUS grant, your net cost falls to roughly £2,500–£7,500. For many homeowners — particularly those on oil or LPG — that makes the economics much more attractive.
| Scenario | Full Cost | After BUS Grant |
|---|---|---|
| Basic ASHP, no radiator changes needed | ~£10,000 | ~£2,500 |
| ASHP + some radiator upgrades | ~£12,500 | ~£5,000 |
| ASHP + full radiator upgrade | ~£15,000 | ~£7,500 |
| Ground source heat pump | £18,000–£30,000+ | £10,500–£22,500+ |
These figures are estimates — actual costs vary significantly by region, installer, and property. Always get at least three quotes from MCS-certified installers before committing.
Can You Combine BUS with Other Schemes?
BUS cannot be combined with ECO4 — the two government schemes are mutually exclusive. However, BUS can be used alongside:
- 0% VAT on heat pump installations: The government removed VAT on heat pump equipment and installation, saving an additional 5–20% depending on how costs are structured. This reduction applies automatically — no application needed.
- Energy company grants: Some energy companies (including Octopus Energy, British Gas, and E.ON) run their own incentive schemes. These aren’t always combinable with BUS, so check the terms carefully.
- Home Upgrade Grant (HUG2): Available in England for off-gas-grid homes with lower incomes. If you qualify for HUG2, it may fully fund an installation — making it worth checking before assuming BUS is your only option.
The Energy Saving Trust’s grants finder is a good starting point to check what else you might be eligible for before committing to BUS.
Choosing an MCS-Certified Installer
MCS certification is the single most important credential to check. An installer without it cannot apply for BUS on your behalf. Use the MCS installer finder tool and search by postcode — it shows the specific technologies each company is certified for and when their certification was last renewed.
Beyond MCS, look for:
- Brand partnerships: Installers accredited by specific manufacturers (e.g., Daikin D1 partners, Vaillant Advanced Installers, Mitsubishi Diamond dealers) often receive better training and support, which tends to translate into better-quality installs.
- At least 3 quotes: Prices vary enormously — sometimes by £3,000–£5,000 for the same job. Get multiple quotes and compare like for like (same heat pump model, same cylinder specification).
- A proper heat loss survey: A reputable installer will conduct a room-by-room heat loss calculation before sizing your system. Anyone who quotes without this is cutting corners. The Heat Pump Association provides guidance on what a good installation should include.
- References and reviews: Ask for three recent customer references, ideally in similar property types to yours. Check Google and Trustpilot reviews, but weight recent ones more heavily.
You can find and compare MCS-certified installers through comparison platforms — they aggregate quotes and verify credentials, saving you time. For a broader look at which manufacturers to trust before you start getting quotes, see our guide to the best heat pump brands in the UK.
Common Reasons BUS Applications Are Rejected
Ofgem does reject applications, and this can cause headaches if you’ve already had the work done. The most common reasons are:
- Outstanding EPC insulation recommendation not addressed before installation
- Installer’s MCS certificate had lapsed at the time of installation
- The heat pump model was not on the MCS product register
- Incorrect or incomplete paperwork from the installer
- The property was a new build (not eligible)
- The application was submitted by the homeowner rather than the installer
Most rejections are due to installer error rather than homeowner ineligibility. This is another reason to choose a well-established MCS installer with a track record of successful BUS claims — ask explicitly how many applications they’ve submitted and whether any have been rejected.
Is the BUS Grant Worth the Hassle?
In short: yes, emphatically. £7,500 off an installation is not a trivial sum. For many homes — especially those currently on oil or LPG heating — it tips the financial case for a heat pump firmly into positive territory, particularly when combined with 0% VAT and a smart energy tariff like the Octopus Cosy tariff.
The “hassle” is mostly borne by the installer — your job is to find an MCS-certified company, confirm you meet the eligibility criteria, and ensure any outstanding insulation work is done before installation. After that, the £7,500 reduction is automatic.
If you’re unsure whether a heat pump is the right move for your specific home, read our full analysis: Is a heat pump worth it in the UK? — it covers the financial case in detail, including which fuel types benefit most from switching.
Grant amounts and eligibility rules are set by Ofgem and the government and may change. Always verify current figures at ofgem.gov.uk before signing any contract.