Right, so your gas boiler’s on its last legs and you’re thinking about a heat pump. Good timing. The Boiler Upgrade Scheme can knock £7,500 off the cost, which makes a massive difference.
But here’s the thing – applying for this grant isn’t as straightforward as you might think. You don’t just fill in a form yourself. Your installer does it all, which means choosing the right installer is absolutely crucial.
Let me walk you through exactly how this works, who can get it, and how to avoid the common pitfalls that trip people up.
What Actually Is The Boiler Upgrade Scheme?
The Boiler Upgrade Scheme (BUS) is a grant for people in England and Wales to get up to £7,500 off a low carbon heating system. It launched in May 2022 and is currently funded until 2028.
The government’s throwing serious money at this. On 30 January 2025, the Department for Energy Security and Net Zero announced a further £25 million of funding will be made available for the 2024/2025 financial year, increasing the total BUS budget to £205 million.
And it gets better. On 21 November 2024, the government announced that the budget for 2025/2026 for the Boiler Upgrade Scheme will be £295 million.
So there’s plenty of funding available. You’re not competing for limited spots like in the Feed-in Tariff days.
How Much Can You Get?
You can get a grant of up to £7,500 under the Boiler Upgrade Scheme. If you’re eligible, you can get one grant per property for either: An air source heat pump: £7,500 towards cost and installation. A ground source heat pump: £7,500 towards cost and installation. This also includes water source heat pumps. A biomass boiler: £5,000 off cost and installation.
That £7,500 was increased from £5,000 for air source heat pumps and £6,000 for ground source heat pumps in October 2023. Big improvement.
The catch is, even with £7,500 off, you’re still looking at paying anywhere from £2,500 to £10,500 out of pocket depending on your installation costs.
Who’s Actually Eligible?
This is where it gets specific. You need to tick all these boxes:
1. Location
England and Wales only. This scheme is open to people in England and Wales.
Scotland has its own scheme (Home Energy Scotland Grant and Loan). Northern Ireland’s scheme closed and hasn’t been replaced yet.
2. Property Ownership
Own your property (this can be a home or a small business property).
Landlords are fine. Second home owners are fine. Small business properties are fine. But you need to own it, not rent it.
3. Current Heating System
Currently have a fossil fuel heating system (such as a gas boiler) or an electric heating system without a heat pump.
So you’re replacing:
- Gas boiler
- Oil boiler
- LPG boiler
- Direct electric heating (like storage heaters)
- Old electric boiler
If you’ve already got a heat pump, you can’t get another grant. Makes sense.
4. Energy Performance Certificate (EPC)
Have a valid Energy Performance Certificate (EPC) issued within the last ten years.
Your EPC can’t be more than 10 years old. If it is, get a new one done before applying.
And here’s the good news – from 8th May 2024, the scheme no longer requires loft or cavity wall insulation before applying.
Previously you needed to have sorted any insulation recommendations on your EPC first. Now you don’t. That’s a huge change that makes way more homes eligible.
5. Installation Capacity
Have a property with a maximum installation capacity up to 45kWth (kilowatt-thermal), which covers most homes.
Basically every normal house falls under this limit. It’s only massive properties or commercial buildings that exceed it.
6. MCS Certified Installer
Ensure your installer is certified by the Microgeneration Certification Scheme (MCS). They also need to be a member of an approved consumer code such as the Renewable Energy Consumer Code (RECC) or HIES Consumer Code.
This is crucial. If your installer isn’t MCS certified, you can’t get the grant. End of story.
7. Not a New Build
New build properties aren’t normally eligible for the Boiler Upgrade Scheme. However, if a fossil fuel boiler was already in place when you moved into your property, you may be able to get the grant.
If you’re building a new house, you can’t claim. But if you bought a new build that came with a gas boiler, you might be able to. Talk to your installer about this.
8. Biomass Boiler Restrictions
If you’re going for a biomass boiler (most people aren’t), there’s extra requirements. For biomass boilers: property must be off the gas grid, in a rural area, and boiler must have emissions certificate.
Biomass is only really for rural homes that can’t get mains gas.
The Application Process (How It Actually Works)
Here’s where people get confused. YOU don’t apply. Your installer does.
Let me break down exactly what happens:
Step 1: Find an MCS-Certified Installer
This is your first job. You need to find an installer who’s:
- MCS certified
- Member of RECC or HIES consumer code
- Experienced with heat pumps
- Registered with the Boiler Upgrade Scheme
Don’t just Google “heat pump installer” and pick the first one. Get recommendations, check reviews, make sure they’re properly certified.
You can find installers through:
- The HIES find a member tool
- The RECC member directory
- The MCS installer database
- Local recommendations
Get quotes from at least 3 installers. Prices vary wildly.
Step 2: Get a Quote (Including The Grant)
You will agree a quote with your installer, and this should include the grant from the Boiler Upgrade Scheme as a deduction from the total amount.
So if the total job costs £10,000, your quote should show:
- Total cost: £10,000
- BUS grant: -£7,500
- Your cost: £2,500
The installer handles getting the grant money from the government. You just pay the difference.
Step 3: Installer Submits Voucher Application
Once you’ve agreed to go ahead, your installer submits the voucher application to Ofgem (who administer the scheme).
They’ll need to provide:
- Your property details
- EPC information
- Equipment specifications
- Installation plans
- Your consent to act on your behalf
You’ll get contacted by Ofgem to confirm you’re happy for the installer to apply on your behalf. Respond to this quickly.
Step 4: Voucher Gets Issued
If everything’s approved, Ofgem issues a voucher.
Once issued, the grant voucher validity period is three months for air source heat pumps and biomass boilers, and six months for ground source heat pumps.
This means the installation needs to be completed within that timeframe. Ground source gets longer because it’s more complex (digging, ground loops, etc.).
Step 5: Installation Happens
Your installer does the work. This typically takes 2-4 days for an air source heat pump.
Once it’s done, they’ll commission the system (get it up and running properly) and show you how everything works.
Step 6: Installer Redeems The Voucher
After installation, your installer submits the redemption application to Ofgem with evidence the work’s been completed properly.
And here’s the critical bit – since May 8, 2024, Ofgem has introduced a 120-day deadline for submitting applications. This means you must submit your application within 120 days of the heat pump’s commissioning date, and that includes responding to any requests for information from Ofgem.
If your heat pump was commissioned on October 1, 2024, your application deadline is January 29, 2025.
Miss this deadline and you lose the grant. No exceptions.
This is why choosing a competent, organised installer matters so much. A dodgy installer who doesn’t submit paperwork on time costs you £7,500.
Step 7: Installer Gets Paid, You Pay Your Bit
Ofgem pays the £7,500 to the installer. You pay the installer whatever balance is left.
Job done.
Common Pitfalls and How to Avoid Them
1. The 120-Day Deadline
This trips up loads of people. Your installer needs to be on top of paperwork.
When you’re choosing an installer, ask them:
- How many BUS applications have they done?
- What’s their success rate?
- How do they ensure they meet the 120-day deadline?
If they look confused or don’t have good answers, find someone else.
2. Picking a Non-MCS Installer
Some installers will quote you less money but aren’t MCS certified. Don’t fall for it. No MCS certification = no grant.
Always verify their MCS number before agreeing to anything. You can check on the MCS website.
3. Not Getting Multiple Quotes
Installation costs vary by thousands. Some installers charge £8,000, others charge £15,000 for the same job.
Even with the £7,500 grant, that’s the difference between paying £500 and £7,500 out of pocket.
Get 3-5 quotes minimum.
4. Missing EPC Requirements
If your EPC is more than 10 years old, the application will be rejected.
Check your EPC date before you start. If it’s close to 10 years, get a new one done. They cost around £60-£120.
5. Assuming You Need Insulation First
The old rule was you had to sort out any insulation recommendations on your EPC first. That’s gone now.
From 8th May 2024, the scheme no longer requires loft or cavity wall insulation before applying.
However, your home still needs to be reasonably insulated for the heat pump to work efficiently. Just because you CAN apply without insulation doesn’t mean you should.
6. Not Understanding What You’re Paying
Some installers try to sneak in extras that aren’t covered by the grant.
Make sure your quote clearly shows:
- Total equipment cost
- Installation labour
- Any additional work needed (radiator upgrades, cylinder, etc.)
- BUS grant deduction
- Your final cost
If it’s vague or unclear, push back.
Can You Get Other Grants Too?
Generally no. You cannot have already received government funding/support for a heat pump or biomass boiler.
If you got ECO4 funding for a heat pump, you can’t also get BUS. One grant per property for heating.
However, you CAN combine BUS with:
- 0% VAT on heat pump installation (until March 2027)
- Solar panel grants (separate scheme)
- Other energy efficiency grants that aren’t specifically for heating
The 0% VAT is huge. That’s another 20% saving on top of the £7,500 grant.
What About Scotland, Wales and Northern Ireland?
Wales
The Boiler Upgrade Scheme (BUS) is a grant for people in England and Wales.
Same scheme, same amounts, same rules.
Scotland
If you live in Scotland, you might be able to get an interest-free loan or a grant to make your home more energy efficient.
The Home Energy Scotland scheme offers up to £7,500 grant plus up to £7,500 interest-free loan. So potentially £15,000 total.
Rural areas get an extra £1,500 grant.
Different application process though – you apply directly, not through an installer.
Northern Ireland
The Boiler Replacement Scheme in Northern Ireland is now closed.
There’s currently no equivalent to BUS in Northern Ireland. You might be able to get help through other energy efficiency schemes, but nothing specific to heat pumps.
Check with NI Energy Advice for what’s available.
Proposed Changes Coming
Keep an eye out because things might get even better.
In April 2025, the UK Government announced new proposals to give people more choice under the BUS. This includes: New upgrade options like air-to-air heat pumps and heat batteries. Ways to spread the upfront cost of a heat pump such as by offering hire purchase or leasing options.
These are just proposals for now, part of a consultation. But if they go through, the scheme could cover more types of heating systems and offer payment plans.
Air-to-air heat pumps (basically air conditioning that heats too) are currently not covered but might be soon.
Is The Boiler Upgrade Scheme Worth It?
Absolutely yes, if you’re replacing your boiler anyway.
Without the grant, heat pumps cost £10,000-£18,000. With the grant, you’re looking at £2,500-£10,500. That’s a no-brainer.
The £7,500 makes heat pumps competitive with just getting a new gas boiler (which costs £2,000-£3,500).
Plus you get:
- Much lower running costs (heat pumps are 3-4x more efficient than gas boilers)
- Protection from gas price rises
- Massive carbon footprint reduction
- 0% VAT on the installation
- Future-proofed heating (government plans to phase out gas boilers eventually)
The scheme’s funded until 2028, but funding could run out earlier if demand’s massive. Don’t wait too long.
Quick Checklist Before You Apply
Before you contact installers, check you’ve got:
✅ Property in England or Wales
✅ You own the property
✅ Currently have gas/oil/LPG boiler or electric heating
✅ Valid EPC (less than 10 years old)
✅ Ready to pay the balance after the grant (£2,500-£10,500 typically)
✅ Understand heat pumps work best with good insulation
✅ Researched MCS-certified installers in your area
If you can tick all those, you’re good to go.
Final Thoughts
The Boiler Upgrade Scheme is genuinely one of the best grants available right now. £7,500 is serious money, and it makes heat pumps affordable for way more people.
The application process isn’t complicated, but it does require a good installer who knows what they’re doing and gets paperwork submitted on time.
Do your homework on installers, get multiple quotes, and make sure everyone’s clear about the timeline. Get that right and you’ll have a brand new, efficient heating system for a fraction of the usual cost.
And remember – the scheme runs until 2028, but with limited annual budgets. If you’re planning to replace your boiler in the next few years anyway, now’s a good time to do it while the money’s definitely available.
Good luck with it.