Government Boiler Upgrade Scheme Explained
£7,500 Towards Low-Carbon Heating
Looking to make your home more energy-efficient and reduce your carbon footprint? Homeowners in England and Wales can now benefit from a generous government grant offering up to £7,500 toward the installation of an eco-friendly heating system through the Boiler Upgrade Scheme.
Government £7,500 Heat Pump Grant: What You Need to Know
As part of the UK's push towards net zero, the government is incentivising households to replace traditional gas or oil boilers with cleaner alternatives, such as air source and ground source heat pumps. This financial support scheme—backed by nearly £4 billion in funding—is designed to make low-carbon upgrades more accessible.
While heat pumps can be more expensive and time-consuming to install than conventional systems, this grant reduces the initial investment, helping homeowners transition to greener solutions. There's also 0% VAT on energy-saving materials, including heat pumps, valid until March 2027.
For residents of Scotland or Northern Ireland, different support programmes apply, such as Home Energy Scotland.
How Does the Boiler Upgrade Scheme Work?
If you own a property in England or Wales and want to switch to a more sustainable heating source, you could be eligible for this grant. Once you’ve chosen a qualified installer, they will apply on your behalf. The grant—up to £7,500—is applied directly to your installation quote, reducing the total cost you’ll pay.
Who Is Eligible for the Grant?
To qualify, your home and chosen technology must meet certain criteria:
Property Type:
Must be an existing home in England or Wales (not a new build or social housing).
Custom-built homes are eligible and do not require an Energy Performance Certificate (EPC), as long as they are built and owned by an individual.
Technology Requirements:
The system must be a complete replacement for an existing fossil fuel setup (such as oil, gas, or electric).
The equipment must not have been installed or commissioned within the past 120 days.
It must have a heating capacity of 45kW or less (or up to 300kW shared capacity for ground source systems).
It should cover all heating and hot water needs for the property.
Interested in installing a heat pump or exploring low-carbon options for your home? This grant can make the transition easier and more affordable.
Contact Thermotec Plumbing and Heating today to learn more about your options and whether you qualify. We’ll guide you through the process and take care of the application, so you can enjoy efficient, eco-friendly heating with less hassle.
Boiler Upgrade Scheme – Frequently Asked Questions
Q: What is the Boiler Upgrade Scheme?
A: The Boiler Upgrade Scheme (BUS) is a government grant offering up to £7,500 to homeowners in England and Wales who replace their fossil fuel heating system with a low-carbon alternative like an air or ground source heat pump.
Q: Who is eligible for the Boiler Upgrade Scheme?
A: Homeowners in England or Wales are eligible if they’re replacing an existing fossil fuel system (such as gas, oil, or electric). Your property must be domestic or small non-domestic, and not part of social housing or a standard new build (custom builds are allowed).
Q: What types of heating systems qualify for the grant?
A: The grant applies to air source heat pumps, ground source heat pumps, and biomass boilers in rural properties not connected to the gas grid. The chosen system must meet your entire home’s heating and hot water needs.
Q: How much funding can I receive?
A: You could receive up to £7,500 towards the cost of a heat pump or biomass boiler. This amount is deducted directly from your installation quote by your installer, who applies on your behalf.
Q: Do I need an EPC (Energy Performance Certificate)?
A: Yes, most properties require a valid EPC that’s less than 10 years old and shows no outstanding insulation recommendations (like loft or cavity wall insulation). Custom builds are the exception.
Q: Can landlords apply for the Boiler Upgrade Scheme?
A: Yes, private landlords can apply as long as the property meets the eligibility requirements, including an acceptable EPC and a qualifying heating system.
Q: Is the Boiler Upgrade Scheme available in Scotland or Northern Ireland?
A: No, the BUS only applies to England and Wales. Homeowners in Scotland should apply for the Home Energy Scotland Grant, and Northern Ireland has separate funding options.
Q: When does the Boiler Upgrade Scheme end?
A: The scheme is open until 2028, with a funding boost announced to support even more installations. You also benefit from 0% VAT on heat pump installations until March 2027.
Q: Can I apply directly for the grant?
A: No, only MCS-certified installers can apply on your behalf. They will check your eligibility and handle the application, deducting the grant amount from your total cost.
Q: Is the scheme available for newly built homes?
A: Not usually. The only exception is custom builds, where the homeowner has been significantly involved in the construction process. These properties don’t require an EPC for eligibility.