The Boiler Upgrade Scheme (BUS) can help property owners in England and Wales reduce the upfront cost of replacing eligible fossil fuel heating systems with low-carbon heating.

In 2026, eligible installations can receive grants of up to £7,500 for qualifying heat pumps, while certain eligible off-gas-grid properties can receive up to £9,000 for an air-to-water or ground-source heat pump. Biomass boilers can qualify for a £5,000 grant, and residential air-to-air heat pumps can qualify for £2,500.

If you are considering replacing your existing boiler or heating system, understanding the Boiler Upgrade Scheme eligibility rules, available funding and installation process can help you decide whether a heat pump is suitable for your property.

What Is the Boiler Upgrade Scheme?

The Boiler Upgrade Scheme is a UK government scheme designed to reduce the cost of installing low-carbon heating systems in homes and non-domestic properties in England and Wales.

Rather than providing funding for a like-for-like replacement of an existing gas or oil boiler, the scheme supports the installation of eligible low-carbon technologies such as heat pumps and, in specific circumstances, biomass boilers.

The scheme is installer-led. This means that property owners normally work with an eligible MCS-certified installer, who applies for and redeems the BUS voucher on the property owner's behalf.

For homeowners, this can make the process simpler because the grant application forms part of the installation journey rather than requiring the homeowner to independently manage the entire application.

How Much Is the Boiler Upgrade Scheme Grant in 2026?

The amount available depends on the heating technology and, for some heat pumps, the property's circumstances.

The £9,000 uplift is particularly relevant to eligible off-gas-grid properties. The uplift applies to qualifying air-to-water and ground-source heat pump installations and is currently available until 31 March 2027, subject to the scheme requirements.

The grant is intended to reduce the cost of the eligible installation. It is not a general cash payment for replacing any boiler with another boiler.

Who Is Eligible for the Boiler Upgrade Scheme?

The basic eligibility requirements are designed around property ownership and replacing an existing qualifying heating system.

You may be eligible if you:

• Own the property you are applying for.
• Are replacing an eligible existing fossil-fuel heating system.
• Install an eligible low-carbon heating technology.
• Use an installer that meets the scheme's certification requirements.
• Meet the relevant technical and property requirements for the technology being installed.

Property ownership can include a home, second home, rental property or business property. Previous funding for energy-efficiency improvements, such as insulation, does not automatically prevent you from applying.

However, meeting the basic requirements does not automatically guarantee a grant. The proposed system and installation must satisfy the scheme's detailed rules.

Can You Replace a Gas or Oil Boiler With a Heat Pump?

Yes. Replacing an existing fossil-fuel heating system with an eligible heat pump is one of the main purposes of the Boiler Upgrade Scheme.

Existing heating systems can include systems powered by:

• Gas
• Oil
• LPG
• Certain electric heating systems

The exact eligibility of a property and proposed replacement depends on the BUS rules applicable to the installation.

For properties currently using heating oil, the scheme can be particularly relevant where the property is off the gas grid. Eligible off-gas-grid properties can potentially qualify for the higher £9,000 grant when installing an eligible air-to-water or ground-source heat pump and meeting the additional requirements.

What Heating Systems Are Covered?

The Boiler Upgrade Scheme supports several low-carbon heating technologies.

Air-to-Water Heat Pumps

Air-to-water heat pumps extract heat from the outside air and transfer it into a home's heating and hot-water system.

They are one of the main technologies supported by BUS and can qualify for a grant of up to £7,500 in standard circumstances. Certain eligible off-gas-grid installations can qualify for the £9,000 uplift.

Ground-Source Heat Pumps

Ground-source heat pumps take heat from the ground and use it to provide heating and hot water.

Qualifying ground-source heat pump installations can receive up to £7,500 under the scheme, with additional rules applying to installations seeking the higher off-gas-grid grant.

Air-to-Air Heat Pumps

Residential air-to-air heat pumps are also included within the current BUS grant categories and can qualify for up to £2,500.

Unlike air-to-water systems, air-to-air systems distribute heat through indoor units rather than a wet central-heating system.

Biomass Boilers

Biomass boilers can qualify for a grant of up to £5,000, although the eligibility conditions are more specific.

For example, biomass boiler installations have additional requirements relating to the property's location, existing heating system and applicable emissions standards.

What Are the Benefits of Installing a Heat Pump?

The Boiler Upgrade Scheme is designed to make low-carbon heating more affordable, but the grant is only one consideration when choosing a heating system.

A heat pump can provide several potential benefits.

Lower Reliance on Fossil Fuels

Heat pumps use electricity to move heat rather than burning gas or oil directly. This can reduce a property's reliance on fossil-fuel heating.

Lower Upfront Installation Cost With BUS

The government grant can significantly reduce the initial cost of an eligible installation.

For qualifying installations, the grant is applied as part of the installation process, helping reduce the amount the property owner needs to fund.

Potential Compatibility With Renewable Energy

A heat pump can be combined with technologies such as solar photovoltaic panels and smart heating controls. The suitability of these combinations depends on the individual property and system design.

Potential Long-Term Energy Benefits

The running costs of a heat pump depend on factors including the property's heat demand, insulation, electricity tariff, system design and how efficiently the system is operated.

For that reason, it is better to assess potential savings on a property-by-property basis rather than assuming every homeowner will achieve the same reduction in energy bills.

How Does the Boiler Upgrade Scheme Application Process Work?

One of the key features of BUS is that the application is installer-led.

A typical process looks like this:

1. Check Your Property

First, establish whether your property and existing heating system could meet the BUS requirements.

2. Choose an Eligible Installer

You will need to work with an installer that meets the scheme's certification requirements. MCS certification is required for installers participating in the scheme.

3. Have Your Property Assessed

The installer can assess the existing heating system, property and proposed heat-pump installation.

This stage is important because a heat pump needs to be correctly sized and designed for the property.

4. The Installer Applies for the BUS Voucher

The installer submits the relevant application information on behalf of the property owner.

The property owner must provide the required information and consent for the application to be properly completed.

5. Installation Takes Place

Once the application and installation process meet the scheme requirements, the eligible heating system can be installed.

6. The Grant Is Redeemed

The installer completes the relevant redemption process. The grant contributes towards the eligible installation cost rather than being treated as an unrestricted cash payment to the homeowner.

How Do I Know If a Heat Pump Is Right for My Property?

Grant eligibility and heat-pump suitability are two different questions.

A property can potentially meet the BUS criteria while still requiring careful assessment before installation.

An installer should consider factors such as:

• The property's heat demand
• Existing radiators or heat emitters
• Insulation
• Hot-water requirements
• Available outdoor space
• Electrical requirements
• The appropriate heat-pump size
• Existing heating controls
• The overall design of the heating system

A professional assessment helps determine whether the proposed system can deliver the required heating performance.

Is the Boiler Upgrade Scheme Worth It?

For a property owner already considering a heat pump, the Boiler Upgrade Scheme Grant can make the financial case considerably more attractive by reducing the upfront installation cost.

However, the right decision depends on more than the grant.

You should consider:

• The remaining installation cost after the grant
• Your property's insulation and heat demand
• Expected running costs
• Maintenance requirements
• Available space
• Your existing heating system
• The expected lifespan of the new system
• Whether the property is suitable for a heat pump

The best approach is to obtain a property-specific assessment and a clear quotation showing the installation cost, BUS grant and remaining amount payable.

Why Use an Installer That Handles the BUS Process?

The Boiler Upgrade Scheme can involve eligibility checks, voucher applications, certification requirements and redemption procedures.

Using an experienced installer can make the process easier because the installer can guide you through the requirements and manage the BUS application as part of the installation journey.

British Energy Services provides heat-pump installation alongside assistance with the Boiler Upgrade Scheme process, allowing property owners to explore eligibility, assess their property and arrange an eligible low-carbon heating installation through one service.

 FAQs

Is the Boiler Upgrade Scheme still available in 2026?

Yes. The Boiler Upgrade Scheme is currently operating in England and Wales. The scheme provides grants towards eligible heat pumps and biomass boilers, subject to the current eligibility requirements.

How much is the Boiler Upgrade Scheme grant?

The standard grant can be up to £7,500 for eligible air-to-water, ground-source and water-source heat pumps. Certain eligible off-gas-grid properties can receive up to £9,000 for qualifying air-to-water or ground-source heat pumps. Residential air-to-air heat pumps can qualify for £2,500, while eligible biomass boilers can qualify for £5,000.

Can I get a Boiler Upgrade Scheme grant for a new gas boiler?

No. BUS is designed to support the transition from eligible existing heating systems to qualifying low-carbon heating technologies. It is not a grant for installing a new gas boiler.

Can I get the grant if I have an oil boiler?

Potentially, yes. Oil heating can fall within the existing heating systems covered by BUS, and eligible off-gas-grid properties replacing oil heating with a qualifying heat pump can potentially benefit from the higher £9,000 grant, subject to all scheme requirements.

Can landlords apply for the Boiler Upgrade Scheme?

Yes. Landlords can potentially apply for eligible properties, provided the property and proposed installation meet the scheme's requirements.

Do I apply for the Boiler Upgrade Scheme myself?

The scheme is installer-led. An eligible installer applies for and redeems the BUS voucher on behalf of the property owner.

How long will the Boiler Upgrade Scheme be available?

The Boiler Upgrade Scheme is currently operating in England and Wales. Specific grant categories and values can change, so property owners should check the latest scheme requirements before committing to an installation.

The current £9,000 uplift for eligible off-gas-grid properties is available until 31 March 2027, subject to the applicable requirements.

Get Started With a Boiler Upgrade Scheme Heat Pump Installation

If you're replacing an existing heating system, the first step is to establish whether your property is suitable for an eligible heat pump and whether you meet the Boiler Upgrade Scheme requirements.

A qualified installer can assess your property, explain the available technology options, calculate the applicable grant and provide a quotation for the installation.

For homeowners and property owners considering a heat pump, understanding the grant before choosing an installation can help you compare your options and make a more informed decision.