Boiler Upgrade Scheme (BUS)

Boiler Upgrade Scheme (BUS)

Government Grants of up to £9,000 Available for Low-Carbon Heating

The Boiler Upgrade Scheme (BUS) is a UK Government initiative designed to help homeowners and landlords in England and Wales replace fossil fuel heating systems with low-carbon heating technologies.

The scheme provides upfront grants towards the installation of heat pumps and, in certain circumstances, biomass boilers.

The scheme is administered by Ofgem on behalf of the Department for Energy Security and Net Zero (DESNZ) and is currently scheduled to run until 30 December 2029.

 Available Grant Funding

Eligible property owners can currently receive:

• £7,500 towards an air source heat pump (air-to-water) installation. 
• £7,500 towards a ground source or water source heat pump installation. 
• £5,000 towards a biomass boiler (subject to eligibility criteria). 
• £2,500 towards an air-to-air heat pump for residential properties. 
• In addition, the Government has introduced an enhanced grant of £9,000 for eligible off-gas-grid properties currently heated by oil or LPG. This higher level of support is available until 31 March 2027.

 
Who Is Eligible?

To qualify for the scheme, applicants must:

• Own the property, including owner-occupied homes, second homes, businesses and privately rented properties.
• Be replacing an existing fossil fuel or direct electric heating system. 
• Use an MCS-certified installer to carry out the work. 

Most new-build properties and social housing are not eligible, although self-build homes may qualify under certain conditions.

How the Scheme Works

The Boiler Upgrade Scheme is an installer-led programme. Your chosen MCS-certified installer applies for the grant on your behalf and the value of the grant is deducted directly from your installation quotation, reducing the upfront cost you pay.

Property owners are required to confirm their consent to the application with Ofgem before the grant can be approved. 

Additional Savings

The Government currently applies 0% VAT to the installation of qualifying heat pumps and biomass boilers until 31 March 2027, helping to further reduce installation costs. 

Benefits of Heat Pumps

Heat pumps offer a number of long-term benefits:

• Reduced carbon emissions.
• Improved energy efficiency.
• Lower reliance on fossil fuels.
• Support for the UK's Net Zero ambitions.
• Potential savings on future heating costs when used properly within well-insulated homes.