The Boiler Upgrade Scheme (BUS) is a government grant that takes £7,500 off the cost of an air source heat pump for homes and small non-domestic buildings in England and Wales. It isn't a loan, there's nothing to repay and it isn't means-tested, so it's available whatever your income.
In short: £7,500 off an air source or ground source heat pump, claimed by your installer and deducted from your bill. Administered by Ofgem.
What is the Boiler Upgrade Scheme?
You may also see it called the boiler replacement scheme or the government boiler scheme: they all refer to the same grant. The Boiler Upgrade Scheme launched in 2022 to help homeowners replace fossil fuel boilers with low-carbon heating. The grant for air source heat pumps rose from £5,000 to £7,500 in October 2023, and the government has since committed further funding to keep the scheme running.
| Technology | Grant |
|---|---|
| Air source heat pump (air-to-water) | £7,500 |
| Ground source heat pump (including water source) | £7,500 |
| Biomass boiler (rural homes only) | £5,000 |
Air-to-air heat pumps (often sold as air conditioning) are being brought into the scheme separately with a smaller grant; ask your installer for the latest position if you're considering one.
Who is eligible for the £7,500 grant?
You can claim the Boiler Upgrade Scheme if:
- You own the property, as a homeowner, private landlord or small business owner.
- It's in England or Wales.
- You're replacing a fossil fuel or direct electric heating system, such as a gas, oil or LPG boiler, or electric storage heaters.
- The property has a valid EPC issued within the last 10 years.
- The heat pump meets your home's full heating and hot water needs and has a capacity of up to 45 kW.
- It's installed by an MCS-certified installer.
Not eligible: most new-build homes (custom self-builds can qualify), social housing, and homes that already received government funding for a heat pump.
How to claim the heat pump grant
- Check your eligibility with our 60-second form.
- Get a survey and fixed quote from an MCS-certified installer, with the £7,500 shown as a deduction.
- Accept the quote. Your installer applies to Ofgem for a voucher.
- Confirm with Ofgem. You'll get an email asking you to confirm the installer is acting for you. Reply promptly, as the voucher can't be issued until you do.
- Installation. Your heat pump is fitted and commissioned, the installer redeems the voucher and you pay the balance.
Heat pump grants in Scotland, Wales and Northern Ireland
Wales
The Boiler Upgrade Scheme applies in Wales exactly as in England. Lower-income households may also qualify for a fully funded heat pump through the Welsh Government's Nest scheme.
Scotland
The Boiler Upgrade Scheme doesn't cover Scotland. Instead, the Home Energy Scotland Grant and Loan offers up to £7,500 towards a heat pump (with an extra uplift for rural homes) plus an optional interest-free loan.
Northern Ireland
There's currently no dedicated heat pump grant in Northern Ireland.
Other government grants for heat pumps
- 0% VAT on heat pumps installed in homes until 31 March 2027.
- ECO4 and Great British Insulation Scheme funding for some lower-income and vulnerable households, delivered through energy suppliers.
- Heat pump electricity tariffs with cheaper rates for running your system.
- 0% or low-rate finance offered by many installers to spread the remaining cost.
Sources
Grant amounts, VAT rules and eligibility are set by government and the scheme administrators. We check them against these primary sources:
- Apply for the Boiler Upgrade Scheme (GOV.UK)
- Boiler Upgrade Scheme (BUS) (Ofgem)
- VAT on energy-saving materials and heating equipment (VAT Notice 708/6) (GOV.UK)
- Home Energy Scotland grant and loan (Home Energy Scotland)
- Get help with energy efficiency in your home (Nest) (Welsh Government)
- Find an energy certificate (EPC) (GOV.UK)
- Microgeneration Certification Scheme (MCS)
New to the jargon? See the heat pump glossary, or browse the heat pump FAQs.