The £7,500 air source heat pump grant (Boiler Upgrade Scheme)

Everything you need to know about the Boiler Upgrade Scheme: how much you get, who's eligible, and how your installer claims it for you.

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.

TechnologyGrant
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.

Frost on an air source heat pump working through a cold winter

How to claim the heat pump grant

  1. Check your eligibility with our 60-second form.
  2. Get a survey and fixed quote from an MCS-certified installer, with the £7,500 shown as a deduction.
  3. Accept the quote. Your installer applies to Ofgem for a voucher.
  4. 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.
  5. 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:

New to the jargon? See the heat pump glossary, or browse the heat pump FAQs.

Questions

The things people ask us first

If yours isn't here, ask on the form and an adviser will answer it on the call.

How much is the heat pump grant?
The Boiler Upgrade Scheme (BUS) gives £7,500 off the cost of an air source heat pump in England and Wales. Your MCS-certified installer applies for it and deducts it from your quote, so you never pay the full price up front.
Who is eligible for the £7,500 grant?
You must own the property (homeowners, landlords and small businesses all qualify), live in England or Wales, be replacing a fossil fuel system such as gas, oil or LPG (or direct electric heating), and have a valid Energy Performance Certificate. Most new-build homes are not eligible, though custom self-builds can be.
How do I apply for the Boiler Upgrade Scheme?
You don't apply yourself. Your MCS-certified installer applies to Ofgem on your behalf once you accept their quote. Ofgem then contacts you to confirm you agreed to the installer applying, and the £7,500 is deducted from your bill.
Do I need to insulate my home to get the grant?
No. Since May 2024 there's no requirement to fit loft or cavity wall insulation first. You still need a valid Energy Performance Certificate (EPC) issued within the last 10 years.
Can landlords get the heat pump grant?
Yes. Private landlords can claim the Boiler Upgrade Scheme for rental properties they own in England and Wales, as long as the other eligibility rules are met. Social housing is not eligible.
Can I get a heat pump grant in Scotland or Northern Ireland?
The Boiler Upgrade Scheme covers England and Wales. In Scotland, Home Energy Scotland offers a grant of up to £7,500 (plus a rural uplift) and an optional interest-free loan. Northern Ireland does not currently have an equivalent heat pump grant.
Can I get the grant if I already have a heat pump?
No. The grant is for replacing a fossil fuel system (gas, oil or LPG) or direct electric heating. Replacing an existing heat pump is not eligible.
Get started

Your warmer home starts here

Answer six quick questions to check your eligibility for the £7,500 Boiler Upgrade Scheme grant and get a free quote from an MCS-certified installer.

Check my eligibility
GetASHPCheck my £7,500 grant