Quick Answer
The Boiler Upgrade Scheme (BUS) is a UK government grant providing £7,500 towards an air source or ground source heat pump, or £5,000 towards a biomass boiler. It's available to homeowners in England and Wales in 2026. You don't apply directly — your MCS-certified installer claims it on your behalf.
The Boiler Upgrade Scheme is the UK government's main financial incentive for homeowners to switch from gas heating to low-carbon alternatives. If you're considering a heat pump in 2026, the BUS grant reduces the upfront cost by £7,500 — making it the single most important financial factor in your decision. This guide explains exactly what it covers, who qualifies, how to apply, and what to watch out for.
In this guide
What the Boiler Upgrade Scheme Covers
The BUS was launched in 2022 and has been extended through to at least 2028, with grant amounts increased from the original £5,000–£6,000 to £7,500 in 2023. It covers three types of low-carbon heating systems:
- Air Source Heat Pump (ASHP) — Extracts heat from outside air and transfers it indoors. The most widely installed type in the UK.
- Ground Source Heat Pump (GSHP) — Extracts heat from the ground via buried pipes or boreholes. More efficient but requires significant outdoor space.
- Biomass Boiler — Burns wood pellets, chips, or logs to provide heat and hot water. Only available in rural areas off the gas network.
The scheme does not cover hybrid heat pumps, solar panels, or heat pump water heaters in isolation. It also doesn't cover new-build properties or properties in Scotland (which has its own equivalent scheme — Home Energy Scotland grants).
For a detailed cost breakdown of what you'll pay for a heat pump installation including the grant, see our guide on heat pump installation costs in the UK.
BUS Grant Amounts (2026)
| Technology | Grant Amount | Typical Installed Cost After Grant |
|---|---|---|
| Air Source Heat Pump (ASHP) | £7,500 | £3,000 – £12,500 |
| Ground Source Heat Pump (GSHP) | £7,500 | £13,000 – £32,500 |
| Biomass Boiler (rural off-gas only) | £5,000 | £10,000 – £15,000 |
The grant is a flat amount — it doesn't scale with the cost of the installation. So the more expensive your system (e.g., a large-output heat pump for a bigger home), the lower the grant as a percentage of total cost. For a modest 3-bedroom home, the £7,500 grant can cover 40–60% of a typical air source installation.
Eligibility Criteria
To qualify for the BUS grant, your property and installation must meet all of the following:
| Requirement | Details | What to Do |
|---|---|---|
| Location | England or Wales only | Scotland has separate HES grants |
| Property type | Existing domestic property (not new build) | New builds are ineligible |
| EPC requirement | Must have a valid EPC | Get an EPC before applying (£60–£120) |
| Insulation recommendations | EPC must not recommend loft/cavity insulation you haven't done | Get insulation done first if flagged |
| Existing heating | Replacing fossil fuel heating | Oil, LPG, electric storage heaters all qualify |
| Installer | Must be MCS-certified | Use the MCS installer database |
| Equipment | Must be MCS-certified product | Installer will confirm this |
| One property | One grant per property | Landlords may apply for each property they own |
The insulation requirement is worth noting carefully. If your EPC lists recommended measures — typically loft insulation or cavity wall insulation — you must have these completed before the heat pump installation can be approved for the grant. This prevents grant money going into poorly insulated homes where the heat pump would be inefficient.
How to Apply for the BUS Grant
The application process is simpler than many homeowners expect — you don't apply to the government directly. Here's how it works:
- Get a current EPC — Your property needs a valid EPC (Energy Performance Certificate) that is no more than 10 years old. If it's expired or flags unaddressed insulation recommendations, sort these first. EPCs cost £60–£120 from an accredited assessor.
- Choose an MCS-certified installer — The installer must be registered with the Microgeneration Certification Scheme (MCS). Find approved installers at mcscertified.com or via GetQuickHelp.
- Get quotes — Obtain at least three quotes. Quotes should be clear about what's included and confirm that the installation will meet BUS requirements. The installer's quote will reflect the post-grant price.
- Your installer applies to Ofgem — Before your installation starts, your MCS installer submits an application to Ofgem (the energy regulator) on your behalf. Ofgem issues a voucher which the installer redeems after installation.
- Installation is completed — The heat pump is installed and commissioned. The installer certifies the system with MCS.
- Grant is redeemed — The installer claims the £7,500 from Ofgem. You pay the net amount. The grant is never paid to you — it reduces your invoice directly.
Finding an Approved BUS Installer
Only MCS-certified installers can access the BUS grant. Look for the MCS logo on their website and verify their certification number on mcscertified.com. Be cautious of any installer who cannot show MCS certification or who promises to 'sort the paperwork out later' — the voucher must be applied for before installation begins for the grant to be valid.
For a broader understanding of hiring skilled heating engineers, read our guide on what to look for in a Gas Safe and heating engineer. If you decide a gas boiler is the better near-term choice for your home, our guides on heat pump vs gas boiler and new boiler costs will help you make an informed comparison.
Frequently Asked Questions
Can landlords claim the BUS grant?+
Yes — landlords can apply for the BUS grant for each eligible property they own. However, the installation must replace fossil fuel heating, the property must have a valid EPC meeting the insulation requirements, and a MCS-certified installer must be used. Each property gets one grant.
Can I get the BUS grant if I have an existing heat pump?+
No. The BUS grant is for replacing fossil fuel (gas, oil, LPG) or direct electric heating with a heat pump. If you already have a heat pump, you are not eligible to claim a grant for a replacement through BUS.
Is the BUS grant taxable?+
No. The BUS grant is not treated as income and is not taxable for homeowners. For landlords, it may affect capital allowance calculations on the property — consult an accountant if you're a landlord with multiple properties.
What if my EPC flags cavity wall insulation I haven't done?+
You will need to have the cavity wall insulation installed before your heat pump can be approved for the BUS grant. Your EPC assessor can re-assess after insulation work is done and issue an updated EPC. Cavity wall insulation typically costs £400–£1,000 and may itself be eligible for funding under ECO4.
How long does the BUS grant application take?+
The Ofgem application process typically takes a few days to a few weeks for the voucher to be issued. Your installer manages this — once the voucher is confirmed, installation can be scheduled. The entire process from first inquiry to completed installation is typically 4–12 weeks depending on installer availability.
Will the BUS grant be extended beyond 2026?+
The government has confirmed BUS funding through to 2028. However, grant amounts and eligibility criteria can change — the most reliable advice is to move sooner rather than later if you're considering a heat pump, rather than waiting to see if terms improve. Your MCS installer will have the latest scheme information.
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