What is the Boiler Upgrade Scheme and how do I apply in 2026?

The Boiler Upgrade Scheme (BUS) provides a £7,500 government grant towards the cost of an air source heat pump installation. It is one of the most substantial home improvement grants available in the UK in 2026.

You do not apply for it yourself. Your MCS-certified installer applies on your behalf and deducts the grant from your invoice.

Who qualifies for the BUS grant?

To qualify, your property must meet all of these criteria:

• Valid EPC rating. Your property needs a current Energy Performance Certificate (EPC). If you do not have one, your installer can arrange one.
• No outstanding insulation recommendations. If the EPC recommends loft or cavity wall insulation as high-priority improvements, these need to be done first (or you need a valid reason why they cannot be done).
• Existing fossil fuel heating. The BUS is designed to replace gas boilers, oil boilers, or electric storage heaters. Properties that already have a heat pump do not qualify.
• England or Wales. Scotland has a separate scheme (Home Energy Scotland).

What is the application process?

The process is handled by your MCS-certified installer:

1. Your installer confirms eligibility at the site survey
2. Your installer applies for a BUS voucher before installation starts
3. Ofgem approves the voucher (usually within a few days)
4. Installation takes place
5. Your installer claims the grant from Ofgem
6. The £7,500 is deducted from your final invoice

Vouchers are valid for 3 months from approval. Your installation must be completed within this window.

How much does a heat pump cost after the BUS grant?

A typical air source heat pump installation before the grant costs from £10,495 to £15,000 depending on the property size and system complexity. After the £7,500 grant, most installations cost from £2,995 upwards.

Your exact cost depends on the size of the heat pump needed, whether radiator upgrades are required, and whether a hot water cylinder needs to be installed. Your installer should give a fixed price at the survey, inclusive of the grant deduction.

Is my property suitable for a heat pump?

Heat pumps work best in properties that:

• Have loft insulation and cavity or solid wall insulation (or acceptable levels of heat loss)
• Have radiators that are large enough for lower flow temperatures (or can be upgraded)
• Have space for the outdoor unit (garden or side return)
• Have space for a hot water cylinder indoors

A good installer will carry out a proper heat loss calculation at the site survey and tell you honestly whether your property is suitable. If it is not ready yet: perhaps due to insulation gaps: a reputable installer will tell you rather than sell you a system that will not perform.

How does a heat pump compare to a gas boiler?

A well-installed heat pump in a suitable home will typically produce 2.5 to 4 units of heat for every unit of electricity it uses (Coefficient of Performance, or COP). A gas boiler produces less than 1 unit of heat per unit of gas energy. However, electricity costs more per kWh than gas in the UK, so the running cost comparison is not straightforward.

In a well-insulated home on an appropriate electricity tariff, a heat pump is cheaper to run than a gas boiler. In a poorly insulated home, the savings are smaller. This is why honest pre-installation advice matters.