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Boiler Upgrade Scheme

A government grant in England and Wales that pays part of the cost of replacing fossil fuel heating with a heat pump or, in some rural homes, a biomass boiler.

By Eugene SerbinUpdated

The Boiler Upgrade Scheme (BUS) is a government grant that covers part of the cost of replacing oil, gas, LPG or electric heating with a heat pump or a biomass boiler. It runs in England and Wales and is administered by Ofgem on behalf of the Department for Energy Security and Net Zero.

Grant amounts

Technology Grant
Air source (air-to-water) heat pump £7,500
Ground source or water source heat pump £7,500
Biomass boiler £5,000
Air-to-air heat pump £2,500

Until March 2027, an extra £1,500 is available for an air source or ground source heat pump in a property heated by oil or LPG with no mains gas connection, making £9,000 in total. Only one grant is allowed per property.

Who can get it

  • You must own the property. Homes, second homes, rented-out homes and business buildings can qualify.
  • The new system must replace fossil fuel or electric heating, not an existing low-carbon system.
  • Hybrid systems that pair a heat pump with a gas boiler are not eligible.
  • Most new builds and social housing are excluded. Biomass boilers are limited to rural properties off the gas grid.
  • The work must be done by an MCS-certified installer, who applies for the grant on the owner’s behalf.

The scheme’s earlier insulation requirement was removed in May 2024.

Uptake and other nations

From May 2022 to 31 August 2026, Ofgem received 151,136 voucher applications, 93,364 vouchers were redeemed and £661,303,000 in grants was paid.

Scotland has its own grant and interest-free loan through Home Energy Scotland. The Northern Ireland Boiler Replacement Scheme is closed.

This is general information, not advice. Grant values and eligibility change, so check GOV.UK for the current rules before committing to any work.

Read more: Renewable energy at home: what works in a UK house.