Boiler Upgrade Scheme
Boiler Upgrade Scheme Guide ·
Boiler Upgrade Scheme 2026: What It Is, How Much You Get, and Who Qualifies
The Boiler Upgrade Scheme gives homeowners in England and Wales up to £9,000 toward replacing a fossil fuel heating system with a heat pump, and now also funds heat batteries. The grant is deducted directly from the installation cost before the household pays anything. There is no income test and no benefits requirement. The scheme has processed well over 119,000 applications since its May 2022 launch, with 2026 producing record monthly volumes following a series of grant and eligibility changes.
Important: InstantGrant is an independent grant information and application-support service. We are not the UK government, Ofgem, or any funding body. We do not install heat pumps or award grants. All figures and eligibility details on this page are verified against Ofgem BUS guidance, Energy Saving Trust, and DESNZ statistics as of 12 September 2026. Grant amounts and eligibility criteria can change. Always confirm current details with your MCS-certified installer before proceeding.
This guide covers what the Boiler Upgrade Scheme is, every current grant amount including the newly added heat battery grant, who qualifies, what changed in 2026, how the grant works in practice, and where the scheme sits alongside other government support for home heating.
What the Boiler Upgrade Scheme Is
The Boiler Upgrade Scheme is a direct government grant administered by Ofgem and funded by the Department for Energy Security and Net Zero (DESNZ). It lowers the upfront cost of switching a fossil fuel heating system to a low-carbon alternative. Unlike ECO4, which is funded through an obligation on energy suppliers, the BUS is funded directly from central government and carries no income test or benefits requirement, making it accessible to any eligible homeowner regardless of financial circumstances.
The scheme launched in May 2022 and now runs to 2030. Since launch, more than 119,000 applications have been recorded, with the pace accelerating through 2026 following the addition of new technology categories and a temporary grant uplift for off-gas-grid homes.
How the Grant Works
The grant is never paid to the household as cash. Instead, your MCS-certified installer deducts the grant value from the installation invoice before presenting the final bill, then claims that amount back from Ofgem separately. From the household's side, the process is seamless: you agree a quote that already reflects the grant reduction, and you pay only the balance shown on the invoice, never handling the grant funds yourself at any stage.
Boiler Upgrade Scheme Grant Amounts in 2026
The Boiler Upgrade Scheme now funds five distinct categories of low-carbon heating, each with a different grant value depending on the technology installed and, for oil and LPG properties, the timing of the application relative to the temporary uplift window.
System | Grant Amount | Notes |
|---|---|---|
Air-to-water heat pump | £7,500 | Standard rate, all eligible properties in England and Wales |
Ground source heat pump | £7,500 | Standard rate, all eligible properties in England and Wales |
Air-to-water or ground source (oil or LPG only) | £9,000 | Enhanced rate: 21 July 2026 to 31 March 2027 |
Air-to-air heat pump | £2,500 | Domestic properties only, existing gas boiler must be fully removed |
Heat battery | £2,500 | Thermal storage unit, installed by an MCS-certified installer |
Biomass boiler | £5,000 | Rural properties off the mains gas grid only |
Heat Batteries: The Newest Addition to the Scheme
A heat battery is a compact thermal storage unit that charges overnight, often on a cheaper electricity tariff, and releases that stored heat for space heating or hot water during the day. It now qualifies for a £2,500 Boiler Upgrade Scheme grant, installed by an MCS-certified installer under the same invoice-deduction process as a heat pump. This route suits properties where an outdoor heat pump unit is impractical due to space constraints, or where a household wants to pair low-carbon heating with a time-of-use electricity tariff. As with other BUS measures, confirm with your installer that the specific product and installation meet current MCS standards before signing anything.
Why Oil and LPG Homes Get More
The £9,000 enhanced rate for off-gas-grid properties took effect on 21 July 2026 and runs until 31 March 2027. Homes heated by oil or LPG sit outside the Ofgem energy price cap, meaning they carry no regulatory protection against fuel price spikes. The uplift reflects both the higher cost of switching these properties to a heat pump and the stronger financial case for doing so given their fuel price exposure compared with mains gas homes.
The enhanced rate reverts to the standard £7,500 from 1 April 2027 unless the government extends it. If your home runs on oil or LPG and you are considering a heat pump, the case for acting before that deadline is financially significant, particularly given typical installation costs for off-grid properties.
Air-to-Air Heat Pumps
Air-to-air heat pumps receive a £2,500 grant and heat a property by moving warm air directly through fan units rather than heating water for radiators. They do not provide domestic hot water, so a separate hot water solution is needed. To qualify, your existing gas boiler must be fully removed or permanently decommissioned; keeping it as a backup disqualifies the installation from the grant.
Biomass Boilers
Biomass boilers receive a £5,000 grant but eligibility is more restricted than for heat pumps. The property must be in a rural location, off the mains gas grid, and the boiler must meet current emissions standards. This route suits farms and rural properties where heat pump installation is impractical due to space or ground conditions.
Who Qualifies for the Boiler Upgrade Scheme
Property Ownership and Type
The scheme is open to homeowners and small business owners in England and Wales, covering both residential and small non-domestic properties. Social housing landlords are not eligible, but private landlords are, and the grant runs with the installation regardless of tenure. This means a private landlord installing a heat pump or heat battery in a rental property they own can claim the grant on the same terms as an owner-occupier.
What You Are Replacing
The property's current heating system must run on a fossil fuel: mains gas, oil, LPG, or electricity without an existing heat pump. If your home already has a heat pump, you are not eligible for BUS to install another one on the same property, and hybrid systems that retain a gas boiler alongside a heat pump do not qualify at all.
The EPC Rule Since April 2026
Before 28 April 2026, properties needed a valid EPC with no outstanding recommendations for loft or cavity wall insulation before an application could proceed. That mandatory insulation condition no longer applies. Properties can now apply without clearing those recommendations, and a valid EPC is still submitted where one exists, but it is no longer a barrier if outstanding insulation work has not been done. This single change opened the scheme to a significant number of older properties that were previously blocked by an unrelated insulation recommendation on their certificate.
The Installer Requirements: MCS and Consumer Code
Your installer must hold MCS certification for the specific technology being installed, a statutory requirement rather than a recommendation. The installer must also belong to an approved consumer code, either the Renewable Energy Consumer Code (RECC) or the HIES Consumer Code, both of which provide dispute resolution and financial protection if something goes wrong with the installation. Verify your installer at mcscertified.com before agreeing any contract.
What Has Changed in 2026
The BUS has seen more changes in 2026 than in any previous year of the scheme.
April 2026: Version 5 Guidance
Version 5 of the BUS guidance took effect on 28 April 2026 and removed the mandatory EPC insulation condition, added air-to-air heat pumps as a new £2,500 category, and made MCS certification a statutory eligibility requirement for installers rather than a recommended best practice.
Mid-2026: Heat Batteries Added
A £2,500 grant for heat batteries was added to the scheme during 2026, extending BUS beyond heat pumps and biomass boilers for the first time since launch. This gives households a lower-cost, space-efficient entry point into low-carbon heating funding where a full heat pump installation is not practical.
July 2026: The Oil and LPG Uplift
On 21 July 2026, the £9,000 enhanced rate took effect for off-gas-grid properties replacing oil or LPG heating with an air source or ground source heat pump, following a formal DESNZ grant change notice. The uplift drove a sharp rise in applications from affected households in the weeks that followed.
The Installation Window After Ofgem Consent
Once Ofgem confirms the application and issues consent, the installer has 120 days to complete the installation, extended to 180 days for ground source heat pump installations. If the installation is not completed within this window, the grant is withdrawn and the household must reapply from the start. This window begins from Ofgem's consent confirmation, not from the date the application was originally submitted, so confirming an installation date with your installer promptly after consent is issued matters more than most guides make clear.
Boiler Upgrade Scheme vs ECO4 vs Warm Homes Local Grant
These three schemes are frequently confused but serve different audiences through entirely different funding mechanisms.
Boiler Upgrade Scheme | ECO4 | Warm Homes Local Grant | |
|---|---|---|---|
Who it is for | Homeowners and small businesses regardless of income | Households on means-tested benefits | Lower-income households in England |
Income test | No | Yes (benefits or ECO4 Flex) | Yes (income under £36,000 or deprived postcode) |
What it funds | Heat pumps, heat batteries, biomass boilers | Insulation, heating, solar | Insulation, heat pumps, solar |
How much | £7,500 to £9,000, or £2,500 for heat battery/air-to-air | Fully funded | Up to £30,000 |
Who applies | The MCS installer on your behalf | Tenant or household via supplier | Household via local council |
Availability | England and Wales, open to 2030 | England, Scotland, Wales, closes 31 Dec 2026 | England only, open to March 2028 |
The three schemes can be combined in some circumstances. An ECO4-funded insulation package followed by a BUS-funded heat pump is a legitimate sequence, provided the two schemes do not fund the same measure on the same property.
Boiler Upgrade Scheme by UK Nation
The Boiler Upgrade Scheme covers England and Wales only. Scotland and Northern Ireland run entirely separate schemes with their own funding structures and contact routes.
Nation | BUS Available | Alternative Scheme |
|---|---|---|
England | Yes, open to 2030 | Warm Homes Local Grant for lower-income households |
Wales | Yes, open to 2030 | Nest scheme for lower-income Welsh households |
Scotland | No | Home Energy Scotland: interest-free loans and cashback grants |
Northern Ireland | No | NISEP for eligible households |
Scotland
Home Energy Scotland provides a grant of up to £7,500 plus an optional interest-free loan of up to £7,500, available to homeowners across Scotland regardless of income, including rural communities in the Highlands, Western Isles, Orkney, and Shetland. Contact Home Energy Scotland free on 0808 808 2282.
Wales
Wales is covered by BUS on identical terms to England. Lower-income Welsh households not eligible for BUS may access the Nest scheme through Warm Wales at nestwales.org.uk.
Northern Ireland
BUS does not apply in Northern Ireland. NISEP provides some funding for energy efficiency measures for eligible NI households. Contact the NI Energy Advice line free on 0800 111 44 55.
Common Misconceptions About the Boiler Upgrade Scheme
"BUS gives me money toward a new gas boiler." It does not. The scheme funds heat pumps, heat batteries, and biomass boilers only. A like-for-like gas boiler replacement does not qualify under any circumstances, regardless of the property or household situation.
"I need to be on benefits to qualify." There is no means test on the Boiler Upgrade Scheme. It is available to any eligible homeowner in England or Wales replacing a fossil fuel system with a qualifying low-carbon alternative, including higher earners who would not qualify for ECO4.
"My EPC blocks my application." This was true before 28 April 2026 but no longer applies. Outstanding loft or cavity wall insulation recommendations on your EPC no longer prevent a BUS application from proceeding.
Frequently Asked Questions
What is the Boiler Upgrade Scheme? The Boiler Upgrade Scheme is a UK government grant of up to £9,000 toward replacing a fossil fuel heating system with a heat pump, heat battery, or biomass boiler in England and Wales. There is no income test. The grant is deducted from the installation invoice before the household pays, and the scheme is open until 2030.
How much is the Boiler Upgrade Scheme grant in 2026? Air-to-water and ground source heat pumps receive £7,500 as a standard rate. Homes on oil or LPG receive £9,000 until 31 March 2027. Air-to-air heat pumps and heat batteries each receive £2,500. Biomass boilers in rural off-grid locations receive £5,000.
Does the Boiler Upgrade Scheme cover heat batteries? Yes. A £2,500 grant for heat batteries, compact thermal storage units, was added to the scheme in 2026 alongside the existing heat pump and biomass boiler categories, and is installed through an MCS-certified installer under the same process.
Does the Boiler Upgrade Scheme cover gas boilers? No. The scheme funds heat pumps, heat batteries, and biomass boilers only. A gas boiler replacement, like-for-like or otherwise, does not qualify regardless of the household's circumstances.
Is the Boiler Upgrade Scheme available in Scotland? No. Scotland has Home Energy Scotland, which provides a grant of up to £7,500 plus an optional interest-free loan for heat pump installations. Call 0808 808 2282 for a free assessment.
How long does the Boiler Upgrade Scheme application take? After Ofgem confirms the application and issues consent, the installer has 120 days to complete the installation, or 180 days for ground source heat pumps. If this window is missed, the grant is withdrawn and the process must restart from the beginning.
Can I combine Boiler Upgrade Scheme with ECO4? In some circumstances, yes. The two schemes can fund different measures on the same property, for example ECO4 funding insulation and BUS funding a heat pump, provided they do not both fund the same measure.
What is the £9,000 Boiler Upgrade Scheme rate and when does it end? The enhanced £9,000 rate applies to homes currently heated by oil or LPG in England and Wales. It runs from 21 July 2026 to 31 March 2027, after which the standard £7,500 rate applies unless the government extends it.
How InstantGrant Can Help
Understanding whether the Boiler Upgrade Scheme is the right route for your property, whether a heat pump or heat battery better fits your circumstances, and what the realistic cost looks like after the grant depends on your specific heating system, property type, and location.
InstantGrant is an independent grant information and application-support service. We help UK households and landlords understand which scheme fits their situation, what to expect from the application process, and how to approach an MCS-certified installer with the right questions.
We are not Ofgem, DESNZ, or any installer. We do not award grants and we do not guarantee any outcome. We help you make an informed decision before committing to any installation.
Check your eligibility at instantgrant.co.uk