Heating your home is one of the biggest ongoing household expenses in the UK. With energy prices remaining a concern and the government working towards net zero emissions, many homeowners are looking for cleaner and more efficient alternatives to traditional gas and oil boilers.
The Boiler Upgrade Scheme (BUS) is one of the UK’s most valuable government grants for homeowners. Instead of paying the full cost of installing a heat pump or biomass boiler, eligible households can receive thousands of pounds towards the installation cost.
If you’re wondering whether you qualify, how much money you could receive, or how to apply, this complete guide explains everything you need to know.
What Is the Boiler Upgrade Scheme?
The Boiler Upgrade Scheme (BUS) is a UK government grant designed to encourage homeowners and small non-domestic property owners to replace fossil fuel heating systems with low-carbon heating technologies.
Rather than funding gas boiler replacements, the scheme helps cover the cost of installing renewable heating systems such as:
- Air source heat pumps
- Ground source heat pumps
- Biomass boilers (limited situations)
The scheme forms part of the UK’s wider strategy to reduce carbon emissions while improving household energy efficiency.
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Boiler Upgrade Scheme Grant Amount
The government offers fixed grant amounts depending on the heating system being installed.
| Heating System | Grant Amount |
|---|---|
| Air Source Heat Pump | £7,500 |
| Ground Source Heat Pump | £7,500 |
| Biomass Boiler (eligible rural properties) | £7,500 |
The grant is deducted directly from the installation cost by your installer. You do not receive the money yourself.
For example:
- Installation cost: £12,500
- Government grant: £7,500
- You pay: £5,000
The actual amount you pay depends on installation complexity, property size, insulation, and system specifications.
Purpose of the Boiler Upgrade Scheme
The scheme aims to:
- Reduce carbon emissions
- Replace fossil fuel heating
- Encourage renewable energy
- Lower long-term heating costs
- Help the UK reach Net Zero targets
- Increase heat pump adoption
Although heat pumps may cost more upfront than gas boilers, they are significantly more energy efficient and environmentally friendly.
How Does the Boiler Upgrade Scheme Work?
The process is straightforward.
- Find an MCS-certified installer.
- The installer assesses your home.
- They confirm your eligibility.
- The installer applies for the grant.
- The government approves the application.
- Your heating system is installed.
- The installer deducts the grant from your final bill.
Homeowners never apply directly for the grant.
Who Can Apply?
The Boiler Upgrade Scheme is available to:
- Homeowners
- Owner-occupiers
- Private landlords
- Small non-domestic property owners
- Self-build properties (meeting eligibility requirements)
The property must usually be located in England or Wales.
Boiler Upgrade Scheme Eligibility
You may qualify if:
You Own the Property
Applicants generally need to own the property where the heating system will be installed.
You’re Replacing Fossil Fuel Heating
The scheme is intended to replace heating systems such as:
- Gas boilers
- Oil boilers
- LPG boilers
- Electric resistance heating
Your Property Has a Valid EPC
Most properties need:
- A valid Energy Performance Certificate (EPC)
Any outstanding recommendations for loft or cavity wall insulation generally need to be addressed unless exemp
The Installation Uses Eligible Technology
Only approved renewable heating systems qualify.
These include:
- Air source heat pumps
- Ground source heat pumps
- Biomass boilers (limited eligibility)
MCS-Certified Installer
Your installer must be certified under the Microgeneration Certification Scheme (MCS).
Without an approved installer, you cannot receive the grant.
Read more:UK Energy Grants: Complete Guide for Homeowners & TenantsWho Is Not Eligible?
You may not qualify if:
- The property is outside the scheme area.
- The heating technology isn’t eligible.
- The installer isn’t MCS certified.
- You’re seeking funding for a standard gas boiler.
- Another incompatible government funding scheme already covers the installation.
Air Source Heat Pumps
Air source heat pumps are the most common installations under the scheme.
They:
- Extract heat from outdoor air
- Work throughout winter
- Use electricity efficiently
- Produce lower carbon emissions
- Require less maintenance than many traditional systems
Many homeowners choose them because installation is relatively simple compared with ground source systems.
Ground Source Heat Pumps
Ground source heat pumps extract heat from underground.
Advantages include:
- Very high efficiency
- Stable year-round performance
- Lower running costs
- Long lifespan
However, installation requires sufficient outdoor space and higher upfront costs.
Biomass Boilers
Biomass boilers burn renewable materials such as wood pellets.
They are only eligible in limited circumstances, usually for rural properties where heat pumps may not be practical.
Boiler Upgrade Scheme Application Process
Although homeowners don’t submit applications themselves, understanding the process helps.
Step 1: Choose an Installer
Contact an MCS-certified installer.
They’ll inspect:
- Existing heating
- Property size
- Insulation
- Radiators
- Hot water system
Step 2: Receive a Quote
The installer provides:
- System recommendation
- Installation cost
- Estimated savings
- Grant deduction
Step 3: Installer Applies
The installer submits your grant application.
You simply confirm your agreement.
Step 4: Government Approval
The application is reviewed.
If approved, installation can proceed.
Step 5: Installation
The installer fits:
- Heat pump
- Controls
- Pipework
- Cylinder (if required)
Step 6: Grant Deduction
The installer subtracts the grant from your invoice.
You only pay the remaining balance.
Documents You May Need
Although the installer handles most paperwork, you may need:
- Proof of ownership
- Property address
- EPC details
- Identity verification
- Permission for grant application
Benefits of the Boiler Upgrade Scheme
The scheme offers numerous advantages.
Lower Installation Costs
The government contributes thousands of pounds towards installation.
Reduced Carbon Emissions
Heat pumps emit significantly less carbon than traditional boilers.
Better Energy Efficiency
Heat pumps can produce multiple units of heat for every unit of electricity consumed.
Increased Property Value
Energy-efficient homes are increasingly attractive to buyers.
Future-Proof Heating
With the UK moving away from fossil fuels, renewable heating helps prepare homes for future regulations.
Read more:ECO4 Scheme: Eligibility, Benefits, Application & Free Home UpgradesBoiler Upgrade Scheme vs Gas Boiler Replacement
| Feature | Gas Boiler | Heat Pump |
|---|---|---|
| Government Grant | No | Yes |
| Carbon Emissions | High | Low |
| Renewable Energy | No | Yes |
| Running Efficiency | Moderate | High |
| Future Ready | Less | Yes |
Does the Scheme Cover the Entire Installation?
No.
The grant reduces installation costs but usually doesn’t cover everything.
Homeowners pay the remaining balance after the grant has been deducted.
Can Landlords Apply?
Yes.
Private landlords can qualify provided the property and installation meet scheme requirements.
Can You Replace a Working Boiler?
Yes.
You don’t necessarily need a broken boiler.
Many homeowners upgrade to renewable heating before their existing boiler reaches the end of its life.
How Long Does the Process Take?
The timeline varies.
Typical stages include:
- Property survey
- Quote
- Grant approval
- Installation
The complete process often takes several weeks, depending on installer availability.
Will You Save Money on Energy Bills?
Savings depend on factors such as:
- Home insulation
- Heat pump efficiency
- Electricity prices
- Existing heating system
- Household energy use
Well-insulated homes generally achieve the greatest benefits.
Tips Before Applying
Before replacing your heating system:
- Improve insulation first.
- Check your EPC.
- Compare multiple installer quotes.
- Ask about ongoing maintenance.
- Confirm MCS certification.
- Understand running costs.
- Ensure your radiators are suitable for lower-temperature heating.
Common Mistakes to Avoid
Many applicants delay their installation because of avoidable mistakes.
These include:
- Choosing a non-certified installer
- Assuming all boilers qualify
- Ignoring insulation recommendations
- Not checking property eligibility
- Accepting the first quote without comparison
Is the Boiler Upgrade Scheme Worth It?
For many homeowners, yes.
The grant significantly reduces installation costs while providing access to modern renewable heating technology.
Although heat pumps require a higher initial investment than gas boilers, the government grant helps narrow the gap considerably.
Combined with better insulation and efficient heating controls, they can reduce environmental impact and provide long-term energy efficiency.
How much is the Boiler Upgrade Scheme grant?
Eligible homeowners can receive up to £7,500 towards an approved renewable heating installation.
Can I apply for the grant myself?
No.
An MCS-certified installer applies on your behalf.
Does the scheme replace gas boilers?
No.
The scheme supports renewable heating technologies rather than new gas boiler installations.
Are air source heat pumps included?
Yes.
Air source heat pumps are one of the main technologies covered by the scheme.
Can landlords use the Boiler Upgrade Scheme?
Yes.
Private landlords may qualify if their property meets the eligibility criteria.
Does every property qualify
No.
Eligibility depends on factors such as ownership, property type, EPC status, and the heating technology being installed.
Do I need an EPC?
Most properties require a valid Energy Performance Certificate.
Can I receive the grant twice?
The scheme generally provides funding for an eligible installation at a property, subject to government rules. Check with your installer if you’ve previously received support.
Is the grant taxable?
The grant is generally applied as a discount on installation costs rather than paid directly to homeowners. Tax treatment depends on individual circumstances.
How do I know if my installer is approved?
Ask whether they are certified under the Microgeneration Certification Scheme (MCS) before requesting a quote.
Conclusion
Boiler Upgrade Scheme Grants are amongst the most generous incentives by the government to homeowners looking to switch from fossil fuels for their heating system to an eco-friendlier one. The grants go up to £7,500 and make systems such as air source heat pumps, ground source heat pumps, and in some cases biomass boilers accessible to many people.
However, before starting the process, it is important to ensure that your house is eligible, that any needed insulation improvements have been done, and that you hire an installer who is accredited by the Microgeneration Certification Scheme. By taking these steps, you will be able to cut the initial cost of installation, increase your home’s energy efficiency, decrease carbon dioxide emissions, and prepare your property for the future of heating in the UK.