Boiler Upgrade Scheme: Are You Eligible for the Heat Pump Grant?
Most homeowners in England and Wales who replace a fossil fuel heating system, such as a gas, oil or LPG boiler, with a heat pump can get a Boiler Upgrade Scheme (BUS) grant. People with some electric heating systems can too.
At the time of writing, the grant is £7,500 for an air source or ground source heat pump. You don’t apply for it yourself. Your MCS certified installer applies for it, and the grant comes off your quote.
The main things that rule people out are living in a new build (unless it’s a self-build), living in social housing, or already getting other government funding for the same heat pump.
How much is the grant?
These are the figures Ofgem lists as of September 2026:
| Technology | Grant |
|---|---|
| Air source (air-to-water) heat pump | £7,500 |
| Ground source (including water source) heat pump | £7,500 |
| Off-gas-grid homes (air-to-water or ground source), 21 July 2026 to 31 March 2027 | £9,000 |
| Air-to-air heat pump | £2,500 |
| Biomass boiler (rural, off the gas grid only) | £5,000 |
The air-to-air rate is worth knowing about. Air-to-air heat pumps work like air conditioning running in reverse. They heat rooms directly but don’t provide hot water, so they suit some homes (flats, for example) better than others.
Who is eligible
You’re likely to qualify if all of these apply:
- You own the property. That includes homeowners, private landlords and small business owners.
- The property is in England or Wales. Scotland and Northern Ireland have their own schemes.
- You’re replacing a fossil fuel system (gas, oil or LPG) or some types of electric heating.
- The heat pump is sized to meet the whole home’s space heating needs. It can’t be a top-up alongside a boiler you’re keeping.
- It’s installed by an MCS certified installer, who applies for the grant for you.
You no longer need to have your loft or cavity walls insulated before you can get the grant. That said, a heat pump works much better in a well-insulated home. A good installer will talk you through improving insulation as part of designing the system.
Who isn’t eligible
- New builds. The only exception is a self-build, meaning a home built mainly by, or using the resources of, its first owner.
- Social housing.
- Properties already getting other government funding for the same heat pump installation.
- Hybrid systems where a boiler stays in as part of the heating system. The heat pump has to do the whole job.
How the application works
- Get quotes from MCS certified installers. Only MCS installers can apply for the grant, so check this first.
- The installer surveys the property and designs the system, including a heat loss calculation for every room.
- The installer applies to Ofgem for the grant.
- You confirm your consent when Ofgem contacts you. At the time of writing, you have 14 days to do this, so keep an eye on your email.
- Once the heat pump is installed, the installer claims the grant, and it’s taken off your bill.
You shouldn’t have to pay the full price upfront and claim the money back yourself. If an installer asks you to do that, ask why.
What the grant doesn’t cover
The grant is a fixed contribution, not a percentage of the cost. What you pay after the grant depends on:
- The size of the heat pump and how much heat your home loses
- Radiator upgrades. Heat pumps run at lower flow temperatures, so some rooms may need bigger radiators.
- A hot water cylinder. If you’re switching from a combi boiler, you’ll usually need to find space for a cylinder.
- Pipework changes, especially in homes with microbore pipes
- Electrical work, if your supply or consumer unit needs upgrading
- Ground works for a ground source system (boreholes or trenches), which cost a lot more than an air source setup
Get the quote itemised so you can see exactly where the £7,500 has been taken off.
Things to check before you commit
- Ask for the heat loss calculation. A properly designed system should be based on a heat loss calculation for every room, not a rough estimate.
- Ask what flow temperature it’s designed for and whether any radiators will be changed.
- Check running costs honestly. Whether a heat pump costs less to run than your current boiler depends on your electricity tariff, how efficient the system is and how you use it. Be wary of guaranteed savings figures.
- Planning permission: most air source heat pumps count as permitted development, but there are conditions. Listed buildings and conservation areas can be different. Check with your installer or local council.
FAQs
Can landlords claim the Boiler Upgrade Scheme?
Yes. Private landlords who own the property can claim, as long as it meets the other conditions. Social housing isn’t eligible.
Can I get the grant if I already have a heat pump?
Not for a like-for-like replacement of an existing heat pump. The scheme is for replacing fossil fuel heating or certain electric heating systems.
Can I combine the grant with other funding?
Not other government grants for the same heat pump. Some energy suppliers and lenders offer their own deals or finance alongside the grant. Check the terms and whether they change what you’re eligible for.
How long will the scheme run?
Ofgem currently lists some rates, such as the off-gas-grid rate, as ending on 31 March 2027. Scheme budgets and end dates have changed before, so check Ofgem’s site before relying on a date.