Guide · last reviewed 2 July 2026
The Boiler Upgrade Scheme in 2026, explained straight
The Boiler Upgrade Scheme (BUS) is the UK government grant that knocks £7,500 — and from 21 July 2026, £9,000for off-gas-grid homes — off the cost of a heat pump in England and Wales. Here's how it actually works, without the sales gloss.
What you get
£7,500 off an air source or ground source heat pump installation. The money never touches your bank account: your MCS-certified installer applies to Ofgem, gets the grant, and quotes you the net price. With typical installs at £10,000–£14,000, most households end up paying £2,500–£6,500.
The 21 July 2026 change
From 21 July 2026, the grant rises to £9,000 for properties that are not connected to the mains gas gridand are replacing oil, LPG or coal heating. If that's you and your project timing is flexible, completing the installation after that date is worth an extra £1,500 — raise it with your installer explicitly.
Who qualifies
- You own the property (owner-occupiers, landlords, second homes).
- It's in England or Wales (Scotland has its own, often more generous, Home Energy Scotland support).
- You're replacing a fossil fuel (gas, oil, LPG, coal) or electric heating system — it doesn't have to be broken.
- The property has a valid EPC, and the install is done by an MCS-certified installer with capacity up to 45kWth.
The catches worth knowing
- MCS certification is non-negotiable — a non-certified installer means no grant, full stop. Verify any installer on the official MCS register before signing; every listing on this site links to it.
- The grant is per-property and one-shot. If a previous owner claimed BUS for the property, it can't be claimed again.
- Quotes vary a lot for identical hardware. Because the installer pockets the grant and bills you the difference, always compare at least three quotes so the grant benefits you, not the margin.
Quick answers
Do I apply for the grant myself?
No — your MCS-certified installer applies to Ofgem on your behalf and deducts the grant from your quote. If an installer can't do this, they're not eligible to, which is a red flag.
Can I get the grant if I'm replacing a working gas boiler?
Yes. The system you replace doesn't need to be broken — it needs to be a fossil fuel or electric system. You can't use BUS to replace an existing heat pump.
Who gets £9,000 instead of £7,500?
From 21 July 2026, homes in England & Wales that are not connected to the gas grid and are replacing oil, LPG or coal heating qualify for £9,000.
Does my home need an EPC?
Yes, a valid Energy Performance Certificate. The previous requirement to clear loft/cavity insulation recommendations first was removed in 2024, which made many more homes eligible.
Sources: gov.uk Boiler Upgrade Scheme guidance; Ofgem BUS property-owner guidance; MCS. This is general information, not financial advice — scheme rules can change, so confirm current terms with Ofgem or your installer.