The Boiler Upgrade Scheme (BUS) is the UK government’s main financial incentive to help homeowners in England and Wales replace fossil-fuel heating systems with low-carbon alternatives. As of 2026 the grant values are:

  • Air source heat pump (ASHP): £7,5001
  • Ground source heat pump (GSHP) or water source heat pump: £7,5001
  • Air-to-air heat pump: £2,5001
  • Biomass boiler (limited eligibility): £5,0001

From 21 July 2026 to 31 March 2027, eligible off-gas-grid properties get an uplifted £9,000 for an air source or ground source heat pump instead of £7,500.2 To qualify, the property must be heated by oil or LPG and have no mains gas connection, so check with your installer before the voucher is claimed.1

These grants are deducted at point of purchase: you never receive cash directly.3 Your MCS-certified installer claims the voucher from Ofgem on your behalf and discounts it from the invoice.

Who Is Eligible

RequirementDetail
Property typeOwner-occupied or private rented in England or Wales
Existing heatingMust be replacing a fossil fuel system (gas, oil, LPG or electric)
EPC requirementNo longer required for applications made from 28 April 2026; a valid EPC is used if the property has one*
InstallerMust use an MCS-accredited contractor
Grant per propertyOne grant per property; a property that has already had public funding for a heat pump or biomass boiler is usually not eligible

You must own the property and be replacing a fossil fuel heating system such as oil, gas, electric or LPG, and you cannot get a grant for a property that has already had government funding or support for a heat pump or biomass boiler.4

*For applications made on or after 28 April 2026 a valid EPC is no longer required.2 If the property has one, your installer adds its reference number to the application; if not, the installer provides other evidence, such as a recent utility bill or photographs of the existing heating system.2 Before then a valid EPC was compulsory. Until May 2024 you also had to install any loft or cavity insulation the EPC recommended before applying. The government removed that condition, though it still advises doing those measures, because a heat pump in a poorly insulated house costs more to run.5

The scheme does not usually apply to new-build homes, although certain self-builds qualify and a finished new build that was fitted with a fossil-fuel boiler may too.4 Social housing, including shared ownership, is not eligible and is covered by separate programmes.2

How to Apply

  1. Check whether you have a valid EPC. It is no longer required, but your installer will include its reference number if you have one (a new EPC costs £60–£120 from an accredited assessor).
  2. Obtain quotes from at least two MCS-accredited installers. Use the MCS installer finder at mcscertified.com.
  3. Choose your installer and confirm the work qualifies for BUS.
  4. The installer applies for the voucher on the Ofgem portal on your behalf, normally before work begins, and Ofgem contacts you to confirm your consent.2 The voucher must be redeemed within 3 months for an air source heat pump or biomass boiler, or 6 months for a ground source heat pump.2
  5. Work is completed and the installer redeems the voucher, deducting the grant (£7,500, or £9,000 with the off-gas uplift) from your invoice.
  6. You pay the net cost (total installed price minus the grant) and the installer handles all paperwork with Ofgem.

There is no income test. The BUS is open to property owners, including landlords and second-home owners, regardless of household income, making it different from means-tested schemes such as the ECO4 obligation.4

Typical Installed Costs and the Grant

SystemInstalled cost before grantBUS grantNet cost after the grant
Air source heat pump (ASHP)£10,000–£18,000£7,500£2,500–£10,500
Ground source heat pump (GSHP)£18,000–£35,000£7,500£10,500–£27,500
Biomass boiler£12,000–£22,000£5,000£7,000–£17,000

For an oil or LPG heated home with no mains gas connection that qualifies, the grant for either heat pump is £9,000 until March 2027, so the net cost is £1,500 lower than shown.1

Costs vary with property size, installer region, and whether existing pipework and radiators need upgrading. Heat pumps typically require either underfloor heating or oversized radiators to work efficiently. Budget £1,000–£4,000 extra if you need to upgrade radiators throughout.

Running Costs After Installation

Heat pump running costs depend heavily on your electricity tariff. At the price cap unit rate of 26.32p per kWh that applies from 1 October 2026 and a SCOP of 3.0, the effective heat cost is roughly 8.8p per kWh, about the same as heat from a 90% efficient gas boiler with gas capped at 7.97p per kWh.6 Households that switch to an EV tariff with off-peak overnight rates (commonly 7–10 p/kWh) can reduce their heat pump running costs substantially by pre-heating the home at night.

Other Heating Grants Available in 2026

ECO4 (Energy Company Obligation)

Funded by energy suppliers and targeted at low-income households and those in fuel poverty.7 ECO4 can fund:

  • Loft and cavity wall insulation
  • Solid wall insulation
  • First-time central heating
  • Heat pump installations in eligible properties

ECO4 runs to 31 December 2026, so apply well before that date.7 To check eligibility, see the GOV.UK guide to the Energy Company Obligation, or contact your energy supplier or local council directly.8 There is no application fee.

Great British Insulation Scheme (GBIS): closed 31 March 2026

GBIS was a separate Ofgem-administered programme funding mostly single insulation measures (typically loft or cavity wall) for low-income and vulnerable households and for homes rated EPC D–G in lower council tax bands.9 It closed to new applications on 31 March 2026, so it is no longer a route to fabric improvements before a heat pump.9 ECO4 and the Warm Homes: Local Grant are the remaining options.

Warm Home Discount

A one-off £150 discount off the electricity bill for eligible low-income households, applied by the supplier each winter.10 In England and Wales you usually get it automatically if you are eligible; in Scotland you may need to apply to your energy supplier.10

Warm Homes: Local Grant (successor to HUG2)

The Home Upgrade Grant (HUG2) has been replaced by the Warm Homes: Local Grant, delivered by local authorities in England.11 It is open to households in properties rated EPC D to G that have a gross household income of £36,000 or less, receive a specified means-tested benefit, or live in one of the most deprived areas, and can fund insulation and low-carbon heating together.11 Contact your local council to check if your area is participating.11

Wales: Nest

The Welsh Government’s Warm Homes Nest scheme gives free energy advice and, for eligible households, free home improvements such as a boiler repair or replacement, a heat pump, insulation or solar panels.12 It is aimed at households struggling to heat their homes.

Scotland: Warmer Homes Scotland

Scottish Government programme providing energy efficiency improvements and heating systems to eligible low-income households, in most cases at no cost to them.13 The work is carried out by Warmworks, and you apply through Home Energy Scotland on 0808 808 2282.13

Stacking Multiple Grants

You can combine BUS with other grants in some cases. For example:

  • BUS grant for the heat pump + ECO4 insulation (if income-eligible) = significant combined support
  • BUS for the heat pump + a Warm Homes: Local Grant for insulation = possible, as long as the two schemes do not fund the same measure11

Always confirm with your installer and the relevant scheme administrator before assuming grants can be combined. Some schemes prohibit double-funding of the same measure.

Voucher Expiry

A BUS voucher must be redeemed within 3 months of issue, or 6 months for a ground source heat pump. If the installation is delayed (supply chain, planning issues), your installer may need to withdraw the voucher and apply for a new one, and you will need to give your consent again.2

What to Ask Your Installer

  • Are you MCS accredited for heat pump installations?
  • Will my existing radiators and pipework be suitable, or will they need upgrading?
  • What SCOP rating do you design to, and can I see the MCS heat loss calculation?
  • Will the system work with my current hot water cylinder, or do I need a new one?
  • Do you handle the BUS voucher application, and when will you submit it?

Ofgem’s guidance says your installer should visit your property to carry out a heat loss assessment, then give you an itemised quote showing the total cost, the grant and the amount you pay.2 A reputable installer will provide a full MCS Microgeneration Installation Standard (MIS) compliant heat loss calculation before quoting, showing that the heat pump is correctly sized for your home.

References (13)

Figures in this note were checked against the sources below on 2 October 2026. Superscript numbers in the text point to them. Every source the site cites, by topic.

  1. 1costvery strongGOV.UK.RN-9EFNVZA price, true at 2026-09. The grant values: £7,500 towards an air source heat pump, £7,500 towards a ground source heat pump including water source heat pumps and those on shared ground loops, and £5,000 towards a biomass boiler. A further £1,500 is available until March 2027 where the property is heated by oil or LPG and has no mains gas connection. Only one grant is available per property. Capacity limits are 45kWth for an individual system, 70kWth for multiple heat pumps and 300kWth for shared ground loops. Hybrid systems pairing a gas boiler with a heat pump are not eligible, and an existing low carbon heating system cannot be replaced under the scheme.
  2. 2technicalvery strongOfgem, guidance.RN-YCPKNQOfgem's guidance for property owners on BUS applications made from 28 April 2026. It explains that an EPC is optional, with other evidence accepted where there is none.
  3. 3technicalvery strongGOV.UK (Department for Energy Security and Net Zero), guidance.RN-11Y5WOThe official GOV.UK page on applying for the Boiler Upgrade Scheme. It settles that the installer applies through Ofgem and the grant is taken off the installation price on the quote and invoice.
  4. 4technicalvery strongGOV.UK.RN-ZAQ300You must own the property, which can be a business premises, second home or rental, and you must be replacing a fossil fuel heating system such as oil, gas, electric or LPG. Properties that have already had government funding for a heat pump or biomass boiler, social housing, and most new builds still under construction are excluded, though a finished new build with a fossil fuel boiler and an owner-built self build can qualify. A biomass boiler additionally requires the property to be off the gas grid, in a rural location as defined in Ofgem guidance, and the boiler to hold an emissions certificate. The installer must commission and install the heat pump within 120 days of applying for the grant or it will not be eligible, and the application is made through an MCS certified installer.
  5. 5technicalvery strongDepartment for Energy Security and Net Zero, guidance.RN-AWHPHIThe March 2024 DESNZ response to the consultation on amending the Boiler Upgrade Scheme regulations: a higher grant for ground source heat pumps, retention of the requirement for a valid EPC from the last 10 years, and removal of the requirement to install recommended loft and cavity wall insulation first (in force May 2024).
  6. 6technicalvery strongOfgem.RN-YYE8U2The live source for any running-cost sum in a heating note. For 1 October to 31 December 2026 the direct debit cap is 26.32p per kWh for electricity with a 54.83p daily standing charge, and 7.97p per kWh for gas with a 29.68p daily standing charge, giving a typical annual dual fuel bill of £1,723, a 4% rise on the previous period. Ofgem states these are the average unit rate and standing charge for direct debit customers in England, Scotland and Wales; gas prices include 5% VAT while electricity carried no VAT in this period. The cap is reset every three months, so any note quoting a pence-per-kWh figure should be dated against this page.
  7. 7technicalvery strongOfgem.RN-FPPUSLECO4 is the fourth phase of the Energy Company Obligation across Great Britain. It applies to measures installed from 1 April 2022 and runs until 31 December 2026 following a nine-month extension; ECO3 closed on 31 March 2022 and ECO4 came into force in July 2022. The scheme places a Home Heating Cost Reduction Obligation on medium and large energy suppliers to promote measures that improve the ability of low-income, fuel-poor and vulnerable households to heat their homes, funding insulation and heating upgrades for both homeowners and tenants. Ofgem also lists the Great British Insulation Scheme as a separate obligation on this page.
  8. 8technicalvery strongGOV.UK, guidance.RN-8G8WJBThe GOV.UK consumer guide to ECO. It sets out the benefit and EPC-band eligibility rules and tells households to contact their council or energy supplier to apply.
  9. 9technicalvery strongOfgem.RN-RDOIJRThe scheme, formerly known as ECO+, ran from April 2023 to 31 March 2026 and is now closed. It obliged medium and large energy suppliers to deliver measures reducing energy use in the least energy-efficient homes in Great Britain. Eligibility was homes with an EPC rating of D to G in Council Tax bands A to D in England, or A to E in Scotland and Wales, plus low-income and vulnerable households. Unlike ECO4, which funds whole-house packages, GBIS mostly delivered a single insulation measure per home. This is the page to cite when a note has to say a grant route has closed rather than leave a reader chasing it.
  10. 10technicalvery strongDepartment for Energy Security and Net Zero (GOV.UK), a government page.RN-9S1WR8The £150 one-off discount off an electricity bill, relevant to any running-cost or payback calculation on heating and insulation work. The money is never paid to the household: the electricity supplier applies it to the bill, or issues a voucher to a prepayment meter customer. The scheme is currently closed and reopens in October 2026 for winter 2026 to 2027. Eligibility differs by nation, with separate criteria for England and Wales and for Scotland, and the discount is not available in Northern Ireland at all. Most eligible customers receive it automatically. It sits alongside, and does not reduce, Cold Weather Payments or Winter Fuel Payments. Use it as the authority for the discount value and the automatic application mechanism; the nation-specific qualifying criteria are on the linked regional pages rather than here.
  11. 11costvery strongDepartment for Energy Security and Net Zero, guidance.RN-BCN48CA price, true at 2026-07. Warm Homes: Local Grant, policy guidance for local authorities (updated July 2026), government guidance cited for the figures and rules it sets out
  12. 12technicalvery strongWelsh Government (GOV.WALES), guidance.RN-YESQ80The Welsh Government page for the Warm Homes Nest scheme. It describes free advice and, for eligible households, free improvements such as boilers, heat pumps, insulation and solar panels.
  13. 13technicalfairHome Energy Scotland (funded by the Scottish Government), guidance.RN-HY4Q8MHome Energy Scotland's page on Warmer Homes Scotland, the government-funded advice service's own description. It explains who qualifies, that Warmworks does the work and that costs are usually met in full.

  1. Apply for the Boiler Upgrade Scheme: What you can get, GOV.UK (Department for Energy Security and Net Zero), accessed 15 September 2026. Priced at 2026-09, so no calibration is needed. gov.uk

  2. Boiler Upgrade Scheme: Property Owner Guidance V5.1, Ofgem, accessed 30 September 2026. ofgem.gov.uk

  3. Apply for the Boiler Upgrade Scheme: How to apply, GOV.UK (Department for Energy Security and Net Zero), accessed 30 September 2026. gov.uk

  4. Apply for the Boiler Upgrade Scheme: Check if you’re eligible, GOV.UK (Department for Energy Security and Net Zero), accessed 30 September 2026. gov.uk

  5. Boiler Upgrade Scheme regulations: government response, Department for Energy Security and Net Zero, accessed 29 September 2026. assets.publishing.service.gov.uk

  6. Energy price cap: unit rates and standing charges, Ofgem, accessed 30 September 2026. ofgem.gov.uk

  7. Energy Company Obligation (ECO), Ofgem, accessed 30 September 2026. ofgem.gov.uk

  8. Help from your energy supplier: the Energy Company Obligation, GOV.UK, accessed 30 September 2026. gov.uk

  9. Great British Insulation Scheme, Ofgem, accessed 30 September 2026. ofgem.gov.uk

  10. Warm Home Discount Scheme, GOV.UK, accessed 30 September 2026. gov.uk

  11. Warm Homes: Local Grant, policy guidance for local authorities (updated July 2026), Department for Energy Security and Net Zero, accessed 15 September 2026. Priced at 2026-07 and left there. assets.publishing.service.gov.uk

  12. Nest Warm Homes Programme, Welsh Government (GOV.WALES), accessed 30 September 2026. gov.wales

  13. Warmer Homes Scotland, Home Energy Scotland (funded by the Scottish Government), accessed 30 September 2026. homeenergyscotland.org