Most UK homeowners don’t realise they could be eligible for a £7,500 government grant to replace their old gas or oil boiler with a modern, eco-friendly heating system.
Thanks to the Boiler Upgrade Scheme (BUS), you can upgrade to a heat pump or biomass boiler and cut your heating bills while reducing your carbon footprint. If you live in England or Wales, this scheme could be a great opportunity.
Here’s everything you need to know about how it works, who qualifies, and how to apply.
Overview
The Boiler Upgrade Scheme was introduced by the UK government to support the move away from fossil fuels. It offers upfront grants to help homeowners install greener, more energy-efficient heating systems. The grant is paid directly to your installer, meaning less hassle for you.
| Feature | Details |
|---|---|
| Grant Name | Boiler Upgrade Scheme (BUS) |
| Grant Amount | £7,500 (heat pumps), £5,000 (biomass boilers) |
| Eligible Homes | Located in England or Wales |
| Eligible Owners | Homeowners or landlords |
| Covered Systems | Air/ground source heat pumps, biomass (rural only) |
| Application Method | Installer-led with homeowner consent |
| Official Info | GOV.UK Boiler Upgrade Scheme |
Boiler Upgrade Scheme
The Boiler Upgrade Scheme provides financial support for replacing fossil fuel boilers with low-carbon heating systems. It’s part of the UK’s goal to reduce greenhouse gas emissions and reach net zero by 2050.
The grant covers a significant portion of the cost and is claimed by your installer on your behalf. This makes the process more accessible and removes the need for you to handle any complicated paperwork.
Systems Covered
You can apply the grant to the following heating systems:
- Air source heat pumps: These extract warmth from outside air and work even in cold weather.
- Ground source heat pumps: These use underground pipes to capture natural heat and are ideal for properties with outdoor space.
- Biomass boilers: These burn sustainably sourced wood pellets and are allowed only in rural areas not connected to the gas grid.
Heat pumps are much more efficient than traditional boilers and can dramatically reduce your home’s carbon emissions.
Who Can Apply?
You are eligible if:
- You own a home or are a landlord in England or Wales.
- You are replacing a fossil fuel system (gas, oil, LPG, or electric).
- Your property has a valid Energy Performance Certificate (EPC) with no outstanding recommendations for loft or cavity wall insulation.
- The system being installed is 45kWth or less, which covers most homes.
New-build homes are excluded unless they are self-builds.
Tip: Make sure your home is properly insulated before applying. This helps ensure your new system performs efficiently.
Grant Amounts
The value of the grant depends on the system:
| System Type | Grant Value |
|---|---|
| Air source heat pump | £7,500 |
| Ground source heat pump | £7,500 |
| Biomass boiler | £5,000 |
In many cases, this grant will cover more than half the installation cost, depending on your home’s requirements and your installer’s pricing.
How to Apply
The application is mostly handled by your installer. Here’s the step-by-step process:
- Find an MCS-certified installer: Use the MCS website to locate a certified installer near you.
- Get a home assessment and quote: The installer will survey your property to confirm eligibility and provide a detailed quote.
- Give your consent: Once you accept the quote, the installer applies for the grant, and you’ll receive an email from Ofgem to confirm your consent.
- Installation and payment: After the system is installed, the installer redeems the grant voucher and you pay only the remaining balance.
The grant is not paid to you but goes directly to your installer.
Real-Life Example
Sarah, a homeowner in Hertfordshire, upgraded her gas boiler to an air source heat pump in 2024. Her total cost was £12,000. With the £7,500 grant, she paid just £4,500.
She said her bills have gone down, and the system is surprisingly quiet and efficient, even during winter. She appreciated that the installer handled the entire grant process.
Pros
- Reduces your home’s carbon emissions
- Cuts heating bills by up to £300 a year
- Lower maintenance costs compared to traditional boilers
- Contributes to UK’s energy goals
Drawbacks
- Higher upfront cost even after the grant
- May require additional upgrades like larger radiators
- Works best in well-insulated homes
- Installation takes a few days
For most people, the benefits far outweigh the initial effort and cost, especially with the government grant making things easier.
FAQs
Who qualifies for the £7,500 grant?
Homeowners or landlords in England or Wales replacing fossil fuel heating.
Which systems are eligible?
Air and ground source heat pumps, and biomass boilers in rural areas.
Do I apply directly for the grant?
No, your installer applies after you give consent.
How much can I save?
Grants cover up to £7,500—often more than half the cost.
Where can I find an installer?
Use the MCS Installer Search Tool online.
