Boiler Upgrade Scheme explained:
heat pump grants in 2026
Thinking about swapping your boiler for a heat pump? Then you’ll have seen the Boiler Upgrade Scheme mentioned in quotes, adverts and news stories – often with a different figure each time.
That’s not surprising. The scheme changed twice in 2026: new rules in April, including the first grant for air-to-air heat pumps, then a £9,000 rate for oil and LPG homes from July.
In this guide, we’ll explain how much you can get, whether you qualify, how the application works and the mistakes that can cost you the grant. We’ve linked to the official source for each rule as we go.
TABLE OF CONTENTS
- What Is the Boiler Upgrade Scheme?
- How Much Is the Grant?
- Who Gets the £9,000 Grant?
- Who Is Eligible?
- The £2,500 Grant for Air-to-Air Heat Pumps
- How to Apply, Step by Step
- What Does the Grant Pay For?
- A Real Example
- Mistakes That Can Cost You the Grant
- Scotland, Northern Ireland and Other Help
- Getting Your Grant with Infinity Energy Services
- Frequently Asked Questions
published 9 October 2026
What is the Boiler Upgrade Scheme?
The Boiler Upgrade Scheme (BUS) is a government grant that takes £7,500 off the cost of installing an air source or ground source heat pump in England and Wales – or £9,000 if your home is off the gas grid and heated by oil or LPG. Your MCS-certified installer applies for it and deducts it from your quote.
The scheme is run by Ofgem on behalf of the Department for Energy Security and Net Zero (DESNZ). There’s no form for you to fill in, and the money never passes through your hands: your installer claims it from Ofgem once the job is finished.
It isn’t a short-term offer, either. Changes made in 2026 extended the scheme until 2030.
Please note: despite the name, the scheme doesn’t pay for a new gas or oil boiler. It’s for replacing fossil fuel heating with a heat pump, or, in some rural homes, a biomass boiler.
How much is the Boiler Upgrade Scheme grant?
There are four grant levels. The one you get depends on the technology you choose. And, for the top rate, on how your home is heated now.
You can get one grant per property. Heat pumps installed in homes are also zero-rated for VAT until 31 March 2027 (HMRC), so there’s no VAT on the installation the grant comes off.
Important: hybrid systems – a heat pump working alongside a gas or oil boiler – don’t qualify. Nor can you get a grant to replace a heat pump or other low-carbon system you already have (GOV.UK).
Who gets the £9,000 grant?
From 21 July 2026 until 31 March 2027, the grant for an air source or ground source heat pump rises to £9,000 if both of these are true (Ofgem):
- your home has no mains gas connection
- it’s heated by oil or LPG
That’s an extra £1,500 on the standard grant, aimed at rural homes off the gas grid.
The detail matters, because being off the gas grid isn’t enough on its own. The government’s official list of grant categories sets the rate by what the heat pump replaces. For an air source or ground source heat pump, it works like this:
So if you live in a village without mains gas but heat your home with electric storage heaters, you’d get £7,500, not £9,000. The same applies if you’re replacing coal or a hybrid system. It’s an easy detail to miss.
Important: Ofgem says the £9,000 rate is available until 31 March 2027. An application goes through several stages with time limits (see below), so if you’re on oil or LPG, book your survey this winter rather than next spring, and ask your installer how the deadline applies to your installation.
For more background, read our news story on the £9,000 grant for oil and LPG homes.
Who is eligible for the Boiler Upgrade Scheme?
You can usually get the grant if you can tick every box below.
- You own the property. That includes homeowners, landlords renting to tenants, second homes and business premises (GOV.UK).
- It’s in England or Wales.
- You’re replacing fossil fuel heating – oil, gas, LPG, coal or electric heating such as storage heaters.
- The new system will heat your whole home. It must be designed to meet your full heating and hot water needs (Ofgem).
- It’s fitted by an MCS-certified installer. Only they can apply for the grant.
Who can’t get the grant
- Social housing, including shared ownership.
- Most new builds. A self-build can qualify if you or the original owner built it (or paid a builder to), and it has never been owned by a business or organisation (GOV.UK).
- Homes that have already had government or Energy Company Obligation (ECO) funding for a heat pump or biomass boiler.
- Business premises, if you’re installing an air-to-air heat pump.
What you no longer need
You don’t need a valid Energy Performance Certificate (EPC). Since 28 April 2026, the rules only ask for your EPC reference if you have one (Boiler Upgrade Scheme regulations).
You don’t need loft or cavity wall insulation before you apply, either. It’s still worth a look, though: Ofgem points out that heat pumps perform best in a well-insulated home, and recommends talking through energy efficiency measures with your installer as part of the design (Ofgem). And if you’ve had funding for insulation in the past, that doesn’t stop you getting the grant (GOV.UK).
The £2,500 grant for air-to-air heat pumps
Since 28 April 2026, the scheme has included air-to-air heat pumps: the wall-mounted units most people think of as air conditioning, which can heat your home as well as cool it.
The grant is £2,500, and it’s for homes only (Ofgem). The core rules are the same as for any other heat pump: it has to replace your fossil fuel heating, be sized to heat your whole home and be fitted by an MCS-certified installer.
An air-to-air system warms the air in each room rather than feeding radiators, so it won’t provide your hot water. Whether that suits your home is a question for your survey.
Most of the wall-mounted systems we install are air-to-air heat pumps – see our home air conditioning page for how they work.
How to apply for the Boiler Upgrade Scheme
You don’t apply yourself. The scheme is ‘installer-led’: your installer makes the application, deals with Ofgem and claims the money at the end (Ofgem). Here’s what happens, step by step.
- Survey and quote. An MCS-certified installer surveys your home, designs the system and gives you a quote with the grant already deducted. Ofgem recommends getting more than one quote.
- Your installer applies. They submit the application to Ofgem on your behalf (GOV.UK).
- You confirm your consent. Ofgem contacts you to check you agreed to the application and meet the rules. Reply within 14 calendar days, or the application may be rejected.
- Your voucher is issued. Once the application is approved, your installer has three months to finish the installation – six months for a ground source heat pump.
- Installation and commissioning. The system is fitted, tested and certified under MCS.
- Your installer claims the grant. They redeem the voucher with Ofgem, and you pay the balance on your invoice.
Please note: confirming consent doesn’t tie you to that installer; it only confirms you agreed to them applying. But you can only confirm consent for one application per property, and Ofgem rejects any others.
Also: Ofgem can check any application, before or after the grant is paid, and that can include a visit to your home.
Important: under the 2026 rules, your installer must take the grant off the price they quote you, and can’t ask you to pay that amount unless the application is refused or the voucher is revoked (Boiler Upgrade Scheme regulations).
What does the grant pay for?
The grant is a fixed amount off the total price of your installation, not a payment towards particular parts. Ofgem describes it as money ‘off the cost and installation’ of the heat pump.
So if your quote includes larger radiators, a new hot water cylinder or new pipework, the £7,500 comes off the whole bill rather than paying for those items specifically. Ask for an itemised quote that shows the full price, the grant and what you’ll pay.
The heat pump has to meet minimum standards
An air source or ground source heat pump must have a ‘seasonal coefficient of performance’ (SCOP) of at least 2.8 (Boiler Upgrade Scheme regulations). SCOP is simply how much heat you get for each unit of electricity over a whole year. A SCOP of 2.8 means 2.8 kWh of heat for every 1 kWh of electricity. Your installer can tell you the SCOP of the heat pump and design they’re proposing.
What the grant won’t pay for
- a new gas or oil boiler
- a hybrid system, where a heat pump works alongside a fossil fuel boiler
- replacing a heat pump you already have
- solar panels or a home battery – the scheme only covers heating
What the grant means in practice: a real example
Mr and Mrs Jenkins in Southampton had an air source heat pump fitted by Infinity Energy Services, alongside solar panels. The heat pump cost £10,900, and the grant at the time – £5,000 – brought that down to £5,900.
The grant is now £7,500. On the same price, that would leave £3,400 to pay (£10,900 minus £7,500). Installation prices have changed since, so treat that as an illustration, not a quote.
Their energy bills fell from £1,710.61 to £517.51 a year, with the heat pump and solar panels working together.
Mistakes that can cost you the grant
These are the slips that can stop an application, all taken from Ofgem’s guidance for property owners.
- Agreeing to two installers’ applications. You can only confirm consent for one application per property.
- Missing Ofgem’s check. If Ofgem contacts you and you don’t confirm within 14 calendar days, the application may be rejected.
- Choosing a hybrid system. A heat pump paired with a fossil fuel boiler doesn’t qualify.
- Installing first and applying much later. A system commissioned more than 120 days before the application is made isn’t eligible.
- Using an installer who isn’t MCS-certified. Only MCS-certified installers can apply. You can check any installer on the MCS website.
- Assuming ‘off-grid’ means £9,000. Only homes heated by oil or LPG get the higher rate.
Scotland, Northern Ireland and other help
The Boiler Upgrade Scheme only covers England and Wales. If you live in Scotland, you might be able to get an interest-free loan or a grant instead – Home Energy Scotland can tell you more. Northern Ireland’s Boiler Replacement Scheme has closed (GOV.UK).
Wherever you live, your energy supplier may be able to help through the Energy Company Obligation (ECO). Just remember you can’t use ECO funding and the Boiler Upgrade Scheme for the same heat pump.
Getting your grant with Infinity Energy Services
Infinity Energy Services is MCS-certified for air source heat pumps (certificate NAP-14896), so we can apply for the Boiler Upgrade Scheme grant on your behalf. We’ve been installing low-carbon technology since 2011.
We design and fit Vaillant and Grant air source heat pumps across Hampshire, Dorset, Wiltshire, Berkshire, Surrey and West Sussex, from our headquarters at Swanwick, near Southampton. In Hampshire, see our guide to heat pump installers in Hampshire.
We’ll survey your home, quote with the grant already deducted and handle the application and Ofgem paperwork for you.
Not sure which grants apply to you? Try our grant and incentive checker, or see what a heat pump could save with our heat pump savings calculator. Or call us on 0800 909 8882.
Frequently asked questions about the Boiler Upgrade Scheme
No. There’s no income test. If you own the property, live in England or Wales and meet the other rules, you can get the grant whatever you earn.
No. Your MCS-certified installer applies on your behalf. Ofgem then contacts you to confirm you agreed to the application, and you need to reply within 14 calendar days.
Changes that took effect in April 2026 extended the scheme until 2030. The higher £9,000 rate for oil and LPG homes off the gas grid ends on 31 March 2027.
Yes. You must own the property, but it can be a home you rent out, a second home or business premises. Social housing doesn’t qualify.
No. Since 28 April 2026 you don’t need a valid Energy Performance Certificate, and there’s no requirement to have loft or cavity wall insulation first. Insulation is still worth considering, because heat pumps work best in well-insulated homes.
No. Despite the name, it doesn’t fund gas or oil boilers. It pays towards heat pumps and, in rural homes off the gas grid, biomass boilers.
Only if the unit is an air-to-air heat pump that heats your home and replaces your fossil fuel heating. The grant is £2,500 and is for homes only. Cooling-only air conditioning doesn’t qualify.
No. It covers England and Wales only. In Scotland, you might be able to get an interest-free loan or a grant through Home Energy Scotland instead.