The £7,500 Boiler Upgrade Scheme grant

The Boiler Upgrade Scheme (BUS) is a government grant administered by Ofgem that pays £7,500 toward an air source or ground source heat pump installation in England and Wales. Out of 2,215 MCS-certified heat pump installers in the UK, 1,645 are registered to claim BUS on a customer's behalf.

Who can apply

BUS is open to homeowners and small landlords in England and Wales. To qualify:

• The property must be owned (not social housing) and have a valid Energy Performance Certificate (EPC) less than 10 years old.
• The EPC must not have outstanding recommendations for loft or cavity wall insulation. If it does, you need to install the insulation first or apply for an EPC exemption.
• The property must be the one being upgraded (you can't claim for a property you're about to sell where the buyer will take possession before the installation).
• New-builds and self-builds are excluded unless they are custom-builds where the homeowner is the end user.

How much you actually get

Air source heat pump (ASHP)

£7,500

Ground or water source heat pump (GSHP / WSHP)

£7,500

Biomass boiler

£5,000 (rural / off-grid properties only)

Installers registered for BUS

1,645 of 2,215 MCS-certified installers⁴

These figures applied from October 2023 when the original £5,000 / £6,000 rates were uplifted. Source: Ofgem BUS scheme rules².

The application process, step by step

1. Find a BUS-registered installer. Not every MCS-certified installer is BUS-registered. Filter for "BUS approved" on our regional pages or ask directly.
2. Get a quote. The quote should clearly show the gross price, the £7,500 BUS deduction, and the net price you actually pay.
3. The installer applies to Ofgem. They submit your details, the EPC, and an installation address. Ofgem issues a grant voucher to the installer.
4. You sign the contract. Only at this point. Don't pay deposits before the voucher is issued.
5. Installation happens. The installer commissions the heat pump and issues an MCS certificate.
6. The installer redeems the voucher. They submit the MCS certificate to Ofgem and receive the £7,500 within 30 days.

Why applications get rejected

Ofgem publishes rejection reasons periodically, and the same handful account for most failed vouchers. Knowing them before you get a quote saves weeks of delay.

• Outstanding EPC recommendations. If your Energy Performance Certificate flags loft or cavity wall insulation as "recommended" and it hasn't been installed, the voucher is refused until you either install it or apply for a valid exemption.
• Expired EPC. An EPC is valid for 10 years. If yours has lapsed, you need a new assessment before applying, adding roughly £60 to £120 and a few days' wait.
• Wrong property type. New-builds (other than genuine self-builds where the applicant is the first occupant) don't qualify. Neither does most social housing, which has its own funding routes.
• Installer not BUS-registered at the time of the quote. MCS certification and BUS registration are separate. An installer can be MCS-certified for the technology but not signed up to claim BUS vouchers.
• Voucher expired before installation. A BUS voucher is valid for a limited window (typically 3 months, with one extension available). Installers who quote long lead times sometimes need to reapply.

Worked example: how the grant changes a real quote

A detached home in Yorkshire needs a 12 kW air source heat pump, one radiator upgrade and a new cylinder. The installer's gross quote is £13,800 including VAT. Because the installer is BUS-registered, they deduct the £7,500 grant before asking for payment, so the homeowner's invoice reads £6,300. The installer submits the EPC and installation address to Ofgem before work starts, receives the voucher, completes the install, then reclaims the £7,500 from Ofgem after commissioning. The homeowner never deals with Ofgem directly and never sees the full £13,800 change hands.

Compare that against a homeowner who accepts a "no BUS deduction shown" quote of £7,000: without the paperwork trail, there's no proof BUS was ever applied, and no way to check whether they've simply been charged what an ASHP costs without the grant, and told it already includes a discount that never existed. Always ask to see the gross price and the £7,500 line item separately¹.

What if I'm in Scotland, Wales or Northern Ireland?

Wales is covered by BUS, same as England.

Scotland has its own scheme run by Home Energy Scotland. The Home Energy Scotland Grant and Loan can provide up to £7,500 as a grant plus an interest-free loan up to £7,500 (rural uplift adds another £1,500 in eligible postcodes)³. Different application route, but installers still need MCS certification.

Northern Ireland has no direct heat pump grant equivalent in 2026. ECO4 and the Affordable Warmth Scheme can sometimes contribute for eligible low-income households.

Frequently asked questions

Can I get BUS for a hybrid heat pump?

No. BUS covers full electric heat pumps only. Hybrid systems (heat pump plus retained gas boiler) are not eligible. See our hybrid heat pumps guide for what funding routes hybrids can access instead.

Can I get BUS if I have a wood-burning stove?

Yes, secondary heat sources don't affect BUS eligibility, as long as the heat pump is sized to meet the property's full heat demand on the design day.

Do I need to remove my old boiler?

Generally yes for ASHP / GSHP claims. The scheme is replacing fossil fuel heating, so the installer needs to confirm the new heat pump becomes the primary heating system.

How long does BUS last?

BUS was originally a three-year scheme running until 2025; in 2023 it was extended to 2028 with the increased £7,500 grant. Government policy can change; check Ofgem's BUS page before relying on dates.

What happens if the scheme changes or ends

BUS has already been extended and increased once, from an original £5,000/£6,000 structure to the current £7,500 flat rate, so it isn't a fixed, unchangeable scheme. If you're partway through the process when a change happens, the rules in force at the point your voucher is issued generally apply, not the rules on the day you complete. That's another reason not to delay once you've decided to go ahead: an issued voucher locks in your grant amount even if the scheme changes shape before your installation finishes. If BUS were to end entirely, existing vouchers would very likely still be honoured within their validity window, though that's a reasonable assumption rather than a guarantee, always check Ofgem's current guidance directly if scheme continuity ever becomes uncertain.

BUS and other grants: can they be combined?

BUS cannot be combined with other government heat pump grants for the same measure, you claim one or the other, not both. It can generally sit alongside separate schemes for different work on the same property, insulation grants under ECO4, for example, cover a different measure entirely and don't conflict with a BUS-funded heat pump. If your EPC flags loft or cavity insulation as outstanding, that's actually a case where combining an ECO4-funded insulation upgrade with a subsequent BUS application can clear the eligibility requirement and improve your heat pump's SCOP at the same time, worth raising with your installer if your EPC isn't clean.

Find a BUS-approved installer near you

Browse our regional pages to filter installers approved for the Boiler Upgrade Scheme, or read how to choose an installer and heat pump costs in 2026 before you get quotes:

→ Browse all UK regions