If you’re a homeowner in England or Wales, now is a great time to switch to a low-carbon heating system. Thanks to the UK’s Boiler Upgrade Scheme (BUS), you could receive a £7,500 grant to replace your old gas, oil, or LPG boiler with a more energy-efficient system like a heat pump or a biomass boiler, depending on your location.
This grant is part of the UK government’s wider push toward reducing carbon emissions and reaching net-zero by 2050. With energy bills still high and sustainability at the forefront, this opportunity helps you future-proof your home while saving money.
Overview
Here’s a simple overview of how the scheme works:
| Feature | Details |
|---|---|
| Grant Name | Boiler Upgrade Scheme (BUS) |
| Grant Value | £7,500 for heat pumps, £5,000 for biomass boilers |
| Eligible Systems | Air source and ground source heat pumps, biomass boilers (rural only) |
| Who Can Apply | Homeowners or landlords replacing fossil fuel systems |
| Application Type | Installer applies on your behalf |
| Official Info | GOV.UK Boiler Upgrade Scheme |
The grant goes directly to your installer, meaning you don’t have to claim or manage the money yourself.
Purpose
The Boiler Upgrade Scheme began in 2022 and supports the UK’s mission to reduce emissions from household heating, which currently accounts for around 17% of the country’s carbon footprint.
Replacing older systems with low-carbon alternatives helps the UK move toward its environmental goals while also reducing energy consumption in homes.
Systems
The grant covers the following systems:
Air Source Heat Pumps
- Extracts heat from outside air
- Effective all year round
- Suitable for most homes
Ground Source Heat Pumps
- Uses underground loops to draw heat
- Ideal for properties with garden space
- Higher installation cost but very efficient
Biomass Boilers
- Burns sustainable wood pellets
- Available for rural properties off the gas grid
- £5,000 grant cap
Heat pumps are significantly more efficient than traditional boilers and can reduce your home’s carbon emissions by up to 75%.
Eligibility
To qualify for the grant, you must meet the following criteria:
- Own the property (private homeowner or landlord)
- Be located in England or Wales
- Be replacing a fossil fuel system (gas, oil, LPG, or electric)
- Have a valid Energy Performance Certificate (EPC) with no unresolved recommendations for insulation
- Ensure the system is under 45kWth in capacity (most homes meet this requirement)
- The home must not be a new build unless it’s a self-build
If your EPC includes recommendations for loft or cavity wall insulation, you must complete those upgrades before applying.
Grant
These are the current grant values:
| System Type | Grant Value |
|---|---|
| Air Source Heat Pump | £7,500 |
| Ground Source Heat Pump | £7,500 |
| Biomass Boiler (rural only) | £5,000 |
The grant often covers over 50% of the total installation cost depending on your property and choice of system.
Process
Applying for the Boiler Upgrade Scheme is simple and handled mostly by your installer:
- Find a certified installer through the MCS Installer Search Tool.
- Get a home visit and receive a quote.
- If you agree, the installer applies for the grant on your behalf.
- You confirm your consent via an email from Ofgem.
- The installer redeems the grant, and you pay only the remaining cost.
You never receive the money directly—it is subtracted from your invoice automatically.
Example
Sarah, a homeowner in Hertfordshire, had a gas boiler that cost her a fortune every winter. In 2024, she installed an air source heat pump for £12,000. Thanks to the £7,500 grant, she only had to pay £4,500.
Her energy bills dropped, and she reported a quieter, more consistent heating experience throughout the year. The installer managed the entire application process for her.
Benefits
- Reduces your home’s carbon emissions
- Supports national net-zero targets
Financial
- Potential savings of £100 to £300 annually
- Lower maintenance costs than traditional boilers
Energy Security
- Less reliance on imported fuels
- Better control with modern energy tariffs
Considerations
There are a few points to keep in mind:
- The initial cost is still significant, even after the grant
- You may need bigger radiators or underfloor heating for maximum efficiency
- Your home must be well-insulated for the system to work properly
- Installation can take several days
Despite the above, most users find the long-term savings and comfort improvements to be worth the investment.
FAQs
Who can get the £7,500 grant?
Homeowners in England or Wales replacing fossil fuel boilers.
What systems are eligible for the grant?
Air and ground source heat pumps, biomass boilers (rural only).
Is the grant paid to me directly?
No, it’s paid to your installer and deducted from your invoice.
How do I apply for the grant?
Your installer handles the process—you just give consent.
What if my EPC recommends insulation?
You must complete those upgrades before applying.
