Please note that this page contains information and links most relevant for people living in England, Wales.
What is the Boiler Upgrade Scheme?
The Boiler Upgrade Scheme (BUS) is a UK Government grant for people in England and Wales who want to install a heat pump or a biomass boiler.
How much funding is available?
The Boiler Upgrade Scheme covers three low carbon heating systems. The level of grant towards a heat pump increased from £5,000 to £7,500 on 23 October 2023.
What happens if I applied to the Boiler Upgrade Scheme before 23 October 2023?
If you applied to the BUS before this date, and your installer hasn’t yet fitted your new heat pump, talk to them. The government says you can ask your installer to cancel your initial grant and reapply to claim the increased amount.
How will I know which low carbon heating system is right for my property?
Your installer can advise whether a heat pump or biomass boiler is suitable for your property. They may recommend improving the energy efficiency of your property first.
Read our advice on loft insulation and cavity wall insulation to help improve your property’s energy efficiency before installing a low carbon heating system.
Who can apply to the Boiler Upgrade Scheme?
The BUS is open to homeowners and owners of small business properties in England and Wales only.
To apply, you’ll need to:
Own your property (this can be a home or a small business property).
The installer will tell you if you’re eligible for a BUS grant.
Agree a quote with your installer. The value of the grant from the BUS will be deducted as part of the quote.
The installer will apply for the grant and carry out the work.
Boiler Upgrade Scheme FAQs
No. However, if you live in Scotland or Northern Ireland, there may be alternative funding available.
Scotland
In Scotland, check with Home Energy Scotland. The Home Energy Scotland Loan currently offers loans for heat pumps and biomass boilers:
Up to £15,000 (£7,500 grant plus up to £7,500 loan) for air source and ground source heat pumps. Qualifying rural properties can get an extra £1,500 grant.
Up to £15,000 (£7,500 grant plus up to £7,500 loan) for biomass boilers.
If you live in Northern Ireland, contact NI Energy Advice to find out more about funding available to help improve the energy efficiency of your home.
No, new build properties aren’t eligible for the Boiler Upgrade Scheme. However, if a fossil fuel boiler was already in place when you moved into your property, this may be considered a retrofit project. Talk to your installer about this to look over your options.
You can still apply for the Boiler Upgrade Scheme if you’ve received separate funding for energy efficiency upgrades. This includes insulation or energy efficient doors and windows.
However, properties that have already received government funding or support for a heat pump or biomass boiler aren’t eligible for the Boiler Upgrade Scheme. This includes the Green Homes Grant scheme.
Funding won’t be available for the replacement of existing low carbon heating systems. For example, you can’t replace an existing air source heat pump with a new ground source heat pump.
Only properties that are fully replacing existing fossil fuel systems (such as oil, gas or direct electric) will be eligible for support under the scheme.
We have more advice on installing low carbon heating systems. Remember, to be eligible for the scheme, the commissioning date of your new system must be on or after 1 April 2022.
Check out our advice pages on air source heat pumps, ground source heat pumps and biomass. There you’ll find out whether a low carbon heating system could save you money on your energy bills or cut your household carbon emissions.
The reduction in VAT (from 5% to 0%) on the install of energy saving materials has been in place since 1 April 2022. It will last for five years, covering the entire period of the BUS. This should help boost demand for the installation of heat pumps.
