Boiler Upgrade Scheme 2026: Who Qualifies for the £7,500 Heat Pump Grant?

If you are considering replacing an old boiler or heating system with a heat pump, the Boiler Upgrade Scheme (BUS) could help reduce your upfront installation costs.

In 2026, eligible property owners in England and Wales can receive a grant of £7,500 towards an eligible air-to-water, ground-source or water-source heat pump. There is also an increased grant of up to £9,000 for qualifying off-gas-grid properties installing an air-to-water or ground-source heat pump.

But who actually qualifies for the Boiler Upgrade Scheme, and what requirements does your property need to meet?

This guide explains the key eligibility criteria, available grant amounts, eligible heating systems and how the application process works.

What Is the Boiler Upgrade Scheme?

The Boiler Upgrade Scheme Grant is a government-backed grant scheme designed to help property owners move away from conventional fossil-fuel heating and install low-carbon heating technologies.

The scheme is available for eligible properties in England and Wales.

Rather than requiring homeowners to manage the entire application themselves, BUS is an installer-led scheme. An eligible MCS-certified installer applies for the grant on behalf of the property owner.

The grant is then provided as an upfront reduction in the installation cost.

How Much Is the Boiler Upgrade Grant in 2026?

The grant depends on the heating technology being installed.

The £9,000 uplift applies to qualifying off-gas-grid properties and is available for applications made under the updated scheme rules from 21 July 2026, with the uplift currently available until 31 March 2027.

Therefore, the commonly advertised £7,500 heat pump grant remains important, but some eligible off-gas-grid properties may qualify for more.

Who Qualifies for the £7,500 Heat Pump Grant?

There are several requirements to meet before a property can receive BUS funding.

1. Your property must be in England or Wales

The Boiler Upgrade Scheme is available for eligible residential and non-residential properties located in England or Wales.

The scheme does not apply to properties in Scotland or Northern Ireland.

2. You must own the property

The scheme is available to eligible property owners.

This can include homeowners and owners of qualifying rental properties. Certain non-domestic properties may also qualify, depending on the proposed installation and the scheme requirements.

3. You must replace an existing heating system

The new heat pump must replace an existing eligible fossil-fuel or electric heating system.

Depending on the circumstances, this can include heating systems powered by:

• Gas
• Oil
• LPG
• Electricity

The scheme is intended to support the move from existing conventional heating to qualifying low-carbon heating.

4. Your new heating system must be eligible

BUS funding is available only for technologies that meet the scheme's requirements.

Eligible technologies include:

• Air-to-water heat pumps
• Air-to-air heat pumps
• Ground-source heat pumps
• Water-source heat pumps
• Shared ground-loop heat pumps
• Biomass boilers, subject to additional requirements

The proposed system must also meet the relevant technical standards.

5. You need an MCS-certified installer

The installation must be completed and commissioned by an installer certified under the Microgeneration Certification Scheme (MCS) for the relevant technology.

The installer is responsible for submitting the BUS application and claiming the grant after the installation has been completed.

Can You Get the Grant If You Have a Gas Boiler?

Yes.

Replacing an existing gas boiler with an eligible heat pump can qualify for the Boiler Upgrade Scheme, provided all the other scheme requirements are met.

However, the grant cannot be used simply to replace one gas boiler with another gas boiler.

BUS is intended to support eligible low-carbon heating installations.

Can You Get BUS If You Have an Oil Boiler?

Yes, an existing oil heating system can potentially be replaced with an eligible heat pump through BUS.

Oil-heated properties that are not connected to the gas grid may also be particularly relevant to the £9,000 uplift.

For the £9,000 grant, the property must meet the specific off-gas-grid requirements and the new system must be an eligible air-to-water or ground-source heat pump.

What Is the £9,000 Off-Gas-Grid Grant?

The £9,000 grant is an enhanced BUS payment for qualifying off-gas-grid properties.

To qualify for the uplift, the property must meet the relevant definition of an off-gas-grid property and install either:

• An air-to-water heat pump, or
• A ground-source heat pump.

The existing heating system being replaced must also meet the scheme's requirements, including the relevant conditions for oil or LPG heating.

This means not every property qualifies for £9,000.

For many eligible properties, the standard heat pump grant remains £7,500.

Are New-Build Properties Eligible?

Most new-build properties are not eligible for the Boiler Upgrade Scheme.

There is an exception for certain eligible self-build properties.

A self-build property generally needs to have been built mainly using the labour or resources of the first owner, must never have been owned by a business or organisation, and must not form part of an excluded property development.

If you are unsure whether your property qualifies as a self-build, your installer can assess the circumstances before applying.

Can Landlords Apply for the Boiler Upgrade Scheme?

Yes, eligible landlords can potentially use the Boiler Upgrade Scheme for qualifying rental properties.

The grant is not simply based on household income. Instead, eligibility depends on factors such as:

• Property location
• Property type
• Existing heating system
• Proposed heating technology
• Installer certification
• Technical requirements
• Previous public funding

Landlords should confirm eligibility before agreeing to an installation.

Does the Property Need an EPC?

An Energy Performance Certificate can be relevant when assessing BUS eligibility.

For retrofit properties, where a valid EPC exists, the EPC information may need to be provided as part of the application.

If the property does not have a valid EPC, alternative evidence may be required to demonstrate eligibility.

Your installer can advise you about the documentation required for your particular property.

Which Heating Systems Are Not Eligible?

Not every heating installation qualifies for BUS.

For example, the scheme does not generally support:

• Replacing an existing heat pump with another heat pump
• Hybrid systems combining a heat pump with fossil-fuel heating
• Installing another fossil-fuel heating system
• Most new-build properties
• Social housing
• Installations that have already received certain other forms of public funding

The new system must also meet the scheme's technical requirements.

Can You Have a Heat Pump and Keep Your Gas Boiler?

A hybrid system that combines a heat pump with a fossil-fuel boiler is not eligible for BUS funding.

The new heat pump must be capable of meeting the property's full space-heating requirements, although certain supplementary heating arrangements may be permitted where they meet the scheme rules.

This is an important distinction when comparing a conventional boiler replacement with a heat-pump installation.

Air Source vs Ground Source Heat Pumps

Both air-to-water and ground-source heat pumps can qualify for the standard £7,500 BUS grant.

However, they have different installation requirements.

The right system depends on the property, heat demand, available space, insulation and installation requirements.

How Does the Boiler Upgrade Scheme Application Work?

BUS is designed to make the application process relatively straightforward for property owners.

Step 1: Check eligibility

First, establish whether your property and existing heating system meet the scheme requirements.

Step 2: Choose an MCS-certified installer

Your installer must be certified for the relevant technology.

Step 3: Property assessment

The installer assesses your property and determines the appropriate heat-pump system.

Step 4: Receive your quotation

Your quotation should show the applicable BUS grant as a deduction from the installation price.

Step 5: Installer submits the application

The installer applies for the BUS voucher on your behalf.

Step 6: Confirm your consent

You will be contacted to confirm that you consent to the installer making the application on your behalf and that you meet the relevant eligibility requirements.

Step 7: Installation

Once the application process has been completed, the installer carries out the installation.

Step 8: Grant is claimed

After the system has been installed and the relevant requirements have been met, the installer claims the grant.

The value of the grant should have already been shown as an upfront discount on your quotation.

How Long Does the BUS Installation Take?

Once a voucher application has been approved, the installer normally has three months to complete the installation.

For ground-source heat-pump installations, the period is generally six months.

If the installation is not completed within the applicable period, the installer may need to submit a new application.

What Could You Pay After the Grant?

The Boiler Upgrade Scheme Service does not necessarily cover the entire cost of installing a heat pump.

Your final price depends on factors such as:

• Property size
• Heat-pump capacity
• Existing heating system
• Pipework
• Radiators
• Hot-water cylinder
• Electrical requirements
• Insulation
• Ground works
• Installation complexity

For example, if an eligible installation costs £15,000 and you receive the standard £7,500 grant, the remaining amount would be £7,500.

If the same installation qualified for a £9,000 grant, the remaining amount would be £6,000.

These are illustrative examples only. Actual installation costs vary from property to property.

Does the Boiler Upgrade Scheme Depend on Your Income?

The Boiler Upgrade Scheme is not primarily a means-tested grant.

You do not generally need to qualify based on household income.

Instead, the property and proposed heating installation need to satisfy the relevant BUS eligibility requirements.

This makes the scheme different from some other energy-support programmes that are targeted specifically at households on lower incomes.

Why Consider a Heat Pump?

A heat pump provides an alternative to conventional fossil-fuel heating.

Rather than burning fuel to generate heat, a heat pump transfers heat from a source such as outdoor air or the ground into your property.

Potential advantages include:

• Lower reliance on fossil fuels
• Lower-carbon heating
• Efficient operation when properly designed and installed
• Compatibility with modern heating controls
• Potential integration with renewable electricity
• Reduced dependence on conventional boiler technology

However, performance and running costs depend on the property, insulation, system design, electricity prices and how the system is operated.

Boiler Upgrade Scheme 2026 Eligibility Checklist

Before arranging your installation, check the following:

• Your property is in England or Wales.
• You own the property or otherwise meet the property-owner requirements.
• You have an eligible existing heating system.
• You are replacing it with an eligible low-carbon heating system.
• Your proposed heat pump meets the technical requirements.
• You use an MCS-certified installer.
• Your installation has not already received prohibited public funding.
• You understand the difference between the standard £7,500 grant and the £9,000 off-gas-grid uplift.
• You have checked the latest scheme requirements before installation.

How British Energy Services Can Help

Choosing the right heating system is an important decision, particularly when replacing an existing boiler with a heat pump.

British Energy Services can help property owners understand the Boiler Upgrade Scheme and the process involved in moving towards a heat-pump system.

An assessment of your property can help determine whether a heat pump is suitable and which system is appropriate for your heating requirements.

If you are eligible for BUS funding, the applicable grant can be incorporated into the installation quotation, reducing the upfront cost of the project.

Frequently Asked Questions

Is the Boiler Upgrade Scheme £7,500 in 2026?

Yes. The standard grant for eligible air-to-water, ground-source and water-source heat pumps is £7,500.

Eligible off-gas-grid properties can receive up to £9,000 for qualifying air-to-water or ground-source heat pumps under the current 2026 rules.

Who qualifies for the £7,500 heat pump grant?

Eligible property owners in England and Wales may qualify when replacing an existing eligible fossil-fuel or electric heating system with a qualifying heat pump installed by an MCS-certified installer.

Can I get the grant for replacing a gas boiler?

Yes, an eligible gas-heated property can potentially receive BUS funding when replacing its existing heating system with a qualifying heat pump.

Can I get £9,000 instead of £7,500?

Potentially. The £9,000 uplift is specifically for qualifying off-gas-grid properties installing an eligible air-to-water or ground-source heat pump.

Can landlords get the Boiler Upgrade Scheme?

Yes. Eligible rental properties can potentially qualify, subject to the scheme's property and installation requirements.

Does the scheme cover Scotland?

No. The Boiler Upgrade Scheme covered by this guidance is available in England and Wales.

Can I keep my gas boiler with the heat pump?

A hybrid system combining a heat pump with fossil-fuel heating is not eligible for BUS funding.

Do I apply for the grant myself?

BUS is an installer-led scheme. Your MCS-certified installer normally makes the application on your behalf and claims the grant after the eligible installation has been completed.

How much does a heat pump cost after the grant?

There is no single fixed price. The amount you pay depends on the installation quotation and any additional work required at your property. The BUS grant is deducted from the eligible installation cost.

Final Thoughts

The Boiler Upgrade Scheme 2026 can make switching from conventional heating to a heat pump more affordable for eligible property owners.

The standard grant is £7,500, while qualifying off-gas-grid properties may be eligible for up to £9,000 for an air-to-water or ground-source heat pump under the current uplift arrangements.

However, eligibility is not automatic. Your property, existing heating system, proposed technology and installer must all satisfy the relevant requirements.

If you are considering a heat pump, the best first step is to arrange a property assessment with an MCS-certified installer and confirm which BUS grant, if any, applies to your installation.