This article contains affiliate links. We may earn a commission if you buy through our links, at no extra cost to you. Last reviewed: August 2026. Grant amounts, dates and rules are taken from Ofgem’s Boiler Upgrade Scheme property-owner page and its V5.1 property-owner guidance, checked on 21 August 2026.
The Boiler Upgrade Scheme is a government grant, paid to your MCS-certified installer, that comes off your heat pump invoice before you pay. In England and Wales it’s £7,500 for an air-to-water or ground source heat pump, or £9,000 until 31 March 2027 if you’re off the gas grid replacing oil or LPG. You never apply on GOV.UK yourself, and you never handle a cheque. The installer does the paperwork and the grant simply lowers your quote.
This page is the scheme itself: the current amounts, who qualifies, who claims, and how our two installer partners handle the application. For what an install actually costs before and after the grant, start with our air source heat pump cost guide.
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Boiler Upgrade Scheme: the short version
Use an MCS-certified installer in England or Wales. They apply, Ofgem emails you to confirm consent, and the grant comes off the invoice. £7,500 is the standard figure for an air-to-water or ground source heat pump. £9,000 is only for off-gas properties replacing oil or LPG, and only from 21 July 2026 to 31 March 2027. Heatable and iHeat both handle the paperwork, so quote Heatable first and add iHeat for a second number.
What the Boiler Upgrade Scheme actually is
BUS is a government grant, administered by Ofgem, for replacing a fossil-fuel or electric heating system (oil, gas, LPG or electric) with a heat pump, or in limited rural cases a biomass boiler. The key word is installer-led. Your MCS-certified fitter submits the application, deals with Ofgem on most of the file, tells Ofgem when the system is in, and claims the money at the end. The grant shows up as an upfront discount on your quote, so you never pay full price and wait for a refund.
After the installer applies, Ofgem emails you to confirm that you consented and that you meet the rules, and you need to respond within the window Ofgem sets or the application can lapse. If more than one installer has applied for your property, you can only confirm one of them. Once it’s approved, the installer has three months to finish an air source job, or six months for ground source; miss that window and they have to apply again.
How much is the grant in 2026?
Ofgem’s property-owner guidance lists these amounts, and your installer claims the one that applies to your job:
| Technology | Grant | Notes |
|---|---|---|
| Air-to-water heat pump | £7,500 | Standard figure, England and Wales |
| Ground source (incl. water source) | £7,500 | Same standard figure |
| Off-gas, replacing oil or LPG (air-to-water or ground source) | £9,000 | From 21 July 2026 until 31 March 2027 |
| Air-to-air heat pump | £2,500 | Residential only; heats rooms, not hot water |
| Biomass boiler | £5,000 | Rural and off-gas only, limited cases |
There is also 0% VAT on qualifying heat pump and biomass installs from 1 April 2022 to 31 March 2027. That’s VAT relief, not a second grant, and it’s applied by the installer on top of whichever grant you get. Note that this page, and the £7,500 figure most people are chasing, is about air-to-water heat pumps. The £2,500 air-to-air grant is a different, smaller thing: air-to-air units warm rooms like air conditioning and don’t heat your hot water, so they suit far fewer homes.
Who can get it
The main eligibility rules from Ofgem’s current guidance:
- The property is in England or Wales, a home or a small or medium non-domestic building (air-to-air is residential only).
- The installer is MCS-certified, and applies on your behalf.
- The system is sized to heat the whole home. Air-to-water and ground source cover your hot water too; air-to-air heats rooms only.
- Any heat pump must have a seasonal efficiency (SCOP) of at least 2.8.
- It replaces an existing fossil-fuel or electric system, not an existing low-carbon one.
- It hasn’t been commissioned more than 120 days before the application.
- Hybrids that keep a fossil-fuel boiler alongside the heat pump are not eligible.
- Social housing is out, as is a property that has already had government or ECO funding for that heat pump or biomass boiler.
- New builds are out, except qualifying self-builds. One grant per property.
One change worth knowing for 2026: Ofgem no longer treats outstanding loft or cavity insulation recommendations on your EPC as a hard block on the grant. You still need a valid EPC, and heat pumps genuinely do run better in a well-insulated home, so it’s still worth doing. But if an installer tells you to finish loft or cavity work before they’ll proceed, that’s their design judgment, not a scheme rule.
How to claim: the installer does it
The whole path is short. You pick an MCS-certified installer, they quote with the grant already deducted, they submit the application, you confirm consent to Ofgem, they install, and they claim the money. Heatable say they handle the paperwork so you don’t have to lift a finger, and iHeat say the grant is applied automatically when you use an MCS installer like them.
Quote Heatable first through their heat pump tool, then add iHeat if you want a named Alpha Hydro, Vaillant aroTHERM Plus or Worcester 5800i package, or simply a second number to compare. Full installer write-ups are in our Heatable review and iHeat review.
Grant off the invoice. Quote Heatable first.
Both partners are MCS-certified and both apply for the grant. It isn’t a form you fill in after the job; it should already be in the price you’re quoted. Start with Heatable’s estimate, then add iHeat for a named package or a second number.
- BUS paperwork included
- Instant estimate, system designed for your home
- £240 heat-loss survey, refunded if they install
- MCS + Which? Trusted Trader
- BUS paperwork included
- Alpha, Vaillant or Worcester packages
- 0% APR and no deposit on heat pumps
- MCS engineers, Which? Trusted Trader
What the grant does to a real quote
Using iHeat’s published packages, here is how the two grant rates land, before any survey extras:
| Package | List (inc VAT) | After £7,500 | After £9,000 (if eligible) |
|---|---|---|---|
| Alpha Hydro | £10,595 | £3,095 | £1,595 |
| Vaillant aroTHERM Plus | £11,495 | £3,995 | £2,495 |
| Worcester 5800i | £11,995 | £4,495 | £2,995 |
The after-grant columns are simply arithmetic on Ofgem’s figures; anything the survey adds, such as new radiators, electrics, or a cylinder on a combi swap, sits on top. Heatable’s typical £7,000 to £13,000 band works out at roughly £0 to £5,500 after the £7,500. That’s exactly why the grant and the price belong together, and our air source heat pump cost guide covers what pushes a job above the median.
What BUS does not cover
- A new gas boiler. There’s no grant money for a combi swap; that’s a separate job, covered in our new boiler cost guide.
- Solar panels or batteries. The 0% VAT to 31 March 2027 helps there, but it isn’t BUS.
- Keeping the old boiler as a hybrid alongside a heat pump.
- Anything in Scotland or Northern Ireland, which run their own schemes.
Frequently asked questions about the Boiler Upgrade Scheme
How much is the Boiler Upgrade Scheme grant in 2026?
£7,500 for an air-to-water or ground source heat pump in England and Wales. £9,000 if you’re off-gas replacing oil or LPG, from 21 July 2026 to 31 March 2027. £2,500 for an air-to-air heat pump, and £5,000 for biomass in limited rural, off-gas cases. Source: Ofgem, checked 21 August 2026.
Do I apply on GOV.UK myself?
No. Your MCS-certified installer applies. Ofgem then emails you to confirm your consent, and you need to respond within the window they set or the application can be rejected.
Is the £9,000 off-gas grant actually live?
Yes. It runs from 21 July 2026 until 31 March 2027 for eligible off-gas properties replacing oil or LPG with an air-to-water or ground source heat pump. Ofgem states this on its property-owner page.
Can landlords claim the grant?
The scheme is open to residential and non-residential properties in England and Wales, with social housing excluded. Landlord cases can be eligible, so ask your installer to confirm the current rules, including consent, before you commit.
Do Heatable and iHeat both apply for it?
Yes. Both are MCS-certified and both say they handle the BUS paperwork and deduct the grant from your quote. Quote Heatable first and add iHeat as a second number.
Does BUS pay for a new boiler?
No, despite the name. The grant is for heat pumps, and biomass boilers in limited cases, not a gas combi. For a boiler replacement, see our new boiler cost guide.
This guide was last updated on 21 August 2026 against Ofgem’s Boiler Upgrade Scheme property-owner page and its V5.1 property-owner guidance. Amounts and dates can change, so confirm the current figures with your installer before you sign. We are not Ofgem, a lender or an installer. Heatable and iHeat handle the quoting and the application.