Grant rules checked against Ofgem on 15 October 2026
The Boiler Upgrade Scheme: how the £7,500 heat pump grant works
Published and last updated 15 October 2026
The Boiler Upgrade Scheme (BUS) is a government grant that takes £7,500 off the cost of installing an air source heat pump in England and Wales. Homes off the gas grid can get £9,000 until 31 March 2027, and air-to-air heat pumps get £2,500. Your MCS-certified installer applies for it and deducts it from your quote, so you only pay the difference.
Grant guides
How much is the Boiler Upgrade Scheme grant?
The grant is £7,500 for most heat pumps, £9,000 for eligible off-gas-grid homes and £2,500 for air-to-air heat pumps.
| Technology | Grant | Notes |
|---|---|---|
| Air-to-water air source heat pump | £7,500 | Homes and business premises |
| Ground or water source heat pump | £7,500 | Homes and business premises |
| Air-to-water or ground source in an eligible off-gas-grid property | £9,000 | 21 July 2026 to 31 March 2027 |
| Air-to-air heat pump | £2,500 | Residential properties only |
| Biomass boiler | £5,000 | Rural, off-gas-grid properties only |
Installation is also VAT-free until 31 March 2027.
Who can get the grant?
You can get the grant if you own a home or business premises in England or Wales and replace a fossil fuel or electric heating system with an eligible heat pump fitted by an MCS-certified installer.
- Owner-occupiers and private landlords
- Existing homes and qualifying self-builds
- Replacing gas, oil, LPG or electric heating
- The heat pump meets the home's full heating and hot water needs
See the full eligibility rules · Check if your home is suitable
Who can't get it?
You can't get the grant for new builds, social housing, previously funded heat pumps, hybrids, replacement heat pumps, or properties in Scotland and Northern Ireland.
- New builds (except qualifying self-builds)
- Social housing, including shared ownership
- Properties that already received government or ECO funding for the heat pump
- Hybrid systems (a heat pump paired with a fossil fuel boiler)
- Replacing an existing heat pump or biomass boiler
- Scotland and Northern Ireland
How do you apply?
You don't apply yourself: your installer does.
- Get quotes from MCS-certified installers (Ofgem recommends more than one).
- Your chosen installer submits the application.
- Ofgem contacts you and you confirm consent within 14 calendar days (you can only confirm one installer).
- The installer has 3 months from approval to fit an air source heat pump (6 months for ground source).
- They claim the grant from Ofgem and you pay the balance.
Step-by-step application guide · How to choose an MCS-certified installer
How much will you pay after the grant?
You pay your installer's quote minus the grant.
| Example quote | You pay (standard £7,500) | You pay (off-gas £9,000) |
|---|---|---|
| £10,000 | £2,500 | £1,000 |
| £12,000 | £4,500 | £3,000 |
| £14,000 | £6,500 | £5,000 |
How much an air source heat pump costs
Is there a deadline?
The standard £7,500 grant is available now with no announced closing date for applicants; the £9,000 off-gas uplift and 0% VAT both run until 31 March 2027. Because installers have 3 months from approval to fit the system, off-gas homes should start early.
More on the £9,000 off-gas grant
Can you combine it with other funding?
Not for the same heat pump. Properties that have already received government or Energy Company Obligation funding for the heat pump are excluded. You can still use separate schemes for other improvements such as insulation.
What if something goes wrong?
Speak to your installer first, and if that doesn't resolve it, contact MCS.
- Installers must follow a consumer code such as RECC or HIES, which offers a complaints and dispute process.
- Ofgem BUS enquiries: BUS.Enquiry@ofgem.gov.uk, 0330 053 2006.
Frequently asked questions
Is the £7,500 grant per home or per person?
It's per property installation, not per person.
Can landlords use the Boiler Upgrade Scheme?
Yes, owners of privately rented homes can use the scheme.
Can I choose any installer?
You can choose any MCS-certified installer registered for the scheme.
Does the grant cover the full cost?
Sometimes nearly; it depends on your quote.
Is the Boiler Upgrade Scheme the same as the Warm Homes Plan?
No. The Warm Homes Plan funds separate local schemes; the Boiler Upgrade Scheme is the national heat pump grant.