The Boiler Upgrade Scheme (BUS) is the government's main incentive for switching to a heat pump. It is worth up to £7,500 — and it is simpler to claim than most people expect. Here is everything you need to know.
What Is the Boiler Upgrade Scheme?
The BUS is a government grant that pays towards the cost of replacing a fossil fuel heating system with a low-carbon alternative. It is administered by Ofgem and has been running since 2022. The grant amounts were increased in late 2024, and the scheme is currently funded through to March 2028.
How Much Do You Get?
| Technology | Grant Amount |
|---|---|
| Air source heat pump | £7,500 |
| Ground source heat pump | £7,500 |
| Biomass boiler | £5,000 |
| Air-to-air heat pump (where no wet system exists) | £2,500 |
For most homeowners looking at an air source heat pump, the grant is £7,500. That is deducted directly from your installation cost — you never pay the full price and claim it back.
Who Qualifies?
Most homeowners do. The key eligibility criteria are:
- You own the property — owner-occupiers and private landlords both qualify.
- You have a valid EPC (Energy Performance Certificate). If yours is out of date or you do not have one, we can arrange this for you.
- You are replacing a fossil fuel heating system — gas, oil, LPG, electric storage heaters, or coal.
- The property is not a new build.
Self-builders also qualify, as do some landlords replacing systems in rented properties.
Who Does Not Qualify?
- New build homes — these are expected to have heat pumps as standard under building regulations.
- Social housing — there are separate funding schemes for social housing.
- Properties that have already received a BUS grant.
- Hybrid systems that keep the existing boiler running — the BUS requires the fossil fuel system to be fully replaced, not supplemented.
How Does the Process Work?
This is the part that puts some people off — they assume it is a mountain of paperwork. It is not. Here is how it works:
- We survey your home and confirm you are eligible.
- We submit the grant application to Ofgem on your behalf. You do not need to fill in any forms.
- Ofgem sends you a confirmation email within a few days. You need to confirm you want to proceed.
- We install the heat pump.
- We submit completion paperwork to Ofgem.
- Ofgem pays us the £7,500 directly. It is already deducted from your invoice — you only ever pay the balance.
The whole process from application to confirmation typically takes one to two weeks. We handle all of it.
The EPC Requirement
You need a valid EPC to qualify. An EPC lasts 10 years, so if your home was assessed in the last decade, you probably already have one. If not, we can arrange an assessment — it is straightforward and usually costs around £80–£120.
There is no minimum EPC rating required. Your home does not need to be rated C or above. The EPC just needs to exist.
0% VAT on Top
On top of the £7,500 grant, heat pump installations are currently zero-rated for VAT. That is an additional saving of up to £2,400 on a typical installation. Between the grant and the VAT relief, the cost to the homeowner is substantially lower than the headline figure.
Will the Scheme Continue?
The BUS is funded through to March 2028. The government has signalled its commitment to heat pump adoption, so further extensions are possible. But we would not recommend banking on it. If you are thinking about a heat pump, applying while the scheme is definitely available makes sense.
Ready to claim your £7,500 grant?
Book a free home survey. We will check your eligibility, assess your property, and handle the entire grant application.
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