The Boiler Upgrade Scheme (BUS) supports homeowners financially who are switching their household heating from fossil fuels to a qualifying renewable heat source. Government Incentives are constantly reviewed and therefore it is important to understand the process and the key dates of when you need to apply.
Boiler Upgrade Scheme
The Boiler Upgrade Scheme (BUS) launched on 1st April 2022 as a successor to the domestic Renewable Heat Incentive which closed on 31st March 2022, a further update was made in April 2026.
The Boiler Upgrade scheme is available to homes and small non-domestic properties and will provide grants of £7,500 towards the installation and capital costs of an air source heat pump or ground source heat pump installation.
The April 2026 update announced a temporary uplift of the grant to be available for eligible off-gas grid properties who are replacing oil or LPG boilers, increasing the grant from £7,500 to £9,000. This uplift is available for new BUS applications from 21st July 2026 and is set to run until 31st March 2027.
The April 2026 update also announced domestic air-to-air heat pumps (air conditioning units) become eligible for £2,500 grant.
The scheme originally had funding of £450m and was due to run until 2025, it was later extended to run until 2028, and with the Warm Homes plan announcements, is now scheduled to run until 2030.
To process to claim the Boiler Upgrade Scheme:
- Choose your installer (they will need to be MCS accredited and also be able to accept the BUS scheme voucher)
- The installer will apply to Ofgem voucher and provide all the necessary information.
- Ofgem will assess the application and request consent from the property owner to issue the voucher to the installer.
- The installer will complete the installation in line with industry standards and scheme requirements.
- The installer will apply to redeem the voucher.
- Ofgem will assess redemption application and pay grant to installer.
Eligibility Criteria
- Homes and small non-domestic properties in England and Wales will be eligible.
- The maximum installation capacity of up to 45kWth covers most of the eligible properties.
- As from 28th April 2026, a valid EPC is no longer required. If one exists it remains the primary evidence, if there isn’t one, the installer submits alternative evidence such as recent utility bills showing the existing fuel type, plus photographs of the current heating system.
- Biomass boilers are only eligible in rural locations and in properties off the gas grid.
- Heat pumps are eligible for properties either on or off the gas grid.
- The commissioning date of your low carbon heating system must be on or after 1st April 2022.
- You must be fully replacing an existing fossil fuel system such as oil, gas or direct electric.
- Funding will not be available for the replacement of existing low carbon heat systems.
- New build homes and social housing will not be eligible for the Boiler Upgrade Scheme, although custom-build properties will be eligible
Why should I switch to a renewable heating system?
If you are interested in sustaining the world we live in, switching to a renewable heating system, such as an air source or ground source heat pump, means you are using a naturally replenished source of energy (i.e. the sun).
Using renewable energy rather than oil or LPG helps the UK reduce its carbon emissions and meet their carbon reduction targets. A Heat Pump does use electricity, but does not use any fossil fuels.
The government pays an incentive to property owners who install a renewable heating if their system meets certain energy-efficiency requirements, see our government incentives page for the latest information.
What does MCS approved mean?
MCS stands for Microgeneration Certification Scheme. MCS is a standards certification which certifies low-carbon products and installations used to produce electricity and heat from renewable sources.
MCS is a mark of quality. Membership of MCS demonstrates adherence to these recognised industry standards; highlighting quality, competency and compliance.
R A Brown is an MCS certified installer.
How do I get an Energy Performance Certificate (EPC)?
An Energy Performance Certificate will need to be completed by a local energy assessor.
You can find an energy assessor by using the EPC Register Find a local Energy Assessor near you.
What is Seasonal Performance Factor (SPF)?
The SPF measures the energy efficiency of the property and is calculated by looking at heat losses, room size and output of the heat emitters.
The more accurately sized the heat emitters you have, the higher the SPF – as the heating will be as energy efficient as possible.
The governments default Seasonal Performance Factor (SPF) is 2.5.
