Switching to a greener home heating system just became more affordable for homeowners in England and Wales. The UK government is offering a generous grant of up to £7,500 through the Boiler Upgrade Scheme (BUS) to help cover the cost of upgrading from fossil fuel boilers to modern, energy-efficient systems. Here’s what you need to know to take advantage of this limited-time offer.
What Is the Boiler Upgrade Scheme?
Launched in 2022, the Boiler Upgrade Scheme is part of the UK’s broader initiative to cut carbon emissions and reach net-zero by 2050. The scheme offers financial support to homeowners and landlords looking to replace their gas, oil, LPG, or electric boilers with low-carbon heating alternatives like heat pumps or biomass boilers.
The scheme is administered by Ofgem, but you won’t need to apply yourself. The process is handled by your certified installer, making it straightforward and hassle-free.
Grant Amounts and Covered Systems
Depending on the heating system you choose, you could receive the following support:
| System Type | Grant Value |
|---|---|
| Air Source Heat Pump | £7,500 |
| Ground Source Heat Pump | £7,500 |
| Biomass Boiler (Rural Only) | £5,000 |
Heat pumps are the most widely supported system under the scheme. They’re known for their high efficiency and ability to reduce your home’s carbon emissions by up to 75%.
Who Can Apply?
To be eligible for the BUS grant, you must meet the following conditions:
- Own a property in England or Wales
- Be replacing a fossil fuel system (gas, oil, LPG, or electric)
- Have an Energy Performance Certificate (EPC) with no unresolved insulation recommendations
- Install a system with a capacity under 45kWth
- Not apply for a new-build home unless it’s a self-build project
If your EPC suggests adding loft or cavity wall insulation, you must complete those upgrades before your installer can proceed with the grant application.
Types of Systems Explained
Air Source Heat Pumps
- Extract warmth from the outdoor air—even in cold weather
- Suitable for most UK homes
- Provide consistent and efficient heating
Ground Source Heat Pumps
- Use underground heat via pipe loops
- Ideal for homes with sufficient garden or land space
- Higher upfront cost but offer greater long-term efficiency
Biomass Boilers
- Burn sustainable wood pellets for heating
- Only eligible for properties in rural areas
- Supported with a £5,000 grant
How the Process Works
Here’s how simple it is to get started:
- Find an MCS-certified installer via the GOV.UK website.
- The installer evaluates your home and gives you a quote.
- If you accept, they apply for the grant on your behalf.
- You confirm your consent via email from Ofgem.
- The installer receives the grant directly and deducts it from your final bill.
Example:
Sarah from Hertfordshire installed an air source heat pump for £12,000. With the £7,500 grant, she only paid £4,500 out-of-pocket, enjoying reduced energy bills and a quieter, more reliable heating system.
Benefits of Making the Switch
Environmental:
- Cut household carbon emissions
- Contribute to the UK’s net-zero goals
Financial:
- Save £100–£300 annually on energy bills
- Lower maintenance compared to older boilers
Energy Security:
- Reduce reliance on imported gas or oil
- Access modern energy tariffs for smarter usage
Key Considerations Before Applying
- Upfront costs may still be significant, even after the grant
- Homes may need larger radiators or underfloor heating
- Proper insulation is essential for system efficiency
- Installation can take several days and cause short-term disruption
Still, many homeowners find that the long-term comfort, savings, and eco-benefits make the transition worthwhile.
FAQs
Who can apply for the £7,500 grant?
Any homeowner or landlord in England or Wales replacing a fossil fuel boiler.
Do I receive the grant directly?
No. The grant is paid to your installer and deducted from your bill.
What systems qualify?
Air source and ground source heat pumps, and biomass boilers in rural locations.