Boiler Upgrade Scheme BUS
Your boiler’s guzzling gas. Prices keep spiking. And every degree of heat comes with a side of carbon. Something’s got to change. The Boiler Upgrade Scheme is England and Wales’ blunt tool for this. It’s not a loan. Not a rebate you chase for six months. Just hard cash upfront to rip out oil, gas, LPG, or even old electric systems. You install a heat pump. The government pays £9,000 toward it. That’s it.
How the Boiler Upgrade Scheme Helps Replace Fossil Heating
Let’s be real. Old boilers are expensive headaches. Even the “efficient” ones still burn stuff. The Boiler Upgrade Scheme cuts the cord.
Here’s what you actually get, straight from the official rules:
- Air source heat pump → £9,000
- Ground source heat pump (including water source or shared ground loops) → £9,000
- Biomass boiler → £5,000 (but only if you’re off the gas grid, in a rural spot, and not a self-build property – more on that below)
Important rules nobody tells you:
- One grant per property. That’s firm.
- Hybrid configurations are excluded under the scheme, so the existing boiler cannot be retained as a secondary or backup system.
- Must meet efficiency standards at minimum levels. Your installer handles this.
- Max capacity: 45kWth for individual systems, 300kWth for shared loops.
Who owns the property? You do. Or a business. Or you rent it out. Second home? Fine. Landlord? Also fine. The scheme doesn’t discriminate.
Biomass boiler catch: Off-grid and rural location? Yes. But if it’s a self-build property – sorry, no biomass grant. That’s a hard stop from Ofgem.
Wait, what about homes that already had insulation funding? You’re still eligible. Loft insulation, cavity walls don’t matter. You can stack it.
What does the grant actually do for you?
- Slashes that eye-watering upfront cost. Heat pumps aren’t cheap. This makes them affordable.
- Forces verified, regulated installs – MCS checks happen.
- Locks in 20+ years of efficiency. Boilers die at 12-15.
Plus, there’s 0% finance available alongside the grant. So even the remaining balance won’t sting as much.
How the Boiler Upgrade Scheme Application Works
You don’t handle the government paperwork. Real process (installer-led, because they know the maze):
- Fill out a short online form. Basic stuff, such as name, address, and what you’re burning now.
- Team checks eligibility. Usually within a day.
- Free home energy survey. They check pipe sizes, radiators, and insulation levels.
- Quote arrives. Grant has already been deducted. 0% finance options available if needed.
- Agree on the quote. Work gets booked.
What happens behind the scenes:
- Ofgem contacts you to confirm the installer is acting on your behalf. Might call. Might even visit.
- MCS might also do their own checks.
You don’t pay the grant upfront. The installer claims it. You just cover the difference. No chasing. No forms to HMRC.
Where Boiler Upgrade Scheme Applies and Restrictions
England and Wales only. Scotland and Northern Ireland have their own separate pots.
Straight-up no’s:
- Most new builds – but with a twist (keep reading)
- Social housing (different funding routes exist)
- Any property that already has government funding for a heat pump or biomass boiler
- Replacing an existing low-carbon heating system (that would be double-dipping)
The new build nuance (important):
New builds that developers are still building? Not eligible. But if you move into a finished new build that somehow still has a fossil fuel boiler, yes, you can apply. The scheme allows that.
Self-build properties:
Your self-build is eligible for heat pump grants if:
- You built it yourself (or paid a builder)
- It’s never been owned by a business or organisation
- You can prove that title deeds work fine
Biomass? No. Self-builds can’t get the £5,000 biomass boiler grant. That’s explicit in the guidance.
What You Save With Boiler Upgrade Scheme
Let’s talk real money. Not marketing fluff.
A typical air source heat pump installation might run £12,000–£15,000. Without the BUS scheme grant? That hurts. With £9,000 off? You’re looking at £3,000–£6,000 out of pocket. Still not pocket change. But compared to a £3k boiler replacement different league entirely.
And heat pumps last 20+ years. Boilers? 12-15 if you’re lucky.
What BUS scheme eligibility saves you:
- £9,000 off installation. Right now.
- 0% finance on the remaining balance – so you don’t have to raid savings.
- Lower monthly bills – especially if you’re on oil or LPG. Those prices are pure chaos.
- No flu. No carbon monoxide risk. No gas standing charge if you go fully off-grid.
Heating oil currently hovers around 65p per litre. A typical home burns 2,000 litres a year, which is £1,300. On a decent tariff, running a heat pump can cost about half as much as traditional heating.
One more thing: The grant covers ground source heat pumps, too. That’s £9,000 toward digging trenches or boreholes. Expensive upfront, but running costs are stupidly low.
Is the Boiler Upgrade Scheme Right for Your Property
Honest talk. Not every home is a perfect fit.
It depends on:
- Ownership. Renting? Sorry. But if you own and rent out – yes, landlords qualify.
- Current heating. Gas is borderline savings, but they are smaller. Oil, LPG, or electric storage heaters? Absolute no-brainer.
- Space. The external unit needs airflow. An indoor cylinder needs room. Ground source needs land or a borehole.
- Radiators. Older ones might be undersized. You may need upgrades. (Costly but one-off.)
- Insulation. Solid walls without cladding? Heat pumps hate draughty homes. Loft insulation is cheap. Do it first.
Wait, what about biomass? If you’re off-grid, rural, and not a self-build, biomass is your alternative. £5,000 grant. But honestly? Try for a heat pump first. Fewer moving parts. No lugging wood pellets.
“My plumber said heat pumps don’t work in old houses.” That was true ten years ago. Modern high-temperature heat pumps run at 65°C – the same as your boiler. Efficiency drops a bit, but still beats pure oil.
Not sure? Fine. The eligibility check takes two minutes. No obligation.
Boiler Upgrade Scheme Grants Eligibility
Make The Switch While Support Lasts
Costs won’t stay still. Heating shouldn’t feel like a gamble. If your system is ageing, now’s the moment to act. Check eligibility, weigh the numbers, and move toward something steadier, cleaner, and built to last.
Frequently Asked Questions
A government grant giving £9,000 toward heat pumps (£5,000 for biomass boilers). Installers claim the money. You pay the rest. 0% finance available.
Homeowners in England or Wales, including second homes and rental properties. Replacing fossil fuel heating (gas, oil, LPG, electric). One grant per property. No hybrids.
£9,000 for air source or ground source heat pumps. £5,000 for biomass boilers but biomass is off-gas-grid, rural, and not for self-builds.
Yes, that’s the main purpose. MCS-certified installer required. They handle the application and Ofgem checks.
Not for properties still being built. But a finished new build with a fossil fuel boiler? Yes. Self-builds? Yes for heat pumps, no for biomass.
