Heat pump funding
Boiler Upgrade Scheme Explained: 2026 Grants
The current grants are £7,500, £9,000, £2,500 or £5,000. Which one applies depends on the technology, existing heating and property.
- £7,500standard heat-pump grant
- £9,000eligible oil or LPG uplift
- £2,500eligible air-to-air grant
- 120 dayscurrent heat-pump voucher window
Insight by Vector Heat
The Boiler Upgrade Scheme is an installer-led grant for eligible low-carbon heating in England and Wales. In 2026 it can contribute £7,500 towards an air-to-water or ground source heat pump, £9,000 for some off-gas-grid oil or LPG replacements, £2,500 towards an eligible air-to-air heat pump, or £5,000 towards an eligible biomass boiler.
You do not receive a bag of government money and go heat-pump shopping. An MCS certified installer confirms the route, applies to Ofgem and deducts the grant from the amount you pay.
Boiler Upgrade Scheme Grant Values in 2026
| Eligible technology | Current grant | Important condition |
|---|---|---|
| Air-to-water heat pump | £7,500 | Can rise to £9,000 for an eligible off-gas property replacing oil or LPG |
| Ground or water source heat pump | £7,500 | The same eligible oil/LPG off-gas uplift can apply |
| Air-to-air heat pump | £2,500 | Residential installation and scheme standards must be met |
| Biomass boiler | £5,000 | Restricted to eligible rural, off-gas-grid properties and approved equipment |
One grant is available per property. The current scheme is open in England and Wales. Scotland and Northern Ireland have separate support arrangements.
Who Can Get the £9,000 Heat Pump Grant?
The £9,000 grant is the normal £7,500 award plus a temporary £1,500 uplift. Under the current rules, both of these must be true:
- the property is heated by oil or LPG
- the property does not have a mains gas connection
The uplift applies to eligible air-to-water and ground source heat pumps until March 2027. It does not turn every off-gas property into a £9,000 job. A home using direct electric, coal or another fuel can still qualify for the standard amount, but not necessarily the uplift.
Oil and LPG are common in rural Lincolnshire, so this distinction matters. The existing fuel and the gas connection should be checked before the quotation treats £9,000 as certain.
Can You Get £2,500 Towards Air Conditioning?
The scheme now includes £2,500 towards an eligible air-to-air heat pump. That is the type of system many homeowners call fixed air conditioning because it can heat as well as cool.
It is not a £2,500 voucher for any wall unit bought online. The installation needs to follow the approved BUS route, meet the scheme's product and design requirements and be handled by an installer able to make that application.
If air-to-air is your preferred route, ask whether the proposed system and installer are eligible before treating the grant as part of the budget. Our air conditioning installation page explains the practical system choices; grant eligibility still needs confirming for the specific job.
Who Is Eligible for the Boiler Upgrade Scheme?
The property owner must apply through the installer. That can include a homeowner, landlord, owner of a second home or owner of an eligible business property. You must normally be replacing fossil-fuel or direct-electric heating.
Typical checks include:
- you own the property
- the property is in England or Wales
- the existing heating and proposed replacement fit an approved grant category
- the installer and installation meet the MCS and BUS requirements
- the heat pump is installed and commissioned within the voucher period
- the property has not already received government funding for a heat pump or biomass boiler
Previous funding for separate energy-efficiency work, such as insulation, does not automatically stop a BUS application.
What Is Not Usually Eligible?
You cannot normally use BUS for:
- a new gas, oil or LPG boiler
- replacing an existing low-carbon heating system
- a fossil-fuel hybrid heat pump
- most developer-built properties that are still being constructed
- social housing
- a property that has already received government support for a heat pump or biomass boiler
A completed new build with fossil-fuel heating may be eligible, and genuine self-builds have their own route. Those details are worth checking rather than relying on the words “new build” alone.
How Does the Boiler Upgrade Scheme Application Work?
- Get quotations from suitable MCS certified installers.
- Let the installer confirm the property and proposed system fit the current rules.
- Agree a quotation showing the grant deduction.
- The installer applies to Ofgem on your behalf.
- Ofgem contacts you to confirm consent and identity.
- The installer completes and commissions the system within the voucher period.
- The installer redeems the voucher after the required evidence is accepted.
Ofgem or MCS can contact the owner or inspect the installation. The paperwork is installer-led, but the property owner still has a role. Read the consent messages rather than treating them as the heating equivalent of a cookie banner.
Why Does the Installer Need MCS Certification?
BUS is tied to certified products, design and installation standards. The installer therefore needs the appropriate MCS certification and scheme access.
MCS does not replace judgement. Certification gets the installation into the correct quality and consumer-protection framework; a good survey still has to establish heat loss, emitter output, pipework, hot-water demand, outdoor location and controls. Our guide to what MCS certification means separates the certificate from the design work you should expect.
What Will You Pay After the Grant?
The grant is a contribution, not a promise that every installation will cost the same. The remaining amount can change with:
- heat-pump size and manufacturer
- hot-water cylinder and controls
- radiator or underfloor-heating changes
- pipework and electrical work
- outdoor-unit base, drainage and route indoors
- access, making good and commissioning
Qualifying heat-pump installations in residential accommodation are also temporarily zero-rated for VAT until 31 March 2027 under current HMRC rules. That is separate from BUS and should be shown correctly in the quotation.
The Grant Does Not Decide Whether the Design Is Good
A larger grant makes the project cheaper. It does not make the heat pump better sized, the radiators larger or the weather-compensation curve correct.
A useful proposal should still include a room-by-room heat loss, emitter checks, hot-water planning, a realistic outdoor position, electrical design and commissioning. The scheme should reduce the cost of a good system, not make a weak system look like a bargain.
Vector Heat has carried out more than 5,000 heating surveys. The common lesson is not glamorous: the property decides the work. Grant first and design later is the wrong order.
Frequently Asked Questions
How much is the Boiler Upgrade Scheme grant in 2026?
Current grants are £7,500 for an eligible air-to-water or ground source heat pump, £2,500 for an eligible air-to-air heat pump and £5,000 for an eligible biomass boiler. An eligible off-gas-grid property replacing oil or LPG can receive £9,000 for an air-to-water or ground source heat pump until March 2027.
Do I apply for the Boiler Upgrade Scheme myself?
No. Your chosen MCS certified installer applies on your behalf. Ofgem then contacts you to confirm consent and the grant value is deducted from the amount shown on your quotation and invoice.
Who can get the £9,000 heat pump grant?
The £9,000 grant is for an eligible off-gas-grid property replacing oil or LPG with an air-to-water or ground source heat pump. The property must not have a mains gas connection and the uplift is available until March 2027 under the current rules.
Can I get £2,500 towards air conditioning?
The scheme now includes a £2,500 grant for eligible air-to-air heat pumps. This is not a blanket discount on any air-conditioning installation: the property, equipment, design and installer-led scheme route must meet the current BUS requirements.
Can landlords use the Boiler Upgrade Scheme?
Yes, landlords can be eligible because rented properties are included where the applicant owns the property and the property and installation meet the scheme rules.
Can I get a grant to replace an existing heat pump?
No. The scheme does not fund replacement of an existing low-carbon heating system. It is designed to replace eligible fossil-fuel or direct-electric heating systems.
Does the grant pay for the whole installation?
Usually not. The grant is a contribution. The amount left to pay depends on the heat loss, equipment, cylinder, emitters, pipework, electrical work, outdoor-unit position and other work required by the property.
How long is a Boiler Upgrade Scheme voucher valid?
GOV.UK currently says the installer must install and commission the heat pump within 120 days of applying. Confirm the live timescale with the installer because scheme rules can change.
Turn the Grant Into a Real Project Price
Vector Heat can survey a Lincolnshire home, design the air-to-water heat-pump system and show the eligible grant deduction alongside the work the property actually needs.
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