Boiler Upgrade Scheme Explained: £7,500 and £9,000 Heat Pump Grants

Published by Vector Heat

The Boiler Upgrade Scheme is one of those government schemes where the useful bit is simple and the details immediately start wearing a lanyard.

The short version: eligible homeowners and property owners in England and Wales can get help towards replacing fossil fuel heating with low-carbon heating, including heat pumps. The installer applies for the voucher and the grant is deducted from the installation cost.

Quick answer: how much is the Boiler Upgrade Scheme grant?

The standard Boiler Upgrade Scheme grant is £7,500 towards an eligible air source or ground source heat pump. From 21 July 2026, an enhanced £9,000 grant is due for qualifying off-gas-grid homes currently heated by oil or LPG.

This is exactly the sort of detail that makes grant pages age like milk if nobody checks them, so always confirm the latest position on the official GOV.UK Boiler Upgrade Scheme page.

What is the Boiler Upgrade Scheme?

The Boiler Upgrade Scheme, often shortened to BUS, is a government grant for replacing fossil fuel heating systems with eligible low-carbon heating.

Fossil fuel systems include gas, oil, LPG and electric heating. The scheme is open in England and Wales and can apply to homes and some business properties.

The grant is not usually paid to the customer directly. The installer applies, the customer confirms consent, and the voucher value is taken off the quoted installation cost.

What is the £9,000 enhanced grant?

The enhanced £9,000 grant is due to start on 21 July 2026 for qualifying off-gas-grid homes that are currently heated by oil or LPG.

That matters because many rural homes are not connected to mains gas. They may be relying on oil or LPG boilers, and replacing those systems can be a bigger decision than a straightforward gas-to-heat-pump project.

For the right property, the extra support can make a properly designed heat pump much more achievable.

The key phrase is "properly designed". The higher grant should help with upfront cost. It should not be used to make a weak design look tempting.

Who can apply?

You may be eligible if:

• you own the property
• you are replacing a fossil fuel heating system
• the property is in England or Wales
• the installation uses eligible equipment
• the installer is MCS certified
• the system is commissioned within the required scheme timescale

Landlords and second-home owners may be eligible if they own the property and meet the rules.

Who cannot usually apply?

You normally cannot get a grant for:

• most new-build properties still being built by a developer
• social housing
• replacing an existing low-carbon heating system
• a hybrid heat pump system
• a property that has already had government support for a heat pump or biomass boiler

Self-build homes can be different, so check the official rules.

Why MCS certification matters

The installation needs to be carried out by an MCS certified installer.

That matters because the grant is not just about buying a heat pump. It is about installing an eligible system to recognised standards.

You can check installer certification through MCS. A good installer should also explain the design, not just the paperwork.

Does the grant make every heat pump a good idea?

No. The grant helps with upfront cost. It does not make a poorly designed system perform well.

A heat pump still needs:

• room-by-room heat loss
• emitter checks
• sensible flow temperature design
• hot water planning
• suitable outdoor unit location
• good controls
• proper commissioning

The grant should reduce the cost of a good design, not disguise a weak one.

What does a heat pump actually cost after the grant?

That depends on the property.

The final cost can be affected by the heat pump size, cylinder, radiators, pipework, electrical work, outdoor unit location, controls and how much alteration is needed.

This is why a survey matters. A house that needs several radiator upgrades and a new cylinder is not the same as a home where most of the system is already suitable.

Is a heat pump right for every home?

Not automatically.

Heat pumps can work brilliantly, including in older homes, but the design has to be honest. Some homes need radiator upgrades. Some need insulation improvements. Some need a different hot water plan.

At Vector Heat, we would rather explain the real work needed than pretend the grant makes every job simple. Simple is lovely. Imaginary simple is expensive.

How does the application process work?

The usual process is:

• the installer surveys the property
• the installer provides a quote including the grant deduction
• the installer applies for the voucher
• the customer confirms consent
• the installation is completed and commissioned
• the installer redeems the voucher

The customer should still understand the system design before agreeing.

FAQs about the Boiler Upgrade Scheme

Do I apply for the Boiler Upgrade Scheme myself?

Usually no. The installer applies for the voucher and the grant is deducted from the installation cost. You will still need to confirm consent during the process.

When does the £9,000 enhanced Boiler Upgrade Scheme grant start?

The enhanced £9,000 grant is due to start on 21 July 2026 for qualifying off-gas-grid oil and LPG heated homes.

Who can get the £9,000 enhanced grant?

The enhanced grant is for qualifying off-gas-grid homes currently heated by oil or LPG. Eligibility still depends on the scheme rules, the property and the installation being carried out through the correct process.

Can I get a Boiler Upgrade Scheme grant for a gas boiler?

No. The scheme is for eligible low-carbon heating, such as heat pumps and biomass boilers. It is not a grant for a new gas boiler.

Can landlords use the Boiler Upgrade Scheme?

Landlords may be eligible if they own the property and the property meets the scheme rules.

Does the grant cover the full heat pump installation cost?

Usually no. It covers part of the cost. The final amount you pay depends on the property, design and installation work required.

Can I get the grant with any installer?

No. The installer must be MCS certified and able to apply through the scheme.

Is the Boiler Upgrade Scheme available in Scotland?

The GOV.UK scheme is for England and Wales. Scotland has separate energy support routes, so Scottish homeowners should check Home Energy Scotland.