The single biggest barrier to switching from a gas or oil boiler to a heat pump has always been the upfront cost. The government's Boiler Upgrade Scheme exists specifically to close that gap — and it's more generous, and simpler to claim, than most homeowners realise. Here's exactly how it works.
What Is the Boiler Upgrade Scheme?
The Boiler Upgrade Scheme (BUS) is a government grant that pays a fixed amount directly towards the cost of installing a heat pump, deducted straight off your installer's quote. It's administered by Ofgem and funded by the Department for Energy Security and Net Zero, and it's been running since 2022. There's no income test and no means testing — every eligible homeowner in England and Wales qualifies for the same grant, regardless of earnings.
How Much Can You Get?
| System type | Grant amount |
|---|---|
| Air source or ground source heat pump (standard) | £7,500 |
| Air source or ground source heat pump — off-gas-grid homes on oil or LPG (21 Jul 2026 – 31 Mar 2027) | £9,000 |
| Air-to-air heat pump (residential only) | £2,500 |
| Biomass boiler (rural, off-gas-grid properties only) | £5,000 |
The higher £9,000 rate is a temporary uplift specifically for homes currently heated by oil or LPG, since those households tend to face the highest and most volatile fuel costs. It runs from 21 July 2026 to 31 March 2027. Everyone else replacing a gas boiler or electric heating claims the standard £7,500.
Am I Eligible?
- Your property is in England or Wales (Scotland and Northern Ireland run separate schemes)
- You own the property — homeowners, landlords and small businesses can all apply
- You currently have a fossil fuel heating system (gas, oil or LPG) or electric heating without a heat pump already fitted
- You have a valid Energy Performance Certificate (EPC) issued within the last 10 years — there's no minimum rating required
- Your installer is MCS-certified (Microgeneration Certification Scheme) and a member of an approved consumer code
- The property hasn't already received a previous heat pump or biomass grant
New-build properties generally aren't eligible — the scheme is aimed at replacing an existing fossil fuel system, not equipping a brand-new home.
Does This Cover Ordinary Air Conditioning?
This is the detail people most often get wrong. The Boiler Upgrade Scheme is a heating grant, not an air conditioning grant. It applies to heat pump systems that provide your home's central heating and hot water — primarily air-to-water heat pumps. A standard cooling-only split system doesn't qualify. Reversible air-to-air systems, which can provide both heating and cooling from wall-mounted units, are eligible for the smaller £2,500 tier, but only when they're genuinely replacing your main heating system, not supplementing it. If you're weighing this up, our guide to whether a heat pump is right for your home covers the practical side in more detail.
How the Application Actually Works
You don't apply for the grant yourself, and you never receive the money directly. Here's the process:
- Your MCS-certified installer surveys your property and confirms it's eligible
- They provide a written quote showing the price after the grant has already been deducted
- Once you accept, the installer submits the voucher application to Ofgem on your behalf
- The installer carries out the work and submits the redemption claim once it's commissioned
- Ofgem pays the grant directly to the installer, who has already passed the saving on to you upfront
In practice, that means the £7,500 (or £9,000) simply appears as a deduction on your quote — there's no separate form for you to fill in, and nothing to claim back after the event.
Worth Combining With
Heat pump installations also currently qualify for 0% VAT on installation in Great Britain, which stacks on top of the grant. Between the two, the net cost of a well-specified heat pump installation is often far closer to a premium boiler replacement than most homeowners expect.
A Few Honest Caveats
Grant schemes do change over time — rates, dates and eligibility rules have all been adjusted more than once since the scheme launched in 2022, and the temporary £9,000 uplift in particular has a firm end date. We always confirm the current rate and criteria with Ofgem before quoting, and we'd recommend treating any figure you read online, including this page, as a starting point rather than a guarantee until it's confirmed against your specific property.
How Kelvara Helps
As an MCS-certified installer, we handle the entire Boiler Upgrade Scheme application on your behalf as part of a heat pump installation — from confirming eligibility at survey stage through to submitting the voucher. You see the grant already deducted on your quote, not as a promise to chase up later.
Find out how much you could claim
We'll confirm your eligibility, handle the Boiler Upgrade Scheme application, and quote you the price after the grant is applied.
Check My Eligibility