Boiler Upgrade Scheme (BUS): heat pump grant explained

The Boiler Upgrade Scheme (BUS) pays a grant of £7,500 towards an air-source or ground-source heat pump in England and Wales. Unlike ECO4, there is no income or benefit test — any homeowner can apply. The grant is claimed by your MCS-certified installer on your behalf and deducted from the purchase price, so you never handle the money directly. The scheme runs until 31 March 2028.

What is the Boiler Upgrade Scheme?

The BUS was introduced in April 2022 to encourage homeowners to replace gas and oil boilers with low-carbon heating. It is administered by Ofgem on behalf of the Department for Energy Security and Net Zero (DESNZ). The scheme is demand-led — if you meet the eligibility criteria and your installer has available voucher allocation, you can access it.

Grant levels as of mid-2026:

• Air-source heat pump (ASHP): £7,500
• Ground-source heat pump (GSHP) or water-source heat pump: £7,500
• Biomass boiler: £5,000 (limited availability — only in rural areas off the gas grid)

These figures were uplifted from the original launch amounts (£5,000 for ASHP, £6,000 for GSHP) in October 2023 to close the cost gap with gas boiler replacements.

Who qualifies?

The eligibility criteria are relatively simple:

• Property type: Must be a domestic property in England or Wales (Scotland and Northern Ireland have separate programmes). Small businesses and self-builds also qualify in some cases.
• Existing heating: You must be replacing a fossil-fuel boiler (gas, oil, or LPG). Electric-only properties do not qualify.
• No minimum insulation requirement: Unlike ECO4, there is no mandatory EPC band. However, Ofgem requires your installer to confirm the heat pump is appropriately sized and that no significant energy-efficiency improvements are obviously needed first.
• MCS-certified installer: The heat pump must be installed by an MCS-accredited (or equivalent) contractor.
• No income test: BUS is open to any homeowner regardless of income or benefits received. This is the key difference from ECO4.

BUS is not available in Scotland (where Home Energy Scotland interest-free loans cover heat pumps) or Northern Ireland (which has its own NISEP programme).

Why it matters for solar buyers

BUS is relevant to solar buyers for two reasons:

1. Solar + heat pump is a strong combination. A heat pump driven by solar electricity significantly reduces your operating cost, since you are heating with effectively free energy during the day. A 4kWp solar array and an ASHP is one of the most common retrofit combinations for households trying to eliminate gas.
2. A heat pump unlocks ECO4 solar panels. Under ECO4, solar PV is only fundable as a heating measure — meaning your home must have, or be getting, a heat pump or electric heating. If you are eligible for ECO4 (lower income, qualifying EPC band) and you are also installing a heat pump, you may be able to stack ECO4-funded solar on top of your BUS-funded heat pump. Confirm stacking eligibility with your installer, as scheme rules can interact.

How to apply

You do not apply for BUS yourself — your installer does:

1. Find an MCS-certified heat pump installer who is registered to claim BUS vouchers. Not every MCS installer participates in BUS, so confirm this when getting quotes.
2. The installer checks availability and confirms the heat pump is correctly sized for your property. They raise a voucher application with Ofgem on your behalf.
3. Ofgem issues a voucher (valid for three months) for the relevant grant amount.
4. The installer completes the installation and redeems the voucher. The grant amount is deducted from your invoice — you pay the remainder.

You can find registered BUS installers via the GOV.UK BUS page or the MCS installer directory.

What BUS does not cover

• Solar PV panels (covered separately by ECO4 or Warm Homes Plan)
• Battery storage
• Underfloor heating or radiator upgrades (these are additional costs the homeowner bears)
• Properties in Scotland or Northern Ireland