Boiler Upgrade Scheme 2026: The £9,000 Grant, Air-to-Air & What Changed
The UK's £7,500 heat pump grant got a major 2026 overhaul — a temporary £9,000 rate for off-gas homes, two brand-new grant categories, and a dropped eligibility barrier. Here's exactly what changed and whether you're better off. To see which grants your home can get, our grant eligibility checker runs it in under a minute.
Muhammad founded KilowattKit after spending hours trying to decode confusing electricity bills and realising there were no clear, jargon-free tools for ordinary homeowners. He researches energy rates, solar payback, EV charging, and heat pump economics across the US, UK, Canada, and Australia — sourcing every figure directly from official government and regulatory data.
⚡ Key takeaways
- ✓£9,000 grant for off-gas homes on oil/LPG switching to a heat pump — temporary, 21 Jul 2026 to 31 Mar 2027.
- ✓New £2,500 grant for air-to-air heat pumps (heating + cooling, no hot water).
- ✓New £2,500 grant for heat batteries.
- ✓The EPC insulation condition was removed in April 2026 — far easier to qualify.
- ✓The scheme is extended to 2030; the standard £7,500 heat pump grant continues.
What Changed in 2026
The Boiler Upgrade Scheme (BUS) is the main England & Wales grant for replacing a fossil-fuel boiler with a heat pump. In 2026 it was expanded on four fronts — widening both who can get it and what it covers.
The New £9,000 Grant for Off-Gas Homes
The headline change: from 21 July 2026 to 31 March 2027, eligible off-gas-grid homes can get £9,000 towards an air-source or ground-source heat pump — £1,500 more than the standard £7,500. It's aimed squarely at the homes where heat pumps make the strongest financial case: those currently burning expensive oil or LPG.
You qualify for the £9,000 rate if:
- ✓Your home is in England or Wales and not connected to mains gas
- ✓You currently heat with oil or LPG
- ✓You're installing an air-source or ground-source heat pump
- ✓Your application is made on or after 21 July 2026
Got a mains gas boiler? You don't get the uplift — but you still qualify for the standard £7,500 heat pump grant, which is unchanged.
New: £2,500 Air-to-Air Heat Pump Grant
For the first time, the scheme covers air-to-air heat pumps — the type that heats and cools your home through fan units (like air conditioning that also heats), rather than heating water for radiators. From January 2026 these attract a £2,500 grant.
The catch: because air-to-air systems don't produce hot water, you must have a separate hot-water solution, and your existing gas boiler must be fully removed or permanently decommissioned — you can't keep it as a backup. This opens the scheme to flats and homes where a full wet heat-pump system isn't practical.
New: £2,500 Heat Battery Grant
Heat batteries (compact thermal-storage units that store heat for later use, often charged on cheap overnight electricity) are now eligible for a £2,500 grant. They're a useful option where a hot-water cylinder won't fit, and they pair well with a time-of-use tariff.
The EPC Insulation Condition is Gone
Previously, one of the biggest reasons applications stalled was the EPC insulation requirement: if your EPC recommended loft or cavity-wall insulation, you had to install it first. From April 2026 that condition was removed entirely. You can now apply even with outstanding insulation recommendations — a significant simplification that brings thousands more homes into scope.
Boiler Upgrade Scheme Grants at a Glance (2026)
| Measure | Grant | Notes |
|---|---|---|
| Air/ground-source heat pump | £7,500 | Standard rate, any eligible home |
| Air/ground-source (off-gas oil/LPG) | £9,000 | Temporary: 21 Jul 2026 – 31 Mar 2027 |
| Air-to-air heat pump | £2,500 | New in 2026; heating + cooling, no hot water |
| Heat battery | £2,500 | New in 2026; thermal storage |
| Biomass boiler | £5,000 | Rural/off-gas properties only |
England & Wales only. Grants are paid to your installer and deducted from your invoice. Figures reflect scheme rules as of July 2026.
How to Apply
You never apply directly — your installer does it for you:
- 1Find an MCS-certified installer who is also a member of an approved consumer code (RECC or HIES).
- 2Get a quote and survey. The installer confirms which grant applies (£7,500, £9,000, or £2,500) based on your home and heating.
- 3Installer applies to Ofgem and deducts the grant from your invoice — you pay the reduced price.
- 4Installation. Your old fossil-fuel boiler is removed and the heat pump commissioned.
Boiler Upgrade Scheme vs Warm Homes Plan
These two run side by side and suit different households. If you're on a lower income, the means-tested route may fund far more — for free.
| Boiler Upgrade Scheme | Warm Homes: Local Grant | |
|---|---|---|
| Income test | None | Yes (income under ~£36k or a benefit) |
| What you get | £7,500–£9,000 towards a heat pump | Whole-house package up to ~£30k, often free |
| Best for | Any homeowner wanting a heat pump | Lower-income homes, EPC D–G |
Not sure which applies? Read our guide to what replaced ECO4 and the Warm Homes Plan, or check the Warm Homes Plan in detail.
Our free checker tells you whether you qualify for the £7,500 or £9,000 Boiler Upgrade Scheme grant, the Warm Homes Plan, and other UK schemes — in under a minute, no email required.