Boiler Upgrade Scheme: The £7,500 Heat Pump Grant Explained
The Boiler Upgrade Scheme gives England and Wales homeowners £7,500 off an air source or ground source heat pump — with no income requirement. Here's exactly how it works, who can get it, and how to pair it with solar panels for maximum savings.
Muhammad founded KilowattKit after spending hours trying to decode confusing electricity bills — and realising there were no simple, jargon-free tools to help ordinary homeowners understand their energy costs. He researches electricity rates, EV charging, solar payback, and heat pump economics across the US, UK, Canada, and Australia.
Boiler Upgrade Scheme at a Glance
Take our 2-minute eligibility checker — answer 6 questions to see BUS, ECO4, Warm Homes Plan and more side by side.
What Is the Boiler Upgrade Scheme?
The Boiler Upgrade Scheme (BUS) is a UK government programme that gives homeowners in England and Wales a straightforward £7,500 grant towards the cost of replacing their gas, oil, or LPG boiler with a low-carbon heat pump. It is designed to accelerate the transition away from fossil fuel heating as part of the UK's 2050 net-zero commitment.
Unlike ECO4 — which targets low-income households — BUS is open to all homeowners regardless of income. If you own your home and currently heat it with a fossil fuel boiler, you are likely eligible. The scheme is administered by Ofgem and was originally scheduled to end in 2025 before being extended to March 2028.
Since April 2022, solar panels and heat pumps also benefit from 0% VAT — meaning the two technologies together are cheaper than ever, and the BUS grant stacks alongside that saving.
Who Qualifies for the Boiler Upgrade Scheme?
You must:
No income test. Unlike ECO4 or the Warm Homes Plan, BUS has no means-testing. A homeowner earning £100,000/year qualifies exactly the same as one earning £20,000. The only requirements are property ownership, location, and the type of existing heating system.
What Does BUS Cover?
Extracts heat from outdoor air. Works down to -20°C. Most popular option — suitable for most UK homes with reasonable insulation. Installed in 1–2 days. Typical installed cost: £9,000–£14,000.
Extracts heat from ground via buried pipes or boreholes. More efficient than ASHP, especially in winter. Higher installation cost and requires garden space or drilling. Typical installed cost: £18,000–£35,000.
☀️ + 💨 Solar Panels + Heat Pump: The Winning Combination
A heat pump runs on electricity. Solar panels generate free electricity. When your panels are producing, your heat pump can run on that free power instead of drawing from the grid — slashing your heating bills further.
You can get the £7,500 BUS grant for the heat pump and install solar separately — there is no rule against having both. Both also qualify for 0% VAT. Use our Solar Payback Calculator to model the combined savings.
How to Apply for the Boiler Upgrade Scheme
You don't apply directly to Ofgem. The entire process runs through your chosen MCS-certified installer:
Search the MCS database at mcscertified.com. Get at least 2–3 quotes — prices vary significantly between installers. The grant amount is fixed at £7,500 regardless of which installer you use.
The installer visits to assess your property — checking insulation levels, radiator sizes, hot water demands, and space for the heat pump unit. This survey is free from reputable installers.
A legitimate BUS quote will show the gross cost, the £7,500 grant deducted, and your net price. You should never need to claim the grant yourself — the installer does it.
Once you confirm the order, your installer submits the BUS application to Ofgem online. Approval is typically confirmed within a few working days.
Air source heat pump installation typically takes 1–2 days. Your installer handles decommissioning the old boiler, installing the heat pump unit outside, connecting to your heating system and hot water cylinder, and commissioning.
After installation is verified, Ofgem pays the £7,500 directly to the installer. You have already paid only the net amount. The process is complete.
Typical BUS Timeline
| Stage | Typical Duration |
|---|---|
| Installer search & quotes | 1–2 weeks |
| Home survey | 1–2 weeks after booking |
| BUS application approval | 3–7 business days |
| Equipment procurement | 2–4 weeks |
| Installation | 1–3 days on-site |
| Total: enquiry to working heat pump | 6–10 weeks |
BUS vs ECO4: Which Should You Apply For?
| Feature | BUS | ECO4 |
|---|---|---|
| Income requirement | None | Benefits required |
| EPC requirement | Valid EPC only | Must be D, E, F or G |
| Covers solar panels | Not directly | Yes — free |
| Covers heat pumps | Yes — £7,500 | Yes — free |
| Cost to homeowner | You pay the balance | £0 |
| Location | England & Wales | England, Scotland, Wales |
| Scheme end | March 2028 | March 2026 |
Tip: If you receive qualifying benefits and have a poor EPC rating, check ECO4 first — you could get a heat pump entirely free rather than paying the net cost after BUS. Use the grant eligibility checker to see which scheme is better for your situation.
⚠️ Watch out for BUS scams
- • Never pay upfront for the grant — the £7,500 is deducted from your invoice automatically
- • Only use MCS-certified installers — check mcscertified.com before agreeing to any work
- • Beware "free heat pump" offers — these are lease schemes where you don't own the system
- • Get at least 2 quotes — some installers inflate prices knowing the grant will be applied
- • Verify the MCS certificate number — each installer has a unique registration that can be verified online
Frequently Asked Questions
What is the Boiler Upgrade Scheme (BUS)?
The Boiler Upgrade Scheme (BUS) is a UK government grant that pays £7,500 towards the cost of replacing a fossil fuel boiler with an air source heat pump or ground source heat pump. It is available to homeowners in England and Wales. Unlike ECO4, there is no income requirement — any homeowner can apply regardless of earnings. The scheme is administered by Ofgem and runs until March 2028.
How does the £7,500 grant actually work?
You do not receive the money directly. Instead, your MCS-certified installer applies for the grant on your behalf and deducts it from your installation quote. So if a heat pump costs £12,000, you pay £4,500 and the installer claims £7,500 from Ofgem. The process is straightforward — the installer handles all the paperwork once you confirm you want to proceed.
Is there an income or benefit requirement for BUS?
No — the Boiler Upgrade Scheme has no income test and no requirement to receive benefits. It is open to all homeowners in England and Wales who are replacing a fossil fuel heating system (gas boiler, oil boiler, LPG boiler, or direct electric heating) with a qualifying low-carbon alternative. This makes it the broadest UK heating grant available.
What types of heat pump does BUS cover?
BUS covers two types: (1) Air source heat pumps (ASHP) — extract heat from outdoor air to heat your home and hot water. The most common type, suitable for most UK homes. Grant: £7,500. (2) Ground source heat pumps (GSHP) — extract heat from the ground via buried pipes. More efficient but higher installation cost. Grant: £7,500. Biomass boilers were previously covered at £5,000 for rural areas only, but this element has been removed from the current scheme.
Can I combine BUS with solar panels?
Yes — and this is one of the most powerful home energy combinations available. Solar panels generate free electricity during the day, and a heat pump uses electricity to run. When your solar panels produce power, your heat pump can use it instead of drawing from the grid, dramatically cutting your running costs. There is no rule against having both — you can get the £7,500 BUS grant for the heat pump and then install solar separately (or at the same time with a different installer). All homeowners also benefit from 0% VAT on both installations.
Does my home need a specific EPC rating for BUS?
There is no minimum EPC rating requirement for BUS, but your property must have a valid EPC certificate issued within the last 10 years. Installers will also check your home is suitable for a heat pump — older, poorly insulated homes may need draught-proofing or insulation improvements first to ensure the heat pump runs efficiently. Many installers offer a free survey to assess suitability before you commit.
How long does the BUS application process take?
The grant application itself is quick — your installer submits it online and approval typically takes a few days. The full process from enquiry to installed heat pump usually takes 4–12 weeks: surveyor visit (1–2 weeks), installer quote and confirmation (1–2 weeks), equipment procurement (2–4 weeks), installation (1–3 days). Some areas have longer waiting times due to installer availability.
Related Guides & Tools
Sources
Ofgem Boiler Upgrade Scheme guidance (ofgem.gov.uk/BUS); DESNZ Heat and Buildings Strategy 2021; MCS Certified Installer Database (mcscertified.com); GOV.UK — Apply for the Boiler Upgrade Scheme (gov.uk/apply-boiler-upgrade-scheme).