The Boiler Upgrade Scheme (BUS) gives you £7,500 towards an air source or ground source heat pump in England and Wales. It's the main government grant for switching off a fossil-fuel boiler, and it's paid as a discount through your installer, so you never have to claim it back yourself.
Here's how much you can get, who qualifies, and what a heat pump actually costs after the grant.
How much is the heat pump grant?
Through the Boiler Upgrade Scheme:
- £7,500 for an air source heat pump
- £7,500 for a ground source heat pump
- £5,000 for a biomass boiler (rural, off-gas-grid properties only)
- Be in England or Wales
- Be replacing an existing fossil-fuel heating system (not a new build)
- Have a valid EPC with no outstanding recommendations for loft or cavity wall insulation
- Own the property
- Use an MCS-certified installer (like us) who applies for the grant on your behalf
- ECO4: fully funded measures for low-income households on certain benefits. See our ECO4 scheme guide.
- Warm Homes: Local Grant: wider energy-efficiency support for eligible English homes, run through local councils.
- Pairing with solar: running a heat pump off your own solar panels reduces how much of its electricity you buy from the grid.
- Free property survey including a proper heat loss calculation
- System design and quote with the grant value shown clearly
- Grant application handled entirely by us
- MCS-certified installation, typically two to three days for air source
- Commissioning and handover, with the grant deducted so you only pay the balance
- Ofgem, Boiler Upgrade Scheme (BUS): official scheme page.
- Energy Saving Trust, Boiler Upgrade Scheme explained: grant amounts and the 2026 off-gas increase.
The scheme is funded until 2028. The £7,500 figure has held steady since it rose from £5,000 in 2023 (source: Ofgem).
New for 2026: £9,000 for oil and LPG homes
From 21 July 2026, eligible off-gas-grid properties heated by oil or LPG can get an increased grant of £9,000 towards an air or ground source heat pump, running to 31 March 2027 (source: Energy Saving Trust). If you're on oil or LPG, it's worth factoring the timing into your decision.
Who is eligible for the Boiler Upgrade Scheme?
Your property must:
You must:
Note that the insulation requirement matters. If your EPC flags missing loft or cavity wall insulation, you'll usually need to sort that first.
What does a heat pump cost after the grant?
Costs vary with your home's size, heat demand and how much pipework or radiator upgrading is needed. As a rough guide for an air source system:
| Property | Typical installed cost | After £7,500 grant |
| 3-bed semi | ~£12,000 | ~£4,500 |
| 4-bed detached | ~£15,000 | ~£7,500 |
Will a heat pump cut my bills?
It can, but the size of any saving depends on your home, the system design and the gap between electricity and gas prices at the time. Heat pumps are very efficient (they deliver three to four units of heat per unit of electricity), so a well-designed and well-insulated install can run at a similar cost to, or cheaper than, a gas boiler. A poorly insulated home or an undersized system can wipe that out, which is why the survey stage matters so much.
We won't promise a fixed saving. What we will do is model your specific home honestly before you commit.
Other funding worth checking
Common heat pump myths
"They don't work in cold weather." Modern units operate efficiently well below freezing. Heat pumps are standard across Scandinavia.
"They're noisy." A modern outdoor unit runs at around 40-60 dB, roughly a quiet conversation.
"You need underfloor heating." Most installs work with existing radiators, though some radiators may need upsizing.
How the process works with us
Ready to find out what your home needs? Call 0330 133 2497 or book a free heat pump assessment.