The Boiler Upgrade Scheme has updated its grant amounts. Air source and ground source heat pumps remain at £7,500, but a new lower tier has appeared for certain biomass and other eligible heating systems. Here's the full picture for 2026.
Updated: 28 April 2026 · Source: GOV.UK · Administered by Ofgem
| Heating System | Grant Amount | Notes |
|---|---|---|
| Air source heat pump | £7,500 Highest | No income test. Any England/Wales homeowner with a valid EPC. |
| Ground source heat pump | £7,500 | Requires adequate outdoor space for ground loop. |
| Biomass boiler | £5,000 | Primarily rural, off-gas-grid properties. |
| Biomass boiler / other eligible system | £2,500 New Tier | New lower tier introduced in 2026 for certain qualifying systems. |
* All figures sourced from GOV.UK. Amounts apply to homeowners in England and Wales. Scotland and Northern Ireland have separate schemes.
The Boiler Upgrade Scheme now has four distinct grant levels, up from three. The new £2,500 tier sits below the existing £5,000 biomass boiler grant, and applies to what GOV.UK describes as "biomass boiler / other" — certain eligible heating systems that don't meet the full criteria for the higher biomass tier.
The exact specification for the £2,500 tier is determined by the scheme's technical requirements, which are set by Ofgem and updated periodically. If you're considering a biomass or hybrid system, the best way to confirm which tier you'd fall into is to get a quote from an MCS-certified installer — they'll assess your system against the scheme's current technical criteria.
Key point: The new £2,500 tier doesn't replace the £7,500 heat pump grant. Air source and ground source heat pumps still qualify for the full £7,500 — the highest rate available under the scheme.
The Boiler Upgrade Scheme was originally launched with grants of £4,000 for air source heat pumps. Since then, amounts have increased significantly:
Each increase has been designed to close the gap between the upfront cost of a heat pump and a traditional gas boiler, making the technology accessible to more homeowners without requiring a large upfront investment.
For most homeowners, the £7,500 heat pump grant will be the better financial choice. Here's a practical comparison:
| Air Source Heat Pump | Biomass Boiler | |
|---|---|---|
| Grant amount | £7,500 | £5,000 or £2,500 |
| £10,000–£15,000 | £8,000–£14,000 | |
| £2,500–£7,500 | £3,000–£9,000 | |
| £900–£1,200 | £800–£1,400 (wood pellets) | |
| Maintenance | Low (10-15 year service intervals) | Higher (annual sweeping, ash removal) |
| Electricity | Wood pellets, logs | |
| Rural / off-gas-grid advantage | Useful but not required | Typically better suited |
For the majority of homes connected to the gas grid, an air source heat pump with the £7,500 grant represents the lowest out-of-pocket cost and the simplest ongoing maintenance. Biomass boilers tend to suit rural properties with space for a pellet store and an existing solid fuel heating setup.
The Boiler Upgrade Scheme works differently from means-tested benefits. You don't apply directly to the government. Instead, your chosen MCS-certified installer handles the application to Ofgem on your behalf.
Yes — but not for the same measure. The Boiler Upgrade Scheme grant and ECO4 (the Energy Company Obligation) cannot be stacked for a single upgrade like a new boiler. However, they can be used sequentially:
This combination is the most cost-effective route for eligible households — potentially £7,500 + free insulation for a fully upgraded, energy-efficient home.
Reviewed for technical accuracy by Sarah Mitchell, MCS Certified Energy Assessor, prior to publication.
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