What Is the Boiler Upgrade Scheme?
The Boiler Upgrade Scheme (BUS) is a government-funded initiative designed to help homeowners in England and Wales switch from traditional fossil fuel boilers to clean, renewable heat pumps. Since its launch, the scheme has provided thousands of grants to households looking to reduce their carbon footprint and energy bills.
In 2026, the scheme continues to offer substantial financial support towards the installation of heat pumps. The grants are administered through the government's official program and can cover a significant portion of the installation costs, making renewable heating more accessible than ever before.
£7,500 maximum grant available for air source and ground source heat pumps under the Boiler Upgrade Scheme in 2026.
How Much Is the Heat Pump Grant in 2026?
The Boiler Upgrade Scheme provides different grant amounts depending on the type of heat pump you choose:
- Air Source Heat Pump: Up to £7,500
- Ground Source Heat Pump: Up to £7,500
- Hybrid Heat Pump Systems: Up to £5,000
These grants represent a significant contribution towards the total cost of heat pump installation. When combined with the long-term savings on energy bills, a heat pump with the BUS grant can be a highly cost-effective solution for heating your home.
Air Source vs Ground Source Heat Pumps
Understanding the difference between air source heat pumps (ASHP) and ground source heat pumps (GSHP) is essential when considering your options. Both are eligible for the £7,500 grant, but they have distinct characteristics that may make one more suitable for your property than the other.
Air Source Heat Pumps (ASHP)
Air source heat pumps are the most popular choice for UK households. They work by extracting heat from the outside air, even in temperatures as low as -15C, and compressing it to increase the temperature before transferring it to your home's heating system.
The key advantages of air source heat pumps include:
- Lower upfront cost: Typically £3,000-££6,000 after the BUS grant
- Quick installation: Usually completed within 1-3 days
- No ground space required: Can be mounted on an external wall
- Well-suited to most UK homes: Works efficiently in the UK's climate
- Compact unit: Takes up minimal outdoor space
Air source heat pumps are particularly suitable for properties with limited outdoor space, such as terraced houses or flats. They represent approximately 90% of all heat pump installations in the UK.
Ground Source Heat Pumps (GSHP)
Ground source heat pumps use pipes buried underground to extract heat from the earth. This heat is then used to warm your home and provide hot water. Because ground temperatures remain relatively stable throughout the year, ground source systems can achieve higher efficiency ratings than air source systems.
The key advantages of ground source heat pumps include:
- Higher efficiency: Can achieve Coefficient of Performance (CoP) of 4-5
- Lower running costs: More efficient means cheaper to operate long-term
- Longer lifespan: Systems can last 25-30 years or more
- Quieter operation: No outdoor fan units
- Constant performance: Not affected by external air temperatures
Ground source heat pumps require more outdoor space for the ground loop installation, making them better suited to larger properties with gardens. The initial cost is higher (6,000-£14,000 after grant), but the long-term savings can be greater.
| Feature | Air Source (ASHP) | Ground Source (GSHP) |
|---|---|---|
| Typical Cost (after grant) | 3,000 - £6,000 | 6,000 - £14,000 |
| Installation Time | 1-3 days | 3-7 days |
| Efficiency (CoP) | 2.5 - 3.5 | 4 - 5 |
| Lifespan | 15-20 years | 25-30 years |
| Space Required | Small outdoor area | Large garden needed |
| Grant Amount | Up to £7,500 | Up to £7,500 |
What Are the Eligibility Requirements?
To qualify for the Boiler Upgrade Scheme grant, you must meet certain criteria. The requirements are designed to ensure the scheme reaches households that will benefit most from switching to heat pumps.
Who Qualifies for the £7,500 Heat Pump Grant?
To be eligible for the Boiler Upgrade Scheme, you must:
- Own your property or have obtained permission from your landlord if you're a tenant
- Have an existing heating system powered by fossil fuels (gas, oil, or coal)
- Install the heat pump at your main home - not a second home or rental property
- Have a valid Energy Performance Certificate (EPC) for the property
- Ensure your EPC has no outstanding recommendations for loft insulation or cavity wall insulation that have not been completed
The scheme is specifically designed for households that are currently using fossil fuel heating and want to switch to a more sustainable alternative. If you already have a renewable heating system, you may not qualify for the grant.
Important: Your property must have a valid EPC with no outstanding insulation recommendations. If your EPC recommends loft or cavity wall insulation, you'll need to complete these measures first.
Why Choose a Heat Pump?
Heat pumps are becoming increasingly popular as the UK moves towards cleaner, more sustainable heating solutions. Here are the key benefits of switching to a heat pump:
Lower Energy Bills
Heat pumps are highly efficient, producing up to four times more heat energy than the electrical energy they consume. This means lower running costs compared to traditional boilers, especially as electricity prices stabilise and gas prices continue to rise.
Reduce Your Carbon Footprint
Heat pumps produce no direct emissions at your property, making them a clean heating solution. When paired with a renewable electricity tariff, you can achieve virtually zero-carbon heating for your home.
Government Support
With the Boiler Upgrade Scheme offering up to £7,500 in grants, switching to a heat pump has never been more affordable. The government is committed to helping households transition away from fossil fuels, and the BUS is one of the most generous support packages available in Europe.
Low Maintenance
Heat pumps have fewer moving parts than traditional boilers, meaning they require less maintenance and typically last longer. Annual servicing is recommended, but the overall upkeep costs are generally lower than maintaining a conventional heating system.
MCS Certified Installer Requirement
To qualify for the Boiler Upgrade Scheme grant, you must use an MCS (Microgeneration Certification Scheme) certified installer. This requirement ensures that all heat pump installations meet strict quality standards and are performed by qualified professionals.
MCS Certification is mandatory for BUS grant claims. Your installer will handle the grant application on your behalf as part of the installation process.
The MCS certification scheme is recognised throughout the UK and ensures that:
- Installers have demonstrated competency in heat pump installation
- Equipment meets strict performance and quality standards
- Installations are carried out according to best practices
- You receive proper documentation and warranty coverage
All installers in the Great British Energy network are MCS certified, so you can be confident that your heat pump will be installed to the highest standards.
How to Apply for a Heat Pump Grant
Applying for a heat pump grant through the Boiler Upgrade Scheme is straightforward. Here's the step-by-step process:
- Check Your Eligibility - Use our free eligibility checker to see if you qualify for the scheme. You'll need to provide your postcode and some basic information about your property.
- Get a Home Survey - Once eligible, a qualified MCS installer will visit your property to assess its suitability for a heat pump. They'll check your existing heating system, insulation levels, and property size.
- Receive Your Quote - The installer will provide a detailed quote including the grant amount and your remaining contribution. The BUS grant will be deducted directly from the total cost.
- Schedule Installation - Once you accept the quote, installation can be scheduled. Air source heat pumps typically take 1-3 days to install, while ground source systems may take 3-7 days.
- Start Saving - After installation, you can immediately start enjoying the benefits of your new heat pump system.
How Much Will You Pay After the Grant?
After applying the Boiler Upgrade Scheme grant, your out-of-pocket costs will depend on the type of heat pump you choose and your specific property requirements:
- Air Source Heat Pump: Typically £3,000-£6,000 after grant
- Ground Source Heat Pump: Typically £6,000-£14,000 after grant
These costs are estimates and may vary depending on your property's specific requirements. Additional costs may include any necessary upgrades to your heating system or insulation. Your installer will provide a detailed quote before any work begins.
Are Heat Pumps Worth It?
Many homeowners wonder if heat pumps are worth the investment. The answer depends on your specific circumstances, but for most households, the combination of the BUS grant and long-term savings makes heat pumps an excellent choice.
Key factors that affect the value of a heat pump include:
- Current heating costs: If you're currently spending a lot on gas or oil, you'll see greater savings
- Property size: Larger properties typically benefit more from the efficiency of heat pumps
- Insulation quality: Well-insulated homes get the most benefit from heat pump systems
- Electricity prices: While heat pumps use electricity, they're still more efficient than burning fossil fuels
For a detailed analysis of whether heat pumps are worth it for your home, see our guide on Are Heat Pumps Worth It?