Boiler Upgrade Scheme 2027: Heat Pump Grant Explained

Boiler Upgrade Scheme grant amounts

BUS is open in England and Wales only. One grant per property. Figures below are from GOV.UK and Ofgem as of November 2026:

System	Grant	Notes
Air source (air-to-water) heat pump	£7,500	Standard rate
Ground source (incl. water source / shared loops)	£7,500	Standard rate
Air-to-air heat pump	£2,500	Residential only on Ofgem’s summary
Biomass boiler	£5,000	Extra eligibility rules
Air-to-water or ground source, off-gas replacing oil or LPG	£9,000	Applications properly made 21 July 2026–31 March 2027

GOV.UK describes the £9,000 figure as the standard £7,500 plus an additional £1,500 where the property is heated by oil or LPG and has no mains gas connection, available until March 2027. Off-gas homes replacing coal, electric storage heat or other categories may still sit at £7,500 — the approved grant table on GOV.UK lists categories line by line. Typical air-to-water install prices before grant are covered in our air source heat pump cost guide; this page does not re-price installs.

Who is eligible

Per GOV.UK you must:

Own the property you are applying for (home, business premises, second home or a let you own).
Replace a fossil-fuel heating system such as oil, gas, electric or LPG.

Prior insulation funding does not block you. You cannot get a grant for social housing, for a property that already had government or ECO support for that heat pump or biomass boiler, or for most new builds still under developer construction. Finished new builds that arrived with fossil heating may still qualify. Self-builds can qualify if you (or the original owner) built them and they were never owned by a business — proof rules differ.

Biomass needs an off-gas-grid rural property plus an emissions certificate; biomass is not available for self-builds under GOV.UK’s biomass rules.

Which systems qualify

BUS covers air-to-water heat pumps, air-to-air heat pumps, ground source heat pumps (including water source and shared ground loops) and biomass boilers that meet scheme standards. Capacity caps on GOV.UK include 45 kWth for many individual systems, 70 kWth where extra heat pumps are combined, and 300 kWth for shared ground loops.

You cannot get a grant for a hybrid (for example gas boiler plus air source heat pump), or to replace an existing low-carbon heating system.

How to apply: the MCS installer step

Get quotes from MCS-certified installers. Certification is required for BUS.
Confirm eligibility with the installer. They check property, fuel and technology category — including whether you sit in the £9,000 oil/LPG off-gas band.
Agree a quote. The grant value must appear as a discount on the quotation and later on the invoice.
Installer applies on Ofgem’s site on your behalf. You do not claim a rebate yourself.

Worked example

You own an off-gas bungalow in Wales heated by oil. An MCS firm quotes an air-to-water system. If the application is properly made on or before 31 March 2027 and the oil/off-gas tests are met, the BUS line should show £9,000, not £7,500. On-gas neighbours replacing a gas boiler with the same technology would see £7,500.

Answer: Same technology, different grant — fuel and gas-grid status decide £7,500 vs £9,000 before the 31 March 2027 cut-off.

Timelines and checks

GOV.UK requires the installer to commission and install the heat pump within 120 days of applying for the grant, or the installation is not eligible. Ofgem may email, phone or visit to confirm the installer acts for you; MCS may run its own checks. Keep the quote, invoice with grant line, and MCS paperwork with your deeds pack.

Net you pay (scheme view)

Invoice total − BUS grant shown by MCS installer (you never receive the grant cash yourself)

What is not covered

Scotland and Northern Ireland — different schemes (below).
Hybrids and replacing an existing heat pump.
Social housing and most developer new builds.
DIY installs — without an MCS installer there is no BUS route.
Unlimited capacity — stay inside the kWth caps on GOV.UK.

Scotland and Northern Ireland

Scotland: Use the Home Energy Scotland Grant and Loan. Homeowners can get up to £7,500 grant for eligible whole-house heat pumps (air/ground/water-to-water), plus an optional interest-free loan up to £7,500. Rural and island homes can get a £1,500 grant uplift. Hybrid and air-to-air heat pumps are not eligible for that heating grant. Apply via Home Energy Scotland before work starts.

Northern Ireland: GOV.UK notes the Boiler Replacement Scheme is closed. Current support is scheme-based (for example NISEP 2026/27, administered with Energy Saving Trust). Eligibility is often income- or measure-specific and funds can run out — check the live scheme list rather than assuming a BUS-style voucher.

Sizing radiators or a replacement boiler while you wait on grant paperwork? Use the Boiler Size Calculator and read the heat pump cost post for install price bands.

Documents to keep

Store with the property file: MCS certificate, BUS voucher or grant reference, quote and invoice showing the grant deduction, commissioning checklist, and any Ofgem or MCS correspondence. Buyers’ solicitors and future EPC assessors ask for this paper trail. If you are aiming for the £9,000 oil/LPG off-gas rate, keep evidence that the property has no mains gas and that the system being replaced was oil or LPG — your installer should tell you what they lodged with Ofgem.

Re-check GOV.UK before you pay a deposit. Grant categories and the 31 March 2027 uplift window are set by notice and regulation; marketing emails are not the source of truth.

Frequently Asked Questions

How much is the Boiler Upgrade Scheme grant?

GOV.UK lists £7,500 for an air source (air-to-water) or ground source heat pump, £2,500 for an air-to-air heat pump, and £5,000 for a biomass boiler. Until 31 March 2027, eligible off-gas properties replacing oil or LPG heating can get £9,000 for air-to-water or ground source (an extra £1,500).

Who can apply for the BUS heat pump grant?

You must own the property in England or Wales and be replacing a fossil-fuel system such as oil, gas, electric or LPG. Your MCS-certified installer applies on the Ofgem site. Social housing and most new builds are excluded; limited self-build rules apply.

Do I apply myself or does the installer?

The installer applies on your behalf. You get quotes from MCS installers, agree a quote, and the grant is shown as a discount on the quotation and invoice. Ofgem may contact you to confirm the installer is acting for you.

When does the £9,000 off-gas grant end?

Ofgem and GOV.UK state the uplifted £9,000 rate for eligible off-gas oil or LPG replacements is available for applications properly made from 21 July 2026 until 31 March 2027.

Does the Boiler Upgrade Scheme cover Scotland or Northern Ireland?

No. BUS is England and Wales only. Scotland has the Home Energy Scotland Grant and Loan. Northern Ireland’s old Boiler Replacement Scheme is closed; check NISEP schemes and local advice for current support.

Get local quotes

Compare MCS-certified installers and ask for the BUS deduction on the quote.

UK: Checkatrade

Sources

GOV.UK — What you can get — Grant amounts, £9,000 uplift until March 2027, hybrids excluded, capacity caps.
GOV.UK — Check if you’re eligible — Ownership, fuel types, 120-day install rule, biomass and excluded properties.
GOV.UK — How to apply — MCS quotes, installer-led Ofgem application, grant deducted from invoice.
Ofgem — BUS for property owners — Installer MCS requirement, property exclusions, grant values including £9,000 window.
Home Energy Scotland Grant and Loan — Scotland alternative: up to £7,500 heat-pump grant plus optional loan; rural uplift.
Energy Saving Trust — NISEP — Northern Ireland scheme list / programme administrator context.

When you are ready to estimate materials or cost for your project, open the Boiler Size Calculator and enter your measurements.