The Boiler Upgrade Scheme Explained: Your Complete Guide to the £7,500 Grant

The Boiler Upgrade Scheme (BUS) is the single biggest incentive for switching from a gas boiler to a heat pump. At £7,500 off the installation cost, it brings air source heat pumps within reach of most homeowners. But the application process has a few quirks worth knowing about before you start.

What the grant covers

The BUS provides:

• £7,500 off an air source heat pump
• £7,500 off a ground source heat pump


• £7,500 off a biomass boiler (rural properties only, with conditions)

The grant is applied directly to your installation quote - you don't pay the full price and claim back later. Your installer handles the Ofgem application on your behalf.

Who qualifies?

The core requirements are straightforward:

1. Your property must be in England or Wales
2. You must own the property (or be a landlord with tenant agreement)


3. You need a valid EPC with no outstanding loft or cavity wall insulation recommendations


4. The system must replace an existing fossil fuel heating system


5. Your installer must be MCS certified

That EPC requirement catches people out more than anything else. If your EPC says you need loft insulation, you'll need to get that done first. We've written a full guide on understanding your EPC and why it matters for grant applications.

The application process step by step

1. Get a current EPC if yours is older than 10 years
2. Request quotes from MCS-certified heat pump installers


3. Choose your preferred installer - they'll handle the BUS application


4. Ofgem typically approves within 3-5 working days


5. Installation goes ahead once approved


6. You pay the installer the quoted price minus £7,500

The whole process from first enquiry to working heat pump usually takes 4-8 weeks, depending on installer availability.

What does it cost after the grant?

A typical air source heat pump installation runs between £10,000 and £15,000 before the grant. After BUS, you're looking at:

• Small property (1-2 bed): £3,000 - £5,000
• Average home (3 bed semi): £5,000 - £8,000


• Larger property (4+ bed): £7,000 - £10,000

Running costs are often lower than gas too, especially if you're on a heat pump tariff with cheap off-peak rates. We looked at the full cost breakdown of heat pumps separately if you want the detail.

Common concerns

"Will a heat pump keep my house warm enough?" Yes. Modern air source heat pumps work efficiently down to -20C. The key is correct sizing - your installer should do a full heat loss calculation. Our guide on heat pump types covers the differences between air source, ground source, and hybrid systems.

"Do I need underfloor heating?" Not necessarily. Heat pumps work with radiators too, though you may need to upsize some of them. Many installers include a radiator survey in their quote.

Will the scheme last?

The BUS was extended to 2028 in the last Autumn Statement, with an increased budget of £295 million per year. But there's a voucher cap, and once annual allocation runs out, you wait until next year. Applications have been increasing sharply, so delaying isn't risk-free.

Our advice: if you're considering a heat pump, get your quotes lined up now. The grant isn't going to get bigger, and installer diaries fill up fast in spring.