Grants · Boiler Upgrade Scheme
Boiler Upgrade Scheme 2025–2027: £7,500 UK Heat Pump Grant Explained
A complete guide to the £7,500 Boiler Upgrade Scheme. Eligibility rules, the application process, how the money is paid, common rejection reasons, and what happens after 2027.
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UK homeowner at kitchen table reviewing heat pump quote paperwork with £7,500 BUS grant deduction clearly visible, natural daylight
The Boiler Upgrade Scheme (BUS) gives English and Welsh homeowners £7,500 toward installing an air source or ground source heat pump. It's administered by Ofgem on behalf of DESNZ, runs until 31 December 2027, and is the single most important policy feature for heat pump economics in the UK today.
Quick facts
| Grant amount (ASHP/GSHP) | £7,500 |
| Grant amount (biomass) | £5,000 (off-grid only) |
| Geography | England and Wales only |
| Administered by | Ofgem (DESNZ-funded) |
| End date | 31 December 2027 |
| Application route | Your MCS-certified installer applies for you |
| Payment mechanism | Deduction from your invoice |
Eligibility — the full rules
Your property must meet all of the following:
- Located in England or Wales
- You own the property (owner-occupier) or you're a private landlord
- EPC rating of D or above, OR you have valid loft and cavity wall insulation in place (or are exempt)
- You're replacing a fossil-fuel heating system (gas, oil, LPG) or electric heating
- The property has not previously received a BUS grant
- The installation is carried out by an MCS-certified installer
Some property types are explicitly excluded: new-builds (covered by other schemes), and certain shared-ownership or social housing arrangements.
The application process step by step
- You choose an MCS installer. Use the installer finder to compare three MCS-certified businesses in your area.
- Installer surveys your home. Heat loss calculation, radiator audit, cylinder space check.
- Installer quotes you. Quote should show net cost (after grant) clearly.
- You sign a "redemption statement" giving the installer permission to claim the grant on your behalf.
- Installer applies via the Ofgem portal. Submission includes property details, proposed equipment, and your redemption statement.
- Ofgem issues a voucher (typically 2–4 weeks). Voucher is valid for 3 months for heat pumps.
- Installation happens. Most ASHP installs take 2–5 days on site.
- Installer claims the grant back from Ofgem post-commissioning.
- You pay the net amount. Final invoice = total install cost minus £7,500.
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MCS-certified heating engineer in branded workwear installing an air source heat pump on a UK property, professional environment
What if I'm rejected?
The four most common rejection reasons, and what to do about each:
| Reason | Fix |
|---|---|
| EPC rated E, F or G with no exemption | Install required insulation (often free via ECO4), get re-inspected, re-apply |
| Prior BUS grant on the property | Not fixable — grant is once-per-property. Consider ECO4 or self-funded install |
| Installer not currently MCS-certified | Use a different installer (check MCS register before signing anything) |
| New-build property (under 24 months old) | Not BUS-eligible. Talk to developer about their heat pump scheme route |
BUS and rented properties
Landlords can apply for BUS on properties they own and rent out. The grant is paid to the property, not the tenant. Some landlords are reluctant — the install disrupts tenants and locks in capital — but the upgrade does raise EPC rating, which matters under MEES (Minimum Energy Efficiency Standards) for rentals.
If you're a tenant who wants a heat pump, your only route is to convince your landlord. We can send a one-page summary for landlords if helpful — drop us a line.
BUS vs other UK heat pump grants
| Scheme | Geography | Amount | Eligibility |
|---|---|---|---|
| BUS | England & Wales | £7,500 | Property-based; EPC D+; one-time |
| ECO4 | UK-wide | Often free install | Means-tested; low-income households |
| Home Energy Scotland | Scotland | £7,500 cashback + £38,500 loan | Owner-occupiers; specific property criteria |
| Welsh Nest | Wales | Often free improvements | Low-income; specific qualifying conditions |
BUS is the largest single grant available to most middle-income English and Welsh homeowners. If you're low-income, ECO4 may give you a free install. In Scotland, HES is routinely more generous than BUS. See our grants hub for the full picture.
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Close-up of a heat pump installer's invoice showing the £7,500 BUS grant deduction line item, professional business documentation
What happens after 2027?
BUS is currently scheduled to close on 31 December 2027. What follows is uncertain:
- Extension — possible but not announced. Industry has lobbied hard for extension or replacement.
- Replacement scheme — possible. Government has signalled support for continued heat pump deployment.
- Wind-down with no successor — possible but unlikely given UK net-zero commitments.
The honest position: if you're planning to install a heat pump and you qualify for BUS, do it inside the 2027 deadline. Don't bank on the scheme being extended.
The bottom line
The £7,500 BUS grant is the structural feature that makes heat pump retrofit economically viable for most UK homeowners. The eligibility rules are unfussy compared to many UK schemes. The application process is largely handled by your installer. The window closes 31 December 2027.
The fastest path to knowing if you qualify is our 60-second eligibility checker — it runs every rule above and tells you in plain English where you stand.