The short answer
The Boiler Upgrade Scheme (BUS) is a government grant in England and Wales that helps cover the cost of replacing fossil-fuel heating with a heat pump. A key point catches many people out: you do not apply yourself — your MCS-certified installer applies on your behalf. The grant currently provides £7,500 towards an air source or ground source heat pump. To qualify you generally need an eligible property in England or Wales with its own meter, a valid EPC (usually without outstanding insulation recommendations such as loft or cavity wall insulation), and an MCS-certified installer and installation. The installer applies for a voucher, the grant value is deducted from your quote, and the installer redeems it once the work is certified. So in practice your job is to choose an eligible system and a certified installer, and ensure your property meets the conditions.
The Boiler Upgrade Scheme is one of the main reasons heat pumps have become more affordable in the UK. Knowing that the installer handles the application — and what makes a property eligible — saves confusion.
Boiler Upgrade Scheme basics
- Where it appliesEngland and Wales
- Heat pump grant£7,500 (air or ground source)
- Who appliesYour MCS-certified installer
- Property needsEligible property with its own meter
- Usually needsValid EPC, key insulation in place
What the Boiler Upgrade Scheme is for
The Boiler Upgrade Scheme exists to bring down the upfront cost of switching from fossil-fuel heating to a heat pump. Heat pumps cost more to install than a like-for-like gas boiler replacement, largely because of the design work and any radiator or cylinder changes involved. The grant is the government's way of narrowing that gap and accelerating the move to low-carbon heating.
It applies in England and Wales (Scotland runs its own separate support through Home Energy Scotland, and Northern Ireland has different arrangements). The grant is a fixed contribution — currently £7,500 for an air source or ground source heat pump — rather than a percentage of the cost, so it covers a larger share of a modest installation and a smaller share of a complex one. It is funded for a defined period and administered by Ofgem, with the scheme rules and grant levels set by government and subject to change over time. Because it is one of the main reasons heat pumps have become more affordable for ordinary households, it is worth understanding before you start getting quotes — particularly the fact that the whole thing is handled through your installer rather than by you directly.
Who applies — and why it isn't you
The most important thing to understand is that the Boiler Upgrade Scheme is installer-led. You do not fill in a government form yourself. Instead, your chosen MCS-certified installer applies for the grant voucher on your behalf as part of arranging the work.
This is why choosing a certified installer is the practical first step. The installer confirms your eligibility, applies for the voucher, deducts the grant from your quote, and redeems the voucher with the scheme administrator after the installation is completed and certified. Your role is to make sure the property and the proposed system qualify, and to choose a reputable installer who can handle the paperwork correctly.
The deduction matters because it changes how the money reaches you. The grant is not a cash payment or a rebate you receive after the event — the installer takes the £7,500 off the price you are quoted, so you pay the reduced figure and never have to fund the full amount and wait to be reimbursed. The installer then claims the grant back from Ofgem once the job is signed off. In practice this means the headline price you should compare between installers is the one after the grant has been applied, and it is worth confirming in writing that a quote already has the grant deducted rather than assuming it. Because the installer carries the administration and the claim, the quality and certification of the installer you choose effectively determines whether the grant reaches you smoothly.
What makes a property and system eligible
Eligibility rests on a few main conditions. Always check the current rules on gov.uk, as scheme details can change, but the established requirements are:
- Location: the property must be in England or Wales (Scotland has separate schemes).
- Property type: it must be an eligible property with its own electricity meter; the scheme covers homes and some small non-domestic buildings, replacing fossil-fuel systems.
- EPC: you usually need a valid Energy Performance Certificate, and it generally must not have outstanding recommendations for loft or cavity wall insulation — these may need addressing first.
- System: the new system must be an eligible heat pump (air source or ground source) and meet the scheme's technical requirements.
- Certification: both the installer and the installation must be MCS certified.
A hybrid system that retains a fossil-fuel boiler is generally not eligible, because the scheme supports full heat pump installations.
| Requirement | What it means |
|---|---|
| Location | England or Wales |
| Grant amount | £7,500 for a heat pump |
| EPC | Valid, key insulation recommendations met |
| Installer | MCS certified |
| System | Eligible air or ground source heat pump |
Key eligibility points — confirm current rules on gov.uk. Source: gov.uk Boiler Upgrade Scheme.
How the grant reaches you in practice
Because the installer manages the application, the process from your point of view is straightforward:
- You get a quote from an MCS-certified installer for an eligible heat pump.
- The installer confirms eligibility and applies for the grant voucher.
- The grant value is deducted from your quote, so you pay the reduced amount.
- The installer completes and certifies the work, then redeems the voucher with the scheme administrator.
So you never receive a cheque or handle the grant money directly — it comes off the price you pay. The 0% VAT currently applying to the supply and installation of qualifying energy-saving measures such as heat pumps can further reduce the overall cost. Between the grant and the VAT relief, the upfront cost of a heat pump is significantly lower than the headline installation price.
A few practical points smooth the process. Choose your installer first, because everything else flows from them: confirm they are MCS certified, that their written quote already shows the grant deducted, and that they are handling the voucher application rather than expecting you to. Check your EPC early, since an outstanding loft or cavity wall insulation recommendation can hold up eligibility until it is addressed. And keep the paperwork the installer gives you — the MCS certificate and grant documentation — as it is your record that the work was certified and the grant correctly claimed. None of these steps is onerous, but doing them in the right order avoids the most common delays, and it lets you compare quotes on a true like-for-like basis once the grant and VAT relief are both reflected in the price.
Frequently asked questions
Do I apply for the Boiler Upgrade Scheme myself?
No. Your MCS-certified installer applies for the grant voucher on your behalf as part of arranging the work. You choose an eligible system and a certified installer, and they handle the application and redemption. The grant value is then deducted from your quote rather than paid to you directly.
How much is the Boiler Upgrade Scheme grant?
It currently provides £7,500 towards an air source or ground source heat pump in England and Wales. The amount is set by the scheme and can change, so confirm the current figure on gov.uk. The grant is deducted from your installation quote, lowering what you pay upfront.
Does my home need insulation before I can get the grant?
Often, yes. Eligibility generally requires a valid EPC without outstanding recommendations for loft or cavity wall insulation, so you may need to address those first. Good insulation also lowers your heat demand, which can mean a smaller, cheaper pump. Check your EPC early so any required insulation can be sorted before applying.
Sources & further reading
- gov.uk — Apply for the Boiler Upgrade Scheme
- Ofgem — Boiler Upgrade Scheme
- Energy Saving Trust — Heat pump grants
Figures on this page are typical UK ranges drawn from published sources and depend on your specific home. They are guidance, not a quotation or guaranteed saving.