The Domestic Renewable Heat Incentive closed at the end of March 2022, and the Boiler Upgrade Scheme succeeded it as the main grant for household low carbon heating in England and Wales1. The successor scheme was formerly known as the Clean Heat Grant1.
The Boiler Upgrade Scheme was set out as a £450m fund, spent on grants that "predominately subsidise the upfront cost of heat pumps for homeowners"1. It was to offer £5,000 grants for air-source heat pumps and biomass boilers, with biomass limited to rural areas and to installations replacing fossil fuel systems, and £6,000 for ground-source heat pumps1. The scheme covers England and Wales only and was to run for three years from 2022 to 2025, with a launch expected in spring 20221. MCS certification is a requirement of the scheme, TrustMark is not, and the grant is not means-tested1. It was to be delivered through vouchers, with installers able to make applications and redeem vouchers for their customers1.
Solar thermal was not included in the grant scheme, and non-domestic heat pumps up to 45kWth were eligible1. The minimum heat pump SCOP requirement rose from 2.4 to 2.81. MCS noted that the £450m fund equated to 30,000 installations a year through to 2025, 90,000 in total, against the government's target of 600,000 heat pumps per year by 20281.
"the new Boiler Upgrade Scheme, a £450m fund which will be spent on grants that predominately subsidise the upfront cost of heat pumps for homeowners"
Later reporting describes a scheme that has since changed. The standard grant is given as £7,500 for an air to water heat pump, with £2,500 for air to air heat pumps added in January 2026, and from 21 July 2026 homes heated by oil or LPG eligible for an increased grant of £9,000, a temporary uplift running until 31 March 20272. The EPC insulation condition was removed entirely from April 20262. The scheme is described as administered by Ofgem on behalf of the UK government and funded until 20282. Scotland operates a separate scheme, the Home Energy Scotland Grant and Loan Scheme, funded by the Scottish Government, offering up to £7,500 plus an optional £7,500 interest free loan, with an additional £1,500 for rural or island homes2. The two schemes cannot be combined2.
| Nation | Scheme | Grant |
|---|---|---|
| England and Wales | Boiler Upgrade Scheme | £7,500 air to water; £2,500 air to air; £9,000 for oil or LPG homes from 21 July 2026 to 31 March 20272 |
| Scotland | Home Energy Scotland Grant and Loan Scheme | Up to £7,500 grant, optional £7,500 interest free loan, plus £1,500 rural or island uplift2 |
Why it matters for households
The change moved support for home heating from a payment made over time to a sum taken off the upfront cost of an installation. Under the Domestic Renewable Heat Incentive households received payments for heat produced; under the Boiler Upgrade Scheme the money is applied to the installation itself, which changes when a household sees the benefit and how much cash it needs at the outset. The grant is not means-tested, so eligibility turns on the property, the fuel being replaced and the technology installed rather than on income1. Because the grant is paid to the installer as a voucher, the household does not handle the money directly1.
For a home's energy independence, the practical effect is that the cost of moving off a fossil fuel boiler is reduced by a fixed amount, while the running cost depends on the efficiency of the unit and the price of electricity. The raised SCOP minimum of 2.8 sets a floor on efficiency for qualifying units1. Households on oil or LPG, typically off the gas grid, are treated differently under the later rules, with a larger grant available for a limited period2. The grant amount and the eligibility rules have both changed since the scheme opened, so the terms that applied at launch are not the terms that apply now.
What happens next
The Boiler Upgrade Scheme is described as funded until 2028, with the £9,000 uplift for oil and LPG homes running until 31 March 20272. MCS said it would work with installers on training and certification, and that a new low-carbon heating technician apprenticeship would be launched in 2022, with colleges able to adopt it from September of that year1.
Sources2 cited
- Heat and Buildings Strategy for MCS Certified Installers - MCS, mcscertified.com
- Government grants for heat pumps | OVO, solar-and-heating.ovo.com