The Boiler Upgrade Scheme (BUS) began in March 2022 and runs until March 2028, with around £450 million allocated1. Ofgem administers the scheme on behalf of the Gas and Electricity Markets Authority, under the Boiler Upgrade Scheme (England and Wales) Regulations 20222. The scheme is installer-led: installers must be MCS certified to apply, and account creation opened on 11 April 2022 as a necessary first step before voucher applications could be submitted2.
Grants are £5,000 for air source heat pumps and biomass boilers, and £6,000 for ground source heat pumps, with installed capacity not exceeding 45 kWth2. Grants do not vary by the capacity of the installation2. Only properties in England and Wales are eligible, and both domestic and non-domestic properties qualify2. Properties must have a valid Energy Performance Certificate no more than 10 years old, must previously have had a fossil fuel-based heating system or an electric heating system other than a heat pump, and are required to have a minimum level of insulation2. Social housing is not eligible, and biomass boilers are not an eligible technology in self-build properties2.
"The BUS provides upfront capital grants to support the installation of heat pumps and, in limited circumstances, biomass boilers in domestic and non-domestic buildings."
Vouchers for air source heat pumps and biomass boilers are valid for three months, and vouchers for ground source heat pumps for six months from the date of issue2. The last date Ofgem was able to issue vouchers under the guidance as published was 31 December 20242. The regulations were amended in May 2024 by the Boiler Upgrade Scheme (England and Wales) (Amendment) Regulations 20243. In May 2024, government extended the BUS until April 2028 and committed an additional £1.5 billion in funding for the extension over three years4.
Ofgem's fifteenth quarterly report, published 27 February 2026, covers 1 November 2025 to 31 January 2026 and gives cumulative figures since launch3:
| Measure | Total since launch |
|---|---|
| Voucher applications received | 114,022 |
| Vouchers issued | 80,467 |
| Value of vouchers issued | £563,012,000 |
| Voucher redemption applications received | 76,239 |
| Grants paid | 75,174 |
| Value of grant payments | £523,357,000 |
Of the 75,174 grants paid to date, 73,333 (97.6%) were for air source heat pumps, 1,424 (1.9%) for ground source heat pumps, 381 (0.5%) for biomass boilers and 36 (0.05%) for shared ground loop ground source heat pumps3. Budget allocation for scheme year 4 (April 2025 to March 2026) is £295 million, with £244.3 million allocated between April 2025 and January 2026, leaving £50.7 million remaining3. Unspent budget is not carried over to the next scheme year3. The Department for Energy Security and Net Zero announced in November 2024 that an additional £30 million was available for year 3, and on 30 January 2025 announced a further £25 million, increasing the total year 3 budget from £150 million to £205 million3.
The BUS replaced the Domestic Renewable Heat Incentive as the main domestic support route. The DRHI closed to new applicants and Metering and Monitoring Service Package applications on 31 March 20224. Ofgem has introduced checks to ensure DRHI participants cannot also benefit from the BUS4. As of 31 March 2024, the DRHI had supported 118,765 lower carbon heating systems, with payments totalling £1.06 billion since 20144.
Why it matters for households
The BUS is capital support paid at the point of installation, not a tariff paid over time, so it reduces the upfront cost of a heat pump rather than a household's running costs. Because the scheme is installer-led, the application route runs through an MCS certified installer rather than the householder, and the property owner's consent is confirmed with Ofgem during the process2. Eligibility turns on the property rather than the occupant: a valid EPC, a previous fossil fuel or non-heat-pump electric heating system, and a minimum level of insulation2. Homes without a valid EPC, or in social housing, fall outside the scheme2. The grant value does not scale with system size, so a larger installation receives the same amount as a smaller one within the 45 kWth limit2. For a household weighing up whether to replace a fossil fuel boiler, the BUS is one of several routes: the Energy Company Obligation, known as ECO4, runs until 31 March 2026 and covers insulation, solar panels and heat pumps for households meeting criteria including an EPC of D to G, total household income below £31,000, or receipt of certain benefits1. The two schemes have different eligibility rules and cannot be treated as interchangeable.
What happens next
The scheme runs until March 20281. Ofgem publishes a monthly cumulative update and a more detailed annual report by 31 July each year3. Scheme years run from 1 April to 31 March and do not align with the reporting quarters, which run 1 February to 30 April, 1 May to 31 July, 1 August to 31 October, and 1 November to 31 January3.
Sources4 cited
- DIY Home Energy Audit: UK Guide, heatable.co.uk
- Boiler Upgrade Scheme installer guidance, ofgem.gov.uk
- Boiler Upgrade Scheme Quarterly Report Issue 15, ofgem.gov.uk
- DRHI 2023-24 Annual Report, ofgem.gov.uk