The Boiler Upgrade Scheme (BUS) is open to applicants in England and Wales, offering upfront grants towards renewable heating systems. The scheme pays £5,000 towards an air source heat pump and £6,000 towards a ground source heat pump1. The grant is not means-tested1.
Systems must have a capacity of 45kW or less, and the work must be completed by an MCS approved installer, because an MCS certificate has to be issued for the project2. MCS (Microgeneration Certification Scheme) describes itself as an industry-led quality assurance scheme that certifies low-carbon products and installations3.
The grant amounts have moved since the scheme opened. MCS said in January 2024 that the allowance had "recently been increased to an allowance of £7,500 per air source and ground/water source heat pump installation across England and Wales"3. A Commons Library briefing published in May 2026 states that the BUS provides upfront grants of up to £7,500, increased to £9,000 for properties heated by oil and LPG4. The £5,000 and £6,000 figures come from 2023 material1; Which? in August 2023 described the air source grant as "up to £5,000"5.
On running costs and suitability, Which? said heat pumps "work most efficiently in well insulated homes" and that a household may need to add insulation or replace radiators or central heating pipework for the system to work effectively5. Which? put the cost of installing an air source pump at generally between £7,000 and £13,000, with the exact price depending on the home and any extra work such as radiator upgrades, insulation or a hot water cylinder5. In February 2023 British Gas was reported as promising to limit the starting price for installation of a new heat pump to £2,999, a figure that does not include the cost of the heat pump itself and would not apply to every house1.
"If you live in England or Wales you can now apply for the Boiler Upgrade Scheme (BUS). This is a non-means-tested grant from the government where you can apply for £5,000 toward a new air source heat pump, or £6,000 towards a new Ground-Source Heat Pump (GSHP)."
Why it matters for households
A heat pump replaces a gas, oil or LPG boiler and runs on electricity rather than a delivered fossil fuel, so the household's heating no longer depends on a fuel that has to be bought and stored on site5. That changes the shape of a home's energy use: the running cost follows electricity prices and the property's thermal performance rather than the price of gas or oil.
The grant reduces the upfront capital cost, but it does not cover the whole installation. Which? noted that extra work such as insulation, larger radiators or a hot water cylinder may be needed, and that these add to the price5. The BUS is not means-tested, so eligibility does not depend on income1. The Boiler Upgrade Scheme sits alongside separate support in Wales and England, and the grant amount has changed over the life of the scheme.
What happens next
The Commons Library briefing records that the government published its Warm Homes Plan on 21 January 2026, that funding for the Boiler Upgrade Scheme will be increased under that plan, and that the Warm Homes Agency will begin "initial operations" in 20274. The briefing also states that the Energy Company Obligation has been extended to 31 December 2026, that the government decided to stop further funding of ECO4 through consumers' energy bills after March 2026, and that the Great British Insulation Scheme closed to applications in March 20264.
Sources5 cited
- The challenges for our renewable heating future, les.mitsubishielectric.co.uk
- Getting A Grant Using The Boiler Upgrade Scheme (BUS), altoenergy.co.uk
- Join MCS at Everything Electric for the first time - MCS, mcscertified.com
- [](https://researchbriefings.files.parliament.uk/documents/CBP-9585/CBP-9585.pdf), researchbriefings.files.parliament.uk
- Which? shares advice on heat pumps - Which?, which.co.uk