The Minister for Energy Consumers, Miatta Fahnbulleh, said the budget for the Boiler Upgrade Scheme (BUS) will be almost doubled in the next financial year1. The statement came in response to figures published on 16 January 2025 by MCS, the certification body for small-scale renewables, showing that 2024 was a record year for certified installations1.
MCS reported more than 260,000 certified installations in UK homes and small businesses in 2024, covering heat pumps, solar and battery storage, a 7% increase on 2023, which was itself a record year1. The cumulative total of certified installations passed the 2 million mark1. Heat pumps recorded almost 60,000 certified installations, a 43% rise on 2023, taking the UK total to over 275,0001. Solar PV remained the most popular technology with over 180,000 certified installations, while battery storage reached nearly 20,0001.
The BUS operates in England and Wales, while the Home Energy Scotland (HES) Grant and Loan operates in Scotland1. MCS states that both offer grants of up to £7,500 for certified heat pump installations, with the HES Grant and Loan offering up to £9,000 for households that qualify for a rural uplift1. The grant amounts available under the Boiler Upgrade Scheme are set out separately from the Scottish scheme.
"By almost doubling the budget for our Boiler Upgrade Scheme in the next financial year, we hope that records for renewable installations continue to be overtaken."
The announcement did not state the cash value of the doubled budget, nor the budget from which the increase is measured. Those figures have not been reported1. The eligibility rules for the scheme and the application process are unchanged by this announcement as far as the published material shows.
| Technology | 2024 certified installations | Change on 2023 |
|---|---|---|
| Solar PV | Over 180,000 | Not reported |
| Heat pumps | Almost 60,000 | Up 43% |
| Battery storage | Nearly 20,000 | Not reported |
| All technologies | More than 260,000 | Up 7% |
Source: MCS1
Why it matters for households
The BUS is the main grant route for replacing a fossil fuel heating system with a heat pump in England and Wales, so the size of its budget affects how many households can draw on it in a given year. A larger budget reduces the chance of the scheme's funding being exhausted before the financial year ends, which is the practical constraint on a household's ability to claim the grant. The grant reduces the upfront cost of an installation, but it does not cover running costs, and the figures published by MCS cover certified installations only, not the total number of heat pumps in UK homes. Households in Scotland fall under a separate scheme with different amounts, including a rural uplift. The published statistics on vouchers and applications track how the scheme is being used.
What happens next
The increased budget applies to the next financial year, which begins in April 20251. No date has been given for a formal budget document or for any change to grant levels, and no further detail on the size of the increase has been published1.
Sources1 cited
- 2024 was a record year for small-scale renewables - MCS, mcscertified.com