The Department for Energy Security and Net Zero (DESNZ) published the outcome of its consultation on the Boiler Upgrade Scheme and certification requirements for clean heat schemes on 18 November 20251. The consultation had asked for views on new heat pump purchase options alongside the grant, expanding eligibility for low carbon heating technologies, barriers in the consumer installation journey, and simplifying certification requirements1.
The changes extend the Boiler Upgrade Scheme to air-to-air heat pumps in domestic properties, with grants of £2,5001. Grants of £2,500 will also support heat batteries once product, design and installation standards are in force, with applications anticipated to open during 2026/272. The requirement that heat pumps cannot use heat in air expelled by an appliance will be removed, allowing exhaust air heat pump installations, and more installations combining heat pumps with other electric heating appliances will be allowed1. Third party ownership agreements will be permitted, subject to eligibility requirements1.
The requirement to provide a valid Energy Performance Certificate will be relaxed from 2026/27 onwards1. Elmhurst Energy, which opposed the change, said a hybrid model will apply: valid EPCs will be required at application where one already exists, and where none exists applicants will be permitted to provide alternative forms of evidence to Ofgem, which it said has not yet been defined1. MCS said further detail and coming into force dates for the EPC and upfront deduction changes will be set out2.
DESNZ also said it will assess the effectiveness of the MCS Customer Commitment before approving it for the scheme in early 20262. Until then, installers must retain Consumer Code membership; once approved, installers would need either the Customer Commitment or Consumer Code membership2. A requirement for installers to deduct the grant amount from the upfront cost of the installation was also introduced1.
"By expanding the Boiler Upgrade Scheme grants to include air-to-air heat pumps and thermal batteries, government is giving consumers greater choice"
Energy Systems Catapult said air-to-air heat pumps can be a powerful tool to tackle fuel poverty for households currently using direct electric resistive heating, and offer the additional benefit of cooling3. It said grant support for heat batteries will only become available once technical product standards have been established, which it described as important for consumer protection and performance3.
Why it matters for households
The scheme pays grants towards low carbon heating in properties in England and Wales, and the grant is paid to the installer rather than to the householder4. The published grant values are £7,500 for air-to-water and ground source heat pumps, £2,500 for air-to-air heat pumps and £5,000 for biomass boilers4. Air-to-air heat pumps are only eligible in residential buildings, and biomass boilers only in limited circumstances subject to location and air quality requirements4. A property will usually not be eligible if public funding has already been received for a low carbon heating system at the same address, and social housing is not eligible4. An existing fossil fuel heating system must be fully replaced, and a fossil fuel system cannot be kept alongside a scheme funded installation4. The scheme is installer-led, so a householder cannot apply directly5.
What happens next
The changes come into force on 28 April 2026, and Ofgem guidance applies to applications properly made on or after that date4. From 21 July 2026, uplifted grant values will be available to eligible off-gas grid properties, remaining available until 31 March 20276. MCS 2025 version 1 was approved by the Secretary of State as a consumer code on 1 June 20266.
Sources6 cited
- Boiler Upgrade Scheme Amendments Announced - Elmhurst Energy, elmhurstenergy.co.uk
- MCS welcomes changes to Boiler Upgrade Scheme - MCS, mcscertified.com
- Response to Amendments to the Boiler Upgrade Scheme (BUS), es.catapult.org.uk
- Boiler Upgrade Scheme: Property owner guidance V4, ofgem.gov.uk
- Boiler Upgrade Scheme: Property owner guidance V4, ofgem.gov.uk
- Boiler Upgrade Scheme: Property owner guidance V4, ofgem.gov.uk