The Boiler Upgrade Scheme (BUS) is the main grant for homeowners who want to replace a fossil fuel heating system with a heat pump. This guide covers the basics for 2026.
What the grant offers
BUS gives up to £7,500 off the cost of a low-carbon heating system. The amount depends on the technology, and the grant has been temporarily higher for some homes that rely on heating oil or LPG, so check the current rates on GOV.UK before you finalise a quote. The scheme has no income test.
Where it applies
BUS covers England and Wales. Homes in Scotland and Northern Ireland are not covered, but separate national schemes exist there, so look at your own government’s energy advice service.
Who is eligible
You generally need to own the property (including some small landlords and small business premises) and be replacing a fossil fuel heating system, such as a gas, oil or LPG boiler, with an eligible heat pump or other qualifying system. The installer and the equipment must also be certified under the scheme’s rules.
How you receive the money
You do not apply directly in most cases. Your certified installer applies on your behalf and deducts the grant from your invoice, so you pay the reduced price. Confirm in writing that the quote shows the grant as a separate line.
Funding and timing
Government announcements as part of the Warm Homes Plan have extended the scheme for several years, and installations are currently being quoted at 0% VAT. These dates and rules can change, so confirm them with an installer and GOV.UK.
Before you accept a quote
- Ask for a room-by-room heat loss calculation, not a rough guess by house size.
- Get at least two or three quotes and compare the system size, the cylinder and any radiator changes.
- Check that the quote lists the BUS grant, the total cost and the price you pay after the grant.
- Ask what insulation or draught-proofing would let you use a smaller, cheaper system.
Frequently asked questions
Does the grant cover the whole cost? No. It reduces the price, and you pay the rest. Many installations still cost several thousand pounds after the grant.
Can I combine it with other help? Some low-income support schemes interact with BUS, and certain council grants count toward a combined cap, so ask your installer and council.
To compare the grant against your running costs, try our UK calculator.
What a typical process looks like
- Check your property. Confirm you are in England or Wales and that your current system is a fossil fuel boiler.
- Get a heat loss survey and quotes. Good installers measure your home rather than guessing.
- Agree the final quote. It should show the system, the work needed, the BUS grant and your payment.
- Installer applies for the grant. They submit the application with your details before installation.
- Installation and commissioning. The installer completes the work and claims the grant after it is installed.
Things that can make a heat pump work better
- Loft and wall insulation, and draught-proofing, which reduce the size of system you need.
- Larger radiators in key rooms, or underfloor heating, which let the system run at lower temperatures.
- A well-sized hot water cylinder and good controls.
- A tariff that suits a heat pump, such as a time-of-use plan, if your supplier offers one.
Questions to ask installers
- Which certification scheme do you use, and can I see your registration?
- What is the predicted seasonal efficiency for my home?
- What happens if the system does not reach the design temperature?
- What warranty and servicing is included?