The Boiler Upgrade Scheme, How to Claim the £7,500 Heat Pump Grant

What is the Boiler Upgrade Scheme?

The Boiler Upgrade Scheme (BUS) is a government grant programme administered by Ofgem on behalf of the Department for Energy Security and Net Zero (DESNZ). It provides a voucher worth £7,500 towards the installed cost of an air source heat pump or ground source heat pump, replacing a fossil fuel heating system.

The scheme was introduced to accelerate the take-up of low-carbon heating in England and Wales, as heat pumps are central to the government's strategy for decarbonising home heating. The grant is applied directly by your installer, meaning you pay the net amount rather than claiming a rebate afterwards.

What the Grant Covers

The grant amount was increased from £5,000 to £7,500 in 2023 and has remained at that level. It is deducted from your installer's invoice, you do not need to claim it separately.

Eligibility Criteria

To qualify for the BUS grant, you must meet all of the following:

• The property must be in England or Wales (Scotland and Northern Ireland have separate schemes)
• The property must have a valid EPC with no outstanding recommendation to add loft or cavity wall insulation, these must be addressed first, or an exemption obtained
• The existing heating system must be a fossil fuel boiler (gas, oil, or LPG) or direct electric heating
• You must use a Microgeneration Certification Scheme (MCS)-certified installer
• The property must not have previously received a BUS grant for the same technology

The EPC Insulation Requirement

One of the most common reasons for BUS applications failing is an outstanding insulation recommendation on the property's EPC. If your current EPC lists loft insulation or cavity wall insulation as a recommended measure, this must be completed (or formally exempted) before your installer can redeem a BUS voucher.

You can check your current EPC recommendations instantly by searching your address on Property Passport UK, which displays live EPC data including all listed recommendations.

How the Application Process Works

1. **Get quotes from MCS-certified installers.** Only installers registered under the Microgeneration Certification Scheme can apply for BUS vouchers on your behalf. A reputable installer will check your eligibility before quoting.

2. **Installer applies for a voucher.** Your installer applies to Ofgem for a voucher before installation begins. Vouchers are valid for three months.

3. **Installation takes place.** The heat pump is installed and commissioned. The installer completes MCS certification documentation.

4. **Installer redeems the voucher.** After installation, the installer submits evidence to Ofgem and claims the £7,500. This is deducted from your final invoice.

What Heat Pumps Actually Cost

After the £7,500 grant, the typical cost for a fully installed air source heat pump, including pipework, radiator upgrades where needed, and controls, commonly ranges from several thousand pounds upwards, depending on property size and system complexity. Ground source heat pumps are considerably more expensive due to groundwork costs.

Costs are highly variable and multiple quotes are strongly recommended.

Is Your Home Suitable?

Heat pumps work most efficiently in well-insulated homes. Before committing to a BUS application, ensure:

• Your property is reasonably well insulated (especially loft and walls)
• Your radiators are large enough to work with the lower flow temperatures heat pumps produce, or you are prepared to upgrade them
• You have sufficient external space for an air source unit (typically requires a clear wall or garden area)
• You understand your current energy tariff, heat pumps run on electricity, which has a different cost structure to gas

The Energy Saving Trust offers free, impartial advice on heat pump suitability through its advice line.