If your heating system is nearing the end of its life, you may be wondering whether to replace it with another boiler or make the move to a heat pump. The Boiler Upgrade Scheme (BUS) helps eligible property owners in England and Wales with the upfront cost of installing low-carbon heating. The good news is that the scheme has been extended to 2030, although individual grant rates and eligibility rules may well change before then.
How much funding is available in 2026?
The size of the grant you could get will depend on what you’re looking for. The standard grants available are:
- £7,500 for eligible air-to-water and ground source heat pumps, including qualifying water source systems.
- £2,500 for an air-to-air heat pump.
- £5,000 for eligible biomass boilers can receive.
- £9,000 for qualifying off-gas-grid properties replacing oil or LPG heating with an eligible air-to-water or ground source heat pump. (From 21 July 2026 until 31 March 2027).
Who can apply?
The scheme is available to eligible property owners including landlords, and some self-build homes can qualify. Most developer-built new homes and social housing are excluded, as well as properties that have already received government funding for a heat pump or biomass boiler. In general, you need to replace an existing fossil fuel or direct electric heating system rather than another low-carbon system, but your installer will check the property's circumstances and any applicable energy performance requirements before proceeding.
Will a heat pump work in your home?
Heat pumps can work in many types of property, including some older homes, but the system needs to be designed around the building's heat loss and the way its rooms are heated. Insulation improvements can reduce the amount of energy needed, while larger radiators may sometimes be recommended so the system can run efficiently at lower temperatures. A qualified installer will be able to give you a clear explanation of what needs changing and what the complete installation will involve before you commit.
What will it cost to run?
A heat pump moves heat rather than creating it by burning fuel, which means that they effectively deliver several units of heat for each unit of electricity consumed. That doesn't automatically mean it will cost less to run than a gas boiler, because electricity and gas have different unit prices. Your home's heat demand and the system's seasonal efficiency will affect the result, so ask for a running-cost estimate based on your current energy use and compare tariffs carefully.
How do you apply?
To get started with applying for a heat pump, find an installer certified under the Microgeneration Certification Scheme (MCS) and get a detailed quote from them. The installer will apply for the grant on your behalf, but you’ll need to give the necessary consent and eligibility information. The grant will be deducted from the installation price rather than paid into your bank account, and the installer claims it through the scheme after completing the qualifying work. As will all home improvements and maintenance, it’s advisable that you get more than one quote so you can compare the final amount that you’ll need to pay after the grant has been deducted from your bill as well as any recommended changes to your heating system.
Do you need planning permission?
Many domestic heat pump installations are categorised as a permitted development, but the final ruling will depend on the type of system as well as they type of property you live in. Restrictions will often apply to listed buildings or flats, and noise and siting conditions may apply, so take the time to check with your local planning authority and installer rather than assuming that every heat pump can be fitted without permission.
Finding an installer
Look for an MCS-certified heat pump installer with experience of homes like yours and ask for a full heat-loss assessment. You’ll find vetted, rated, and reviewed heating engineers on Trust A Trader, but make sure they have MCS certification before getting a quote if you want to take advantage of the Boiler Upgrade Scheme. Upgrading your heating is a significant investment, and the boiler upgrade scheme is an opportunity for you to save money as well as making environmentally friendly choices. If you’re not sure if you’re eligible for the scheme, or you want to find out more, speak to a local specialist.