The Boiler Upgrade Scheme (BUS) is a UK government grant scheme to help homeowners / small non-domestic buildings replace fossil fuel heating (like gas or oil boilers) with low-carbon alternatives—mainly heat pumps. Here’s how it works, who’s eligible, and what you need to know.
How the Boiler Upgrade Scheme Works
1. What does the grant provide?
- £7,500 towards an air source heat pump (ASHP).
- £7,500 towards a ground source heat pump (GSHP) (including water-source or shared ground-loop systems).
- £5,000 towards a biomass boiler.
2. Who applies / How the grant is claimed
- You (the homeowner or property owner) don’t apply directly — we, the installer applies on your behalf.
- Installers must be MCS-certified (Microgeneration Certification Scheme) to be eligible. Total Renewable Solutions are fully certified.
- Once the installer applies, Ofgem (the scheme administrator) issues a voucher which effectively reduces your installation cost.
3. System requirements
- The heat pump system should have a maximum capacity of 45 kWth if it’s for a single property.
- For shared ground-loop systems (e.g., in a development), the total system capacity can go up to 300 kWth under BUS.
- There is a requirement for performance: for example, many eligible units must meet a minimum seasonal coefficient of performance (SCOP) (for instance, ≥ 2.8 in some cases).
- The system must provide both space heating and hot water, not just one of those.
4. Eligibility (Who can use it?)
- The scheme is available in England and Wales.
- It’s for replacing fossil fuel heating systems, e.g., gas, oil, or electric boiler or heating.
- You can only get one grant per property.
- You need a valid Energy Performance Certificate (EPC), issued within the last 10 years.
- Hybrid systems (e.g., a combination of a heat pump + a gas boiler) are not eligible under BUS.
5. Voucher validity and use
- Once issued, the voucher is valid for a limited time. The exact duration depends on the technology:
- For air source heat pumps or biomass boilers, it’s 3 months.
- (For other types, like ground source, it may differ — always check with your installer / Ofgem.)
- The installation has to be completed before you redeem the voucher.
- After installation, the installer redeems the voucher by submitting proof of installation to Ofgem, and the grant amount is deducted from what you pay.
6. Scheme budget and timing
- The scheme is managed by Ofgem, and there’s a limited budget.
- According to Ofgem’s guidance (latest), the scheme is open to “property owners” for applications made after 8 May 2024, under their current guidance version. Ofgem
- There have been further funding allocations to make sure more vouchers are available. Ofgem
7. Other considerations
- The grant is a capital grant, not a loan — you don’t need to pay it back.
- The scheme excludes some types of heat pumps (for example, “hot-water only” heat pumps).
- The scheme aims to help decarbonise heating in line with the UK’s net-zero targets.
