What Is the Boiler Upgrade Scheme?

Direct answer: The Boiler Upgrade Scheme (BUS) is a UK government grant of £7,500 for eligible air source heat pump installations in England and Wales. It is administered by Ofgem, is installer-led (your MCS installer applies and deducts the grant at invoice), and is subject to government review. Scotland has a separate scheme via Home Energy Scotland.

The BUS was introduced to accelerate the replacement of fossil fuel heating systems with low-carbon alternatives. The scheme specifically targets the upfront cost barrier — which, as the cost guide outlines, typically amounts to £10,000–£18,000 before grants. The £7,500 grant makes a substantial difference to the net cost, particularly for smaller properties.

As of March 2026, the scheme remains open and funded. However, grant availability is subject to government review, and the scheme has historically operated with an annual budget cap. It is advisable to act while the scheme remains available.

Why You Don't Apply Yourself: The Installer-Led Process

Direct answer: You do not apply for the BUS grant yourself. Your MCS-accredited installer applies to Ofgem on your behalf, receives the grant voucher, installs the heat pump, and then deducts the £7,500 from your final invoice. You simply pay the net amount. The installer then claims the grant back from Ofgem.

This installer-led model is the single most misunderstood aspect of the BUS. Many homeowners search for a direct application form or a government portal where they can apply — these do not exist for the BUS. The process is entirely managed through your chosen MCS-accredited installer.

The 6-Step BUS Process

The BUS process runs from EPC check to grant-deducted invoice across 6 steps, all coordinated by your MCS installer.
1

Check your EPC

Obtain your Energy Performance Certificate from the EPC register. Confirm there are no outstanding recommendations for loft insulation or cavity wall insulation. This is the most common cause of BUS ineligibility.

2

Find an MCS-accredited installer

Use the MCS installer directory to find certified heat pump installers in your area. Obtain at least 3 quotes. Consider RECC or HIES membership as additional consumer protection.

3

Installer confirms BUS eligibility

Your chosen installer will assess your property, verify your EPC, check your existing heating system, and confirm BUS eligibility. A reputable installer will complete a full heat loss survey at this stage.

4

Installer applies to Ofgem

Your installer applies to Ofgem for a grant voucher on your behalf. The application includes your property details, EPC certificate reference, and installation specification. Ofgem issues a time-limited voucher.

5

Heat pump installation completed

The heat pump is installed to MCS standards. The installer completes all required commissioning, documentation, and MCS certification. A commissioning certificate is issued to you.

6

Grant deducted from your invoice

Your installer deducts the £7,500 from your final invoice (subject to government review). You pay the net amount. The installer claims the grant back directly from Ofgem. The process is transparent and documented on your invoice.

Your EPC Is the Real Gatekeeper

Direct answer: BUS eligibility is not primarily determined by your EPC rating letter (A–G). It is determined by whether your EPC has outstanding recommendations for loft insulation or cavity wall insulation. A property with an EPC rating of D can be eligible; a property with an EPC rating of C can be ineligible if it carries unactioned insulation recommendations.

This subtlety catches many homeowners by surprise. The rating letter shown on the EPC front page (A through G) is almost irrelevant to BUS eligibility. What matters is the recommendations section. If your EPC lists loft insulation or cavity wall insulation as recommended, those measures must be completed before you can apply for the BUS grant.

What Counts as an Outstanding Recommendation?

Direct answer: Only loft insulation and cavity wall insulation recommendations on your EPC block BUS eligibility. Outstanding solid wall insulation recommendations do not block eligibility. If these two measures appear as recommendations on your current EPC and have not been completed, they must be done before the BUS grant can be claimed.

The rationale is practical: loft and cavity insulation are relatively inexpensive to install and have a significant impact on heat pump performance and efficiency. Requiring these to be in place before a heat pump is installed ensures the system is not operating in a property with easily-addressable heat loss.

EPC register tip: You can check your current EPC certificate for free at find-energy-certificate.service.gov.uk. The recommendations section will list any outstanding measures. If loft or cavity insulation appears, check whether it has since been completed — you may need an updated EPC to reflect improvements already made.

Does the BUS Apply in Scotland?

Direct answer: No. The Boiler Upgrade Scheme applies to England and Wales only. Scottish homeowners should investigate Home Energy Scotland at homeenergyscotland.org, which offers separate grants and interest-free loans for heat pump installations. The Scottish scheme has different eligibility criteria and funding amounts.

Northern Ireland also has its own separate programme. The BUS is a DESNZ (Department for Energy Security and Net Zero) scheme administered by Ofgem exclusively for England and Wales. Any guidance you read that refers to MCS, Ofgem, and EPC in the context of a £7,500 grant applies to England and Wales.

Why Your Search Results Are Probably Misleading You

Direct answer: Search results for “heat pump grant” or “heat pump tax credit” frequently surface US-focused content about the IRS Inflation Reduction Act (Form 5695). This is a completely different system and does not apply to UK homeowners. If you are in the UK, use the filter test below to identify whether advice you are reading is UK-relevant.
UK vs US: Filter Test

UK advice will reference: MCS (Microgeneration Certification Scheme), Ofgem, EPC (Energy Performance Certificate), DESNZ (Department for Energy Security and Net Zero), the Boiler Upgrade Scheme, and £ (pounds sterling). The grant is deducted at invoice by your installer. You never apply directly.


US advice will reference: IRS (Internal Revenue Service), Form 5695, the Inflation Reduction Act (IRA), DOE (Department of Energy), and $ (US dollars). The benefit is a nonrefundable tax credit claimed when you file your annual tax return. It has no application through an installer.


If a source you are reading mentions Form 5695, the IRS, or a 30% tax credit, it is US guidance and does not apply to your UK installation.

Beyond the Grant: Long-Term Return on Investment

Direct answer: Three additional financial factors strengthen the BUS investment case beyond the £7,500 grant: (1) 0% VAT until March 2027 (saving £2,000–£3,600), (2) the Future Homes Standard (phasing in from 2025, making fossil fuel heating less viable for resale), and (3) potential property value uplift as buyers increasingly factor in running costs and environmental ratings.

The Future Homes Standard is significant for homeowners planning to sell. New homes built from 2025 are required to produce 75–80% less carbon than current standards, and fossil fuel heating is effectively incompatible with those targets. As this standard becomes embedded in the market, homes with low-carbon heating may attract a measurable premium — though the evidence base for this in the UK remains developing.

VAT relief at 0% until March 2027 adds £2,000–£3,600 in effective value on top of the grant. The combination of BUS grant and 0% VAT represents the strongest simultaneous incentive package the UK government has offered for heat pump adoption to date.

Choosing Your MCS Installer for the BUS Grant

Direct answer: Your installer must hold MCS certification for heat pump installation to qualify for the BUS grant. Additionally look for RECC (Renewable Energy Consumer Code) or HIES (Home Insulation and Energy Systems) membership for consumer protection. Always obtain a minimum of 3 quotes from MCS-accredited installers.

MCS certification is the non-negotiable minimum — without it, neither the BUS grant nor the 0% VAT relief can be applied. RECC and HIES membership adds a further layer of consumer protection, providing access to independent dispute resolution if issues arise with your installation.

For a comprehensive guide to evaluating installers, including 10 questions to ask and red flags to watch for, see our installer guide.

Frequently Asked Questions: BUS Grant 2026

Common questions about the Boiler Upgrade Scheme answered directly.
Can I get the BUS grant if I rent my property?

The BUS grant is available for owner-occupied and certain rented properties. Landlords can apply for properties they own, subject to EPC and eligibility requirements. Social housing and some commercial properties are excluded. Your MCS installer can confirm eligibility for your specific situation.

Can the BUS grant be combined with other schemes?

The BUS grant cannot be combined with the Great British Insulation Scheme or ECO4 for the same measures. However, it can be used alongside 0% VAT relief, which applies automatically to qualifying installations until March 2027. Some local authority schemes may also be stackable — check with your installer and local council.

How long does the BUS application process take?

Once your installer submits the Ofgem application, voucher issuance typically takes a few weeks. The voucher has a time limit (typically several months), during which the installation must be completed. Your installer will manage the timeline and notify you of any delays. Allow 4–10 weeks from initial installer contact to completed installation in most cases.

What if my EPC is out of date?

EPCs are valid for 10 years. If yours is within this window, it remains valid for BUS purposes. If your EPC is expired or you have made significant improvements since it was issued, commissioning a new EPC (£60–£150) may be beneficial — particularly if improvements you have made would remove outstanding insulation recommendations from the certificate.

Is there a deadline to claim the BUS grant?

As of March 2026, there is no fixed end date for the BUS scheme, but it is subject to government review and budget availability. Previous iterations of UK renewable heating incentives have closed with limited notice. If you are planning an installation, it is advisable not to delay significantly given the combination of the BUS grant and 0% VAT relief available until March 2027.

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