The Boiler Upgrade Scheme Explained: Everything UK Homeowners Need to Know

The Boiler Upgrade Scheme (BUS) is a UK Government programme that offers grants to homeowners in England and Wales to help cover the cost of replacing fossil fuel heating systems with low-carbon alternatives. If you are considering switching from a gas, oil, or LPG boiler to an air source heat pump, the BUS could save you up to £7,500. Here is everything you need to know about how the scheme works and how to apply.

What is the Boiler Upgrade Scheme?

The Boiler Upgrade Scheme was launched in April 2022 as part of the UK Government’s Heat and Buildings Strategy. Its purpose is to accelerate the transition from fossil fuel heating to cleaner, more efficient alternatives. The scheme is administered by Ofgem and provides upfront capital grants to reduce the cost of installing eligible low-carbon heating systems.

The grant is not paid directly to the homeowner. Instead, it is applied as a discount by the MCS-certified installer at the point of installation. This means you see the benefit immediately as a reduction in your installation cost, with no need to claim the money back after the work is completed.

How Much is the Grant?

The current grant amounts under the Boiler Upgrade Scheme are £7,500 for air source heat pumps and £7,500 for ground source heat pumps. Biomass boilers may also qualify for a reduced grant in certain rural circumstances, though this is less common. These grant levels apply per property, meaning each eligible home can receive one grant.

Who is Eligible?

To qualify for the Boiler Upgrade Scheme, you must meet the following criteria. You must own the property (or be a landlord with a property in England or Wales). You must be replacing an existing fossil fuel heating system such as a gas, oil, or LPG boiler, or a direct electric heating system. Your property must have a valid Energy Performance Certificate (EPC) with no outstanding recommendations for loft insulation or cavity wall insulation.

Properties that have already been fitted with a heat pump or that are new builds are not eligible. The scheme is also only available for installations carried out by MCS-certified installers like Bright Nest Energy.

How to Apply

The application process is straightforward. First, contact Bright Nest Energy for a free home assessment. Our team will survey your property, design the optimal heat pump system, and provide a detailed quotation. If you are happy to proceed, we submit the BUS grant application to Ofgem on your behalf. Once the voucher is issued, we schedule the installation and apply the £7,500 grant as a deduction from your invoice.

The entire process from initial enquiry to installation typically takes four to eight weeks, depending on the time of year and Ofgem processing times. Our team manages all the paperwork, so you do not need to interact with Ofgem directly.

Is a Heat Pump Worth It With the BUS Grant?

With the £7,500 BUS grant, the net cost of an air source heat pump installation is typically between £2,500 and £7,500 depending on the system size and property requirements. Given that heat pumps are approximately three times more efficient than gas boilers and produce significantly lower carbon emissions, the long-term financial and environmental benefits are substantial. When combined with solar PV, running costs can be reduced even further.