Boiler Upgrade Scheme – at a glance
- You can get one grant per property in England and Wales. [1]
- Current grant levels are £7,500 towards an air source heat pump, £7,500 towards a ground source heat pump, or £5,000 towards a biomass boiler. [2]
- You cannot get a grant for a hybrid heat pump system (for example, a gas boiler combined with an air source heat pump). [2]
- The scheme is installer-led – your installer applies on your behalf and the grant value should be deducted from your quote upfront. [3]
Sources:
- [1] GOV.UK – Apply for the Boiler Upgrade Scheme (overview)
- [2] GOV.UK – Boiler Upgrade Scheme: what you can get
- [3] Ofgem – Boiler Upgrade Scheme: property owners
What is the Boiler Upgrade Scheme?
The Boiler Upgrade Scheme (often shortened to BUS) is a government grant that helps cover part of the cost of replacing a fossil fuel heating system with a heat pump or biomass boiler. It’s open to people in England and Wales. Source: GOV.UK
If you’re weighing up whether a heat pump could work for your home, the Livwarm Boiler Upgrade Scheme page sets out the basics and how to take the next step.
How much can you get?
GOV.UK states you can get one grant per property, with current grant values of £7,500 towards an air source heat pump, £7,500 towards a ground source heat pump (including water source heat pumps and those on shared ground loops), or £5,000 towards a biomass boiler. Source: GOV.UK
GOV.UK also confirms you cannot get a grant for a hybrid heat pump system (for example, a combination of a gas boiler and an air source heat pump). Source: GOV.UK
Who is eligible?
GOV.UK says you’re eligible for a grant if you own the property and are replacing a fossil fuel heating system such as oil, gas, electric or LPG. Source: GOV.UK – eligibility
EPC requirement
Your property must have a valid Energy Performance Certificate (EPC), and GOV.UK notes an EPC is valid for 10 years. Source: GOV.UK – eligibility
Time limits
GOV.UK states your installer must commission and install the heat pump within 120 days of applying for the grant, otherwise it will not be eligible. Source: GOV.UK – eligibility
Biomass boilers – extra conditions
GOV.UK says you can get a grant for a biomass boiler if your property is off the gas grid, is in a rural location, and the boiler has an emissions certificate showing polluting emissions are kept to a minimum. Source: GOV.UK – eligibility
How the application process works
The scheme is designed to be installer-led. Ofgem explains your chosen installer makes the application on your behalf, liaises with Ofgem, and claims the grant after installation – and the grant value should be deducted from your quote upfront. Source: Ofgem
Ofgem also states the installer must be certified by the Microgeneration Certification Scheme (MCS) for the installation to be eligible. Source: Ofgem
Planning permission for a heat pump – what to know
Planning requirements vary by property type and location, but many air source heat pump installations can be permitted development if certain conditions are met. The Planning Portal notes limits and standards, including that the outdoor unit volume must not exceed 1.5 cubic metres for a house (or 0.6 cubic metres for a block of flats). Source: Planning Portal
The Planning Portal also notes permitted development is tied to compliance with MCS Planning Standards (MCS 020) or equivalent, and states that from 28 May 2026 MCS 020 will be the only permitted certification scheme. Source: Planning Portal
VAT relief – the headline point
VAT treatment depends on what’s supplied and installed, but HMRC’s VAT Notice 708/6 explains that installations of energy-saving materials made between 1 May 2023 and 31 March 2027 are covered by relief, and from 1 April 2027 the relief reverts to the reduced rate (5%). Source: HMRC (VAT Notice 708/6)
A simple next step with Livwarm
If you’re considering a heat pump and want to understand what the Boiler Upgrade Scheme could mean for your home, start here: Boiler Upgrade Scheme.
Boiler Upgrade Scheme FAQs
Can I get the grant for a hybrid heat pump?
No – GOV.UK states you cannot get a grant for a hybrid heat pump system (for example, a combination of a gas boiler and an air source heat pump). Source: GOV.UK
Do I apply myself?
Typically not. Ofgem explains the scheme is installer-led – your installer applies on your behalf and the grant value should be deducted from your quote upfront. Source: Ofgem
Do I need an EPC?
Yes – GOV.UK states your property must have a valid EPC, and notes an EPC is valid for 10 years. Source: GOV.UK
