Boiler Upgrade Scheme explained

28 May 2026

The Boiler Upgrade Scheme (BUS) is a UK government grant designed to help households move away from fossil-fuel heating, such as gas and oil boilers, and towards low-carbon alternatives such as heat pumps.

Below, we explain how the scheme works today, who is eligible, and what it does, based on the latest policy position.

What is the Boiler Upgrade Scheme?

The Boiler Upgrade Scheme forms part of the UK’s wider plan to reduce carbon emissions from homes, improve energy efficiency, and lower long-term heating costs.

The scheme is part of a broader £15bn Warm Homes Plan aiming to upgrade millions of homes and has been extended to 2030 as part of this programme.

It provides an upfront grant of £7,500 towards the cost and installation of a new heat pump in an existing home. From July 2026, a higher grant of £9,000 is temporarily available for homes currently using heating oil or LPG, running until March 2027. Air-to-air heat pumps are also now eligible under the scheme, with a £2,500 grant available for domestic installations.

Rather than being paid directly to homeowners, the grant is claimed by an MCS-certified installer and deducted from the total cost of the installation.

Homeowner eligibility

To qualify for the Boiler Upgrade Scheme grant the following criteria must be met:

  • Previously an Energy Performance Certificate (EPC) was required, however, you no longer need a valid EPC to apply. Where no EPC exists, your installer will provide alternative evidence, such as a recent utility bill and photographs of your existing heating system. Having a current EPC can still be useful, however, and if you don’t have one you can find an accredited assessor on the UK website.
  • You must be replacing an existing fossil fuel heating system, such as a gas, oil or LPG boiler. In some cases, direct electric heating systems (such as storage heating) may also be eligible.
  • Your installer must be Microgeneration Certification Scheme (MCS) certified.

If you have a self-build property, it’s eligible as long as you or the original owner built it or paid a builder to construct it. It must also never have been owned by a business or organisation.

New-build properties where the developer is still building aren’t eligible, but if you move into a completed new-build with a gas central heating system, for example, you may be able to get a grant under the BUS.

Products supported by the Boiler Upgrade Scheme

The Boiler Upgrade Scheme supports the installation of low-carbon heating systems designed to replace fossil fuel boilers as the primary source of heating and hot water.

Alpha is a keen advocate for the transition to lower-carbon heating and in conjunction with parent company, Immergas, continues to develop products and solutions that align with current standards while meeting real household needs.

For example, the Alpha Hydro and Magis M and Magis M Top air source heat pump ranges are both eligible under the scheme. They are supplied with the latest in control technology to keep the system operating at its most efficient and effective.

Working with your installer

Installers play an important role in delivering the Boiler Upgrade Scheme, so it’s important to work closely with them to make the best decisions for your home. They will:

  • Assess your property and confirm eligibility
  • Design the appropriate heat pump system
  • Provide you with a quote and help you understand costs
  • Apply for the grant before installation

The grant amount is deducted directly from the installation cost, so you pay only the balance. It’s important to work with an installer experienced with the BUS process and with heat pump system design to ensure you get the best outcome for your home.

There are some good reasons to consider this option now. Not least, the fluctuations in gas and oil prices we’ve experienced in the past few years are likely to continue as the global trend toward renewable energy generation continues.

In the UK, the government is taking steps to reduce the influence of gas on electricity prices, with new plans to offer long-term fixed-price contracts to renewable energy generators*. Over time, this should help bring electricity costs down relative to gas, meaning gas and oil central heating are likely to become the more expensive option for households in the years ahead.

With major changes ahead for the UK’s home heating market, householders are faced with important decisions. With the Boiler Upgrade Scheme providing significant financial support, now could be a great time to switch to a modern heat pump system.

Decisive action to break influence of gas on electricity prices

** The BUS is operating across England and Wales. Scotland is operating similar scheme, known as the Home Energy Scotland Grant and Loan scheme. Details on current grants related to home heating in Northern Ireland can be found through the Northern Ireland Sustainable Energy Programme.