£7,500 Heat Pump Grant — The BUS Grant Explained

The Boiler Upgrade Scheme (BUS) is a government grant programme run by Ofgem that reduces the upfront cost of replacing a fossil fuel heating system with a low-carbon alternative. It launched in May 2022 and has been extended through to 31 December 2027.

The scheme is funded by the government's net zero commitments and targets owner-occupiers and landlords in England and Wales. Scotland and Northern Ireland have their own separate support schemes.

The grant is paid directly to your installer — it comes straight off your bill. You never see the money or handle it yourself. This means the quality of your installer matters enormously: they claim the voucher on your behalf, and if something goes wrong with the claim, it's your installation that's at risk of losing the grant.

The grant amounts as of April 2026 are:

• Air source heat pump (ASHP): £7,500
• Ground source heat pump (GSHP): £7,500
• Biomass boiler: £2,500 (only in rural areas without mains gas)

The grant was increased from £5,000 to £7,500 for heat pumps in October 2023 and has remained at this level since. Given that the average air source heat pump costs between £8,000 and £15,000 installed, the £7,500 grant covers a very significant proportion of the cost for a smaller property.

To be eligible for the BUS grant, the following conditions must be met:

• The property must be in England or Wales
• You must be an owner-occupier or landlord — tenants cannot apply
• The property must have a valid Energy Performance Certificate (EPC) dated within the last 10 years
• The EPC must not have a recommendation to install loft or cavity wall insulation — if it does, you must complete that insulation first
• The heat pump must replace an existing fossil fuel heating system (gas, oil, LPG, or electric storage heaters)
• The installation must be carried out by an MCS-certified installer
• The grant cannot be combined with other public funding for the same measure (e.g., Great British Insulation Scheme funding for the same boiler replacement)

New build properties are not eligible. The scheme is specifically for existing homes switching away from fossil fuels.

April 2026 brought two important expansions to the BUS scheme:

• Air-to-air heat pumps are now eligible. Previously, only air-to-water systems (which heat radiators and hot water) qualified. Air-to-air systems (which provide heated and cooled air directly into rooms, similar to a domestic air conditioning unit) now attract the full £7,500 grant.
• Heat batteries are now eligible. A heat battery stores thermal energy generated during off-peak electricity periods and releases it on demand. They're an alternative to a traditional hot water cylinder and now attract the same £7,500 support.

These additions reflect the government's recognition that there is no single right answer for every home. Some properties — particularly those without central heating infrastructure — suit air-to-air systems better than traditional radiator-based heat pumps.

You do not apply for the BUS grant directly. The process is entirely installer-led:

1. Get quotes from MCS-certified installers. Only MCS-certified companies can claim BUS grants. Check the MCS installer database at mcscertified.com before accepting any quote. Any installer that cannot prove MCS certification cannot legally claim the grant on your behalf.
2. Your installer checks your EPC. They will request your EPC details (or help you get one if it's expired) and confirm you meet the eligibility criteria before proceeding.
3. The installer applies for a voucher. Once satisfied with eligibility, your installer applies to Ofgem for a BUS voucher before the installation begins. The voucher is valid for three months.
4. Installation takes place. The heat pump is installed and commissioned. The installer provides all required documentation including the MCS certificate for the installation.
5. Grant is redeemed. Your installer submits evidence of completion to Ofgem. The £7,500 is paid directly to the installer, and your bill is reduced by that amount.

The scheme closes on 31 December 2027. Given installation lead times and the voucher application process, homeowners wanting to use the scheme should aim to have a confirmed installer by mid-2027 at the latest.

The BUS grant covers only the heat pump unit and its installation. It does not cover:

• Radiator upgrades (often needed for older homes with small radiators)
• Hot water cylinder replacement
• Underfloor heating installation
• Insulation improvements
• Electrical upgrades to the consumer unit or supply

These associated costs can add several thousand pounds to your project. A thorough installer will survey your home and give you a realistic total cost, not just the heat pump price. Be wary of quotes that don't mention these potential extras.