The Boiler Upgrade Scheme Explained: What Homeowners Can Claim in 2026
- Laura Alliss
- Jun 12
- 7 min read
As the UK continues moving towards lower-carbon heating, more homeowners are exploring alternatives to traditional gas boilers. One of the government's key incentives is the Boiler Upgrade Scheme, often referred to as BUS, which helps reduce the upfront cost of installing renewable heating systems.
For homeowners considering a heat pump installation, understanding how the scheme works is essential. The Boiler Upgrade Scheme can significantly lower installation costs, but eligibility rules, property suitability and system design all play important roles in determining whether an upgrade is worthwhile.
This guide explains how the Boiler Upgrade Scheme works in 2026, what grants are available, who qualifies and what homeowners should consider before replacing their current heating system.
What Is the Boiler Upgrade Scheme?
The Boiler Upgrade Scheme is a UK government grant designed to encourage homeowners and small property owners to install low-carbon heating systems instead of fossil fuel boilers.
The scheme provides upfront grants towards the installation of eligible renewable heating technologies, helping reduce the initial cost barrier associated with heat pump systems.
Introduced as part of the UK’s wider decarbonisation strategy, the Boiler Upgrade Scheme supports the transition away from gas and oil heating by encouraging more energy-efficient and environmentally sustainable solutions.
Rather than applying directly themselves, homeowners work with an accredited installer who manages the grant application process on their behalf. Once approved, the grant is deducted directly from the installation cost.
The scheme is currently available in England and Wales.
How Much Can Homeowners Claim in 2026?
In 2026, homeowners can access substantial grants through the Boiler Upgrade Scheme depending on the type of heating system installed.
Current grant levels include:
Air source heat pumps: Up to £7,500 towards installation costs.
Ground source heat pumps: Up to £7,500 towards installation costs.
Biomass boilers: Limited eligibility in specific rural circumstances where no suitable heat pump option is viable.
The increase in grant funding over recent years has significantly improved affordability for many households considering renewable heating.
While the grants do not cover the full installation cost, they can reduce the upfront investment considerably. For many homeowners, this makes switching to a heat pump more financially realistic than in previous years.
Who Is Eligible?
Eligibility for the Boiler Upgrade Scheme depends on both the property and the applicant.
In most cases, homeowners can qualify if:
The property is located in England or Wales: The scheme does not currently apply across all UK regions.
The property has a valid EPC: An Energy Performance Certificate is required.
The heating system replaces a fossil fuel system: Typically gas, oil, LPG or electric resistance heating.
The installation is carried out by an MCS-certified installer: Accreditation is mandatory under the scheme.
The property meets insulation requirements: Some homes may need insulation improvements before approval.
Both owner-occupied homes and some small non-domestic properties may qualify.
New-build properties are generally excluded unless they are self-build homes that meet specific criteria.
Which Heating Systems Qualify?
The Boiler Upgrade Scheme supports several renewable heating technologies, although heat pumps remain the primary focus.
Air source heat pumps
Air source heat pumps are the most common technology supported under the scheme. These systems extract heat from outside air and use it to provide heating and hot water for the property.
Modern air source heat pumps can operate effectively even during colder UK winter temperatures and are suitable for many residential properties.
Ground source heat pumps
Ground source heat pumps extract heat from the ground through buried pipe systems. They are often highly efficient but usually involve higher installation costs and more extensive groundwork.
These systems are generally better suited to properties with sufficient outdoor space.
Biomass boilers
Biomass boilers may qualify in limited cases, primarily in rural areas where properties are not connected to the gas grid and where heat pumps are not considered practical.
However, biomass installations are more restricted under current scheme rules compared with heat pumps.
EPC Requirements and Insulation Considerations
A property's energy efficiency can significantly affect heat pump performance. To qualify for the Boiler Upgrade Scheme, homes must typically have a valid EPC without outstanding recommendations for cavity wall or loft insulation where these measures are considered practical.
Good insulation is important because heat pumps operate most efficiently in properties that retain heat effectively. Unlike traditional gas boilers, heat pumps generally provide lower flow temperatures over longer periods, making insulation standards particularly important.
Before installation, homeowners may need to consider:
Loft insulation upgrades: Improving heat retention within the property.
Cavity wall insulation: Reducing heat loss through external walls.
Double glazing improvements: Enhancing thermal efficiency.
Radiator upgrades: Some systems may require larger radiators for optimal performance.
An experienced installer can assess whether additional improvements are needed before proceeding with a heat pump installation.
How the Application Process Works
The Boiler Upgrade Scheme uses an installer-led application process rather than requiring homeowners to apply directly.
The typical process includes:
The homeowner contacts an MCS-certified installer.
The installer assesses the property and confirms suitability.
A system design and quotation are prepared.
The installer applies for the BUS grant on the homeowner’s behalf.
The homeowner confirms consent for the application.
Once approved, the grant amount is deducted from the installation cost.
The renewable heating system is installed and commissioned.
The approval process is usually relatively straightforward when the property meets eligibility requirements.
Working with experienced installers such as Green Flare can simplify the process considerably. Professional assessments help homeowners understand whether their property is suitable, what upgrades may be required and how to maximise long-term system efficiency.
Typical Installation Costs Before and After Grants
Heat pump installation costs vary depending on property size, insulation quality and system complexity.
Typical 2026 installation costs may include:
Air source heat pumps: Around £10,000 to £16,000 before grants.
Ground source heat pumps: Often between £18,000 and £35,000 before grants.
Additional heating upgrades: Radiators, pipework or insulation improvements may add further costs.
After applying the Boiler Upgrade Scheme grant, many homeowners see costs reduced substantially. For example, an air source heat pump after grant can potentially reduce costs to around £2,500 to £8,500 depending on the property and a ground source heat pump after grant can reduce to approximately £10,500 to £27,500.
Although renewable heating systems generally involve higher upfront investment than boiler replacements, lower carbon emissions and improved long-term energy efficiency may offset some costs over time.
What Costs Are Not Covered?
The Boiler Upgrade Scheme does not cover every aspect of a heating system upgrade.
Homeowners should be aware that additional costs may include:
Insulation improvements: Loft, cavity wall or floor insulation.
Radiator replacements: Larger radiators may be required.
Pipework upgrades: Existing systems may need modifications.
Hot water cylinder installation: Necessary for many heat pump systems.
Electrical upgrades: Some properties may require electrical improvements.
Planning or structural work: Rare but possible for certain properties.
Understanding the full project scope is important before committing to installation. A detailed property assessment and transparent quotation help avoid unexpected costs later in the process.
Running Cost Considerations
While heat pumps are highly efficient, running costs depend heavily on the property and how the system is used.
Heat pumps generally work best in well-insulated homes with consistent heating demand. They use electricity rather than gas, so running costs are influenced by electricity tariffs and household energy usage.
Several factors affect operating costs:
Property insulation quality: Better insulation improves efficiency.
Heat pump sizing: Correct sizing is essential for performance.
Electricity pricing: Tariffs influence long-term running costs.
Heating controls: Smart controls can optimise energy use.
Solar integration: Combining heat pumps with solar panels may reduce electricity costs further.
In many cases, homeowners benefit from lower carbon emissions and more stable long-term heating costs compared with fossil fuel systems.
Common Reasons Applications Are Rejected
Although many applications are approved successfully, there are several common reasons applications may fail.
Missing or invalid EPC documentation: Properties must have a valid EPC.
Outstanding insulation recommendations: Required improvements may need completion first.
Non-certified installers: Only MCS-certified installers can participate.
Ineligible property types: Certain new-build homes may not qualify.
Incorrect system eligibility: Not all technologies meet BUS criteria.
Early professional assessment can help identify potential issues before the application stage.
BUS Deadlines and Future Government Targets
The Boiler Upgrade Scheme forms part of the UK government’s broader strategy to reduce carbon emissions from domestic heating. Current government targets aim to accelerate heat pump adoption significantly over the coming years as the UK works towards net zero commitments.
While the scheme is currently funded through the late 2020s, grant structures and eligibility rules may evolve over time depending on government policy and market demand.
Homeowners considering renewable heating may benefit from acting sooner rather than delaying decisions in the hope of future incentives.
Is a Heat Pump Right for Your Home?
Heat pumps can provide excellent long-term performance for many UK properties, but they are not automatically the right solution for every home.
The most suitable properties typically include:
Well-insulated homes: Better insulation supports efficient operation.
Homes with moderate to high heating demand: Larger households may benefit strongly.
Properties planning long-term occupancy: Savings and efficiency gains are realised over time.
Homes undergoing renovation: Heat pump integration is often easier during wider upgrades.
However, older or poorly insulated properties may require additional improvements before achieving optimal performance.
Professional assessment remains essential because factors such as heat loss, radiator sizing and household energy usage all influence suitability.
Final Thoughts
The Boiler Upgrade Scheme continues to make renewable heating more accessible for UK homeowners in 2026. With grants of up to £7,500 available for qualifying systems, the scheme can substantially reduce the upfront cost of installing a heat pump.
However, successful installations depend on more than grant funding alone. Property suitability, insulation quality, system design and installation expertise all play critical roles in long-term performance and efficiency.
Green Flare helps homeowners navigate the Boiler Upgrade Scheme process with tailored renewable heating solutions designed around each property's specific requirements. From eligibility assessments and system design through to installation and long-term performance guidance, professional support can help homeowners make confident decisions about transitioning to low-carbon heating.
