£7.5K Boiler Upgrade Scheme at a glance

"It will provide upfront capital grants to support the installation of heat pumps, and in some circumstances biomass boilers, in homes and some non-domestic buildings"


How Does The Boiler Upgrade Scheme Work?

The Boiler Upgrade Scheme is an installer-led scheme. This means that the installer will apply for the grant on your behalf. The value of the grant will be taken off the final price you pay. 
£450 million will be invested by the government into the Boiler Upgrade Scheme which will be managed by Ofgem. The grants offered will be:  

  • £7,500 - Air source heat pumps (ASHP) & Ground source heat pumps (GSHP)


Amends to the BUS Scheme May 2024


Removal of EPC insulation requirements on the scheme

  • From 8 May 2024, Ofgem will now accept valid EPCs with insulation recommendations. However:
  • It is expected that installers have a discussion with the property owner about the benefits of energy efficiency measures, such as cavity wall and loft insulation, and potential measures the property owner could take.
  • It is important that property owners understand that heat pumps perform best in a well-insulated property. Insulation measures, such as cavity wall and loft insulation, are relatively low-cost measures that could reduce energy bills and increase heat retention in a property.
  • Property owners are expected to confirm they have read and understood any recommendations present on the Energy Performance Certificate (EPC)
  • Where a property owner is a landlord, confirmed they have informed any tenant(s) of the impacts of the installation of the eligible system. 

New 120-day commissioning date eligibility rule

  • Ofgem recommend that installers wait until a voucher application has been made and the voucher issued before commissioning the eligible system at a property. However, they understand that in some circumstances, commissioning may occur prior to submitting a voucher application.
  • Where a system has been commissioned prior to submitting a voucher application, installers must ensure that the voucher application has been, or will be, properly made within 120 days of the commissioning date stated on the MCS certificate. A system that is commissioned more than 120 days before the date on which the voucher application is properly made will not be eligible on BUS.


Full information can be found on the Ofgem website for installers and property owners:

Property Owners



Who is eligible to apply for the Boiler Upgrade scheme? 

The scheme is only available in England and Wales. If you live in Scotland, you can access funding to make energy-efficient home improvements through Home Energy Scotland.

Find out below about the eligibility requirements:

Eligibility Requirements Ineligible Items
  • The commissioning date must be after 1st of April 2022
  • Biomass plants in urban regions and connected to the gas grid
  • Full heating and domestic hot water systems only
  • Systems larger than 45kwth
  • Installers must be *MCS certified
  • Process heating not permitted
  • Social landlords & new builds not permitted


*An MCS certificate is proof that your installation has been designed, installed & commissioned to the highest standard using only MCS certified products by an MCS certified installer.



What is the Boiler Upgrade Scheme application process?

  • Step 1 
  • Installer receives instructions from property owner to carry out installation and apply for BUS grant
  • Step 2
  • Installer applies to Ofgem for voucher, providing all necessary information
  • Step 3
  • Ofgem contacts property owner and they confirm their consent 
  • Step 4
  • Ofgem assess and once satisfied with application and owner's consent, they issue a voucher to installer
  • Step 5
  • Installer completes installation
  • Step 6
  • Installer applies to redeem voucher and Ofgem assess redemption application
  • Step 7 
  • Ofgem pays grant to installer

Who oversees the Boiler Upgrade Scheme?

Policy owner?

  • Department for Business, Energy and Industrial Strategy (BEIS)


  • The Office of Gas and Electricity Market (Ofgem)


  • Must be MCS Certified for quality assurance

Eco v2

What is the difference between the Boiler Upgrade Scheme and the Renewable Heat Incentive?

The Boiler Upgrade Scheme (BUS) has replaced the Domestic Renewable Heat Incentive (RHI), which closed new applicants on 31 March 2022.  

The Renewable Heat Incentive offered tariff payments for 7 years to reward people who use renewable energy to heat their homes, whereas the BUS offers an upfront payment.
The BUS provides applicants with upfront sums of up to £7,500 for ground source heat pumps and £7,500 for air source heat pumps in place of the £7,000 paid over seven years in quarterly installments that the RHI provided. 


Why is the Boiler Upgrade Scheme Important?

The Boiler Upgrade Scheme will act as a kick start for the air source heat pump market, as well as a financial incentive towards the goal of having renewable heating systems which will eventually lead to achieving the Net Zero target. 
To learn more about our pledge to build a more sustainable world, visit our sustainability hub.

Ask me about heat pumps

  • Mitsubishi Electric's Ecodan range of air source heat pumps offers heating solutions to suit every home. With the added benefit of R32, these renewable heating products help reach carbon zero. A sustainable heat solution!

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Explore more on Retrofit

  • The switch to low carbon heating systems for our homes is critical to ensure the UK achieves its 2050 net zero carbon emissions target. From small flats to large detached houses, and from an office block to a school, Ecodan air source heat pumps are the renewable, low carbon alternative to traditional high carbon heating systems

Boiler Upgrade Scheme FAQs

Is the Boiler Upgrade Scheme available in Scotland?

No it is not. However, if you live in England or Wales, there is alternative funding available.

If you live in Scotland we reccomend For free, impartial advice call Home Energy Scotland on 0808 808 2282 or visit homeenergyscotland.org. Home Energy Scotland is funded by the Scottish Government and helps people in Scotland to save energy and money and keep warm in their home. They will also advise if you are potentially eligible for any financial support for energy saving improvements to your home.

If you live in Northern Ireland, we recommend contacting NI Energy Advice to find out more about funding available.

Which renewable technologies are covered by the Boiler Upgrade Scheme?

As it stands, the renewable heat sources available on the Boiler Upgrade Scheme are air source heat pumps, ground source heat pumps and biomass boilers. Biomass boilers will only be supported in rural areas and where they replace existing fossil fuel systems, where that system is not fuelled by mains gas, or direct electric systems.

The new scheme covers fewer technologies than its predecessor, the Renewable Heat Incentive (RHI), which also provided payments for the installation of solar thermal systems.

Do I need to have a valid EPC to apply for the Boiler Upgrade Scheme?

Yes, your property must have a valid Energy Performance Certificate (EPC) with no outstanding recommendations for loft or cavity wall insulation. Find out what to do if your property has recommendations for loft or cavity wall insulation.

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