What is the Boiler Upgrade Scheme?

"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"


£450M Government Investment Over 3 Years

£5K Grant for Air Source Heat Pumps

30K Possible Annual Air Source Heat Pump Installations

The Boiler Upgrade Scheme at a glance

  • What?
  • Why?
  • When?
  • How?
  • Who?
  • Where?


What is the Boiler Upgrade Scheme?

Road to Net Zero

  • It 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.
CO2 clouds

England & Wales

  • The Boiler Upgrade Scheme applies to homes and small non-domestic properties in England and Wales as the Government phase out fossil fuel heating in homes off the gas grid. This could be for self builds or retrofitting.
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Date Action
  • April 2020
  • Government published consultation on Low Carbon Heat
  • February 2021
  • Government published a further consultation on proposals for the Clean Heat Grant
  • October 2021
  • Government response to the consultation published
  • October 2021
  • Government published the Heat and Building Strategy introducing BUS
  • December 2021
  • Ofgem published consultation on administration of BUS
  • April 2022
  • Scheme to open to applications


£450 Million Pot

£450 million will be invested by the government into the Boiler Upgrade Scheme which will be managed by Ofgem. The grants offered will be: 

  • £5,000 - Air source heat pumps (ASHP) & Biomass boilers
  • £6,000 - Ground source hear pumps (GSHP) & Water source heat pumps (WSHP)

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

Do I meet the eligibility requirements?

Eligibility Requirements Ineligible Items
  • 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
Eco v2

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

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

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