Skip to content 
Yes. The scheme is very much alive and well, and it has £295 million to spend in 2025/2026. Most government schemes just blend into the background, but the Boiler Upgrade Scheme has actually expanded, which is something that the Westminster government just can’t seem to manage.
We have compiled this guide to explore the availability, eligibility, and application of the Boiler Upgrade Scheme.
What Makes BUS Worth Your Time?
Let’s get down to business. The Boiler Upgrade Scheme is not just another government program that’s a waste of money. It’s Ofgem money that comes right off the price of your installation.
The Boiler Upgrade Scheme has transformed completely since it was launched, with grants rising from £5,000 to £7,500 and the ridiculous insulation scheme being scrapped.
Who Actually Qualifies?
People who own property in England and Wales. That’s it. Not tenants. Not social housing. Landlords are eligible, but good luck trying to explain the economics of heat pumps to someone who hasn’t upgraded their property since 1987.
Your property must have an EPC (within 10 years) and a pre-existing fossil fuel or electric heating system. Heat demand is limited to 45kWth, covering 99% of domestic properties unless you’re heating Blenheim Palace.
This is what will exclude you from the scheme:
- New builds (except self-builds)
- Existing low-carbon heating systems
- Double-dipping with other government heating grants
- Properties outside England and Wales
The Money: What You Actually Get
Rhetorical question time: Would you pay £12,500 for an air source heat pump or £5,000? The government is giving you £7,500 to make that decision easier.
Current Grant Structure:
| Technology | Grant Amount | Typical Total Cost | Your Cost Post-Grant |
|---|---|---|---|
| Air Source Heat Pump | £7,500 | £12,500 | £5,000 |
| Ground/Water Source Heat Pump | £7,500 | £24,000 | £16,500 |
| Biomass Boiler | £5,000 | £14,000 | £9,000 |
| Air-to-Air Heat Pump | £2,500 | £8,000 | £5,500 |
| Heat Battery | £2,500 | £7,500 | £5,000 |
Biomass subsidies apply only to rural, gas-free properties. It seems that chugging wood pellets in central London wasn’t the environmental nirvana policymakers hoped for.
The November 2025 updates included air-to-air heat pumps and heat batteries at £2,500 each. Well, it’s about time something started moving.
How Running Costs Compare
ASHPs have SCOP values above 3.0. What does that mean? Every £1 of electricity bills yields £3+ of free heat. Your gas boiler kicks out about £0.90 for every £1 invested. Simple math.
Annual savings of £200-£500 can be expected for average homes. Not exactly life-changing funds, but over a 20-year period? You’ll be looking at £4,000-£10,000 and a 75% reduction in carbon emissions.
The Application Process (Simpler Than You'd Expect)
Government schemes usually require forms in triplicate and a sacrificial offering to the gods of bureaucracy. BUS doesn’t. It’s installer-led, which means professionals who actually understand heat loss calculations handle the paperwork.
Your five-step roadmap:
- Find an MCS-certified installer at mcscertified.com
- Get a site assessment and quote (grant value pre-deducted)
- Installer submits voucher application; you consent via email
- Voucher issued (2-4 weeks processing)
- Installation completed; installer redeems grant within 120 days
No direct homeowner applications. No forms. No appeals to faceless administrators. The installer handles Ofgem, you handle choosing which radiators look less hideous.
What Could Go Wrong?
Funding operates first-come, first-served basis. When the £295 million runs dry, applications pause until next year’s budget. The 2022 launch saw funding gaps that left installers hanging. Ofgem learned. Over-allocation permissions now extend to £280 million to prevent shortfalls.
Act fast or wait months. Your choice.
Check Eligibilty For ECO4 Scheme
Get Free Heating System Installed Today at your Property Under ECO4!
BUS vs ECO4: Which Scheme Wins?
Different schemes for different circumstances. Stop assuming all government funding works the same way.
| Factor | BUS | ECO4 |
|---|---|---|
| Target Audience | Homeowners/landlords (no means test) | Fuel-poor households |
| Grant Coverage | £7,500 heat pumps / £5,000 biomass | Up to 100% costs |
| Technology | Heat pumps, biomass only | Boilers, heat pumps, insulation, windows |
| Processing Speed | 2–4 weeks | 8–12 weeks typically |
| Eligibility Test | Property ownership + EPC | Low income + EPC D–G rating |
BUS suits solvent homeowners who want heat pumps. ECO4 targets low-income households needing comprehensive upgrades. Combine them for maximum impact – BUS heat pump plus ECO4 insulation transforms energy efficiency.
Don’t leave ECO4 money on the table because you didn’t ask.
Current Funding and Future Trajectory
The scheme’s backed through 2028 with £1.5 billion committed. Those funds will fund approximately 206,000 installations at current grant levels.
The UK government aims for 600,000 annual heat pump installations by 2028. Will they hit it? Unlikely. But BUS provides the financial infrastructure to try.
MCS certification now serves as the sole quality standard across all clean heat schemes. This consolidation improves installation quality and consumer protection. Previous fragmentation created loopholes that dodgy installers exploited ruthlessly.
What’s Changing in 2026-2027?
EPC requirements will be relaxed further. The November 2025 consultation confirmed that hybrid systems with electric heating now qualify.
Exhaust air heat pumps join the eligible technology list. Third-party ownership models are under exploration for those who want heat pumps without upfront capital.
These aren’t revolutionary changes. They’re iterative improvements that make the scheme less bureaucratic and more accessible. Exactly how policy should evolve, if civil servants would remember that principle more often.
FAQs
Yes, provided you didn’t use ECO4 for the heating system itself. Insulation and heating upgrades are treated separately. Stack them intelligently.
MCS certification includes consumer protection insurance. You’re covered for deposits up to certain limits. Choose established installers with track records, not cowboys chasing voucher redemptions.
Only if you’ve got the land and long-term ownership plans. GSHP efficiency exceeds ASHP by 15-20%, but payback stretches beyond 15 years for most properties. Run the numbers before digging up your garden.
2-4 weeks from voucher application to issuance, assuming your installer submitted complete documentation. Incomplete applications add weeks. Choose competent installers who know Ofgem’s requirements.
Based on current uptake rates of 90,000 installations annually at £7,500 average grants? Yes. But budget exhaustion remains possible if awareness campaigns finally succeed. Apply sooner rather than later.
