The Boiler Upgrade Scheme can make switching from a traditional heating system to a heat pump considerably more affordable. However, not every property or heat pump installation qualifies for support.

In 2026, the scheme has specific rules covering the property, existing heating system, heat pump technology, installer, previous funding and system design. There are also higher grants for certain off-gas-grid properties.

Understanding these requirements before choosing an installer can help you avoid applying for a grant that your installation cannot receive.

What Is The Boiler Upgrade Scheme?

The Boiler Upgrade Scheme (BUS) is a government grant scheme for England and Wales that helps property owners replace eligible fossil fuel or electric heating systems with qualifying low-carbon heating.

For an eligible air-to-water heat pump, the standard grant is currently £7,500. Ground source and water source heat pumps can also qualify for £7,500, while eligible residential air-to-air heat pumps can receive £2,500.

From 21 July 2026, eligible off-gas-grid properties replacing oil or LPG heating can receive an increased £9,000 grant for an air-to-water or ground source heat pump. This higher support is currently available until 31 March 2027.

The scheme is installer-led, meaning homeowners normally do not apply for the grant themselves. An MCS-certified installer submits the application on their behalf.

Who Can Qualify For A Heat Pump Grant?

The basic eligibility test is relatively straightforward.

You generally need to:

• Own the property.
• Have a property located in England or Wales.
• Replace an existing eligible fossil fuel or electric heating system.
• Install an eligible heat pump.
• Use an appropriately MCS-certified installer.
• Meet the scheme's technical requirements.
• Not have already received government support for the same heat pump installation.

Property owners can apply for eligible residential and certain non-residential properties. This can include owner-occupied homes, rental properties, second homes and some business premises. Air-to-air heat pumps, however, are only eligible for residential properties under the current rules. 

Which Existing Heating Systems Qualify?

BUS is primarily designed for replacing existing fossil fuel and electric heating systems.

This can include:

• Gas heating
• Oil heating
• LPG heating
• Coal heating
• Eligible electric heating systems

An existing heat pump or other qualifying low-carbon heating system cannot simply be replaced with another system using BUS funding.

The purpose of the grant is to help households move away from higher-carbon heating rather than subsidise routine replacement of one low-carbon system with another. 

The distinction is important when assessing an older property. Having an inefficient heating system does not automatically make the installation eligible; the existing system must meet the scheme's requirements.

Can You Replace A Gas Boiler With A Heat Pump?

Yes.

Replacing an existing gas boiler with an eligible air-to-water heat pump is one of the situations the scheme is intended to support.

For example, a homeowner with an older gas boiler could arrange a suitable air-to-water heat pump installation through an MCS-certified installer. If the property and system meet the remaining BUS requirements, the standard £7,500 grant can be deducted from the installation cost.

However, the replacement cannot be a hybrid system that continues to use a fossil fuel boiler alongside the heat pump.

A combination such as a gas boiler and air source heat pump is not eligible for BUS funding. 

What Are The 2026 Heat Pump Grant Amounts?

The available grant depends on the technology and property circumstances.

The £9,000 amount requires additional conditions. The property must be off the gas grid and the existing heating system must meet the relevant requirements, such as being fuelled by oil or LPG for the higher grant category. 

The higher payment should therefore not be treated as a standard £1,500 bonus available to every heat pump applicant.

What Counts As An Off-Gas-Grid Property?

The 2026 rules are more specific than simply asking whether you currently use gas.

For the £9,000 uplift, the property must meet the scheme's definition of off-gas-grid.

For example, a property is not treated as off-gas-grid merely because the gas supply is disconnected or a meter has been capped or clamped. Ofgem's guidance states that capped or clamped supply meter points can still be treated as being fuelled by mains gas.

The property must also not have a record of an existing gas meter point or be connected to a heat network. 

This is particularly relevant to homeowners replacing oil or LPG systems who are considering the higher grant.

Does The Property Need An EPC?

For retrofit installations, the installer needs to provide the required property information as part of the application.

Where a property has a valid Energy Performance Certificate, the certificate number must be supplied. If there is no valid EPC, the installer may need to provide alternative evidence demonstrating that the property meets the relevant eligibility requirements. 

This is one reason it is useful to discuss the property with an MCS-certified installer before making financial commitments.

The EPC itself does not mean that a heat pump is automatically suitable. The installer still needs to assess the heating requirements and design an appropriate system.

Are New Build Homes Eligible?

Most new-build properties are excluded from BUS funding.

There is an exception for certain eligible self-build properties.

A self-build can qualify where the property was built mainly using the labour or resources of the first owner, has never been owned by a business or organisation and is not part of an excluded property development. (GOV.UK)

There is also a distinction between a new property still being constructed and a completed new-build that has already been occupied.

If you have moved into a finished new-build that has a fossil fuel boiler, the property may be eligible for a heat pump grant in certain circumstances.

If you are unsure about a new-build property, ask the installer to check the specific circumstances rather than assuming that all new homes are excluded.

Is Social Housing Eligible?

Social housing is not eligible for BUS funding.

This includes social housing arrangements that may otherwise look similar to private ownership, such as certain shared-ownership properties.

The scheme is aimed at eligible privately owned properties and qualifying non-residential buildings rather than subsidising heating improvements through social housing.

What Technical Requirements Must The Heat Pump Meet?

Meeting the property requirements is only one part of eligibility.

The proposed heat pump must also satisfy the scheme's technical standards.

The system must be capable of meeting the property's full space-heating and hot-water requirements. The heat pump itself must be sized to meet the full space-heating demand, whether it operates alone or with a permitted supplementary appliance.

Any supplementary heating appliance used alongside the heat pump must not be powered by fossil fuels. 

The system also needs to meet the applicable efficiency and product standards.

This is why choosing a product simply because it appears on an eligibility list is not enough. Ofgem explains that its Product Eligibility List identifies products meeting certain MCS requirements but does not confirm that every other BUS condition has been met.

How Important Is Heat Pump Sizing?

Correct sizing is central to BUS eligibility and good system performance.

The installer needs to determine the property's heat demand rather than selecting a heat pump based only on floor area or the size of the existing boiler.

A boiler's output, for example, does not automatically tell you what heat pump capacity the property needs.

The design should account for the building's heating requirements and ensure the proposed heat pump can provide the required space heating.

A properly sized system can also help avoid unnecessary cycling, poor comfort and excessive equipment costs.

Can A Hybrid Heating System Receive BUS Funding?

No.

The scheme does not support a hybrid system that combines an eligible heat pump with a fossil fuel boiler.

For example, installing an air source heat pump while retaining a gas boiler as part of the heating system does not qualify for BUS funding.

This rule is easy to misunderstand because hybrid heating systems exist commercially. Their availability on the market does not mean that they are eligible for the government grant.

If receiving BUS funding is important to your project, confirm the proposed system configuration with the installer before agreeing to the installation.

Do You Need An MCS-Certified Installer?

Yes.

The heat pump must be installed and commissioned by an installer certified under the Microgeneration Certification Scheme for the relevant technology.

The installer is responsible for making the BUS application and dealing with the grant process with Ofgem. 

This also means you should be careful when comparing installers.

A company offering heat pump installation is not necessarily able to process a BUS grant. Confirm its MCS certification before accepting a quotation.

Can Previous Energy Efficiency Funding Affect Eligibility?

Not necessarily.

Receiving support for energy-efficiency improvements such as insulation does not automatically prevent you from receiving BUS funding.

The important restriction is previous funding for the heat pump or biomass installation itself.

A property will generally not qualify where government funding or Energy Company Obligation support has already been provided for the purchase or installation of the same type of low-carbon heating system.

This distinction matters for homeowners who have previously received assistance for insulation, glazing or other energy-efficiency work.

How Does The BUS Application Work?

The process is designed to be relatively simple for property owners because it is installer-led.

The usual process is:

1. Contact suitable MCS-certified installers.
2. Arrange a property assessment and obtain quotations.
3. Confirm that the property and proposed system are eligible.
4. Choose your installer.
5. The installer submits the BUS application.
6. Give the required consent and complete any identity verification requested by Ofgem.
7. The installer completes and commissions the system.
8. The grant is deducted from the installation price.

The grant is not normally paid directly to the homeowner. Instead, the approved amount is taken off the amount you pay the installer and should be shown on the quotation and invoice. 

If you are researching the boiler upgrade scheme UK options available in 2026, checking the official eligibility rules before requesting quotes can save time and prevent confusion over which grant category applies to your property.

How Long Do You Have To Complete The Installation?

Timing matters after an application has been submitted.

The installer must commission and install the heat pump within the required timeframe. Current GOV.UK guidance states that this must happen within 120 days of applying for the grant. 

This means homeowners should discuss the installation schedule with their installer before the application is made.

A grant application is not an open-ended reservation of funding. The installation needs to progress within the scheme's requirements.

What Should You Check Before Choosing A Heat Pump?

Eligibility should be confirmed before you focus on equipment prices.

Ask your installer:

• Is my existing heating system eligible for BUS?
• Does my property meet the scheme's property requirements?
• Which grant amount applies to my installation?
• Is the proposed heat pump eligible?
• Is the system correctly sized for my property?
• Will the heat pump provide the required heating and hot water?
• Are any additional heating appliances being proposed?
• Is your company MCS certified for this technology?
• Has the full grant deduction been included in the quotation?
• What work is included in the quoted price?

These questions can reveal problems before the installation begins.

Is An Air Source Heat Pump Government Grant Available In 2026?

Yes. The air source heat pump government grant available through BUS is currently £7,500 for eligible standard installations.

Eligible off-gas-grid properties can receive £9,000 for an air-to-water heat pump when the property and existing heating system meet the requirements for the uplifted grant. The higher amount is available until 31 March 2027 under the current scheme arrangements. 

It is worth remembering that the grant reduces the installation cost; it does not necessarily cover the entire project.

Your remaining cost can depend on the heat pump selected, installation complexity, radiators, hot-water arrangements, electrical work and other property-specific requirements.

Final Thoughts On Heat Pump Eligibility

The 2026 Boiler Upgrade Scheme offers meaningful financial support for homeowners moving away from eligible fossil fuel and electric heating systems.

For most eligible air-to-water heat pump installations, the grant is £7,500. For qualifying off-gas-grid properties replacing oil or LPG heating, the grant can reach £9,000 until March 2027.

But eligibility involves more than having an old boiler. The property, existing heating system, proposed heat pump, installer and system design all need to satisfy the relevant rules.

The safest approach is to have an MCS-certified installer assess the property and confirm which grant category applies before you commit to the work. That gives you a clearer understanding of both the available support and the heating system you are actually paying for.