Boiler Upgrade Scheme: Installer Guide to the £7,500 Grant

The Boiler Upgrade Scheme (BUS) gives £7,500 towards an air source or ground source heat pump in England and Wales. You, the MCS-certified installer, claim it on the customer's behalf, and it comes straight off their bill. The scheme changed a lot in 2026. It now runs to 2030, the customer no longer needs an EPC, air-to-air heat pumps get £2,500, and until 31 March 2027 homes coming off oil or LPG get £9,000. Here is how the scheme works from the installer's side, and how to turn it into steady work.

What the grant is worth in 2026

• Air source heat pump (air-to-water): £7,500. Includes exhaust air-to-water heat pumps from 28 April 2026.
• Ground source heat pump: £7,500. Includes water source and shared ground loops.
• Air source or ground source in an off-gas home: £9,000. From 21 July 2026 until 31 March 2027, when replacing oil or LPG heating.
• Air-to-air heat pump: £2,500. Residential properties only.
• Biomass boiler: £5,000. Rural, off-gas-grid properties only.

There is only one grant per property, and it can't be used to replace an existing low carbon system. Hybrid systems, such as a heat pump paired with a gas boiler, don't qualify.

What changed in 2026

For applications made on or after 28 April 2026, Ofgem's updated guidance brought in several changes that make more jobs eligible:

• The scheme now runs to 2030.
• No EPC needed. Properties no longer need a valid EPC to apply. If one exists, you give its number. If not, you provide evidence such as a utility bill dated within the last three months, or a recent fuel receipt.
• Air-to-air heat pumps are in, at £2,500 for homes.
• Exhaust air-to-water heat pumps now qualify for the full £7,500.
• Supplementary heating is allowed, as long as it isn't fossil-fuelled.
• The £9,000 off-gas rate started on 21 July 2026, for homes replacing oil or LPG that have no mains gas supply.

Applications made before 28 April 2026 still follow the old rules (version 4.2 of the guidance).

Who can claim it

The scheme is installer-led. The homeowner never applies. To claim, your business needs three things:

1. MCS certification for the technology you're fitting. Certification is for each technology, so being certified for air source doesn't let you claim for ground source. Our guide on how to become MCS certified to fit heat pumps covers the process.
2. Consumer code membership. If you're on the MCS Redeveloped Installer Scheme, that covers it. If you're still on the previous MCS scheme, you need RECC or HIES membership.
3. A BUS installer account with Ofgem. You request one by email, and Ofgem suggests allowing two to three weeks. Set it up before you start quoting grant jobs, not when the first customer says yes.

Which jobs qualify

Before you quote a price with the grant taken off, check the job against the rules:

• The customer owns the property. That includes landlords, second homes and business premises.
• It's replacing fossil fuel heating: gas, oil, LPG or electric.
• It's in England or Wales.
• It isn't social housing or a new build still with the developer. Self-builds can qualify, with proof.
• The property hasn't already had government funding for a heat pump or biomass boiler.
• The system is within the capacity limits: 45kWth for a single system, 70kWth for multiple heat pumps, and 300kWth on a shared ground loop.

Insulation grants don't count against the customer. A home that's already had funded insulation can still get the BUS grant.

How a claim works, step by step

1. Survey and quote. Do the heat loss survey and design the system. Quote with the grant shown as a deduction, so the customer sees the price they actually pay.
2. Apply for the voucher. This is stage one. You apply through your BUS account, and Ofgem contacts the owner to confirm their consent. It may also check their identity.
3. Install within the voucher's validity. Vouchers last three months for air-to-water, air-to-air and biomass, and six months for ground source.
4. Commission. The system must be fully installed, tested and signed off to MCS and manufacturer standards.
5. Redeem the voucher. This is stage two. Submit the redemption after commissioning and before the voucher expires.
6. Get paid. Ofgem pays the grant to you, and the customer pays you the rest.

You can commission before the voucher is issued, but it's at your own risk. If you do, the application must be made within 120 days of commissioning. The safer habit is voucher first, then fit.

Plan your cash flow around the grant

The grant comes off the customer's price, but you don't receive it until the voucher is redeemed and Ofgem pays out. On a £12,000 air source job, that means £7,500 of the job value arrives after the work is finished. Off-gas jobs at £9,000 are even more exposed.

A few habits keep this manageable:

• Take a deposit on the customer's share, and stage the balance against delivery and commissioning.
• Don't stack too many grant installs before earlier vouchers are redeemed and paid.
• Redeem promptly. A finished install with an unredeemed voucher is unpaid work.
• Watch voucher expiry dates, especially on air source jobs, where three months goes quickly once you add equipment lead times.

There's more on this in our cash flow tips for trade businesses.

How to talk to customers about it

Most homeowners have heard of the "£7,500 heat pump grant" but don't know how it works. Four points clear up most questions:

• They don't apply. You do it for them, and the grant comes off your quote.
• They don't need an EPC. This used to put people off, and it no longer applies.
• Hybrids don't qualify. If they want to keep the gas boiler as a backup, they lose the grant.
• The off-gas rate has a deadline. For homes on oil or LPG, the extra £1,500 only applies until 31 March 2027, which gives rural customers a real reason to decide this winter.

Be straight about running costs. A properly sized heat pump in a reasonably insulated home can match or beat gas, but a poorly designed one won't. The heat loss survey is your evidence, so walk the customer through it.

Turning the scheme into steady work

The grant creates the demand. Your job is to be the installer customers find when they start looking:

• Target off-gas areas now. Oil and LPG homes in villages are the strongest market until March 2027.
• Talk to landlords. Rental properties qualify, and landlords are already thinking about energy ratings.
• Use the heating season. Customers who come to you about a failing boiler are an easy heat pump conversation. Our guide to winning boiler season covers the timing.
• Show your certifications on your Google Business Profile and quotes, so customers can see you can claim the grant.

Trade Pilot is free to join and only charges when a real local job lands in your inbox: pay-per-lead credits, no monthly plans. Each lead goes to no more than three trades, so you're not one of a dozen heating engineers fighting over the same homeowner. Join Trade Pilot and start getting heat pump and heating enquiries in your area.

FAQs

Does the homeowner apply for the Boiler Upgrade Scheme?

No. The MCS-certified installer applies on the homeowner's behalf, and Ofgem contacts the homeowner to confirm their consent. The grant is then taken off the installer's quote.

Does a property need an EPC for the grant in 2026?

Not any more. From 28 April 2026, properties don't need a valid EPC to apply. If there is one, you provide its number. If not, a recent utility bill or fuel receipt is used as evidence.

How long is a BUS voucher valid?

Three months for air source (air-to-water), air-to-air heat pumps and biomass boilers, and six months for ground source heat pumps. You must commission the system and redeem the voucher within that time.

Who gets the £9,000 grant?

Homes replacing oil or LPG heating with an air source or ground source heat pump, where there's no mains gas connection. It runs from 21 July 2026 until 31 March 2027.

Are air-to-air heat pumps eligible?

Yes, since 28 April 2026, at £2,500 for residential properties.

Can a hybrid system get the grant?

No. Hybrids that pair a heat pump with a gas boiler or other fossil fuel system aren't eligible. Supplementary heating is allowed only if it isn't fossil-fuelled.

When does the scheme end?

It has been extended to 2030.

This article is general guidance, not legal or financial advice. Scheme rules and grant values can change, so check the current Ofgem installer guidance and GOV.UK before you quote a grant-funded job.