Boiler Upgrade Scheme 2026 Changes Explained: Higher Grants, New Eligibility Rules & How to Apply

The Boiler Upgrade Scheme has been updated for 2026, and the headline change is that air source heat pump grants have risen to £7,500, matching the amount previously only available for ground source installations. Eligibility rules have also been revised, with the EPC requirement relaxed and the scheme extended to cover more property types. If you've been sitting on the fence about switching from a gas boiler, there's genuinely never been a better financial incentive to act.

What's Actually Changed with the Boiler Upgrade Scheme in 2026?

The biggest shift is the grant amount. Before October 2025, homeowners applying for an air source heat pump received £7,500 following the increase from the original £5,000 figure. That £7,500 level has been confirmed to continue through 2026, and the government has committed funding to support the scheme until at least March 2028.

But the money isn't the only thing that's changed. The scheme has widened its net in a few important ways:

No EPC requirement at the point of application. Previously, you needed a valid Energy Performance Certificate before your installer could apply. That requirement has been dropped, though your installer still needs to ensure the heat pump is correctly sized for your property.
Small commercial premises now eligible. Mixed-use properties with a residential element can now qualify, which is a real win for people running a business from home.
Social housing inclusion. Some social housing properties are now covered, though individual housing associations need to opt in.

The scheme still applies to England and Wales only. Scotland has its own Home Energy Scotland grant and loan programme.

How Much is the BUS Grant Worth in 2026?

Let's put real numbers on this. The £7,500 Boiler Upgrade Scheme grant applies to both air source and ground source heat pumps installed in 2026. For biomass boilers in rural properties not connected to the gas grid, the grant remains at £5,000.

A typical air source heat pump installation for a three-bedroom semi-detached house costs between £10,000 and £14,000 including the unit, installation labour, and any necessary modifications to your heating system. With the £7,500 grant deducted, you're looking at an out-of-pocket cost of roughly £2,500 to £6,500.

Here's a real scenario. Sarah in Nottingham had a 15-year-old gas combi boiler heating her 1930s three-bed semi. Her MCS certified installer quoted £11,800 for a 9kW air source heat pump with a new hot water cylinder and upgraded radiators in two rooms. After the £7,500 grant, she paid £4,300. Her gas bill had been running at about £1,400 a year, and her electricity costs for the heat pump are now around £900 annually on a time-of-use tariff. That's a payback period of roughly 8 to 9 years, and her boiler was due for replacement anyway.

The grant is paid directly to your MCS certified installer, who deducts it from your bill. You don't need to claim it back yourself or wait for a rebate.

Who Qualifies for the Boiler Upgrade Scheme in 2026?

The eligibility rules are more straightforward than people assume. You qualify if:

You own the property (owner-occupiers and private landlords both qualify)
The property is in England or Wales
You're replacing an existing fossil fuel heating system (gas, oil, LPG, or electric storage heaters)
The installation is carried out by an MCS certified installer
The heat pump is MCS certified equipment

You don't need to own the property outright. Mortgage holders absolutely qualify. Landlords can apply too, which was a sticking point in earlier versions of the scheme.

One rule that catches people out: you can't claim the grant if you've already received funding under the old Renewable Heat Incentive for the same property. And new-build homes don't qualify, because the grant is specifically for retrofitting existing homes.

If you live in a listed building, you can still apply. You'll need the appropriate planning consents, but heat pump installations in conservation areas and on listed properties have become much more common. Modern units are quieter and more compact than models from even five years ago.

How Do You Actually Apply for the £7,500 Grant?

This is the part that trips people up, because you don't apply yourself. The process works like this:

Find an MCS certified heat pump installer. This is non-negotiable. Only MCS certified installers can submit BUS grant applications on your behalf.
Get a survey and quote. Your installer will assess your home, recommend the right size heat pump, and provide a written quote showing the grant deducted from the total.
Your installer applies to Ofgem. They submit the application through the BUS portal. Ofgem processes and approves the voucher.
Installation goes ahead. Once the voucher is issued, your installer carries out the work and claims the grant directly from Ofgem.
You pay the remaining balance. You only pay the difference between the total cost and the £7,500 grant.

The whole process from initial enquiry to installation typically takes 4 to 8 weeks, depending on installer availability and how quickly Ofgem processes the application. In busy periods, it can stretch longer, so don't leave it until the last minute if you want the work done before next winter.

Frankly, the hardest part of the process is finding a good installer with availability. There are around 3,000 MCS certified heat pump installers in the UK as of early 2026, and demand is growing. Getting quotes from two or three local installers is sensible.

"I'm Worried a Heat Pump Won't Heat My Old House Properly"

This is the single most common objection we hear, and it's completely understandable. If you live in a Victorian terrace or a 1930s semi with solid walls, you might think a heat pump can't cope.

The truth? A properly sized and installed heat pump will heat almost any UK home. The key word is "properly." This is exactly why you need an MCS certified installer who will do a full heat loss calculation, not just guess based on your floor area.

In some older homes, you might need to upsize a couple of radiators. This is normal and your installer should include it in the quote. You probably won't need to rip out your entire heating system. Most existing pipework and radiators work fine, especially if you already have standard double-panel radiators rather than the small single-panel ones common in the 1970s.

What about really cold days? Modern air source heat pumps work efficiently down to minus 20°C. The average UK winter low is about minus 3°C. Your heat pump won't break a sweat. Or rather, it will, but in the right direction.

If your home is genuinely very draughty with single glazing throughout, it makes sense to address the worst heat loss issues first. But you don't need to turn your house into a Passivhaus before a heat pump becomes viable. The relaxation of the EPC requirement in 2026 reflects this reality.

Is the Boiler Upgrade Scheme Likely to Run Out of Funding?

The government allocated £295 million for the BUS from 2025 to 2028. Take-up has been increasing year on year, with around 38,000 vouchers issued during the 2024/25 financial year according to Ofgem data. That was a significant jump from the roughly 28,000 issued in 2023/24.

At the current rate, the funding should last through the committed period. But here's the thing: as awareness grows and gas boiler replacements become more expensive, demand is expected to accelerate. The scheme operates on a first-come, first-served basis. There's no waiting list.

If you're thinking about it, don't wait for a crisis with your existing boiler. Getting your application in during spring or summer 2026 means you'll have the heat pump running well before cold weather arrives. Installers are also generally less busy outside the autumn rush.

Frequently Asked Questions

can I get the boiler upgrade scheme grant if I'm a private landlord?

Yes. Private landlords in England and Wales are eligible for the £7,500 BUS grant in 2026. The property must have an existing fossil fuel heating system being replaced, and the installation must be carried out by an MCS certified installer. There's no requirement for you to live in the property yourself.

do I need an EPC to apply for the boiler upgrade scheme in 2026?

No. The EPC requirement has been removed from the BUS application process in 2026. Your MCS certified installer will still carry out a proper heat loss survey to ensure the heat pump is correctly sized for your home, but you no longer need a valid EPC certificate before applying.

how long does the boiler upgrade scheme application take?

From your first contact with an installer to having the heat pump running, expect 4 to 8 weeks in most cases. The Ofgem voucher processing itself usually takes 2 to 3 weeks. Delays can happen if there's high demand or if your property needs additional preparatory work before installation.

can I combine the BUS grant with other funding like ECO4?

You cannot combine the BUS grant with ECO4 funding for the same heat pump installation. However, you can use ECO4 or other schemes to fund insulation improvements separately and then apply for BUS to cover the heat pump. Your installer can advise on the best combination for your situation.

will the boiler upgrade scheme continue after 2028?

The current government commitment funds the BUS until March 2028. There has been no official confirmation of what happens after that date. Given the UK's net zero targets and the planned phase-out of new gas boiler installations, some form of heat pump support is expected to continue, but the grant amount and terms could change.

Ready to find out what a heat pump would cost for your home after the £7,500 grant? Use our directory at heatpumpinstallerdirectory.co.uk to find MCS certified heat pump installers in your area. You can compare local companies, check their credentials, and get quotes from trusted professionals who can handle the full BUS application on your behalf.