The Complete Guide to the £7,500 Boiler Upgrade Scheme Grant in 2026

The Boiler Upgrade Scheme (BUS) grant gives UK homeowners £7,500 off the cost of installing an air source or ground source heat pump. Your installer applies on your behalf through Ofgem, and the money comes straight off your quote rather than landing in your bank account. The scheme is currently funded through to March 2028, so there's genuine time to plan properly in 2026 rather than rushing into a decision.

What Is the Boiler Upgrade Scheme and How Does It Work in 2026?

The BUS launched back in 2022 with an initial £5,000 grant for air source heat pumps and £6,000 for ground source. In October 2023, the government increased both to £7,500. That figure hasn't changed for 2026, and there's no indication it will before the scheme's current end date of March 2028.

Here's how the money flows. You get quotes from MCS certified installers. You pick one. That installer applies to Ofgem for a voucher. Once approved, Ofgem issues a voucher that's valid for three months. After the installation is complete and all paperwork is submitted, Ofgem pays your installer the £7,500 directly. You never handle the grant money yourself.

The important thing to understand is that the grant is per property, not per person. If your home has already received a BUS voucher that was redeemed, you can't claim again on the same property.

Who Is Eligible for the £7,500 BUS Grant in 2026?

Eligibility rules catch people out more than anything else, so let's be specific.

Your property must be in England or Wales. Scotland has its own scheme (Home Energy Scotland). Your home needs a valid Energy Performance Certificate (EPC) with no outstanding recommendations for loft or cavity wall insulation. That second point trips people up constantly. If your EPC says you should insulate your loft and you haven't done it, your application will be rejected.

The property must have an existing heating system. New builds don't qualify. You can be an owner-occupier, a private landlord, or a social landlord. If you're a tenant, you can't apply yourself, but your landlord can.

Here's one that surprises people: the heat pump must be installed by an MCS certified installer. Not just any plumber. Not your mate who's handy with pipes. An MCS certified installer who is registered for the specific technology you're having fitted. No MCS certification, no grant. Full stop.

And the total installation cost has a cap. For air source heat pumps, you won't typically hit a ceiling on the grant itself, but the system must be appropriately sized for your property. Oversized systems designed to inflate costs will get flagged.

How Do You Actually Apply for the BUS Grant?

You don't apply directly. This is worth repeating because it's the single most common misunderstanding.

Your MCS certified installer handles the application through Ofgem's portal. Your job is to choose the right installer, agree to the quote, and make sure your property meets the eligibility criteria before they submit.

Here's a practical timeline for a typical application in 2026:

Step 1: Get your EPC sorted. If you don't have one, or yours is older and recommends insulation you haven't done, get a new assessment after completing the work. This can take one to three weeks.

Step 2: Get two or three quotes from MCS certified installers. A proper quote should include a heat loss calculation for your property, not just a rough estimate. Budget two to four weeks for this.

Step 3: Choose your installer. They submit the voucher application to Ofgem. Approval typically takes two to three working days, though it can stretch longer during busy periods.

Step 4: Once the voucher is issued, you have three months to complete the installation. Your installer books the work, fits the heat pump, commissions it, and submits the completion paperwork to Ofgem.

Step 5: Ofgem releases the £7,500 to your installer. Your final bill reflects the grant already deducted.

From first phone call to a working heat pump, most homeowners should expect six to twelve weeks. Planning ahead makes a real difference, especially if you need insulation work done first.

What Does a Heat Pump Actually Cost After the £7,500 Grant?

Let's talk real numbers. The average air source heat pump installation in the UK costs between £10,000 and £14,000 depending on the size of your home, the complexity of the install, and your location. After the £7,500 BUS grant, you're looking at a net cost of roughly £2,500 to £6,500.

Ground source heat pumps cost more, typically £15,000 to £25,000 before the grant, because of the groundwork involved. After the grant, that's £7,500 to £17,500.

Let's use a specific example. Sarah and Tom live in a three-bedroom semi in Nottingham. Their gas boiler is 18 years old and on its last legs. They get three quotes for an 8.5kW air source heat pump. The middle quote comes in at £11,200. After the BUS grant, they pay £3,700. Their installer handles the Ofgem application, and the voucher is approved within four days. The installation takes two days. Their annual heating bill drops by around £120 compared to their old G-rated boiler, and their EPC rating jumps from D to C.

That's a realistic scenario. Not every installation will be that straightforward, but many are.

Will the £7,500 BUS Grant Last Through All of 2026?

This is the question everyone asks, and honestly, the answer requires a bit of nuance.

The government has committed funding for the BUS through to March 2028. The budget allocation for the 2025-2026 financial year supported around 35,000 to 40,000 installations. Uptake has been growing steadily, with over 30,000 vouchers redeemed in the 2024-2025 period. If that growth continues, there's a question about whether annual budgets keep pace.

But here's what matters to you right now: in April 2026, the grant is available and there's no announced plan to reduce it. The risk isn't that the grant disappears overnight. The risk is that demand increases, installer availability tightens, and you end up waiting longer for quotes and installation slots.

If you're seriously considering a heat pump, getting your EPC and initial quotes sorted during spring or summer 2026 puts you in a strong position. Waiting until autumn, when everyone remembers their heating exists, typically means longer lead times.

"I'm Worried My Home Is Too Old or Poorly Insulated for a Heat Pump"

This is the number one objection, and it's worth addressing head on.

Heat pumps work best in well-insulated homes, that part is true. But "well-insulated" doesn't mean your house needs to be a Passivhaus. Most UK homes built after the 1930s can run a heat pump effectively with reasonable insulation levels. Many pre-1930s homes can too, depending on their construction.

The key is the heat loss calculation. A proper MCS certified installer will calculate exactly how much heat your home loses and size the heat pump accordingly. A bigger, leakier house just needs a bigger heat pump or some targeted insulation improvements first.

Remember that EPC requirement? If your EPC recommends loft insulation, you'll need to do it before the BUS application anyway. That's actually the scheme working in your favour. Getting the insulation done first means the heat pump has to work less hard, which means lower running costs and a smaller unit.

Frankly, the homes that genuinely can't work with a heat pump are rarer than the internet would have you believe. Solid-wall Victorian terraces are the trickiest, but even many of those can be heated with a properly sized system.

If you're unsure, the first step is always getting a proper survey from an MCS installer. That survey will tell you exactly what's needed and what it'll cost.

Frequently Asked Questions

Can I get the £7,500 BUS grant if I already have a heat pump?

No. The BUS grant is designed to help homeowners switch away from fossil fuel heating. If your property already has a heat pump installed, you're not eligible. This applies even if you want to replace an old or undersized heat pump with a new one.

Do I need an EPC to get the Boiler Upgrade Scheme grant?

Yes, you must have a valid EPC for your property before the voucher application is submitted. The EPC must not have outstanding recommendations for loft or cavity wall insulation. If it does, you'll need to carry out that insulation work and get a new EPC before applying.

How long does it take to get the BUS grant approved?

Once your MCS certified installer submits the voucher application to Ofgem, approval typically takes two to five working days. The voucher is then valid for three months, during which time the installation must be completed. The full process from first quote to working heat pump usually takes six to twelve weeks.

Can private landlords claim the £7,500 heat pump grant?

Yes. Private landlords in England and Wales are eligible for the BUS grant. The property must meet all the same criteria as an owner-occupied home, including having a valid EPC with no outstanding loft or cavity wall insulation recommendations. The landlord, not the tenant, must apply through an MCS certified installer.

Is the Boiler Upgrade Scheme still available in 2026?

Yes. The BUS is funded through to March 2028, and the grant remains at £7,500 for both air source and ground source heat pumps. There's no announced plan to reduce or end the scheme before that date, though annual budgets could affect availability if demand exceeds allocation.

Find a Local MCS Certified Installer

The single most important step in claiming your £7,500 BUS grant is choosing the right installer. They handle the application, they do the heat loss survey, and their MCS certification is what makes you eligible in the first place. Use our directory at heatpumpinstallerdirectory.co.uk to find vetted, MCS certified heat pump installers in your area. Get a few quotes, compare them properly, and don't just go with the cheapest. This is a 15 to 20 year investment in your home's heating, so it's worth getting right.