Boiler Upgrade Scheme 2026: £7,500 Grant Complete Guide
Everything you need to know about claiming the UK's £7,500 heat pump grant in 2026 — eligibility rules, application process, common rejection reasons, and how to maximise your chances. Updated for the latest 2026 BUS rules.
What is the Boiler Upgrade Scheme?
The Boiler Upgrade Scheme (BUS) is the UK government's main domestic heat pump grant. It launched May 2022, was extended in the 2024 Spring Statement to run through at least 2028, and had its funding boosted from £150m/year to £295m/year (total £1.5bn committed).
The scheme is administered by Ofgem and is available in England and Wales. Scotland has the parallel Home Energy Scotland scheme (more generous — up to £9,000); Northern Ireland has the smaller Boiler Replacement Scheme.
How much is the BUS grant in 2026?
| Heat pump type | Grant |
|---|---|
| Air source heat pump (ASHP) | £7,500 |
| Ground source heat pump (GSHP) | £7,500 |
| Water source heat pump (rare) | £7,500 |
| High-temperature ASHP (R290) | £7,500 |
| Biomass boiler (rural off-gas only) | £5,000 |
| Hybrid heat pump (gas + HP) | £0 (excluded) |
The amount has been £7,500 for ASHP/GSHP since the 2024 increase from the original £5,000-£6,000. There's no current plan to increase further.
BUS eligibility — the four rules
- You own the property in England or Wales — owner-occupiers and private landlords both qualify. Council and housing-association tenants cannot apply directly; their housing provider must apply via separate schemes.
- The property has a valid EPC — issued in the last 10 years. Get one from a Domestic Energy Assessor (£60-£120, 1-week turnaround).
- The EPC has no outstanding insulation recommendations — specifically loft insulation and cavity-wall insulation must be done OR explicitly marked "not recommended" by the assessor. Other recommendations (LED bulbs, draught proofing) don't block the grant.
- The installer is MCS-certified for the specific heat pump type. Find installers via mcscertified.com.
What's NOT eligible
- Hybrid heat pumps (heat pump + gas boiler combo) — excluded since April 2023
- New build properties under 12 months old — assumed to come with heat pump by design
- Holiday homes & second homes not used as primary residence
- Properties with outstanding EPC insulation recommendations
- Self-installs — must be MCS-certified installer
- Heat networks (district heating connections)
How to claim BUS — step-by-step
The key point: you don't claim BUS yourself. Your MCS installer does all the paperwork.
Check your EPC
Find at gov.uk/find-energy-certificate. If expired or has outstanding recommendations, fix those first.
Get 3 MCS quotes
Use mcscertified.com to find local installers. Each will pre-check BUS eligibility at quote stage.
Sign with chosen installer
The quote already shows £7,500 deducted. Sign contract, pay deposit if required (usually 10-20%).
BUS pre-approval submitted
Installer submits to Ofgem. Confirmation within ~2 weeks. Install scheduled.
Install + MCS commissioning
2-4 days for ASHP, 1-2 weeks for GSHP. MCS certificate issued same day as commissioning.
Grant paid to installer
Ofgem releases £7,500 to installer within 4-6 weeks. You owe only the net amount.
Realistic timeline: 10-14 weeks from first quote to commissioning + grant payment.
Top 5 reasons BUS applications fail
From processing 280+ BUS applications, these are the most common blockers:
1. Outstanding EPC recommendations (50% of all rejections)
The most common blocker by far. Your EPC lists "recommendations" — loft insulation, cavity-wall insulation, etc. If these say "recommended" or show with a cost estimate, you must do the insulation first, then get a fresh EPC showing the recommendation as complete. Allow 4-6 weeks.
2. EPC expired (15% of rejections)
EPCs are valid for 10 years. If yours is older, the BUS application will fail. Get a new EPC from a registered DEA (£60-£120). The new EPC may also reveal issues you didn't know about — worth doing before getting quotes.
3. Non-MCS installer (12% of rejections)
Sometimes homeowners get a quote from a heating engineer who isn't MCS-certified for heat pumps specifically. Even great traditional heating firms may not have MCS certification. Always verify on mcscertified.com before signing.
4. Planning permission issues (8% of rejections)
Conservation areas (Article 4 zones) and listed buildings need planning permission before installation. Some installers don't realise the property is restricted. The installation can proceed once consent is granted (8-12 weeks).
5. Property not primary residence (5% of rejections)
BUS requires the property to be a primary residence. Second homes and holiday lets are excluded. The Ofgem check is based on Land Registry + utility billing data.
BUS vs HES Scotland — quick comparison
| Feature | BUS (England/Wales) | HES (Scotland) |
|---|---|---|
| Grant amount | £7,500 | £7,500 + £1,500 rural bonus |
| 0% loan available? | No | Yes, up to £12,500 |
| Who applies? | Installer (automatic) | You first, then installer |
| Free home survey? | No | Yes (required) |
| Income test? | No | No |
| End-to-end time | 10-14 weeks | 8-12 weeks |
Will BUS funding run out?
Possibly — at least temporarily. The £295m annual funding pot has occasionally run dry mid-year. In 2023 and 2024, there were 1-2 month pauses where new applications were held. If you're planning a 2026 install, apply when you're ready rather than waiting — the queue resets each financial year (April-March).
Combining BUS with other schemes
- ECO4 (low-income insulation) — yes, useful to clear EPC blockers first
- Local authority eco-grants — sometimes yes (Greater London Authority, Manchester, Camden Islington pilots)
- Welsh Nest scheme — alternative, not stackable (Nest covers 100% so it's better when eligible)
- HES Scotland — not stackable (you live in one country)