Boiler Upgrade Scheme (BUS)

What Is It For?

The Boiler Upgrade Scheme (BUS), launched in May 2022, is a government-backed initiative designed to reduce carbon emissions and improve energy efficiency in homes and non-domestic buildings across England and Wales. With a 2025/2026 budget of approximately £295 million, the scheme offers upfront capital grants to encourage the replacement of fossil fuel heating systems with low-carbon alternatives, primarily heat pumps and biomass boilers. Running until December 2027, it is especially beneficial for landlords looking to upgrade rental property heating systems to meet environmental standards and lower tenant energy costs.

 

Grant Amount per Property

Only one grant per property:

• Up to £7,500 for installing air source heat pumps.

• Up to £7,500 for ground source heat pumps.  (including water source heat pumps and those on shared ground loops)

• £5,000 for biomass boilers (limited to properties without gas grid access).

 

Eligibility

• Landlords in England and Wales.

• Properties must have a valid EPC (no specific rating required, but an EPC is needed for assessment).

• The existing heating system must be fossil fuel-based (e.g., gas, oil) or electric, and the replacement must be a new heat pump or biomass boiler.

• The scheme does not cover properties that are newly built, have already been given government funding or support for a heat pump or biomass boiler.

• Properties with a maximum installation capacity up to 45kWth (kilowatt-thermal)  for individual systems and 300kWth for shared ground loops.

 

What Works Does It Cover?

• Air source heat pumps.

• Ground source heat pumps (including water source heat pumps).

• Biomass boilers (in limited cases, e.g., off-gas-grid properties with specific requirements).

 

Landlords can register for eco-Landlord and check grant eligibility for each property now.

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