Boiler Upgrade Scheme (BUS)

What Is It For?

The Boiler Upgrade Scheme (BUS) is a government-backed initiative designed to reduce carbon emissions and improve energy efficiency in homes and non-domestic buildings across England and Wales. The scheme provides upfront grants to help property owners replace fossil fuel heating systems with low-carbon alternatives, including heat pumps and, in limited circumstances, biomass boilers.

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The scheme is currently due to run until December 2027 and is administered by Ofgem. Grants are applied for by an MCS-certified installer on behalf of the property owner, with the grant deducted directly from the installation cost. BUS is particularly valuable for landlords looking to future-proof their rental properties, reduce tenant energy bills and improve environmental performance.

 

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)

• Up to £2,500 for air-to-air heat pump.

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

• Up to £9,000 for air-to-water or ground source heat pumps in eligible off-gas grid properties (available from 21 July 2026 until 31 March 2027).

 

Eligibility

• Landlords in England and Wales.

• Installation must be completed by an MCS-certified installer.

• 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 LPG) or electric, and the replacement must be a new 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.

• Biomass boiler grants are only available for eligible rural properties that are not connected to the gas grid.

• New-build properties are generally not eligible.

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

 

What Works Does It Cover?

• Air source heat pumps. (including air-to-water heat pumps, air-to-air 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).

• Hybrid heat pump systems are not eligible.

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

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