Boiler Upgrade Scheme: how to get £7,500 off a heat pump

How much you can get

The Boiler Upgrade Scheme (BUS) is a government grant, run by Ofgem, that helps homes and small businesses in England and Wales replace fossil fuel heating with a low-carbon system. The amount depends on what you install:

The extra £1,500 for oil and LPG homes is temporary. To qualify, the property's heating must run on oil or LPG and it must have no mains gas connection, which covers many rural homes in the New Forest.

Heat pumps are also zero-rated for VAT until 31 March 2027, so there's no VAT on the installation and the grant comes off a VAT-free price. From 1 April 2027 the rate goes back to 5%.

Who is eligible

You can usually get the grant if:

• you own the property, including a home you rent out, a second home or a small business building
• the property is in England or Wales
• you're replacing a fossil fuel system, such as an oil, gas or LPG boiler, or electric heating such as storage heaters
• the property hasn't already had government funding for a heat pump or biomass boiler
• the system is no bigger than 45 kWth (70 kWth if more than one heat pump is installed together)

You don't need to insulate your home first, and since 28 April 2026 you don't need a valid Energy Performance Certificate (EPC). If you have one, we use its certificate number. If not, a recent fuel bill and photos of your current heating are enough.

New builds that are still being built aren't eligible, and social housing is excluded. If you've moved into a finished new build that has a fossil fuel boiler, or you built your own home, you may still qualify. We check this at your survey.

How the application works

You don't fill in any forms with Ofgem. Your installer applies for the grant on your behalf, and the process with us looks like this:

1. Survey and heat loss calculation. We visit, measure each room and work out how much heat your home needs, so the heat pump and radiators are sized correctly.
2. Quote with the grant deducted. Your quote shows the full price, the £7,500 (or £9,000) grant and the balance you pay.
3. We apply to Ofgem. Once you accept, we submit the application with evidence of your current heating.
4. You confirm by email. Ofgem contacts you to confirm you agree to the application. Reply within 14 days, or the application can be rejected.
5. Installation and commissioning. After approval, the work must be finished within three months for an air source heat pump or six months for ground source.
6. We claim the grant. Ofgem pays the grant to us once the system is installed, commissioned and issued with its MCS certificate. You only pay the balance.

What a heat pump costs after the grant

The Energy Saving Trust puts the typical cost of an air source heat pump at around £12,000, and a ground source heat pump at around £15,000 where the ground loop goes in trenches. Boreholes cost considerably more.

On those figures, the grant would bring a typical air source installation down to around £4,500, or around £3,000 for an oil or LPG home claiming £9,000. Your price depends on the size of heat pump your home needs, whether any radiators need upgrading and whether you need a new hot water cylinder, so we give you a fixed quote after the survey.

If you're deciding between the two types, our guide to air source vs ground source heat pumps compares cost, space and efficiency.

Choosing an installer

Only installers certified by MCS (the Microgeneration Certification Scheme) for heat pumps, and who belong to an approved consumer code such as the Renewable Energy Consumer Code (RECC), can apply for the grant. You can check any installer on the public registers before you sign.

Solwat Green Energy is MCS certified (certificate NAP-71585) and a RECC member (00071559). We handle the whole application as part of every heat pump installation across Hampshire and Dorset.

Common questions