The £7,500 Boiler Upgrade Scheme, explained
On this page
The Boiler Upgrade Scheme is the government grant that takes £7,500 off the cost of switching from a fossil fuel boiler to an air source heat pump in England and Wales. It is the single biggest reason a heat pump is more affordable than most homeowners expect: official scheme statistics put the median installation at £13,100 in January to March 2026 before the grant, which becomes £5,600 once the £7,500 is deducted. Here is how it works without the jargon.
What you get
- £7,500 off the cost of an air source heat pump installation
- Until March 2027, a further £1,500 where the property is heated by oil or LPG and has no mains gas connection
- Paid as an upfront discount: we deduct it from your quote, you never handle the money
- On top, qualifying installations attract 0% VAT under the energy-saving materials relief until 31 March 2027
Who is eligible
- You own the home (or small non-domestic property) in England or Wales
- You are replacing a fossil fuel system: gas, oil or LPG boiler, or electric heating
- The property has a valid Energy Performance Certificate
- The work is done by an MCS certified installer, which is what allows the grant to be claimed
Rules evolve, so we verify your eligibility against the current guidance during the free assessment before you commit to anything.
The paperwork is our job. The installer applies for the grant, not the homeowner. We handle the full application, and the £7,500 comes straight off your written quote.
Wondering whether your home qualifies? We check your eligibility at the free assessment, with no obligation.
Get my free quoteIs a heat pump right for your home?
A heat pump moves heat rather than making it by burning fuel, so a well-designed system delivers more heat than the electricity it draws, and modern units keep working in freezing weather. The certified efficiency of every model we fit is independently listed on the MCS product directory. Most homes, including older ones, are suitable, sometimes with minor tweaks like a couple of larger radiators. Oil-heated rural homes are often the biggest winners, and until March 2027 qualifying oil and LPG homes with no mains gas connection get a further £1,500 on top of the grant. Our engineers assess radiators, insulation and hot water demand honestly at the survey; see the air source heat pumps page for brands and details.
What it costs after the grant
Installed costs vary with the size of the home, the system and any radiator upgrades. The official scheme statistics put the median air source heat pump installation at £13,100 in January to March 2026 before support, and in real terms that is 10% lower than in the scheme's first year. With £7,500 deducted the median comes down to £5,600, with 0% VAT already applied where it qualifies, and finance options can spread the remainder. The only number that matters is the one on your fixed quote, and our price promise means that is the number you pay.
Where these numbers come from. The £7,500 grant and the £1,500 uplift: gov.uk, Boiler Upgrade Scheme: what you can get. The £13,100 median: Boiler Upgrade Scheme statistics, May 2026 release, DESNZ, published 25 June 2026. The 0% VAT rate to 31 March 2027: HMRC, VAT Notice 708/6. Sources checked 25 July 2026.
Next step
Book a free assessment. We confirm eligibility, design the system, apply for the grant and give you a fixed written quote with everything deducted.
Quick answers
How much is the Boiler Upgrade Scheme grant?
£7,500 towards the cost and installation of an air source heat pump in England and Wales, paid as an upfront discount on your quote, plus a further £1,500 until March 2027 where the property is heated by oil or LPG and has no mains gas connection. Your MCS certified installer applies for the grant on your behalf.
Who qualifies for the BUS grant?
Broadly: you own the property, you are replacing a fossil fuel heating system such as a gas, oil or LPG boiler, the property has a valid EPC, and the installation is carried out by an MCS certified installer. We check your eligibility as part of the free assessment.
Do I have to apply for the grant myself?
No. The installer applies. We handle the full application on your behalf and deduct the grant from your quote, so you see the saving straight away with no paperwork to manage.
Can I combine the grant with 0% VAT?
Yes. Qualifying domestic heat pump installations also currently attract 0% VAT under the energy-saving materials relief, on top of the grant. Both are confirmed in your written quote.