As the UK pushes towards net-zero emissions by 2050, one of the most impactful ways homeowners can cut carbon emissions and lower energy bills is by switching from a traditional gas or oil boiler to a heat pump. To make this transition more affordable, the UK Government offers the Boiler Upgrade Scheme (BUS) — a grant worth £7,500 for homeowners installing eligible heat pump systems.
The Boiler Upgrade Scheme is a government initiative designed to support homeowners in England and Wales who want to replace fossil-fuel heating systems with low-carbon alternatives. Rather than funding new gas or oil boilers, the scheme focuses on technologies like air source heat pumps, which extract renewable heat from the outside air and use it to heat your home efficiently.
Under the scheme, eligible homeowners can receive £7,500 off the cost of installing an air source heat pump. The grant is applied directly to your installation cost, reducing the amount you pay upfront.
Who Can Get the BUS Grant?
To qualify for the BUS heat pump grant, you must:
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Be a homeowner in England or Wales replacing an existing fossil fuel heating system (gas, oil, LPG or electric).
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Have a valid Energy Performance Certificate (EPC) (usually no older than 10 years).
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Use a Microgeneration Certification Scheme (MCS) accredited installer for your heat pump.
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Install a system that meets the scheme’s minimum efficiency and commissioning standards.
It’s worth noting that the BUS grant is linked to the property, not the person — meaning each eligible property can claim once.
What Does the £7,500 Grant Cover?
The Boiler Upgrade Scheme provides £7,500 towards the supply and installation of an air source or ground source heat pump system. This contribution is deducted directly from your installation cost, making the upgrade significantly more affordable.
While the grant does not always cover the entire cost of installation, it often represents a substantial portion of the total price. The final cost will depend on factors such as your home’s size, insulation levels, existing heating system and whether radiator upgrades are required.
In many cases, homeowners find that the BUS grant reduces the upfront cost enough to make switching to an air source heat pump a realistic and financially sensible option and is generally comparable to having a new boiler installed.
How to Apply for the Boiler Upgrade Scheme
One of the biggest advantages of the BUS grant is that you don’t need to manage the application yourself. The process is handled almost entirely by your installer.
Once you choose an MCS-certified heat pump installer, they will assess your property, confirm eligibility and provide a detailed quote. If you proceed, the installer applies for the BUS grant on your behalf through Ofgem. After approval, the £7,500 grant is deducted from your final installation cost, and the installer claims the funding once the system has been installed and commissioned.
This installer-led process makes applying for the grant simple and stress-free for homeowners.
Is Now a Good Time to Switch to an Air Source Heat Pump?
With the Boiler Upgrade Scheme offering £7,500 per installation, there has never been a better time to upgrade from a gas boiler to an air source heat pump. Alongside the grant, homeowners benefit from lower carbon emissions, special heat pump tariffs, improved energy efficiency and protection against future gas price increases.
As gas boilers are gradually phased out and energy efficiency becomes more important to property value, installing a heat pump is increasingly seen as a future-proof investment.
Heat Pump Installations with Thermodynamics
At Thermodynamics, we specialise in air source heat pump installations and support homeowners through every stage of the Boiler Upgrade Scheme in Sheffield, Doncaster, Worksop, Retford, Chesterfield and Gainsborough. From assessing your home’s suitability and system design to managing the BUS grant application and completing a high-quality installation, we handle the entire process.
If you’re considering upgrading your boiler and want to take advantage of the £7,500 BUS grant, get in touch with Thermodynamics today for expert advice and a personalised quote.