Boiler Upgrade Scheme 2025–2027: £7,500 UK Heat Pump Grant Explained

The Boiler Upgrade Scheme (BUS) gives English and Welsh homeowners £7,500 toward installing an air source or ground source heat pump. It's administered by Ofgem on behalf of DESNZ, runs until 31 December 2027, and is the single most important policy feature for heat pump economics in the UK today.

Quick facts

Grant amount (ASHP/GSHP)	£7,500
Grant amount (biomass)	£5,000 (off-grid only)
Geography	England and Wales only
Administered by	Ofgem (DESNZ-funded)
End date	31 December 2027
Application route	Your MCS-certified installer applies for you
Payment mechanism	Deduction from your invoice

Does BUS cover Wales? Does it cover Scotland?

Wales — yes, in full. The Boiler Upgrade Scheme covers Wales on exactly the same terms as England: the same £7,500 grant, the same 31 December 2027 deadline, and the same MCS-installer application route. Nothing about the scheme is reduced or altered for Welsh properties. If you're weighing this up against Wales's other support, our Wales heat pump grants guide explains how BUS sits alongside the separate, means-tested Warm Homes Wales (Nest) scheme.

Scotland — no. BUS is an England-and-Wales scheme only; it does not extend to Scottish properties. If you're in Scotland, the equivalent route is Home Energy Scotland heat pump funding, which pays cashback plus an interest-free loan and is administered separately by the Energy Saving Trust.

Eligibility — the full rules

Your property must meet all of the following:

1. Located in England or Wales
2. You own the property (owner-occupier) or you're a private landlord
3. EPC rating of D or above, OR you have valid loft and cavity wall insulation in place (or are exempt)
4. You're replacing a fossil-fuel heating system (gas, oil, LPG) or electric heating
5. The property has not previously received a BUS grant
6. The installation is carried out by an MCS-certified installer

Some property types are explicitly excluded: new-builds (covered by other schemes), and certain shared-ownership or social housing arrangements.

The application process step by step

1. You choose an MCS installer. Use the installer finder to compare three MCS-certified businesses in your area.
2. Installer surveys your home. Heat loss calculation, radiator audit, cylinder space check.
3. Installer quotes you. Quote should show net cost (after grant) clearly.
4. You sign a "redemption statement" giving the installer permission to claim the grant on your behalf.
5. Installer applies via the Ofgem portal. Submission includes property details, proposed equipment, and your redemption statement.
6. Ofgem issues a voucher (typically 2–4 weeks). Voucher is valid for 3 months for heat pumps.
7. Installation happens. Most ASHP installs take 2–5 days on site.
8. Installer claims the grant back from Ofgem post-commissioning.
9. You pay the net amount. Final invoice = total install cost minus £7,500.

What if I'm rejected?

The four most common rejection reasons, and what to do about each:

Reason	Fix
EPC rated E, F or G with no exemption	Install required insulation (often free via ECO4), get re-inspected, re-apply
Prior BUS grant on the property	Not fixable — grant is once-per-property. Consider ECO4 or self-funded install
Installer not currently MCS-certified	Use a different installer (check MCS register before signing anything)
New-build property (under 24 months old)	Not BUS-eligible. Talk to developer about their heat pump scheme route

BUS and rented properties

Landlords can apply for BUS on properties they own and rent out. The grant is paid to the property, not the tenant. Some landlords are reluctant — the install disrupts tenants and locks in capital — but the upgrade does raise EPC rating, which matters under MEES (Minimum Energy Efficiency Standards) for rentals.

If you're a tenant who wants a heat pump, your only route is to convince your landlord. We can send a one-page summary for landlords if helpful — drop us a line.

BUS vs other UK heat pump grants

Scheme	Geography	Amount	Eligibility
BUS	England & Wales	£7,500	Property-based; EPC D+; one-time
ECO4	UK-wide	Often free install	Means-tested; low-income households
Home Energy Scotland	Scotland	£7,500 cashback + £38,500 loan	Owner-occupiers; specific property criteria
Welsh Nest	Wales	Often free improvements	Low-income; specific qualifying conditions

BUS is the largest single grant available to most middle-income English and Welsh homeowners. If you're low-income, ECO4 may give you a free install. In Scotland, Home Energy Scotland heat pump funding is routinely more generous than BUS — see that page for the full Scottish route, since BUS itself doesn't apply there. See our grants hub for the full picture — or, if you're specifically in Wales, our Wales grants guide covers exactly how BUS and Warm Homes Wales (Nest) fit together.

What happens after 2027?

BUS is currently scheduled to close on 31 December 2027. What follows is uncertain:

• Extension — possible but not announced. Industry has lobbied hard for extension or replacement.
• Replacement scheme — possible. Government has signalled support for continued heat pump deployment.
• Wind-down with no successor — possible but unlikely given UK net-zero commitments.

The honest position: if you're planning to install a heat pump and you qualify for BUS, do it inside the 2027 deadline. Don't bank on the scheme being extended.

The bottom line

The £7,500 BUS grant is the structural feature that makes heat pump retrofit economically viable for most UK homeowners. The eligibility rules are unfussy compared to many UK schemes. The application process is largely handled by your installer. The window closes 31 December 2027.

The fastest path to knowing if you qualify is our 60-second eligibility checker — it runs every rule above and tells you in plain English where you stand.