GrantRadar

Department for Energy Security and Net Zero (administered by Ofgem)

Boiler Upgrade Scheme

An upfront government grant, taken off the installer's invoice, towards replacing fossil fuel or electric heating with a heat pump or, in limited cases, a biomass boiler, in homes and non-domestic buildings in England and Wales. Grants are £7,500 for air-to-water or ground source heat pumps (£9,000 for off-gas-grid properties replacing oil or LPG heating, for applications made by 31 March 2027), £5,000 for biomass boilers and £2,500 for air-to-air heat pumps (homes only). It is open to property owners, including organisations such as charities, trusts, companies, schools and places of worship that own their building. The application is made by an MCS-certified installer, not by the owner. The government has committed funding for the scheme to 2029/30.

Apply on the funder’s site
You could get
£2,500 – £9,000
no fixed round
Deadline
Rolling
apply any time
Effort
Light
short form, little evidence needed

Who can apply

  • Owners of homes or non-domestic buildings (for example business premises, churches and other places of worship, community buildings) in England and Wales, including second homes and properties let to tenants, that are replacing fossil fuel or electric heating
  • Ofgem's guidance confirms properties can be owned by organisations such as companies, charities, trusts, schools, housing associations or places of worship: consent must be given by an individual legally authorised to act for the organisation (for a charity or trust, a trustee), and an organisation not listed on Companies House must have a Letter of Authorisation signed by an accepted signatory
  • You must own the building; tenants cannot apply
  • Non-domestic buildings are effectively limited to small and medium ones by the 45kWth system cap (70kWth for multiple heat pumps)
  • Previous funding for insulation or other energy efficiency work does not stop you applying
  • In Scotland and Northern Ireland, different schemes apply

What it funds

Upfront grants towards the cost and installation of a low-carbon heating system that fully replaces an existing fossil fuel (gas, oil, LPG) or electric heating system:

  • £7,500 towards an air-to-water (air source) heat pump
  • £7,500 towards a ground source heat pump (including water source heat pumps and those on shared ground loops)
  • £9,000 towards an air-to-water or ground source heat pump in an off-gas-grid property replacing oil or LPG heating (applications properly made from 21 July 2026 to 31 March 2027)
  • £5,000 towards a biomass boiler (only in rural properties off the gas grid, with an emissions certificate)
  • £2,500 towards an air-to-air heat pump (residential buildings only)

One grant per property. Maximum capacity 45kWth for individual systems, 70kWth where a heat pump is installed with one or more additional heat pumps, and 300kWth for shared ground loops.

What it will not fund

  • Hybrid heat pump systems (e.g. a gas boiler with an air source heat pump), or keeping a fossil fuel system alongside the new one
  • Replacing an existing low-carbon heating system, including an existing heat pump
  • Social housing (including shared ownership properties)
  • Most new-build properties (developer-built homes still under construction)
  • Properties that have already had government funding or support for a heat pump or biomass boiler
  • Installations funded by more than one source of public funds
  • Biomass boilers in properties on the gas grid or not in a rural location, or in self-build properties
  • Air-to-air heat pumps in non-residential buildings
  • Installations by installers who are not MCS certified
  • Applications made more than 120 days after the system was commissioned
  • Properties outside England and Wales

How to apply

  1. Contact MCS-certified installers to get quotes for the work
  2. Your installer confirms whether your property and chosen system are eligible
  3. Agree a quote with your chosen installer; the grant must be shown as a deduction on the quote
  4. Your installer applies to Ofgem for a BUS voucher on your behalf
  5. Ofgem contacts you to confirm your consent and verify your identity; respond within 14 days
  6. Once the voucher is issued, the installer installs and commissions the system and redeems the voucher (within 3 months for air-to-water, air-to-air and biomass, 6 months for ground source)

You cannot apply yourself or get pre-approval from Ofgem. Installers may apply after commissioning, but only within 120 days and at your risk. Ofgem or MCS may contact you or visit to check the installation.

Have ready

  • Installer's quote showing the grant deducted
  • Energy Performance Certificate (EPC) reference number, if the property has a valid EPC
  • Alternative evidence if there is no valid EPC, such as a utility bill dated within 3 months or a recent fuel receipt, photographs of the existing heating system, or an expired EPC
  • Evidence that the property is off the gas grid and heated by oil or LPG (for the £9,000 grant)
  • Letter of Authorisation (organisations not listed on Companies House)

Your installer gathers and submits the evidence; you confirm consent and identity when Ofgem contacts you.

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