M&E Contrax Resources

Boiler Upgrade Scheme (BUS)

Resource Highlights:

Grants available are now £7,500 – £9,000 for an air source heat pump or ground source heat pump, and £5,000 for a biomass boiler.

Air-to-air heat pumps (air conditioning): announced support of £2,500 off cost and installation – coming in 2027.

Heat batteries: announced support of £2,500 off cost and installation coming in 2027.

Your property must be in England or Wales, you must own it, and you must be replacing a fossil fuel heating system.

Your installer must be MCS certified, and the installer applies for the voucher on your behalf. M&E Contrax Renewables are MCS Accredited.

You can get one grant per property.

The heat pump grant explained, eligibility, amounts, and how to apply

The Boiler Upgrade Scheme (BUS) is a government grant that helps property owners in England and Wales replace fossil fuel heating with a low carbon heating system, usually a heat pump. It is designed to reduce the upfront cost of switching from gas, oil, LPG or direct electric heating to cleaner alternatives.

Important: This information, including amounts and eligibility, is accurate as of January 2026. However, this can change, therefore for up to date details, please give our team a call or visit the Government website here.

What is the Boiler Upgrade Scheme?

BUS provides an upfront grant towards the cost of installing a heat pump or, in limited circumstances, a biomass boiler. It can be used for homes and for buildings used for business.

What you can get

Grant amounts

£7,500 – £9,000 towards an air source heat pump

£7,500 – £9,000 towards a ground source heat pump (including water source heat pumps and shared ground loops)

£5,000 towards a biomass boiler

Eligibility checklist

You’re eligible for a BUS grant if:

you own the property (including a business premises, second home, or a rental property you let to tenants), and

you are replacing a fossil fuel heating system, such as oil, gas, electric or LPG

Note: The increased £9000 grant is for replacing oil or LPG heating only. £7500 is available for the other heating systems.

EPC requirement

At present, GOV.UK states your property must have a valid EPC (valid for 10 years). The government has also indicated it intends to remove the EPC requirement under BUS, but you should assume it is still required unless GOV.UK updates the scheme rules.

Properties you cannot get a grant for

You cannot get a grant for:

most new build properties

social housing

a property that has already received government funding or support for a heat pump or biomass boiler

New builds and self builds, the practical rules

If the developer is still building the new build, it is not eligible.

If you move into a finished new build with a fossil fuel boiler, you may be eligible.

Self build properties can be eligible (with conditions), but biomass boilers are not eligible for self builds.

Biomass boiler eligibility, extra rules

Biomass is more restricted. You can only get a biomass grant if:

the property is off the gas grid

it is in a rural location (as defined in Ofgem guidance), and

the boiler has an emissions certificate.

How to apply

BUS is not a form you fill in yourself. The process is installer led:

Choose an MCS certified installer and agree a proposal – we can help you with this.

We can apply for a BUS voucher on your behalf, and you confirm consent

We will complete and commissions the system, then redeems the voucher (the grant is usually taken off your quote as a discount)

Time limits to know

GOV.UK states the installer must commission and install the heat pump within 120 days of applying for the grant.

Ofgem guidance notes vouchers are typically valid for 3 months for air source heat pumps and biomass boilers, and 6 months for ground source heat pumps.

Air-to-Air Heat Pumps (Air Conditioning)

Air-to-air heat pumps are the technical name for modern fixed air conditioning systems that can run in reverse, cooling in summer and heating in winter. The Government announcement on expanding BUS includes air-to-air heat pumps, reflecting their role in efficient low-carbon space heating as well as summer comfort. This will come into effect in 2027.

Support level announced: £2,500.

Good for: bedrooms, home offices, single rooms or zoned comfort, flats and smaller homes, and some small commercial spaces.

Important: air-to-air systems do not replace a wet central heating system for radiators and hot water in the same way an air-to-water heat pump does. If your goal is to replace a boiler and run radiators and hot water, the main BUS heat pump route is still the primary option.

Related guide: Air Conditioning

Heat Batteries

A heat battery stores heat (rather than electricity) and can be used to provide space heating and/or hot water depending on the product and system design. The Government’s BUS expansion announcement also included heat batteries, with industry bodies noting this as a positive step for homes that may not be well suited to a traditional heat pump setup. This will come into effect in 2027.

Support level announced: £2,500.

Important: Some sources note heat battery support may be tied to the rollout of appropriate product, design and installation standards, so eligibility needs confirming at the time of enquiry.

Important Websites

You can find up to date information on the following websites:

GOV.UK

Ofgem

MCS

Important Note: Funding, grant values and eligibility criteria can change at short notice. This page is correct to the best of our knowledge at the time of writing (June 2026), but we always recommend checking the latest scheme details directly on the UK Government website and confirming eligibility during your survey and quotation.

Simple overview

If you want the simplest approach, follow this order:

Check you’re replacing a fossil fuel system and you own the property in England or Wales

Make sure your EPC is valid (unless rules change, it is currently required)

Speak to us, or another MCS certified installer, for suitability, sizing, and a clear design

Confirm whether air source or ground source is the best fit for your property

Agree the quote and let the installer apply for the BUS voucher on your behalf

Book the install date within the scheme time limits and ensure commissioning and handover are included

This avoids the most common BUS issues, starting without the right property details, choosing a system that is poorly sized, or missing voucher timeframes.

Last reviewed: June 2026. Grant amounts and eligibility rules change — always verify current figures with your installer or at gov.uk before making decisions.

Frequently Asked Questions

No. Your MCS Certified installer (such as us!) applies for the voucher and then redeems it after commissioning.

Yes, if you own the property you can apply, including for a property you rent out to tenants.

No, hybrid heat pump systems (for example, gas boiler plus heat pump) are not eligible.

Right now, GOV.UK says yes, you need a valid EPC. The government has indicated it plans to remove this requirement, but you should follow the current rules until they officially change.