Breaking News on the boiler upgrade scheme grant!
The UK Government has increased the level of support available through the Boiler Upgrade Scheme (BUS), with eligible households now able to receive up to £9,000 towards the cost of installing a heat pump.
From 21 July 2026, qualifying properties in England and Wales that are not connected to the mains gas grid and currently rely on oil or LPG heating can access an additional £1,500 of support, increasing the grant from £7,500 to £9,000.
The increased funding is designed particularly to support rural and off-grid properties, where oil and LPG remain common forms of heating.
For homeowners considering making the switch to renewable heating, this represents a significant opportunity to reduce the upfront cost of installing a modern heat pump system.
What is the Boiler Upgrade Scheme?
The Boiler Upgrade Scheme is a UK Government initiative designed to encourage property owners in England and Wales to replace fossil fuel heating systems with lower-carbon heating technologies.
Rather than the homeowner receiving the grant as a cash payment, the scheme is installer-led. An eligible MCS-certified installer applies for the grant on behalf of the property owner and the value of the grant is deducted from the cost of the installation.
This means eligible customers can benefit from the funding directly through a reduction in the upfront cost of their new heating system.
Who Can Receive the New £9,000 Grant?
The £9,000 grant is specifically available for eligible properties that:
- Are located in England or Wales
- Are not connected to the mains gas grid
- Are currently heated using oil or LPG
- Are replacing that heating system with an eligible air-to-water heat pump or ground source heat pump
- Meet the wider eligibility requirements of the Boiler Upgrade Scheme
The £9,000 grant is available from 21 July 2026 until 31 March 2027, subject to eligibility and the rules of the scheme.
How Much Funding is Available?
The Boiler Upgrade Scheme now provides different levels of funding depending on the technology being installed and the property’s circumstances.
For eligible off-gas-grid properties replacing oil or LPG heating, the grant available for an air-to-water or ground source heat pump is: £9,000
For other eligible properties, the standard grant for an air-to-water or ground source heat pump remains: £7,500
The scheme also currently provides:
£2,500 towards eligible air-to-air heat pump installations in residential properties.
£5,000 towards eligible biomass boiler installations in qualifying circumstances.
It is therefore important to establish the existing heating system and whether the property has a mains gas connection before determining which level of funding may be available.
Why Has the Grant Been Increased?
The Government announced the additional funding with a particular focus on households that currently rely on heating oil.
Oil-heated properties are especially common in rural areas where mains gas is unavailable. These households can also be more exposed to fluctuations in fossil fuel prices.
By increasing the Boiler Upgrade Scheme contribution from £7,500 to £9,000 for eligible off-grid oil and LPG properties, the Government aims to make the transition to renewable heating more affordable.
The Government has stated that around 200,000 potentially eligible homes across England and Wales are being contacted with information about the increased support.
What Heating Systems Qualify for £9,000?
For the increased £9,000 grant, eligible homeowners can replace their oil or LPG heating with an:
Air-to-Water Heat Pump
An air-to-water heat pump extracts energy from the outside air and uses it to provide heating and hot water for the property.
When correctly designed and installed, heat pumps can provide an efficient, low-carbon alternative to traditional fossil fuel heating.
Ground Source Heat Pump
A ground source heat pump extracts naturally occurring heat from the ground using a ground collector system.
These systems can provide extremely efficient heating and are particularly suitable for certain rural and off-grid properties where sufficient land or suitable ground conditions are available.
Both technologies can qualify for the increased £9,000 BUS grant where the property meets the off-gas-grid and existing oil or LPG heating requirements.
What About Properties Connected to Mains Gas?
Properties connected to the gas grid do not automatically receive the new £9,000 grant.
The standard Boiler Upgrade Scheme grant remains £7,500 towards eligible air-to-water and ground source heat pump installations.
The £9,000 figure should therefore not be viewed as a blanket increase to the Boiler Upgrade Scheme.
It is an enhanced level of support specifically targeted at eligible off-gas-grid properties replacing oil or LPG heating.
Can Businesses Qualify?
The Boiler Upgrade Scheme is not limited exclusively to homeowners.
Eligible properties can include buildings used for business purposes, as well as second homes and properties rented to tenants, provided the property owner and installation meet the scheme requirements.
This can make the BUS particularly relevant to rural businesses operating from properties currently dependent on fossil fuel heating
What Properties Are Not Eligible?
There are several circumstances where a property may not qualify.
Most new-build properties are excluded, as is social housing and properties that have already received certain government funding or support towards the installation of a heat pump or biomass boiler.
There are specific provisions for eligible self-build properties.
Eligibility should always be assessed before proceeding with an installation.
Are There Limits on Heat Pump Size?
Yes.
Under the current Boiler Upgrade Scheme rules, the maximum capacity is generally:
45kWth for an individual heating system
The rules allow up to 70kWth where a heat pump is installed alongside one or more additional heat pumps.
Shared ground loop installations can have a maximum capacity of 300kWth.
This means the scheme can support considerably more than just small domestic installations, although every project needs to be assessed against the relevant BUS requirements.
How Do You Apply for the £9,000 Grant?
One of the advantages of the Boiler Upgrade Scheme is that the application process is largely handled by the installer.
The property owner does not normally need to apply directly to the Government for the funding.
Instead, an MCS-certified installer assesses the proposed installation and applies for the BUS voucher on behalf of the property owner.
The property owner will then be required to confirm their consent and eligibility.
Once approved, the value of the grant is applied as an upfront discount against the cost of the installation.
For an eligible £9,000 installation, this means £9,000 is deducted from the cost rather than the homeowner having to pay the full amount and subsequently reclaim the grant.
Is an EPC Required?
Changes introduced to the Boiler Upgrade Scheme in 2026 removed the previous standing EPC eligibility requirement.
However, this does not remove the importance of properly assessing a property’s heat loss, heating requirements and overall suitability for a heat pump.
Correct system design remains fundamental to achieving an efficient and effective heat pump installation.
Why Proper Heat Pump Design Matters
Receiving a £9,000 grant is only one part of making the transition to renewable heating.
A heat pump needs to be correctly specified for the individual property.
At MJS Energy, we believe the design process is one of the most important parts of any renewable heating project.
This includes assessing the property’s heat loss, existing heating infrastructure, hot water requirements and the operating temperatures required to heat the building effectively.
Rather than simply replacing one heating appliance with another, a properly designed heat pump system considers the performance of the complete heating system.
Is Now a Good Time to Consider a Heat Pump?
For eligible off-grid properties currently using oil or LPG, the increased £9,000 grant significantly reduces the initial investment required to move to renewable heating.
The enhanced grant is currently scheduled to run until 31 March 2027, making this an important window for property owners who have been considering replacing their existing heating system.
Even where the £9,000 enhanced grant does not apply, eligible properties may still be able to access the standard £7,500 Boiler Upgrade Scheme grant.
Find Out If Your Property Qualifies
Every property is different, which is why the first stage should be establishing whether your property and existing heating system meet the Boiler Upgrade Scheme criteria.
MJS Energy can assess your property, discuss the renewable heating options available and establish whether your proposed heat pump installation could qualify for Government support.
With up to £9,000 now available for eligible off-gas-grid oil and LPG properties, there has never been more Government support available through the Boiler Upgrade Scheme for these qualifying installations.