Money Decisions UK

Boiler Upgrade Scheme: grants for heat pumps and biomass boilers

Open

This scheme is open.

England and Wales only.

The Boiler Upgrade Scheme gives an upfront grant towards the cost of installing a heat pump or biomass boiler. It only covers England and Wales, and it works differently from most grants: you do not apply for the money yourself. An MCS-certified installer applies for the voucher on your behalf and redeems it once the work is done.

This scheme is open in England and Wales. The Boiler Upgrade Scheme (BUS) is a government scheme that provides upfront grants to help reduce the cost of installing heat pumps and biomass boilers in homes and non-domestic buildings. The scheme is installer-led. Installers who are MCS certified can apply for and redeem Boiler Upgrade Scheme vouchers on behalf of property owners.
Official guidance, 13 January 2023

What the scheme is and who runs it

The Boiler Upgrade Scheme (BUS) is a government scheme that provides upfront grants to help reduce the cost of installing heat pumps and biomass boilers in homes and non-domestic buildings.
Ofgem, Boiler Upgrade Scheme (BUS)

Three organisations share responsibility. The Department for Energy Security and Net Zero sets the scheme’s policy, legislation and budget, and decides the value of each grant category. Ofgem administers the scheme day to day: it publishes guidance, processes voucher applications and redemptions, pays installers once work is complete, and investigates suspected fraud. MCS, the independent certification body for microgeneration installers and products, sets the technical standards installers and equipment must meet.

Why you do not apply for the grant yourself

The scheme is installer-led. Installers who are MCS certified can apply for and redeem Boiler Upgrade Scheme vouchers on behalf of property owners.
Ofgem, Boiler Upgrade Scheme (BUS)

This matters for two reasons. First, it means the grant is built into the installer’s quote rather than paid to you directly — a legitimate installer reduces the price by the grant amount and reclaims that money from Ofgem once the job is done and the voucher is redeemed. Second, only an installer who is MCS certified can apply for and redeem a Boiler Upgrade Scheme voucher — Ofgem describes no other route into the scheme, so a business without MCS certification is not able to do this on your behalf.

  1. Find an installer certified by MCS to install heat pumps or biomass boilers.
  2. Ask them for a quote that already has the relevant grant amount deducted, and confirm in writing which grant category it falls under.
  3. The installer applies for the voucher with Ofgem before or as the work is arranged.
  4. Once installation is complete, the installer redeems the voucher and Ofgem pays the grant to them, not to you.
  5. Keep a copy of the quote, the contract and the MCS certificate for the completed installation.

How much the grant is worth

The grant amount depends on the type of heat pump or boiler and, for some air source heat pumps, on whether the property is on the mains gas grid:

The higher off-gas-grid amount for air source and ground source heat pumps applies only to eligible properties not connected to mains gas, and Ofgem has said it runs until 31 March 2027. The standard rate applies to air-to-water, ground source and water source heat pumps more generally. The air-to-air heat pump grant is only available for residential properties.

Who to contact for what

Ofgem is explicit that it does not certify installers, products or installations, and does not set scheme policy — so its role is limited if your complaint is about the quality of the installation itself rather than the voucher or payment process.

  • Questions about your voucher, application or scheme administration: Ofgem, at [email protected] or 0330 053 2006.
  • Questions about scheme policy or eligibility rules: the Department for Energy Security and Net Zero, at [email protected].
  • Questions about an installer, installer conduct or technical standards: MCS, at [email protected] or 0333 103 8130.

If you live in Scotland or Northern Ireland

Common questions

Do I apply for the Boiler Upgrade Scheme myself?

No. The scheme is installer-led — an MCS-certified installer applies for and redeems the voucher on your behalf, and the grant is built into your quote rather than paid to you directly.

How much is the Boiler Upgrade Scheme grant?

It depends on the type of installation. Standard air source, ground source and water source heat pumps, biomass boilers and air-to-air heat pumps each have their own grant amount, and eligible off-gas-grid properties can get a higher amount for air source or ground source heat pumps until 31 March 2027.

Does the Boiler Upgrade Scheme cover the whole cost of a heat pump?

No. It reduces the cost by a fixed grant amount, but heat pump and biomass boiler installations typically cost more than the grant. Ask for a full, itemised quote from your installer.

Is the Boiler Upgrade Scheme available in Scotland or Northern Ireland?

No. Ofgem’s own guidance for the Boiler Upgrade Scheme covers properties in England and Wales. If you live in Scotland or Northern Ireland, check what your own devolved government currently offers for heat pump installations instead.

Who do I contact if I have a problem with my installer?

Ofgem administers the voucher and payment process but does not certify installers or set technical standards. For a problem with installer conduct or workmanship, contact MCS, which certifies installers against its standards.

Can anyone apply for a Boiler Upgrade Scheme voucher on my behalf?

Only an installer certified by MCS can apply for and redeem a voucher. If someone who is not MCS-certified claims they can get you this grant, they cannot actually access the scheme.

Related guides

Information on this page was checked against the official guidance on 25 August 2026. The source page was last updated on 13 January 2023.

This is general information, not financial or legal advice. Money Decisions UK is not authorised by the Financial Conduct Authority and does not arrange, recommend or introduce any credit, debt or mortgage product.