Rising energy costs and the push toward cleaner, renewable heating have made homeowners more aware than ever of the benefits of switching to low‑carbon systems. Yet for many people, the upfront cost of installing a heat pump or renewable heating system still feels out of reach.
The Boiler Upgrade Scheme (BUS) aims to change that. Designed for homeowners and landlords in England and Wales, the scheme offers generous grants to help cover the cost of installing air source heat pumps, ground source heat pumps, and, in select cases, biomass boilers.
This guide explains how the Boiler Upgrade Scheme works, who can apply, how much funding is available, and what steps you need to follow. It also covers common pain points such as eligibility rules, EPC requirements, installation timelines and system suitability. Whether you are a homeowner, landlord or small business owner, this article will help you understand what support is available and how to access it.
Key Takeaways
- The Boiler Upgrade Scheme provides financial support for installing low‑carbon heating.
- Grants cover air source, ground source and biomass (in some cases).
- Eligibility depends on property location, EPC requirements and technology type.
- Application is installer‑led, simplifying the process for homeowners.
- Switching to low‑carbon heating can reduce long‑term running costs.
- Ignite Facilities Ltd can support installation, guidance and compliance.
What the Boiler Upgrade Scheme Is and How It Works
Overview of the Scheme
The Boiler Upgrade Scheme is a government initiative designed to accelerate the transition to low‑carbon heating across England and Wales. It provides fixed-value grants to help households reduce the upfront costs of installing low‑carbon technologies, primarily heat pumps.
Recent government updates have expanded the scheme even further. The Boiler Upgrade Scheme now provides substantial financial support for a wider range of low‑carbon technologies, including not only air source and ground source heat pumps but also air‑to‑air heat pumps and heat batteries. This marks the first time air‑to‑air systems - often used in smaller homes, flats or properties without central heating - have been eligible for government funding.
Air‑to‑air heat pumps can provide efficient heating in winter and cooling in summer, making them a flexible option for many properties. Heat batteries allow households to store electricity (including cheaper off‑peak rates) and release heat when needed.
Grants continue to be issued as vouchers and redeemed by the installer after installation. The scheme remains available only in England and Wales, with separate renewable heating programmes in Scotland and Northern Ireland.
Eligible Low‑Carbon Technologies
Air Source Heat Pumps (ASHPs): A versatile and highly efficient option suitable for many UK homes. They extract heat from the air and work effectively year‑round.
Ground Source Heat Pumps (GSHPs): These systems draw heat from the ground using horizontal loops or vertical boreholes. They offer excellent performance and long‑term stability but require more extensive installation.
Air‑to‑Air Heat Pumps: Now eligible under the expanded scheme. These systems operate similarly to reversible air‑conditioning units, delivering warm air in winter and cooling in summer. They are particularly suitable for flats, smaller homes, electrically‑heated properties, or homes without radiators or wet heating systems.
Heat Batteries: Another newly supported technology, heat batteries store electricity as thermal energy, offering a low‑carbon solution for hot water or supplementary heating.
Biomass Boilers: Still permitted only for rural, off‑gas homes where heat pumps are not suitable. These systems must meet sustainability and emissions standards.
Why the Scheme Exists
The UK government launched the Boiler Upgrade Scheme to support national decarbonisation goals. Heating contributes a significant portion of household carbon emissions, and replacing fossil‑fuel boilers with highly efficient, low‑carbon systems is key to reducing environmental impact.
The grant helps offset the high upfront cost of installation, making renewable heating more accessible. By supporting widespread adoption, the scheme also aims to future‑proof homes and improve national energy efficiency.
Boiler Upgrade Scheme Eligibility Requirements
Property Requirements
Eligibility begins with the property itself. To qualify, your home or business premises must have a valid Energy Performance Certificate (EPC) with no outstanding recommendations for loft or cavity‑wall insulation. This ensures the building is energy efficient enough for a heat pump to perform properly.
The scheme covers homeowners, landlords and small business property owners. However, social housing is generally excluded, and new‑build properties do not qualify unless they are self‑build projects.
Technology & System Requirements
The heating system installed must meet approved heat‑pump performance standards. All eligible heat pumps must achieve specific efficiency benchmarks, replacing an existing fossil‑fuel system such as a gas or oil boiler.
Installers will check the suitability of radiators, pipework and hot‑water systems to ensure compatibility. Many homes require only minor adjustments, but some may benefit from upgrades to maximise efficiency.
Installer Requirements
All installations must be completed by an MCS‑certified installer. This ensures proper system design, safe installation and compliance with BUS rules.
The scheme uses an installer‑led process, meaning the installer handles the entire application and voucher process. This significantly increases the likelihood of approval and reduces the administrative burden on homeowners.
Grant Values and Funding Available
Air Source Heat Pump Grant
The scheme provides a fixed £7,500 grant for air source heat pumps. This significantly reduces the upfront cost and makes ASHPs one of the most accessible renewable heating systems for UK households.
Ground Source Heat Pump Grant
Ground source systems also qualify for a £7,500 grant, reflecting their high efficiency and strong long‑term performance. Although GSHP installations can be more complex due to drilling or trenching, the grant helps offset these costs.
Air‑to‑Air Heat Pump Grant
For the first time, the scheme offers a £2,500 discount for air‑to‑air heat pumps. This makes low‑carbon heating accessible to households that cannot accommodate a traditional wet‑system heat pump. These systems also offer cooling capability in summer, making them a versatile option.
Heat Battery Grant
Heat batteries also benefit from the £2,500 grant, helping households store low‑carbon or off‑peak electricity to use later as heat.
Biomass Boiler Grant
Biomass grants are available only to rural, off‑gas properties where heat pumps may not be suitable. Systems must meet strict sustainability and emissions criteria.
While biomass boilers can provide strong heating output, they require fuel storage, regular maintenance and ongoing fuel costs. The grant helps offset installation costs where other renewable heating technologies may not be viable.
How to Apply for the Boiler Upgrade Scheme
Step‑by‑Step Process
- Initial Assessment: A qualified installer assesses your property to confirm heat‑pump suitability and compliance with scheme rules.
- Installer Application: Once confirmed, the installer submits the application on your behalf, including the quote and system details.
- Voucher Issued: If approved, a voucher is issued directly to the installer.
- Installation: The installation is completed within the voucher timeframe.
- Voucher Redemption: The installer redeems the voucher and deducts the grant amount from your final invoice.
Timelines and Approval Stages
Voucher approval typically takes a few weeks, although timelines may vary depending on demand. Once issued, vouchers must be redeemed within a set period, meaning installation should be scheduled promptly.
After installation, the system must pass quality and compliance checks before the voucher is redeemed. Homeowners should work closely with their installer to ensure all documentation is completed on time.
Documents and Requirements
To apply, you may need:
- A valid EPC with no outstanding insulation recommendations
- Proof of property ownership, tenancy or landlord authorisation
- Technical documentation provided by the installer
The installer will handle most of the paperwork, ensuring compliance at every stage.
Benefits of Switching to Low‑Carbon Heating
Long‑Term Cost Reductions
Heat pumps offer significantly lower running costs than gas or oil heating systems. Their high efficiency means they produce more heat per unit of electricity, helping households save money long term.
Homeowners also benefit from greater energy stability, as electricity prices are less volatile than fossil fuels. When combined with good insulation, heat pumps can reduce energy bills substantially.
Environmental Improvements
By switching to a heat pump, households reduce their carbon emissions and contribute to national climate targets. Heat pumps operate efficiently even in cold weather, reducing reliance on carbon‑heavy heating systems.
This switch supports the wider move towards renewable heating and reduces the environmental impact associated with traditional boilers.
Comfort, Safety and Future‑Proofing
Heat pumps deliver consistent, comfortable heating with precise temperature control. Without combustion or flue systems, they also reduce safety risks.
Installing a low‑carbon system increases property value and prepares homes for upcoming changes to heating regulations and carbon targets.
How Ignite Facilities Ltd Can Help with the Boiler Upgrade Scheme
Ignite Facilities provides end‑to‑end support for homeowners and landlords looking to take advantage of the Boiler Upgrade Scheme. Our team ensures your heating upgrade is compliant, efficient and tailored to your property’s needs.
Our services include:
- Full heat‑pump assessments to confirm BUS eligibility and ensure your property is suitable
- Supply and installation of air source and ground source heat pumps using high‑quality, efficient systems
- MCS‑aligned installation methods that support full scheme compliance and quality assurance
- Detailed system design, planning and integration with existing heating and hot‑water setups
- Access to electrical, plumbing and wider building‑services expertise for seamless project delivery
- Ongoing maintenance, servicing and long‑term care for renewable heating systems
- Installation by accredited engineers with strong commercial‑sector knowledge and technical capability
By working with Ignite Facilities, you gain expert guidance, reliable installation and complete confidence that your project meets all scheme requirements. Our team is here to help you request a survey, explore heat‑pump suitability and move forward with low‑carbon heating.
Conclusion
The Boiler Upgrade Scheme offers a valuable opportunity for homeowners, landlords and small businesses to reduce the cost of installing low‑carbon heating. With grants available for air source heat pumps, ground source heat pumps and biomass systems, the scheme helps unlock cleaner, more efficient heating across England and Wales.
Eligibility depends on EPC requirements, property type and approved installation methods, but the installer‑led process makes applying straightforward. By switching to renewable heating, households can benefit from long‑term cost savings, reduced carbon emissions and improved home comfort.
Ignite Facilities Ltd is well‑placed to guide homeowners through each step, from initial assessment to installation and compliance. With expert engineers, MCS‑aligned processes and strong building‑services capability, Ignite ensures every system is designed and installed to the highest standard.
If you are considering low‑carbon heating for your property, now is an ideal time to explore your options.
Frequently Asked Questions
Grant values depend on the technology type, with separate funding levels for air source heat pumps, ground source heat pumps and biomass systems.
Suitability depends on insulation levels, EPC results, radiator sizing and available outdoor space.
Approval typically takes a few weeks, with installation scheduled before the voucher expiry.
No, the application is installer‑led, which simplifies the process and ensures compliance.
Yes, provided the property meets EPC and technology requirements.
