Understanding the Boiler Upgrade Scheme (BUS) Grant

If you've heard about the heat pump grant but aren't sure whether it applies to your home,

or how it actually works, this post covers what you need to know.

The short answer

The Boiler Upgrade Scheme (BUS) offers a government grant towards the cost of installing an air source or ground source heat pump. For most homeowners in England or Wales, that's £7,500. If your home currently runs on oil or LPG, a new £9,000 uplift is due from July 2026 - the highest level of support the scheme has ever offered for off-grid properties. Either way, your MCS-certified installer handles the application, an#86C6E5d the grant comes straight off your quote.

What Is the Boiler Upgrade Scheme?

The BUS is a government program administered by Ofgem that provides an upfront capital grant to reduce the cost of replacing a fossil fuel heating system with a heat pump. The grant is paid directly to your installer and deducted from your quote, you never handle the money yourself. Current grant levels are £7,500 for an air source heat pump (ASHP) or ground source heat pump (GSHP), and £5,000 for a biomass boiler in eligible rural properties. For homes on oil or LPG, a new £9,000 grant tier is coming, see below.

April 2026 update

The government has announced a £1,500 uplift to the BUS grant for homes currently heated by oil or LPG. The new £9,000 level is expected to open for applications from July 2026 and is confirmed until March 2027. It is time-limited - if your home is off the gas grid, acting early is worthwhile.

Around 1.7 million households in England and Wales heat their homes with oil or LPG. Unlike gas customers, they have no protection from the energy price cap and face global commodity price volatility directly. The uplift is the clearest signal yet that the government intends to make heat pumps the default replacement for oil and LPG systems.

For homeowners in off-gas villages across the Weald - Goudhurst, Lamberhurst, Brenchley, Matfield, Flimwell, Horsmonden and others - this is directly relevant. An oil boiler is expensive and unpredictable to run. A heat pump paired with a good tariff can reduce running costs meaningfully, and the £9,000 grant closes a significant portion of the upfront cost gap.

The uplift is announced but not yet active. Ofgem will continue processing applications at £7,500 until the formal grant change notice is published. If you're on oil or LPG, the practical advice is to start the conversation now, assessments, EPC checks and system design all take time, and installer demand in rural areas is likely to rise once the higher grant goes live.

Who Is Eligible, and How Does It Work?

To qualify, the property must be in England or Wales, must be an existing building rather than a new build, and must currently use a fossil fuel or direct electric heating system. You cannot claim if the property already has a heat pump. You'll also need a valid EPC issued within the last ten years - though the previous rule requiring outstanding insulation recommendations to be completed before applying was removed in April 2026, which is a useful simplification for older rural properties.

The application process is simple, because the homeowner doesn't deal with it directly. Once you've agreed to go ahead, your MCS-certified installer applies for a voucher on your behalf before work begins. Ofgem issues a voucher valid for three months, the installation is completed, the voucher is redeemed, and the grant is paid directly to the installer and deducted from your final balance. Wells Renewables is MCS-certified and handles the full process as part of every installation.

Frequently Asked Questions

I'm on oil or LPG - can I get £9,000 now?	Not yet. The uplift is expected to open for applications from July 2026, subject to a formal grant change notice from the government. Until then, all applications are processed at the standard £7,500 rate. The uplift is confirmed until March 2027, so there's a clear window, but getting your survey and EPC arranged now is sensible.
Can I claim the grant myself, without going through an installer?	No. Only MCS-certified installers can apply for BUS vouchers. The grant is deducted directly from your installation quote, you don't receive the money separately and then pay the installer.
Do I still need to complete insulation work before I can apply?	No - this rule was actually removed back in May 2024. Outstanding EPC recommendations for loft or cavity wall insulation have not blocked a BUS application for over two years. More recently, in April 2026, the EPC requirement itself was also removed entirely, so even having a valid EPC is no longer a strict prerequisite, though your installer will still need to evidence your existing heating system type.
Does the grant affect VAT on my installation?	Heat pump installations currently benefit from 0% VAT, which is separate from the BUS grant. Both apply, so you receive the grant reduction and pay no VAT on the installation. Always confirm the current VAT position before proceeding, as rates can change.

Ready to Find Out If You're Eligible?

The quickest way to know whether the BUS grant applies to your home is a short conversation and, where relevant, a site survey. We'll check your EPC, assess your property, and give you an honest view of whether a heat pump is the right fit and what it would cost with the grant applied.

We install heat pumps across Royal Tunbridge Wells, Tonbridge, Sevenoaks, Crowborough, Uckfield, East Grinstead, and throughout Kent and Sussex - including off-gas villages across the Weald where the new £9,000 uplift is most relevant.

Use our free Heat Pump Quote tool to get started, or get in touch if you'd prefer to speak to the team directly.

A note on accuracy: The £9,000 grant uplift for oil and LPG properties has been announced but is not yet in effect. It is expected to open for applications from July 2026, subject to a formal grant change notice, and is confirmed until March 2027. All other figures reflect the current BUS scheme as administered by Ofgem. We'll update this post when the uplift goes live — but if you're making a financial decision, always confirm the latest figures with us directly.