Switching to a heat pump can significantly reduce your home's carbon footprint and energy bills, but the upfront cost can be a barrier. The UK Government's Boiler Upgrade Scheme (BUS) offers substantial financial support to make this transition more accessible. From 21 July 2026, an enhanced grant of £9,0001 is available for eligible homeowners in England and Wales, particularly those currently relying on oil or liquid petroleum gas (LPG) heating off the gas grid. This initiative aims to encourage more households to move away from fossil fuel heating, reducing reliance on volatile fossil fuel prices.
Understanding the Boiler Upgrade Scheme
The BUS is a government initiative designed to encourage the adoption of low-carbon heating systems across England and Wales. Administered by Ofgem, the scheme provides upfront capital grants to help property owners replace existing fossil fuel heating with more efficient, renewable alternatives like heat pumps.
What is the Boiler Upgrade Scheme?
The BUS aims to decarbonise homes by offering financial incentives for installing heat pumps, contributing to the UK's strategy to reduce carbon emissions. It provides a direct financial contribution towards the cost of installing an air source or ground source heat pump, making sustainable heating solutions more affordable for homeowners.
The £9,000 grant: what's changed?
Effective from 21 July 2026, the BUS grant for heat pump installations has increased to £9,000 for specific properties. This represents a £1,500 increase from the previous £7,500 grant, specifically targeting homes that are not connected to the gas grid and currently use oil or LPG for heating. This uplift aims to provide greater support to rural households often most affected by fluctuating fossil fuel prices.
"The grant will encourage more households to move away from fossil fuel heating."
— UK Government
Eligibility for the heat pump grant
Understanding the eligibility criteria is crucial for accessing the BUS grant. The scheme has specific requirements for both the applicant and the property.
Who can apply?
The grant is available to owner-occupiers, including landlords, in England and Wales. It's important to note that homeowners cannot apply for the grant directly; instead, an MCS-certified installer must submit the application on their behalf.
Property requirements
To qualify for the £9,000 grant, properties must meet several conditions:
Be located in England or Wales.
Not be connected to the gas grid.
Currently use oil or LPG as their primary heating system.
Have a valid Energy Performance Certificate (EPC).
Installer requirements
The installation must be carried out by an installer certified under the Microgeneration Certification Scheme (MCS). This ensures that the heat pump system is designed and installed to a high standard, and that the installer is qualified to handle the grant application process.
How to apply for the heat pump grant
The application process for the BUS grant is designed to be straightforward for homeowners, as it is primarily managed by your chosen installer.
The installer-led application process
Once you have selected an MCS-certified installer, they will manage the grant application on your behalf. This involves:
Checking eligibility: Your installer will confirm that your property and proposed heat pump system meet all the scheme's criteria.
Obtaining a quote: They will provide a quote for the installation, which will factor in the grant amount.
Submitting the application: The installer submits the grant application to Ofgem.
Confirmation: Ofgem will contact you to confirm the application before the installation proceeds.
Grant deduction from installation costs
A key benefit of the installer-led process is that the grant value is deducted directly from the final installation cost. This means you only pay the reduced amount, simplifying the financial process and making the upfront cost of a heat pump more manageable. You do not need to claim the money yourself.
Benefits of installing a heat pump
Beyond the financial incentive, installing a heat pump offers several long-term advantages for your home and the environment.
Reduced carbon emissions
Heat pumps are a low-carbon heating solution, significantly reducing your home's greenhouse gas emissions compared to traditional fossil fuel boilers. They extract heat from the air or ground, making them highly efficient and environmentally friendly. This transition supports the UK's broader climate goals.
Lower energy bills and energy independence
While specific savings vary by property, heat pumps can lead to lower energy bills over time due to their high efficiency and reduced reliance on volatile fossil fuel prices. By using electricity to move heat rather than generate it, they offer a more predictable and potentially cheaper heating source, contributing to greater energy independence for your household.
Making your heat pump switch seamless with Fuse Energy
Fuse Energy simplifies the journey to a low-carbon home, ensuring you can take full advantage of the BUS.
Our MCS-certified installation process
As an MCS-certified installer, Fuse Energy provides expert heat pump installation services. Our certified professionals ensure your system is designed and fitted to the highest standards, maximising efficiency and eligibility for the grant. We manage the technical aspects, providing a reliable and efficient heating solution for your home.
Navigating the grant with Fuse
Fuse Energy handles the entire grant application process on your behalf, from initial eligibility checks to submitting the paperwork to Ofgem. This means you benefit from the £9,000 grant without the administrative burden, making the financial assistance seamless and accessible. We ensure the grant value is deducted from your final installation cost, providing a clear path to reduced upfront expenses for your new heat pump.
For the avoidance of doubt, this article is provided for informational purposes only and is not intended to constitute legal or financial advice. The author and/or Fuse Energy shall not be responsible for any losses arising out of any reliance on the information contained herein.
