What is the Boiler Upgrade Scheme grant?

The Boiler Upgrade Scheme, often shortened to BUS, is a government grant designed to help homeowners and businesses move away from fossil fuel heating systems and install low carbon alternatives such as heat pumps.

The scheme is managed by Ofgem and funded by the Department for Energy Security and Net Zero (DESNZ). It is available in England and Wales and is currently set to run until 2030.

Under the scheme, eligible properties can receive a £7,500 grant towards the cost of installing a heat pump.

At Alto Energy, we manage the entire Boiler Upgrade Scheme grant process and take care of the full application for you. As an MCS accredited installer, we apply for the voucher directly through Ofgem and deduct the grant from your final quotation.

How much is the grant worth?

The current grant values are as follows:

The grant is not paid directly to the property owner. Instead, we apply for the voucher and redeem it after the installation has been completed and commissioned.

This means the grant is deducted from your project cost upfront.

Who is eligible?

The Boiler Upgrade Scheme is available for existing domestic and non-domestic properties in England and Wales.

The scheme supports:

• Homeowners
• Self-build properties
• Private landlords
• Small commercial buildings
• Rural businesses
• Offices and light commercial premises

To qualify for the grant, the property must:

• Be located in England or Wales
• Replace an existing fossil fuel heating system
• Use an eligible heat pump system
• Have a heating capacity of 45kW or less
• Be installed by an MCS certified installer

The scheme does not apply if you are replacing an existing renewable heating system such as another heat pump.

What technologies are covered?

The Boiler Upgrade Scheme currently supports:

• Air source heat pumps
• Ground source heat pumps

Both systems are designed to provide efficient low carbon heating and hot water for homes and businesses.

Are air-to-air heat pumps eligible?

Air-to-air heat pumps have now been added to the Boiler Upgrade Scheme framework, however there is an important limitation to be aware of.

At present, MCS accreditation for air-to-air heat pump systems is still being developed. Until the accreditation process is fully in place, installers cannot yet access Boiler Upgrade Scheme funding for these systems.

The government has indicated that eligible air-to-air heat pump installations are expected to qualify for a £2,500 grant once the MCS accreditation pathway becomes available.

This remains an evolving area of the scheme, and guidance may continue to change as the accreditation process develops.

What properties are not eligible?

Some properties and heating systems are excluded from the Boiler Upgrade Scheme.

The following situations are not eligible:

• Hybrid systems with a fossil fuel boiler
• Replacing an existing renewable heating system
• Social housing properties
• Systems larger than 45kW

If you are unsure whether your property qualifies, we can advise during the early stages of the project.

Is the Boiler Upgrade Scheme available in Scotland?

No. The Boiler Upgrade Scheme is only available in England and Wales.

Properties in Scotland are covered by separate funding schemes, including support through Home Energy Scotland.

Although the schemes are different, Scottish homeowners can still access grants and loans for heat pump installations.

Alto Energy works with customers in Scotland and can advise on the funding options currently available for air source and ground source heat pumps.

Can landlords apply?

Yes. Private landlords can apply for the Boiler Upgrade Scheme for eligible rental properties.

Many landlords are now looking at heat pumps as part of wider energy efficiency improvements and future compliance planning.

The property must still meet the standard BUS eligibility rules and cannot be social housing.

Heat pumps can also help improve EPC ratings, which is becoming increasingly important in the private rental sector.

Can businesses apply?

Yes. The Boiler Upgrade Scheme is available for small non-domestic buildings and businesses for retrofit projects only.

This includes:

• Offices
• Workshops
• Small commercial units
• Farms
• Rural businesses

The system must still be under 45kW in capacity and meet the technical requirements set out by Ofgem.

Commercial heat pump systems can help businesses reduce running costs and lower carbon emissions over time.

What documents do you need?

At Alto Energy, we manage the entire Boiler Upgrade Scheme grant process and take care of the full application, but there are still some documents and details required from you during the application process.

These may include:

• Proof of property ownership
• Details of the existing heating system, if applicable
• EPC information if available
• Planning permission documents where required

Relaxation of EPC Requirement — Previously, retrofit projects always needed a valid EPC at the point of applying for the BUS grant. This is no longer a requirement. Applications are still easier with a valid EPC, but there is now an alternative route where other evidence of the existing heating system can be submitted to support a BUS grant application.

The Boiler Upgrade Scheme grant process

The Boiler Upgrade Scheme grant process is managed by the MCS installer. At Alto Energy, we support customers through every stage, from the initial enquiry through to final commissioning.

Recent changes to the scheme

Previously, the heat pump was required to provide all space heating and domestic hot water. It is now possible for other "supplementary heaters" to provide domestic hot water and to supply space heating to specific rooms or areas. Any supplementary heater must be either a renewable or direct electric heat source. It cannot, under any circumstances, be a fossil fuel system.

A common example of this rule change is the use of an electric towel rail in a bathroom. This was previously considered not allowed, but it is now permitted.