Boiler Upgrade Scheme Explained: £7,500 and £9,000 Heat Pump Grants

What Is the Boiler Upgrade Scheme?

The Boiler Upgrade Scheme (BUS) is a government grant designed to help property owners move away from fossil fuel heating systems and adopt low-carbon heating technology such as air source heat pumps.

Rather than applying for the grant yourself, the application is handled by your installer and the funding is deducted directly from the installation cost.

Most eligible properties receive a grant of £7,500. However, some off-gas-grid properties currently heated by oil or LPG can now receive an enhanced grant of £9,000.

Combined with the current 0% VAT rate on heat pump installations, the cost of switching to renewable heating is significantly lower than many people expect.

Why Was the £9,000 Grant Introduced?

Many rural properties are not connected to the gas network and rely on oil or LPG for heating. In recent years these fuels have experienced significant price increases, leaving many households exposed to rising heating costs.

To encourage more off-gas-grid properties to switch to renewable heating, the government introduced an enhanced £9,000 grant for qualifying oil and LPG heated homes.

For many households, this extra support makes a heat pump surprisingly affordable when compared with replacing an ageing oil or LPG boiler.

Who Can Apply?

The scheme is available to all properties in England and Wales that are currently heated by a fossil fuel system. That includes homes and businesses. Property owners can apply, but tenants and building custodians can also apply with the permission of the property owner.

Properties currently heated by the following systems will qualify:

• Gas boilers
• Oil boilers
• LPG boilers
• Direct electric heating
• Storage heaters

The installation must be carried out by an MCS-certified installer and the property must meet the eligibility requirements in place at the time of application.

Self-Build Homes Can Qualify

One of the biggest misconceptions surrounding the Boiler Upgrade Scheme is that all new-build properties are excluded.

This is not true.

If you are building your own home, you may still qualify for the grant.

Self-build projects are often eligible provided you can demonstrate that you have funded and managed the build yourself rather than purchasing a completed home from a property developer.

Evidence can include:

• Builders' invoices
• Merchant invoices
• Material receipts
• Construction contracts
• Proof of funding for the build

We regularly speak with self-build customers who assume they cannot access the grant when, in fact, they are eligible.

Who Cannot Apply?

The Boiler Upgrade Scheme is not available in every situation.

In most cases the grant cannot be used:

• To replace an existing heat pump
• To replace an existing biomass heating system
• For standard developer-built new homes

If you are unsure, we can usually confirm eligibility during an initial conversation.

What Does a Heat Pump Actually Cost?

This is probably the question we are asked most often.

Unfortunately, there is no single answer because every property is different.

The final cost depends on the heat loss of the building, the existing heating system, radiator requirements, hot water demand and the complexity of the installation.

What we can say is that the combination of the Boiler Upgrade Scheme and 0% VAT has dramatically reduced the cost of moving to a heat pump.

Many homeowners are surprised to discover that the difference between a high-quality boiler replacement and a properly designed heat pump system is often far smaller than they expected.

Is a Heat Pump Right for Every Home?

No.

Despite what some salespeople might tell you, not every property is automatically suited to a heat pump.

That is why every project should begin with a proper heat loss assessment and system design.

At Vector Heat, we assess the property, calculate the heat loss, review the existing system and provide honest advice based on the results.

If we believe a heat pump is the right solution, we will explain why. If we think another option would perform better, we will tell you that too.

Check Your Eligibility

If you are considering replacing a gas, oil, LPG or electric heating system, there has never been a better time to explore your options.

With grants of up to £9,000 available and 0% VAT on qualifying installations, many property owners are finding that renewable heating is far more affordable than they expected.

Use our eligibility checker below to see whether your property may qualify.