The Boiler Upgrade Scheme 2026 introduces higher grants, updated eligibility rules and clearer pathways for both new applicants and homeowners who joined the scheme when it launched in 2022. Homeowners who joined BUS in earlier years may find our 2023 guide on changes to the Boiler Upgrade Scheme helpful for understanding past grant levels and eligibility rules.

Whether you’re upgrading or applying for the first time, this guide explains how the scheme works today, what has changed since 2022, and how to make the most of the funding.

What Is the Boiler Upgrade Scheme? Current Scope, Funding and Eligibility Explained

BUS is a government-backed initiative designed to reduce the upfront cost of installing low-carbon heating systems, including heat pumps and biomass boilers. The goal is simple: make sustainable heating accessible while ensuring long-term system performance. 

As of 2026, homeowners can access: 

• £7,500 towards an air source heat pump (ASHP) 
• £7,500 towards a ground or water source heat pump (GSHP/WSHP)
• £5,000 towards a biomass boiler 

The scheme operates via an installer-led voucher system. MCS-certified installers manage the application, ensuring your system is designed, installed and commissioned according to UK technical standards. This reduces the risk of errors that can compromise efficiency and long-term performance. 

How the Boiler Upgrade Scheme Has Changed Since 2022

BUS has evolved based on feedback from homeowners and the heating industry. Here’s a timeline of key changes:

2022: Launch Year

• Grants were lower, ranging from around £5,000 to £6,000 for heat pumps.
• Strict insulation and EPC requirements made some older homes ineligible.
• Installer standards were still being formalised.

2023–2024: Policy Adjustments

• Grant levels increased to better offset high upfront costs.
• Insulation requirements were relaxed for flexibility.
• EPC rules clarified to allow older homes without penalising efficiency.

2025: Pre-2026 Changes

• Installer accreditation and technical standards were standardised.
• Funding commitments were made long-term to give homeowners certainty.

2026: Current Version

• £7,500 grants for ASHPs and GSHPs.
• EPC remains necessary, but insulation rules are more flexible.
• Installer-led process ensures technical compliance.
• Fully funded and widely accessible.

Quick Comparison: 2022 vs 2026

Feature	2022	2026
ASHP grant	£5,000	£7,500
GSHP grant	£6,000	£7,500
Biomass grant	£5,000	£5,000
EPC/insulation rules	Strict	Flexible
Installer standards	Developing	MCS-certified mandatory

Current Grant Levels and Funding 

The 2026 grant amounts reflect the real costs of modern heating systems and the need to make them more accessible: 

• Air Source Heat Pump (ASHP): £7,500
• Ground/Water Source Heat Pump (GSHP/WSHP): £7,500 
• Biomass Boiler: £5,000 

The government has allocated £295 million for 2025/2026, ensuring ample funding for both new applicants and those upgrading systems during the scheme’s expansion. 

Who Can Apply for The Boiler Upgrade Scheme in 2026? 

Eligibility is designed to target households where the greatest carbon savings are achievable: 

• Location: England or Wales only 
• Existing heating system: Must be fossil-fuel based (gas, oil, LPG, coal)
• Ownership: Homeowners or private landlords (social housing excluded)
• Property type: No new-builds unless special exceptions apply 
• Technical suitability: The installer must confirm system compatibility and adequate space 

Those who have been on the scheme since 2022, the rules are mostly unchanged, but repeated applications or upgrades may require updated EPC documentation. 

EPC and Insulation Requirements 

EPCs verify that properties can achieve heat pump performance. While insulation prerequisites were stricter in earlier years, the current scheme is more flexible: 

• A valid EPC is required (issued within the last 10 years). 
• Loft or cavity wall insulation is no longer mandatory, though installers may recommend upgrades to maximise efficiency. 
• This flexibility helps older and rural homes qualify without major structural changes. 

Technical Standards for Heat Pumps 

All BUS-funded systems must meet clear technical standards: 

• MCS-certified installer and system 
• Heat-loss calculations to ensure correct sizing 
• Minimum SCOP (Seasonal Coefficient of Performance)
• Placement and noise compliance for outdoor units 

These requirements protect homeowners from underperforming systems and ensure long-term efficiency and reliability. 

The Installer-Led Application Process 

The BUS process is deliberately straightforward and handled by your installer: 

1. Assessment & Quote: The installer evaluates your property and system needs. 
2. Voucher Application: Installer submits your BUS application. 
3. Voucher Issued: Confirms funding reserved. 
4. Installation: System is fitted to technical standards. 
5. Voucher Redemption: Grant deducted from your invoice. 

If you participated in 2022-2024, this process should feel familiar. Only updated EPC or property checks may be required. 

Costs and Financial Impact in 2026 

According to the HomeOwners Alliance, below would be the typical costs after BUS grants:

Technology	Typical Total Installed Cost (Before BUS)	Average Cost	Typical Cost After BUS Grant
Air Source Heat Pump (ASHP)	£7,000 – £13,500	~£12,500	~£5,000 after £7,500 grant
Ground Source Heat Pump (GSHP)	HIgher and more variable	~£24,000	~£16,500 after £7,500 grant

Future Technology and Scheme Updates 

BUS is evolving to accommodate emerging technologies: 

• Hybrid heat pumps 
• Air-to-air heat pumps 
• Heat batteries 

Homeowners who joined earlier may consider upgrading or expanding their system as these technologies become eligible. 

Key Takeaways for BUS Participants (2022-2026)

• BUS grants are larger and more accessible in 2026.
• EPC and insulation rules are more flexible than in 2022-2024. 
• Installer-led applications reduce errors and ensure efficiency. 
• Long-term participants should review updated grant levels and eligibility to see if additional upgrades are possible. 
• Emerging technologies offer further opportunities for low-carbon heating improvements. 

Whether you joined the Boiler Upgrade Scheme in 2022 or are applying for the first time in 2026, the scheme is now more flexible, better funded and technically robust. With MCS-certified installers, clearly defined technical standards and generous grants, BUS remains the UK’s most reliable route to clean, efficient, low-carbon home heating. Full details on eligibility and grants are available on GOV.UK and Ofgem.