BOILER UPGRADE SCHEME (BUS)

  • The Boiler Upgrade Scheme (BUS) is a UK government grant that helps property owners replace fossil fuel heating systems with low-carbon heating technologies.

    The scheme is designed to reduce carbon emissions from heating, rather than to provide income-based support.
    It is not means-tested and is based primarily on property eligibility, not household income or benefits.

    BUS is available in England and Wales.

    Official scheme overview (Ofgem):
    https://www.ofgem.gov.uk/environmental-and-social-schemes/boiler-upgrade-scheme-bus

  • BUS provides a fixed grant towards the installation of eligible low-carbon heating systems:

    • £7,500 towards an air source heat pump

    • £7,500 towards a ground source heat pump

    • £5,000 towards a biomass boiler (limited cases, mainly rural)

    Biomass boilers are only eligible where:

    • The property is rural

    • There is no access to the gas grid

    • Air or ground source heat pumps are not suitable

    BUS does not fund:

    • Gas or oil boilers

    • Hybrid systems

    • Solar panels on their own

    • Insulation as a standalone measure

  • The Boiler Upgrade Scheme applies to:

    • Domestic properties (most homes)

    • Small non-domestic properties, such as:

      • Small commercial buildings

      • Small public sector buildings

    Large non-domestic or industrial properties are not eligible.

  • New-build properties are not eligible for BUS unless:

    • The property has never been connected to the gas grid
      and

    • A valid Energy Performance Certificate (EPC) has been issued

    Most new builds are excluded because low-carbon heating should already be installed at construction stage.

  • You may be eligible if:

    • You own the property (including landlords)

    • The property is in England or Wales

    • You are replacing an existing fossil fuel heating system

    • The property has a valid EPC

    • The EPC shows no outstanding loft or cavity wall insulation recommendations (unless exempt)

    BUS eligibility is not based on benefits, income, or health conditions.

  • All installations funded under BUS must be carried out by an MCS-certified installer.

    MCS (Microgeneration Certification Scheme) certification ensures:

    • The installer meets government technical standards

    • The system design is appropriate for the property

    • Consumer protections are in place

    Only MCS-certified installers can apply for BUS funding.

    Official MCS installer register:
    https://mcscertified.com/find-an-installer/

  • BUS is installer-led.

    This means:

    • Homeowners cannot apply directly

    • A BUS-registered, MCS-certified installer applies on your behalf

    • The grant is applied at installation, not paid to you separately

    The installer:

    • Confirms eligibility

    • Submits the BUS application

    • Claims the grant from Ofgem

    • Deducts the grant from your invoice

    Official installer guidance (Ofgem):
    https://www.ofgem.gov.uk/environmental-and-social-schemes/boiler-upgrade-scheme-bus/installers

  • Low-carbon heating installations funded under BUS are eligible for 0% VAT until at least March 2027.

    This applies to:

    • Heat pumps

    • Biomass boilers

    • Associated installation work

    This VAT relief is separate from the BUS grant and reduces overall costs further.

    Government VAT guidance:
    https://www.gov.uk/guidance/vat-on-energy-saving-materials

    1. Find an MCS-certified, BUS-registered installer

    2. Installer assesses your property

    3. Eligibility is confirmed

    4. Installer applies for the BUS grant

    5. Grant is deducted from the final cost

    Find a BUS installer (Ofgem):
    https://www.ofgem.gov.uk/environmental-and-social-schemes/boiler-upgrade-scheme-bus/installers