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