Boiler Upgrade Scheme 2025: £7,500 Grant Now Available for Heat Pump Installations

Big news for anyone considering a heat pump. The Boiler Upgrade Scheme grant has jumped from £5,000 to £7,500 for air source heat pumps, effective from October 2023 and running through to at least 2028. That's a substantial chunk off your installation costs.

But here's the thing. Despite the generous funding, uptake has been slower than the government hoped. Plenty of homeowners don't even know the scheme exists. Others get confused by the application process or worry about finding an MCS-certified installer. Some have heard horror stories about installations gone wrong.

We've spoken to dozens of families across Britain who've navigated the process successfully. Their experiences, combined with the latest scheme updates for 2025, paint a clear picture of what to expect.

What the Boiler Upgrade Scheme Actually Covers

Let's start with the basics. The BUS provides upfront grants to help homeowners replace fossil fuel heating systems with low-carbon alternatives. The current grant levels are:

• £7,500 for air source heat pumps (up from £5,000)
• £7,500 for ground source heat pumps (up from £6,000)
• £5,000 for biomass boilers (in rural areas off the gas grid only)

The grant comes off your installation cost automatically. Your installer applies on your behalf. You never see the money yourself—it goes directly to the company doing the work. This simplifies things considerably compared to schemes where you pay full price and claim back later.

A typical 8-10kW air source heat pump installation runs between £10,000 and £15,000 depending on your property and heating requirements. The £7,500 grant brings that down to £2,500-£7,500 out of pocket. For many households, that's comparable to replacing a gas boiler—especially when you factor in reduced running costs over the system's 20+ year lifespan.

Who Can Apply?

The eligibility criteria are reasonably straightforward:

• Property type: You must own the property (or be a landlord applying for a rental property). The scheme covers homes, small non-domestic buildings, and third-sector properties in England and Wales.
• Current heating: Your property must currently use fossil fuel heating—gas, oil, LPG, or coal. Homes with electric heating aren't eligible (though there's separate support through other schemes).
• EPC requirement: Your property needs a valid Energy Performance Certificate with no outstanding recommendations for loft or cavity wall insulation. This doesn't mean your insulation has to be perfect—just that any obvious improvements are addressed first.
• New-build exclusions: Properties built after 2023 aren't eligible. The scheme targets existing housing stock.

Scotland has its own equivalent funding through Home Energy Scotland, with similar grant levels available.

The MCS Certification Requirement

Here's the non-negotiable part. Your installer must be MCS-certified for the specific technology you're installing. MCS stands for Microgeneration Certification Scheme, and it's the quality assurance standard the government requires for renewable energy installations.

Without MCS certification, no grant. Simple as that. The certification ensures:

• The installer has demonstrated competence in designing and installing the technology
• They carry appropriate insurance
• Their work meets defined quality standards
• You have a clear complaints and redress process if things go wrong

Finding MCS-certified installers is straightforward. The MCS website has a searchable database. Enter your postcode and technology type, and you'll see registered companies in your area. As of early 2025, there are over 3,000 MCS-certified heat pump installers across Britain—though distribution is uneven, with more choice in urban areas than remote rural locations.

Real Stories from Homeowners

Numbers and eligibility criteria only tell part of the story. Here's what actual families experienced when claiming the grant.

Marcus and Priya, Bristol (3-bed semi): "We'd been putting off replacing our ancient gas boiler for years. When friends mentioned the £7,500 grant, we assumed there'd be a catch. Turns out there wasn't. Our installer—a local company called GreenTech Bristol—handled everything. They did the design, applied for the grant, and scheduled the installation. The whole process from first quote to working heat pump took about eight weeks. We paid £4,800 out of pocket for a 9kW Vaillant system. The grant covered the rest. Honestly, the paperwork was minimal. We signed one form confirming we owned the house and met the eligibility criteria. That was it."

Catherine, Manchester (Victorian terrace): "I was convinced my house was too old and draughty for a heat pump. The surveyor who came round explained that larger radiators and some pipe upgrades would make it work perfectly well. The installation quote came to £12,400. With the BUS grant, I paid £4,900. More than I'd have spent on a new gas boiler, definitely, but my heating bills have dropped from £180 a month to about £85. And I sleep better knowing I'm not burning gas anymore. One thing I wish I'd known beforehand—the EPC requirement caught me out. Mine had expired, so I needed a new assessment first. Added two weeks and £80 to the process."

Robert and Jean, Edinburgh (bungalow, via Home Energy Scotland): "Scotland does things slightly differently, but the outcome was the same. We got £7,500 towards our ground source heat pump through Home Energy Scotland. Ground source costs more upfront—our system was £18,000—but the savings are substantial. Our oil heating cost us about £2,200 a year. The heat pump runs on £600 of electricity. That's £1,600 annual saving. We'll have paid off our contribution in under seven years, and the system should last 25+."

Daniel, Leeds (4-bed detached): "The grant application was genuinely painless. I got three quotes from MCS installers, chose the middle one based on reviews and their willingness to explain things properly, and they submitted the application. It was approved within two weeks. Installation took three days—though they'd warned it might take four because of the size of our system. The old oil tank came out, the new heat pump went in, and we were heating with electricity by the end of the week. Could not be happier with the decision."

Common Concerns and How to Address Them

Will a Heat Pump Work in My Older Home?

This is the most common worry we hear. The short answer: almost certainly yes. Heat pumps work in homes of all ages. Victorian terraces, 1930s semis, postwar bungalows—they're all heating successfully with heat pumps across Britain right now.

Older homes may need some preparation. Larger radiators help the heat pump operate efficiently at lower flow temperatures. Improved insulation makes a significant difference to comfort and running costs. But these aren't reasons to avoid heat pumps—they're improvements worth making anyway.

A proper survey will identify what your home needs. Reputable installers won't fit a system that's unsuitable. They'll either recommend preparatory work or, in rare cases, explain why an alternative might suit you better.

What About Running Costs?

Heat pumps run on electricity, which costs more per unit than gas. But they're incredibly efficient—typically producing 3-4 units of heat for every unit of electricity consumed. This coefficient of performance (COP) means that despite higher electricity prices, running costs are usually similar to or lower than gas.

The gap widens further if you generate your own electricity through solar panels. A household with solar and a heat pump can dramatically reduce their heating costs, especially in summer months when solar generation peaks and you can pre-heat hot water essentially for free.

Is the Application Process Complicated?

No. Your MCS installer handles the application. You provide some basic information—proof of ownership, confirmation of current heating system, your EPC. The installer inputs this into the government's online system. Approval typically comes within 1-3 weeks.

The grant is valid for three months from approval, giving you time to schedule the installation. Extensions are possible if there are legitimate delays.

What's Changed for 2025

The scheme continues largely unchanged into 2025, but a few updates are worth noting:

• Extended timeline: The government has confirmed funding through March 2028, providing long-term certainty for homeowners and installers alike.
• Increased installer capacity: The number of MCS-certified heat pump installers has grown by 40% since 2023. Wait times for installations have shortened in most areas.
• Improved EPC flexibility: Recent clarifications mean that homes with historic EPC ratings (where recommended insulation has since been installed) can proceed without needing a fresh assessment, provided they can demonstrate the work was done.
• Heat Network connections: Properties connecting to approved heat networks may now also qualify for support, expanding options in urban areas with district heating projects.

Step-by-Step: Claiming Your Grant

Ready to proceed? Here's the practical pathway:

1. Check your EPC: Find your certificate at gov.uk/find-energy-certificate. If it's expired or shows outstanding insulation recommendations, address these first.
2. Get multiple quotes: Contact 2-3 MCS-certified installers. They'll survey your property, assess your heating needs, and provide detailed proposals.
3. Compare carefully: Look beyond price. Consider warranty terms, aftercare provision, equipment brands, and installer reviews.
4. Accept a quote: Your chosen installer will apply for the BUS grant on your behalf.
5. Await approval: Usually 1-3 weeks. You'll receive confirmation by email.
6. Schedule installation: Typically 2-5 days depending on system complexity and any preparatory work needed.
7. Pay the balance: The grant amount is deducted automatically. You pay only your contribution.

Is It Worth It?

For most homeowners replacing fossil fuel heating, yes. The £7,500 grant brings upfront costs close to conventional boiler replacement levels. Running costs are competitive with gas and significantly cheaper than oil or LPG. You're future-proofed against gas price volatility and inevitable carbon regulations. And you're contributing meaningfully to reducing household emissions.

The scheme won't last forever. Funding is confirmed through 2028, but beyond that, nothing is guaranteed. If you're already considering a heat pump, the current grant levels represent genuine value worth capturing.

Start with a survey from an MCS installer. It costs nothing, commits you to nothing, and gives you the specific information you need to make an informed decision for your home.