Heat Pumps

Boiler Upgrade Scheme: How to Get £7,500 for a Heat Pump

By Sarah Mitchell | 2025-07-25 | 18 min read
Boiler Upgrade Scheme: How to Get £7,500 for a Heat Pump

Seven thousand five hundred pounds. That's what the government offers towards a heat pump through the Boiler Upgrade Scheme. It's real money, it's available now, and it's simpler to access than you might think.

Here's everything you need to know about claiming this substantial grant.

What Is the Boiler Upgrade Scheme?

The BUS (yes, that's really the acronym) helps homeowners switch from fossil fuel heating to low-carbon alternatives. It launched in April 2022 and runs until March 2028.

The grant covers:

This is a grant, not a loan. You don't pay it back. It comes off your installation cost directly. Your MCS-certified installer applies on your behalf, deducts the grant from your quote, and receives the payment from Ofgem after installation.

Real Homeowner Experiences with the BUS Grant

Let's hear from homeowners who've successfully claimed the grant. Their experiences highlight what works and what to watch out for.

Andrew and Lisa, Nottingham (3-bed 1970s semi): "The process was smoother than we expected. Our installer handled everything. We got our EPC first—it showed D rating but no outstanding insulation recommendations because our loft was already done. The installer applied for the voucher, got approval in four days, and we had the heat pump installed two weeks later. Total cost was £11,200, so we paid £3,700 out of pocket. The Ofgem side was completely invisible to us—the grant just appeared as a deduction on our final invoice."

Michelle, Plymouth (4-bed detached): "We hit a snag with our EPC. It recommended cavity wall insulation, even though our walls are solid stone with no cavities. We had to get a new EPC assessment to confirm this. Cost us an extra £85 and two weeks, but once that was sorted, the grant application went through fine. Our air-source heat pump cost £14,800, so £7,300 after the grant. Worth every penny—we were spending a fortune on oil before."

David, Sheffield (2-bed terrace): "I was worried our small house wouldn't be cost-effective for a heat pump. Actually, the opposite was true. A compact 5 kW system was perfect for our well-insulated terrace. Total cost £8,400, and after the £7,500 grant, we paid just £900. Nine hundred quid for a brand new heating system with lower running costs than our old gas boiler. Couldn't believe it, honestly."

Janet and Colin, Swansea: "We're in Wales, and the scheme works the same here. Our installer was fantastic—explained everything about eligibility, checked our EPC, and managed the Ofgem application. The voucher came through in a week. Installation took three days because we needed some radiator upgrades, but the grant covered those too. Paid £4,200 net for a complete heating transformation."

Richard and Sarah, Coventry (3-bed 1950s semi): "We were hesitant about the BUS grant application process, but it turned out to be surprisingly straightforward. Our installer handled everything electronically through the Ofgem portal. The voucher was approved in just 6 days. Our Mitsubishi Ecodan 8.5 kW cost £11,800 total, so £4,300 after the grant. We're now 10 months in and couldn't be happier. The house is warmer than it ever was with our old gas boiler."

Barbara, Guildford (4-bed detached): "I was worried about being a single pensioner managing a heat pump, but the technology is actually simpler than my old boiler. The installer set everything up with a smartphone app—my grandchildren helped me learn it! The 12 kW Vaillant cost £15,200 before grant, so £7,700 out of pocket. My oil bills were over £2,200 per year; now I'm paying about £1,050 for heating. At 68, I'm glad to be off fossil fuels."

Kevin and Diane, Newcastle (3-bed bungalow): "Our bungalow was perfect for a heat pump—well-insulated, single storey, and plenty of garden space for the outdoor unit. The application through Ofgem was handled entirely by our MCS installer. Total cost was £9,800, so just £2,300 after the grant. We're on the Octopus Cosy tariff, which gives us cheap electricity during heating hours. Our annual heating costs have dropped from about £950 on gas to around £620."

Emma, York (Victorian terrace): "I rent my house out and wanted to future-proof it for potential EPC requirements. Landlords can claim the BUS grant for rental properties, which many people don't realise. The 7 kW Samsung cost £10,400, so £2,900 after grant. My tenant is delighted with the lower running costs, and the property's EPC improved from D to C. It's an investment that makes the house more attractive to tenants."

Who Qualifies for the BUS Grant?

Property Requirements

That EPC insulation point trips people up. If your EPC says "Install loft insulation," you need to either do that first, or get an assessor to confirm it's not applicable to your property.

Current Heating System

You must be replacing fossil fuel heating:

If you already have a heat pump or other renewable heating system, you typically don't qualify. The scheme is designed to transition homes away from fossil fuels, not to upgrade existing renewable systems.

Installation Requirements

How to Apply: Step-by-Step Process

Step 1: Check Your EPC

Find your EPC at gov.uk/find-energy-certificate. Enter your postcode and find your property. Check the recommendations section carefully.

If loft or cavity wall insulation is recommended, you have three options:

  1. Install the recommended insulation (this often improves heat pump performance anyway)
  2. Get a new EPC assessment to confirm the recommendation doesn't apply (e.g., solid walls, loft already adequate)
  3. Provide evidence to your installer that the work isn't feasible

If you don't have an EPC at all, you'll need one. An assessor visit costs £50-£100 and takes about an hour.

Step 2: Get Quotes from MCS-Certified Installers

Use the MCS certified installer database at mcscertified.com to find installers in your area. Get at least three quotes—prices vary significantly.

Quotes should clearly show:

Step 3: Choose Your Installer

Compare quotes carefully. Don't just pick the cheapest—installation quality matters enormously for heat pump performance. Check reviews on Trustpilot, Which? Trusted Traders, and Google. Ask for references from previous heat pump installations.

Step 4: Installer Applies for Voucher

Your chosen installer applies to Ofgem on your behalf through their online portal. They'll need:

Step 5: Voucher Issued

Ofgem typically issues vouchers within 5-10 working days. In peak periods, it may take slightly longer, but the process has become smoother since the scheme launched.

The voucher is valid for 3 months from issue date. Extensions can sometimes be arranged if there are legitimate delays.

Step 6: Installation

Your installer schedules the installation. Typical timelines:

After completion, the installer submits commissioning details to Ofgem, including photos and system specifications.

Step 7: Grant Payment

Ofgem pays the grant directly to your installer, usually within 4-6 weeks of commissioning submission. You never see this money—it's already deducted from your invoice. You only pay the net amount.

Common Problems and How to Avoid Them

EPC Insulation Recommendations

This is the most common barrier. Solutions:

  1. Install the recommended insulation. Loft insulation typically costs £300-£500. Cavity wall insulation runs £500-£1,500. Both improve heat pump performance anyway, so consider this an investment.
  2. Get an updated EPC. If your property has solid walls (common in pre-1920s homes), the original EPC might have incorrectly recommended cavity insulation. A new assessment can correct this.
  3. Provide exemption evidence. Properties in exposed locations may be unsuitable for cavity insulation. Listed buildings may have restrictions. Document these.

Finding Available Installers

MCS installer availability varies by region. Some areas have long waiting lists, particularly in rural Wales and parts of Scotland.

Tips for finding installers:

Voucher Expiry

Vouchers are valid for 3 months. Make sure your installer can realistically complete within that window before applying. If delays occur (equipment supply issues, weather, illness), extensions can sometimes be arranged through Ofgem, but don't rely on this.

Rejected Applications

Common rejection reasons:

Your installer should catch these issues before applying. If an application is rejected, the problem can usually be fixed and the application resubmitted.

What the Grant Does and Doesn't Cover

Covered by the Grant

Usually Included in Installer Quotes (Covered by Grant if Within Total)

Not Covered by the Grant

Real Costs After the Grant

Based on installations completed in late 2024 and early 2025:

Home TypeTypical Total CostAfter £7,500 GrantNotes
1-2 bed flat/terrace£8,000-£10,000£500-£2,500Best value, often under £1,000
3-bed semi-detached£10,000-£13,000£2,500-£5,500Most common installation type
4-bed detached£12,000-£16,000£4,500-£8,500May need larger system
Large home (5+ beds)£15,000-£20,000£7,500-£12,500Often requires radiator upgrades
Ground-source (average)£20,000-£30,000£12,500-£22,500Higher cost but better efficiency

For smaller, well-insulated homes, the post-grant cost approaches—or even undercuts—what you'd pay for a new gas boiler. A £900 heat pump installation (after grant) compared to a £2,500 gas boiler is genuinely competitive.

Scotland: Different Scheme, Similar Benefits

The BUS doesn't cover Scotland, but Home Energy Scotland offers equivalent support:

Apply through Home Energy Scotland rather than Ofgem. The process is similar but managed separately.

Other Financial Support

ECO4 Scheme

Low-income households may qualify for fully-funded heat pumps through the Energy Company Obligation scheme. Eligibility typically requires receiving certain benefits (Universal Credit, Pension Credit, etc.) and having poor home energy efficiency.

0% VAT on Installation

Heat pump installations are currently exempt from VAT (0% rate until at least March 2027). This applies to both the equipment and labour. A £10,000 installation would have cost £12,000 before this exemption.

Green Mortgages

Some lenders offer preferential rates or additional borrowing for energy improvements. Barclays, NatWest, and Halifax all have green mortgage products. Worth exploring if you need to finance the post-grant cost.

Frequently Asked Questions

Q: Can I claim the grant for a second home or rental property?

A: Yes the BUS covers second homes and rental properties. Landlords can claim for properties they rent out. Social housing providers can also claim.

Q: What if my heat pump costs less than £7,500?

A: You only receive the actual installation cost. If your system costs £6,000, you receive £6,000 (not £7,500). The grant caps at the lower of £7,500 or total installation cost.

Q: Can I install the heat pump myself and claim the grant?

A: No. Installation must be by an MCS-certified installer. Self-installation doesn't qualify for the grant, and you wouldn't be able to register for the Smart Export Guarantee or meet building regulations.

Q: How long will the scheme continue?

A: Currently funded until March 2028. The government has committed to this timeline, but grant levels could theoretically change with policy reviews. There's currently no shortage of vouchers.

Q: What happens if my installer goes bust before finishing?

A: MCS certification includes consumer protection requirements. If problems arise, contact the MCS helpline. The guarantee scheme can help resolve issues or fund completion by another installer.

The Bottom Line

The Boiler Upgrade Scheme is a straightforward way to get significant funding towards a heat pump. The process isn't complicated, though it requires some preparation—particularly around your Energy Performance Certificate.

For smaller homes, the grant can reduce out-of-pocket costs to near zero. For larger properties, it still represents substantial support. Combined with lower running costs and a future-proof heating system, the economics work for many British households.

If you're considering a heat pump, check your EPC, address any insulation recommendations, and get quotes from MCS-certified installers. The scheme runs until March 2028, but there's no advantage to waiting—and energy prices aren't getting cheaper.

The £7,500 grant makes heat pumps accessible to households who couldn't otherwise afford them. If your home is suitable, this is an excellent time to make the switch.