Boiler Upgrade Scheme: £7,500 Heat Pump Grant Guide 2026
Get £7,500 off air source and ground source heat pump installations. No EPC insulation requirements from 2026. New £2,500 air-to-air grant coming late 2026.
Current Grant Amounts
| Technology | Grant | Availability |
|---|---|---|
| Air source heat pump (air-to-water) | £7,500 | Available now |
| Ground source heat pump | £7,500 | Available now |
| Water source heat pump | £7,500 | Available now |
| Shared ground loop systems | £7,500 | Available now |
| Biomass boiler | £5,000 | Rural, off-gas only |
| Air-to-air heat pump | £2,500 | Late 2026 |
| Heat battery | £2,500 | 2026/27 |
You receive one grant per property. The grant is deducted directly from your installation quote—you never pay the full price.
What Changed in 2026
The Warm Homes Plan introduced significant improvements to the Boiler Upgrade Scheme.
EPC Requirement Removed
Previous rule:
Your EPC could not have outstanding loft or cavity wall insulation recommendations. Many homeowners were blocked.
2026 rule:
No EPC insulation requirement. Access the £7,500 grant regardless of your EPC recommendations.
This change removes a major barrier—you no longer need to spend thousands on insulation before qualifying for a heat pump grant.
Air-to-Air Heat Pumps Added (Late 2026)
From late 2026, a new £2,500 grant covers air-to-air heat pump installations. These systems:
- Heat (and cool) individual rooms
- Work well in smaller properties
- Lower installation costs
- Provide summer cooling
Heat Batteries Added
A £2,500 grant for heat battery installations launches in 2026/27.
Extended to 2030
The scheme now runs until at least 2030, providing long-term certainty.
Who Can Apply
Eligible Properties
- Located in England or Wales
- Existing fossil fuel heating (gas, oil, LPG) OR electric heating
- Not a new-build property (self-builds are eligible)
- Not social housing
- No previous BUS grant on the property
Eligible Applicants
- Homeowners (owner-occupiers)
- Landlords (for rental properties they own)
- Second home owners
- Self-builders
What You're Replacing
✓ Eligible to Replace
- Gas boiler
- Oil boiler
- LPG boiler
- Electric storage heaters
- Electric panel heaters
- Coal/solid fuel heating
✗ Not Eligible
- Existing heat pump
- District heating
- Other low-carbon heating
What's NOT Eligible
- Hybrid heat pump systems (heat pump + gas boiler)
- New-build homes (self-builds are allowed)
- Social housing (separate funding routes)
- Systems over 45kWth (individual installations)
- Non-MCS installers (certification mandatory)
- Previously funded properties (one grant per property)
How the Grant Works
The Boiler Upgrade Scheme is installer-led. You do not apply directly—your MCS-certified installer handles everything.
Get a Quote
Contact Greentech Renewables for a free home survey. We assess your property and recommend the right heat pump system. Your quote shows full system cost, BUS grant deduction (£7,500), and your net payment.
Agree to Proceed
Once you approve the quote, we apply to Ofgem for a grant voucher on your behalf.
Voucher Issued
Ofgem emails the voucher to your installer. Vouchers are valid for 3 months (air source) or 6 months (ground source).
Installation
We complete the installation within the voucher validity period. Most air source installations take 2-5 days.
Voucher Redemption
After installation, we generate your MCS certificate, redeem the voucher with Ofgem, and receive the £7,500 grant. You only ever pay the net amount.
What Does a Heat Pump Cost After the Grant?
| System | Total Cost | BUS Grant | You Pay |
|---|---|---|---|
| Air source (3-bed semi) | £10,000-£12,000 | -£7,500 | £2,500-£4,500 |
| Air source (4-bed detached) | £12,000-£15,000 | -£7,500 | £4,500-£7,500 |
| Ground source | £18,000-£25,000 | -£7,500 | £10,500-£17,500 |
Additional costs may apply for:
- Radiator upgrades (if undersized)
- Hot water cylinder (required for air-to-water)
- Electrical upgrades (if supply insufficient)
Running Costs vs Gas Boilers
Heat pumps use electricity, which costs more per unit than gas. However, heat pumps are 3-4 times more efficient, meaning you use less energy overall.
Typical Annual Running Costs
| Heating System | Annual Cost | Notes |
|---|---|---|
| Gas boiler | £1,200-£1,500 | Based on average usage |
| Oil boiler | £1,800-£2,200 | Subject to oil price volatility |
| Air source heat pump | £800-£1,200 | On standard tariff |
| Air source heat pump + solar | £400-£700 | Self-generated electricity |
Pairing a heat pump with solar panels dramatically reduces running costs by generating free electricity during daylight hours.
BUS vs Warm Homes: Local Grant
Two routes exist for heat pump funding. Which applies to you?
| Factor | Boiler Upgrade Scheme | Warm Homes: Local Grant |
|---|---|---|
| Grant value | £7,500 fixed | Up to £15,000 (means-tested) |
| Income test | None | £36,000 threshold or benefits |
| EPC requirement | None (removed 2026) | D-G rating required |
| Location | England and Wales | England only |
| Application | Through installer | Through local council |
| Availability | Now | Subject to council portal status |
If you earn above £36,000:
Use BUS (no income test)
If you earn below £36,000 or receive benefits:
Check if Warm Homes: Local Grant offers better value
Air-to-Air Heat Pumps: New £2,500 Grant
From late 2026, air-to-air heat pumps qualify for a separate £2,500 grant.
How Air-to-Air Differs
| Feature | Air-to-Water (£7,500) | Air-to-Air (£2,500) |
|---|---|---|
| Heating method | Hot water to radiators/underfloor | Warm air directly into rooms |
| Hot water | Yes (via cylinder) | No (separate system needed) |
| Cooling | Usually no | Yes (reversible) |
| Best for | Whole-house heating | Zones, flats, smaller properties |
| Typical cost | £10,000-£15,000 | £3,000-£7,000 |
MCS standards for air-to-air installations are being developed. The grant is expected to launch Q4 2026.
Frequently Asked Questions
Why Choose Greentech Renewables
As MCS-certified heat pump installers, Greentech Renewables can:
- Apply for your BUS voucher directly
- Deduct the £7,500 from your quote
- Complete installation within voucher validity
- Handle all Ofgem paperwork
- Provide ongoing support and maintenance
We serve Greater Manchester and the wider North West, with over 500 installations completed.
Claim Your £7,500 Grant Today
Get a free home survey and find out if you qualify for the Boiler Upgrade Scheme grant.
