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Boiler Upgrade Scheme (BUS) 2026: £7,500 Heat Pump Grant Explained

SC
Steven Chesman
| | 8 min read

The Boiler Upgrade Scheme offers £7,500 toward an air source heat pump installation in 2026. Here is who qualifies, how the grant is claimed, and what you need to do before your installation.

In This Article

  1. 1. The Boiler Upgrade Scheme: £7,500 Toward Your Heat Pump
  2. 2. How to Apply for the BUS Grant
  3. 3. BUS Grant Eligibility: Who Qualifies?

The Boiler Upgrade Scheme: £7,500 Toward Your Heat Pump

The Boiler Upgrade Scheme (BUS) is the UK Government's flagship grant programme for heat pump adoption. In 2026, it offers £7,500 toward the cost of an air source heat pump (ASHP) or ground source heat pump (GSHP) installation, paid directly to your MCS-certified installer and deducted from your invoice. This means you never handle the grant money yourself — your installer claims it from Ofgem after completing your installation, and you simply pay the balance. The scheme was extended in 2024 and continues to run with annual funding allocations. In 2025-26, demand continues to exceed the available grant capacity in some periods, so early application via your chosen installer is advisable.

The BUS grant was increased from £5,000 to £7,500 in October 2023, representing a 50% uplift that significantly improved the economics of heat pump adoption for UK homeowners. To qualify, your property must have a valid EPC (Energy Performance Certificate) dated within the last 10 years, and the EPC must not include a recommendation for loft or cavity wall insulation that has not been carried out. This requirement ensures that the heat pump is installed into a home that will actually perform efficiently — improperly insulated properties tend to see heat pumps struggle to maintain comfortable temperatures, and the Government wants to avoid disappointing outcomes that would damage consumer confidence in the technology.

How to Apply for the BUS Grant

You do not apply directly for the BUS grant. Your MCS-certified installer applies on your behalf using their installer login to the Ofgem portal. The process works as follows: you agree to proceed with your installation, your installer submits an application to Ofgem before work begins, Ofgem issues a voucher confirming the grant is approved, your installer completes the installation to MCS standards, the installer redeems the voucher from Ofgem, and you pay the net cost after the grant is deducted. The entire process is managed by your installer. Your only responsibility is to ensure your EPC is current and that any recommended insulation measures have been carried out.

ElectriFusion Solutions is MCS-certified and manages the full BUS application process for all qualifying customers. We check your EPC status at the survey stage, flag any insulation requirements that could affect eligibility, and handle all paperwork with Ofgem. You simply see the £7,500 deducted from your installation invoice. Book your free heat pump survey today.

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BUS Grant Eligibility: Who Qualifies?

To qualify for the BUS grant in 2026, you must meet the following criteria: you are replacing a fossil fuel heating system (gas, oil, LPG, or direct electric heating) with a heat pump; your property has a valid EPC rated A–G (not just a display energy certificate used for commercial buildings); any insulation recommendations on your EPC have been carried out; your installer is MCS-certified; and the heat pump model being installed is on the MCS product database. Social housing and properties that have already received a BUS grant are excluded. There are no income restrictions — the grant is available to all eligible households regardless of income or property value.

The most common reason for BUS grant rejection is an outstanding insulation recommendation on the EPC. If your EPC recommends cavity wall insulation and you have not had it installed, your application will be declined. This is easily resolved by arranging the insulation work before your heat pump survey — Ofgem accepts the EPC without the recommendation once the work is done and the certificate is updated. See our complete guide to solar and renewable energy grants.

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