Replacement Boiler Grants

Boiler Upgrade Scheme (BUS)

The Boiler Upgrade Scheme is open to homeowners and landlords with properties suitable for low-carbon heating.

Save Up To £9,000 With BUS

The Boiler Upgrade Scheme gives you up to £9,000 towards replacing your gas, oil, or LPG boiler with an air source heat pump. It's a government grant, it isn't means tested, and there's no income requirement to qualify.

As an MCS-certified installer with over 5,000 installations completed and more than 15 years in the energy industry, Elite Energy handles the entire process for you. We confirm your eligibility, design your system, apply for the grant on your behalf, and deduct it directly from your quote, so you only ever pay the reduced price.

What Is the Boiler Upgrade Scheme?

The Boiler Upgrade Scheme (BUS) is a government-funded grant, run by Ofgem and funded by the Department for Energy Security and Net Zero (DESNZ), that helps homeowners across England and Wales replace a fossil fuel heating system with an air source heat pump. It launched in 2022 and runs until 2028.

Unlike most government grants, the Boiler Upgrade Scheme is not means tested. There's no income requirement, and it's open to owner-occupiers, landlords, and second homeowners. To qualify, you need to own the property and be replacing a fossil fuel or electric heating system.

Because the scheme is installer-led, the grant can only be claimed through an MCS-certified installer like Elite Energy. Once your heat pump is installed and commissioned, we redeem the voucher directly from Ofgem, so the grant is not something you have to chase or claim back yourself.

How Much Is the Boiler Upgrade Scheme Grant?

The Boiler Upgrade Scheme grant is worth up to £7,500 for most homes, rising to £9,000 for off-gas-grid properties replacing oil or LPG heating.

A typical air source heat pump installation costs around £12,000, though this varies with property size and system requirements. With the grant applied, most homeowners pay between £3,000 and £4,500. Our air source heat pump cost guide breaks down pricing in full.

The grant is deducted from your quote before you pay, rather than claimed back afterwards, you don’t have to cover the full cost and wait for reimbursement.

BUS Grant Value

Your Situation

Grant Amount

Replacing a gas or electric system with an air source heat pump

Up to £7,500

Off-gas-grid home replacing oil or LPG

Up to £9,000

Boiler Upgrade Scheme Eligibility

Most homeowners in England and Wales with a fossil fuel heating system qualify for the Boiler Upgrade Scheme. There are a few conditions, and some situations where you may not be eligible.

Who Is Eligible for BUS?

  • You own a home or small business property in England or Wales.

  • You're replacing a gas, oil, LPG, or electric heating system.

  • You have a valid EPC (usually one issued within the last 10 years).

  • Your installation is carried out by an MCS-certified installer.

The scheme is not means tested, so there's no income requirement. Landlords, second homeowners, and self-build properties all qualify.

When You May Not Be Eligible for BUS

  • Your property is a new build (self-builds are the exception) or social housing.

  • Your home is already heated by a heat pump or another low-carbon system. The grant is for moving away from fossil fuels, not replacing existing renewable heating.

  • You've already received government funding towards a heat pump for the same property.

  • Your EPC lists outstanding recommendations for loft or cavity wall insulation. These usually need addressing before a heat pump can be installed.

If your EPC flags insulation, we can carry out the work as part of the project, and you may be able to fund it through a separate government scheme. Our team will check all of this when confirming your eligibility.

How the Boiler Upgrade Scheme Works

Applying for the Boiler Upgrade Scheme is straightforward, and Elite Energy takes care of everything from start to finish. We guide you through the process, handle the paperwork, and make sure your installation meets Ofgem's requirements.

  • 1

    Apply Online

    Start by completing our short application form. It takes a minute to check whether your home could qualify for a grant of up to £9,000.

  • 2

    Eligibility Confirmation and Guidance

    We’ll contact you to confirm your eligibility, explain the best options for your property, and answer any questions you have about heat pumps, funding, or installation. Our goal is to make sure you understand exactly what support is available before moving forward.

  • 3

    Free Home Survey

    If your home is eligible, we’ll arrange a free property survey carried out by an accredited assessor. During the visit, they’ll review your current heating system, insulation, and layout to ensure your new installation is perfectly matched to your home’s needs.

  • 4

    Funding Approval and Installation

    Once your grant is approved, our MCS-certified engineers will install your new heating system, usually within a few days.

  • 5

    Sign-Off and Aftercare

    We'll complete all quality checks and provide full documentation confirming your installation meets Boiler Upgrade Scheme standards. After installation, we redeem the grant voucher directly from Ofgem on your behalf.

Benefits of Making the Switch

Beyond the grant, switching to an air source heat pump changes how your home is heated and what it costs to run:

Lower Bills on the Right Tariff

A heat pump running on a dedicated heat pump tariff can cut heating costs by £700 or more a year for a typical three-bed home, because it uses cheap off-peak electricity across several low-cost windows through the day.

Larger Savings for Oil and LPG Homes

If you're off the gas grid, you're paying some of the highest heating costs in the country. A heat pump removes that, and you qualify for the higher £9,000 grant.

One Less Bill to Manage

No more oil tank refills, no LPG bottles, and no gas standing charge if you disconnect from the grid completely.

A Longer Lifespan

A heat pump lasts 20–25 years. Over that time, you'd typically replace a gas boiler at least once, sometimes twice.

A Better EPC Rating

Moving off fossil fuel heating usually lifts your EPC by one or two bands, improving both your home's value and its appeal to buyers.

No Combustion

With no burning fuel, there's no flue, no gas leaks, and no carbon monoxide risk.

Why Choose Elite Energy?

Elite Energy are an MCS-certified installer with over 5,000 installations completed and more than 15 years in the energy industry. We're TrustMark registered, RECC members, Gas Safe and OFTEC registered, and recently named the fastest-growing business in the North East at the Ward Hadaway Fastest 50 Awards.

From the first survey through to installation, commissioning, and aftercare, our team manages every stage of your heat pump project. We also handle the full Boiler Upgrade Scheme application on your behalf, so there's no paperwork for you to deal with.

Because we install across the full range of home energy technologies, we can look at your home as a whole. Where it's suitable, your heat pump can work alongside solar panels, battery storage, or insulation to lower your running costs further. We'll talk you through any options that fit your home and budget during your survey.

Where We Offer BUS Installations

Elite Energy install air source heat pumps through the Boiler Upgrade Scheme across northern and central England. Our coverage spans:

  • North East: including Newcastle, Sunderland, Middlesbrough, Durham, and Darlington.

  • North West: including Manchester, Liverpool, Preston, Blackburn, and Lancaster.

  • Yorkshire: including Leeds, Sheffield, Bradford, York, and Harrogate.

  • Midlands: including Birmingham, Nottingham, Derby, Leicester, and Stoke-on-Trent.

Many rural and off-gas-grid properties across these regions still rely on oil heating, and these are exactly the homes that qualify for the higher £9,000 grant tier.

If you're unsure whether we cover your area, get in touch and we'll confirm your eligibility.

Ready to Apply for the Boiler Upgrade Scheme?

A new heat pump could cut your heating bills by £700 or more a year, and the Boiler Upgrade Scheme takes up to £9,000 off the cost of getting one.

As an MCS-certified installer, we confirm your eligibility, apply for the grant on your behalf, and take it straight off your quote, so you only ever pay the reduced price.

Frequently Asked Questions

We have tried to answer most questions here but if you have any other queries please feel free to contact us!

Is the Boiler Upgrade Scheme means tested?

No. There's no income requirement and no need to claim benefits. It's open to owner-occupiers, landlords, and second homeowners.

Can I use the grant for a new gas or oil boiler?

No. The scheme only funds low-carbon heating, so it can't be used to replace one fossil fuel boiler with another. It's designed to move homes away from gas, oil, and LPG.

How long does the Boiler Upgrade Scheme run until?

The scheme runs until 2028. Grants are issued as vouchers, so it's worth applying in good time rather than waiting.

Can I combine BUS with other grants?

You can't use it alongside other government funding for the same heat pump. You can still access separate funding for improvements like insulation, available through other current government energy grants.

Do I need a certain EPC rating to qualify?

You need a valid EPC, and any outstanding recommendations for loft or cavity wall insulation usually need addressing first. We check this for you during the eligibility stage.

How long does installation take?

Most air source heat pump installations are completed within a few days, depending on your property and whether any radiator upgrades are needed.

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