New Government Grant: What It Means for Low-Carbon Heating Upgrades
What Is the Boiler Upgrade Scheme?
The Boiler Upgrade Scheme (BUS) is a UK government grant designed to help homeowners switch from fossil fuel heating to low-carbon alternatives — mainly air source heat pumps, ground source heat pumps, and in some rural cases, biomass boilers.
The scheme offers:
- £7,500 off air source or ground source heat pump installation
- £5,000 off biomass boiler installs (in rural, off-grid properties)
It’s open to homeowners and small/medium non-domestic buildings in England and Wales. BUS is set to run until 31 December 2027, but early uptake is encouraged to avoid delays.
At the Green Energy & Gas Alliance (GEGA), we support this scheme — not because we sell heat pumps, but because we believe the right heating system, in the right home, installed by the right engineer, can make a big difference to safety, efficiency, and the environment.
How Does It Work?
BUS is an installer-led scheme — meaning the company fitting your heat pump will apply for the grant on your behalf. Here’s a simplified step-by-step:
- Find an MCS-certified installer
- Installer performs a home assessment
- If eligible, they apply for the grant
- You approve via a quick Ofgem email
- Installer completes the work
- Grant is deducted directly from your invoice
It’s designed to be easy — no lengthy forms for homeowners.
What Heating Systems Are Covered?
You can get a BUS grant if you’re fully replacing an existing fossil fuel system, such as:
- Gas boiler
- Oil boiler
- LPG system
- Electric storage or panel heaters
You cannot apply if you’re:
- Upgrading an existing heat pump
- Installing into a new-build home (except self-build)
- Replacing one low-carbon system with another
- Funded by another public heating scheme
Who’s Eligible?
To qualify, you must:
- Own the property (home or business under 45 kWth)
- Have a valid Energy Performance Certificate (EPC)
- Not have received previous heat pump funding
- Be installing a system that meets scheme standards
- Use an MCS certified installer
What is MCS Certification?
The Microgeneration Certification Scheme ensures that installers and equipment meet UK standards. It’s your best protection as a homeowner.
🔗 Find an MCS certified installer
Do You Need to Upgrade Your Home First?
Before jumping into heat pump installation, your home may need energy efficiency improvements. A good installer will check:
- Insulation: Loft and cavity wall insulation is a must.
- Radiators: You may need larger radiators to accommodate lower flow temperatures.
- Cylinder space: Most heat pump systems require a separate hot water cylinder.
- Window and door seals: To avoid heat loss.
These upgrades aren’t covered by BUS — but they help you get the most from your new system and can reduce your long-term bills.
Common Pitfalls to Avoid
This scheme isn’t just about slapping a heat pump on your wall. Poor planning can lead to underperformance or costly revisions later.
Here’s what both homeowners and installers should avoid:
- ❌ Quoting before a full heat loss calculation
- ❌ Using boiler logic to size the system
- ❌ Failing to explain flow temperatures to homeowners
- ❌ Assuming BUS covers radiator or insulation upgrades
- ❌ Skipping buffer tanks, compensation controls, or hot water cylinder checks
Proper surveying and consultation matter — and the best installers will walk you through every step.
Installer Insights: It’s Not Plug-and-Play
At GEGA, we’ve spoken to dozens of engineers working on BUS-funded projects. Their advice?
“If you’re used to combi boilers, a heat pump setup will feel different — especially for hot water. Expect a system, not just a swap.”
— Installer, Eastbourne
“The quote should never be based on guesswork. If you didn’t see them with a tape measure or heat loss calculator, question it.”
— Installer, South Yorkshire
This is a technical install — not a cosmetic upgrade. The better the prep, the better the result.
A Note on Costs & Invoicing
While £7,500 is a generous discount, the remaining cost may vary depending on:
- System size
- Radiator upgrades
- Cylinder or buffer tank needs
- Labour & regional rates
Make sure you ask for a clear quote with and without the grant applied. You won’t receive the money directly — your installer redeems the voucher and deducts it from your bill.
Why GEGA Supports This Scheme
We’re not a manufacturer. We’re not a sales company. We’re a group of working engineers who helped found the Gas Safety Superheroes — and now drive GEGA to support the UK’s safe transition to greener energy.
We support the Boiler Upgrade Scheme because:
- It puts proper installs above flashy marketing
- It rewards well-trained, certified engineers
- It helps homeowners make informed upgrades
- It raises standards without raising risk
This is a step toward the future — but only if done well.
Final Thought: Is Now the Right Time?
If your gas boiler is ageing and your home is relatively well-insulated, this might be the best window of opportunity to go low-carbon.
The BUS grant runs until the end of 2027 — but funding is first-come, first-served. Installers are already reporting high interest, so acting early could save you money and hassle.Need help understanding what’s right for your home?
Contact GEGA – Installer-led advice, not sales.
