The Boiler Upgrade Scheme has changed. Eligible property owners in England and Wales could receive up to £9,000 towards a heat pump, with new options introduced in 2026.

If you've looked into heat pump funding before and decided your property wasn't eligible, it may be worth checking again.

The Boiler Upgrade Scheme (BUS) provides government grants towards the cost of replacing eligible fossil-fuel or electric heating systems with low-carbon heating.

The scheme is available for eligible homes and non-residential properties in England and Wales, which means some businesses, charities and community organisations may also be able to access support. 

Several important changes were introduced in 2026, including increased support for certain off-gas-grid properties and new support for air-to-air heat pumps in eligible residential properties.

How Much Can You Get Through the Boiler Upgrade Scheme in 2026?

The amount available depends on the type of heating system and property.

Current BUS grant levels include:

£7,500 towards an eligible air-to-water heat pump

£7,500 towards an eligible ground source heat pump

£5,000 towards an eligible biomass boiler

£2,500 towards an eligible air-to-air heat pump in residential properties

£9,000 towards an eligible air-to-water or ground source heat pump for qualifying off-gas-grid properties replacing oil or LPG heating. 

The £9,000 uplift is currently available until 31 March 2027, subject to the scheme's eligibility requirements. 

£9,000 Heat Pump Grant for Eligible Oil and LPG Properties

One of the most significant changes introduced in 2026 is additional support for certain properties that aren't connected to the gas grid.

From 21 July 2026, eligible off-gas-grid properties replacing an oil or LPG heating system can receive up to £9,000 towards an air-to-water or ground source heat pump. 

This could be particularly relevant to rural properties and organisations operating buildings that have historically relied on oil or LPG for heating.

However, being off the gas grid alone doesn't automatically qualify a property. The existing heating system, proposed heat-pump technology and other scheme requirements also matter.

Can Businesses and Community Buildings Get a Boiler Upgrade Scheme Grant?

Potentially, yes.

The Boiler Upgrade Scheme isn't restricted to homeowners. Eligible non-residential properties can also receive support, and GOV.UK specifically states that the grant can be used for a building used for a business. 

That means the scheme may be relevant to certain:

small businesses, community buildings, charities, churches and other eligible non-domestic property owners.

Eligibility still depends on the property and proposed installation, so organisations shouldn't assume that simply being a commercial or community building guarantees funding.

Air-to-Air Heat Pumps: New £2,500 Support

Another important 2026 change is the introduction of a £2,500 grant towards eligible air-to-air heat pumps.

However, there's an important restriction: BUS funding for air-to-air heat pumps is limited to residential properties. Non-residential buildings aren't eligible for this particular BUS technology category. 

This distinction matters for businesses and community organisations comparing different heat-pump technologies.

Do You Still Need an EPC for a Boiler Upgrade Scheme Grant?

The rules around EPCs have also changed.

For retrofit properties, if the property has a valid Energy Performance Certificate (EPC), the certificate number should be provided as part of the process. Where there isn't a valid EPC, installers may instead provide alternative evidence to demonstrate eligibility. 

This is particularly important if you investigated BUS previously and believed an EPC issue automatically prevented your project from progressing.

Rather than relying on an old assessment of your eligibility, check your property against the current rules.

Who Can Apply for the Boiler Upgrade Scheme?

Broadly, you must own the property and be replacing an eligible existing heating system. The scheme can cover property owned by individuals as well as qualifying businesses and organisations. 

There are exclusions. For example, social housing and most new-build properties aren't eligible, and restrictions apply where government funding has already been received towards the purchase or installation of the low-carbon heating system. 

The proposed system must also meet the scheme's technical requirements.

How Do You Apply for a Boiler Upgrade Scheme Grant?

BUS is an installer-led scheme.

You don't normally apply directly to Ofgem for the grant yourself. An MCS-certified installer assesses the proposed installation and applies for the BUS voucher on behalf of the property owner.

The property owner then confirms consent to the application. 

This makes choosing the right installer and establishing your property's eligibility early particularly important.

0% VAT Can Further Reduce Heat Pump Installation Costs

Eligible installations of energy-saving materials, including heat pumps, currently benefit from 0% VAT until 31 March 2027. 

Combined with BUS funding, this can substantially reduce the upfront cost of an eligible heat-pump project.

The exact financial case will still depend on your property, existing heating system, heat demand, proposed installation and any additional work required.

Previously Told You Didn't Qualify? Check Again

If you investigated a heat pump previously and were told that your property didn't qualify, don't automatically assume the same answer applies under the current scheme.

The Boiler Upgrade Scheme rules and grant categories have changed.

The more useful question now is:

What is your property eligible for under the current 2026 rules?

That is especially worth investigating if your property is off the gas grid, currently uses oil or LPG, or you previously encountered problems relating to EPC requirements.

Check Your Heat Pump Grant Eligibility

Understanding the grant is only one part of getting a property ready for a heat-pump project.

The Implementation Lab helps property owners and organisations understand where their building stands, identify potential funding opportunities and work through the steps needed to move an energy-upgrade project forward.

If you're considering a heat pump for a home, business or community building, book a free 15-minute review to discuss your property and potential next steps.

Book your free 15-minute review with The Implementation Lab.

Email: support@theimplementationlab.co.uk

Website: theimplementationlab.co.uk⁠ 

Sources & Further Reading

Boiler Upgrade Scheme - 

• Apply for the Boiler Upgrade Scheme: Overview - GOV.UK  ⁠

• Approved Grant Categories & Grant Values -  www.gov.uk/government/publications/boiler-upgrade-scheme-regulations-approved-standards-grant-categories-and-grant-levels/notice-of-approved-grant-categories-and-values-for-the-boiler-upgrade-scheme/  

•  Boiler Upgrade Scheme - Property Owners: Boiler Upgrade Scheme (BUS) - Property owners | Ofgem