Glossary · UK
What is Boiler Upgrade Scheme (BUS)?
A government grant of up to £7,500 to help households in England and Wales replace fossil fuel heating with heat pumps or biomass boilers.
Full Definition
The Boiler Upgrade Scheme (BUS) is an England and Wales government grant that provides upfront capital payments to encourage homeowners to switch from gas, oil or direct electric heating to low-carbon alternatives. As of April 2024, the grant levels are: £7,500 for an air source heat pump (ASHP) or ground source heat pump (GSHP), and £7,500 for a biomass boiler (available only in rural areas off the gas grid and subject to eligibility conditions). The grant is paid directly to the MCS-certified installer, who deducts it from the cost of the installation -- the homeowner simply pays the net amount. To be eligible, the property must be in England or Wales, have a valid Energy Performance Certificate (EPC) rated D or above, and must not have an outstanding recommendation for loft or cavity wall insulation (unless the property structure makes such insulation unsuitable). The BUS is funded until March 2028. Scotland has its own equivalent scheme, the Home Energy Scotland Grant and Loan, which offers different rates and conditions. A heat pump eligible for BUS also qualifies for the reduced 5% VAT rate on the installation. The scheme is administered by Ofgem on behalf of the Department for Energy Security and Net Zero (DESNZ). Households should obtain at least two quotes from MCS-certified installers and check EPC eligibility before proceeding.