Understanding The Boiler Upgrade Scheme: How To Benefit

The Boiler Upgrade Scheme has been helping property owners switch to a more sustainable method of heating their homes for three years now. Offering over £300 million in grants to individuals across the UK, the scheme has encouraged the replacement of nearly 50,000 fossil fuel boilers. 

But what is it exactly? And how can you benefit? In this blog, Swale Heating’s boiler experts will explain how the government scheme works, who’s eligible, and how to apply.

What is the Boiler Upgrade Scheme?

The Boiler Upgrade Scheme (BUS) is a government initiative in England and Wales that aims to encourage property owners to make the switch from fossil fuel heating systems to low-carbon alternatives, namely air source heat pumps and biomass boilers. 

Under the scheme, eligible home and business owners receive a grant of up to £7,500 to reduce the upfront cost of replacing their heating system with a more sustainable alternative. 

When & why was the Boiler Upgrade Scheme launched?

The BUS was launched on the 23rd of May 2022 by the UK government as part of the broader commitment to achieving net-zero carbon emissions by 2050.

Since heating homes accounts for a significant portion of the UK’s emissions, incentivising homeowners to switch to low-carbon heating plays a crucial role in bringing emissions down.

Is the Boiler Upgrade Scheme working?

The incentivisation offered by the BUS seems to be working to change attitudes towards sustainable heating. As of the 30th of April 2025, the scheme has supported over 49,000 heat pumps and biomass boilers being installed with £328 million in grants.

 

What types of systems are covered by the BUS?

The Boiler Upgrade Scheme provides grants for property owners looking to install biomass boilers, air source heat pumps, ground source heat pumps, and heat pumps on a shared ground loop.

Let’s take a look at each of these in turn.

• Air source heat pump- Extracts heat from the outside air to warm a property, working like a fridge in reverse. You can find out more on how air source heat pumps work and how they compare to regular gas boilers.
  
  
• Ground source heat pump - Draws heat from the ground using pipes filled with heat-transfer fluid, to bring warmth into your heating and water system. 
  
  
• Biomass boiler - Burns organic materials (instead of fossil fuels) like logs or chips to generate heat for warming water and central heating. 

What financial support is available?

People looking to upgrade their heating systems can benefit from one grant per property for the following:

Air source heat pump	£7,500
Ground heat pumps (incl. shared ground loops)	£7,500
Biomass boiler	£5,000

 

As with any grant, there are conditions for eligibility, which include:

• System standards - The new system you install must comply with minimum efficiency standards.
• Exclusions - Grants do not apply to hybrid heat pump systems that combine with a gas boiler, and for replacing a low-carbon heating system you already have.
• Capacity specifications - Individual systems have a maximum capacity of 45kWth, while shared ground loops have 300kWth.

How does the Boiler Upgrade Scheme grant work?

The BUS is an installer-led scheme, which means that the company you choose to replace your boiler will apply for the grant on your behalf. As such, the grant value is deducted from the installation cost, leaving a lower price for property owners to pay upfront once their new low-carbon heating system has been installed. 

Who is eligible for the boiler upgrade scheme?

If you own a property (home, rental property, second home, or business) and you are replacing a fossil fuel heating system (oil, gas, electric, or LPG) with a low-carbon alternative, you are likely eligible for the Boiler Upgrade Scheme.*

*There are a few property-related exceptions listed below.

Even if you’ve already received funding to improve the energy efficiency of your home, as long as your installer commissions and installs the new low-carbon system within 120 days of applying for the grant, you will receive it.

Property-related eligibility criteria for heat pumps

To prove your eligibility, you must have a valid EPC (Energy Performance Certificate). It is also a good idea to speak to an MCS-certified installer like Swale Heating to check whether your property is suitable for a low-carbon heating system.

Property type	Eligibility	Explanation
New build homes	Case by case	If the developer is still building your property, you are not eligible. If you’ve moved into a new build with a fossil fuel boiler, you may be eligible.
Social housing	None	N/A
Self build property	Case by case	If your self build property has never been owned by an organisation and you or the original owner built it (or paid a builder to build it), you are eligible — but you need to show your installer proof of self build status.

 

Eligibility criteria for biomass boilers

Biomass boilers have slightly different eligibility criteria and require your property to be:

• Off the gas grid
• In a rural location
• Fitted with a boiler that has an emissions certificate that shows polluting emissions to be kept to a minimum
• Not a self build.

How to apply for the Boiler Upgrade Scheme

If you’re interested in replacing your boiler with a more environmentally-friendly and energy-efficient alternative, you can apply for the Boiler Upgrade Scheme. Simply contact an MCS-certified installer like Swale Heating and get a quote for the work you want done. Confirm your property is eligible with your installer and agree on a quote. Then, your installer will apply for the grant on the Ofgem website on your behalf.

Key deadlines and timeframes

Currently, the Boiler Upgrade Scheme is running until midnight on the 31st of December 2027. So, if you’re considering making the switch for your home’s heating system, it’s important to act quickly and contact an installer to get the ball rolling in good time. 

Benefits of switching to low-carbon heating

If you’re still sitting on the fence when it comes to making the switch from a gas or oil boiler to something more sustainable, here’s just a handful of benefits that you can expect one you’ve made the change:

• Save on energy bills with a more efficient heating system 
• Rely much less on fossil fuels gas/oil
• Make your carbon footprint smaller and ‘decarbonise’ your home 
• Enjoy an increased property value or appeal if you’re planning to sell

Make the most of the Boiler Upgrade Scheme

If you’re interested in making a sustainable, economical choice for your home, contact Swale Heating today and we’ll put you in touch with one of our trusted, gas-safe engineers who can discuss your home’s eligibility with you. 

Get a quote for a new air source heat pump system and explore whether you qualify for the Boiler Upgrade Scheme today.