Boiler Upgrade Scheme (BUS): Switch to Clean Heat with Government Support

Please note: This page provides general information on available domestic grant schemes for informational purposes only. Celtic Dynamics does not offer services for individual domestic or private household properties.

The way we heat our homes and buildings is changing, and fast. With gas boilers being phased out and energy costs rising, many households and property owners are looking for affordable, low-carbon alternatives. That’s where the Boiler Upgrade Scheme (BUS) comes in.

This government-backed initiative helps property owners in England and Wales replace old fossil fuel heating systems with cleaner alternatives, such as air or ground source heat pumps and biomass boilers. With grants of up to £7,500 available, BUS aims to make renewable heating more accessible, reduce carbon emissions, and future-proof our homes.

If you’re looking to upgrade your heating system, this guide will walk you through what the scheme offers, who’s eligible, and how to apply.

What Is the Boiler Upgrade Scheme?

Launched by the UK government in 2022, the Boiler Upgrade Scheme is designed to accelerate the move toward low-carbon heating. It offers upfront capital grants to encourage the installation of energy-efficient systems that produce less carbon and lower long-term running costs.

The scheme supports the transition away from fossil fuels, contributing to the UK’s legally binding net zero target by 2050. It’s administered by Ofgem, and applications must be submitted through a certified installer.

What Funding Is Available?

The BUS provides the following grant amounts:

• £7,500 towards the cost of an air source heat pump
• £7,500 for a ground source heat pump
• £5,000 for a biomass boiler (in properties off the gas grid) 

These grants are paid directly to installers, who subtract the value from your quote—so you don’t need to apply for or manage the funding yourself.

Why Upgrade to Low-Carbon Heating?

Upgrading to a heat pump or biomass boiler has several long-term benefits:

• Lower carbon emissions compared to traditional boilers
• Greater energy efficiency, reducing your heating bills over time
• More stable energy costs by relying less on fossil fuels
• Improved Energy Performance Certificate (EPC) ratings
• Better comfort and heating control throughout the property 

With energy prices fluctuating and older systems becoming less viable, switching now means you’ll be ahead of the curve and aligned with upcoming policy changes.

Who Is Eligible?

The Boiler Upgrade Scheme is open to:

• Homeowners, small landlords, and self-builders in England or Wales
• Properties with an existing fossil fuel boiler, such as gas or oil
• Homes and buildings that meet minimum insulation requirements (e.g., no loft or cavity wall insulation gaps) 

You’ll also need to be working with an MCS-certified installer, who will apply for the grant on your behalf. If your system is part of a new-build (except self-build), it won’t be eligible.

Technologies Supported by the Scheme

The focus is on proven, low-carbon heating solutions that are ready for wide-scale use:

• Air source heat pumps – ideal for most standard homes
• Ground source heat pumps – higher upfront cost, but more efficient
• Biomass boilers – suitable for rural, off-grid locations 

Solar thermal and hybrid systems are not currently included in the scheme, but your installer may suggest ways to integrate them alongside an eligible system.

How to Apply

The application process is simple and largely handled by the installer. Here’s how it works:

1. Get a quote from an MCS-certified installer.
2. The installer applies for the grant through Ofgem.
3. You confirm the quote and give consent for the application.
4. Once the work is complete and approved, the grant is paid directly to the installer.
   

If you’re unsure where to begin, you can find certified installers via the MCS Installer Finder or ask Celtic Dynamics to help you navigate the process.

Why Act Now?

The scheme is funded until March 2028, but with energy policy moving rapidly and demand increasing, early applications are strongly recommended. Acting now means:

• Securing the full £7,500 grant while it’s still available
• Avoiding delays from installer backlogs
• Getting ahead of future energy efficiency requirements 

Upgrading early also means lower emissions and bills from the moment your system goes live.

Celtic Dynamics Can Help

At Celtic Dynamics, we specialise in connecting homeowners, landlords and businesses with the right green energy solutions, and helping them access government support like the Boiler Upgrade Scheme. We’ll guide you through:

• Finding qualified installers
• Understanding which system best suits your property
• Ensuring your grant application is handled smoothly 

If you’re ready to reduce your carbon footprint, save on heating costs and future-proof your property, the Boiler Upgrade Scheme is the place to start.

Contact us today to explore your options and begin the journey toward cleaner, smarter heating.