Boiler Upgrade Scheme (BUS)

Financial support for heat pumps and biomass boilers

Before applying for the scheme, you should read the BUS guidance for property owners.

Your heating installer must be certified by the Microgeneration Certification Scheme (MCS) and on your behalf can claim:

  • £7,500 off the cost and installation of an air source heat pump 
  • £7,500 off the cost and installation of a ground source heat pump, including water source heat pumps 
  • £5,000 off the cost and installation of a biomass boiler 

If you want to know which of these technologies is right for your property, speak to a heating installer or learn about low-carbon heating options on the Energy Saving Trust website. To check if a heat pump is suitable for your home complete the government’s heat pump service check.

Help with VAT

From 1 April 2022 to 31 March 2027, there is 0% VAT on the installation of energy-saving materials including heat pumps and biomass boilers.

 

How the scheme works

The scheme is designed to minimise the amount of work property owners need to do. It is ‘installer-led’, which means your chosen installer will:

  • make a BUS application on your behalf
  • liaise with Ofgem on most matters related to the scheme
  • tell Ofgem when they’ve installed your heating system
  • claim the money from Ofgem at the end of the project

The grant value should be deducted from your quote upfront and installers are responsible for passing on the discount that the BUS grant provides to you, the property owner.

Choosing an installer

For a heating system to be eligible under BUS, it has to be installed by an installer certified by the Microgeneration Certification Service (MCS).

As with all home improvements we recommend that you obtain quotes from multiple installers.

You can find an installer in your area on the MCS website.

Giving your consent

After your chosen installer has submitted an application for your property, we’ll contact you to confirm that:

  • you have consented to the installer making the application on your behalf
  • you meet the relevant eligibility criteria for the scheme

If we do not receive your confirmations of the above within 14 calendar days, we may reject the application.

If we need more information from you in order to progress the application, we will contact you directly.

What does confirming your consent mean?

It’s important to remember that you’re only confirming you have consented to an installer making an application on your behalf. This is to provide us with assurance that the application is being made in good faith.

It does not mean you’ve committed to working with a particular installer. That’s something that needs to be handled separately through any contractual arrangement you make with your installer.

Multiple applications for the same property

In situations where more than one installer has submitted a BUS application on your behalf, you can only confirm your consent to one of them. After this, we’ll reject any applications from other installers.

Errors with consent

Where consent has been confirmed by mistake, contact us at BUS.Application@ofgem.gov.uk

Fraudulent consent

Where we identify a fraudulent confirmation of consent, we may reject the application and contact you and the installer regarding the application. If needed, we may refer the case of fraud to the police.

Completing the project

After you’ve confirmed your consent, your installer has three months from the moment the application is approved to complete the installation in line with industry standards and scheme requirements (six months for ground source heat pumps).

When the new system has been installed and fully checked, your installer can claim the grant amount from Ofgem.

If the installer does not complete the work within the time limits set out above, they will have to submit a new application for the installation and you will need to confirm again that you consent to this.
 

Checks that we need to do

To ensure that the scheme’s public money is being used correctly, Ofgem has the legal authority to carry out routine checks on grant applications at any point in the process, including after payment has been made.

This may involve a site audit where we visit your property.

For full information about audit and compliance activity on the scheme, including that carried out by MCS and how it could affect you, see chapter 6 of the BUS guidance for property owners.

Eligibility for a grant

Installer eligibility

Installers need to be certified by the Microgeneration Certification Scheme (MCS).

This means:

  • they are technically competent
  • the products they use in their installations meet the correct standards

Property eligibility

The scheme is open to domestic and non-domestic properties in England and Wales.

New build properties are not eligible for the scheme, with the exception of self-builds that:

  • have been built mainly using the labour or resources of the first owner
  • have never been owned by a business or organisation
  • are not part of an excluded property development

Grants are not available for:

  • social housing – that is, any rental or owned accommodation that’s provided at lower than market value to people that could not have afforded it otherwise (including arrangements like shared ownership)
  • properties that have already received funding from government or an Energy Company Obligation for the purchase or installation of the heat pump or biomass boiler

EPC eligibility

An energy performance certificate (EPC) gives information about a property’s energy use, with recommendations on how to reduce energy demand and save money. It’s required every time you buy, sell or rent a property.

Before we approve any grant application, we check that a property has a valid EPC that was issued within the last 10 years. 

You can check your property’s EPC report

We do not check EPC reports for eligible self-builds.

There are no minimum insulation requirements for applications which are properly made after 8 May 2024. 

If an application is properly made before 8 May 2024, you must provide an EPC with no recommendations for loft and cavity wall insulation. For more information, please refer to property owner guidance V2.5.

It is important that property owners understand that heat pumps perform best in a well-insulated property. 

Insulation measures, such as cavity wall and loft insulation, are relatively low-cost measures that could reduce energy bills and increase heat retention in a property. For example, without loft insulation, around a quarter of heat is lost through the roof. These types of insulation help to keep heat inside the home, making it more comfortable and lowering heating costs.

More information around energy efficiency measures can be found on the government website.
 

What to do when things go wrong

If you experience problems with your new heating system, for example underperforming equipment, repairs or safety issues, speak to your installer first.

If you ever have problems with your installer, visit the Microgeneration Certification Scheme (MCS) website and read ‘What to do when things go wrong’.

Your rights are protected by various consumer bodies, set up to promote the renewable energy sector and protect customers. These include organisations like RECC and HIES. MCS can advise you on when and how to engage with them.

For more information, please see Chapter 6 of our BUS guidance for property owners

For any issues related to the Boiler Upgrade Scheme (BUS), contact Ofgem directly: