Heat pump grants in 2026: what the new £9,000 Boiler Upgrade Scheme figure really means
What is the Boiler Upgrade Scheme?
The Boiler Upgrade Scheme, usually shortened to BUS, is the government’s main grant for moving away from fossil fuel heating. It is administered by Ofgem, covers eligible homes and small non-domestic buildings in England and Wales, and is currently set to run until 2030.
Two things often surprise people. It is a grant, not a loan, so there is nothing to repay. And it is not means-tested, so your income is not assessed and you do not need to be claiming benefits.
What has changed?
From 21 July 2026, eligible off-gas-grid properties heated by oil or LPG can receive £9,000 towards an air-to-water or ground source heat pump, up from the standard £7,500.
Off-gas-grid means more than simply not using gas. The property must not be fuelled by mains gas, must have no record of an existing gas meter point, must not be on a heat network, and must not be a new build. A capped or clamped supply still counts as mains gas, so a property with an old capped supply will not qualify even though nothing runs on gas today.
Three things to be aware of:
- Mains gas properties are not included. On the gas grid, the standard £7,500 grant still applies.
- Only oil and LPG get the higher rate. Off-grid homes on coal or solid fuel stay at £7,500.
- The extra £1,500 is temporary. The £9,000 rate runs until 31 March 2027, though the wider scheme continues.
Who gets what?
| Your current heating/property | Installing | Grant available |
|---|---|---|
| Off-gas-grid property heated by oil or LPG | Air-to-water heat pump | £9,000 until 31 March 2027 |
| Off-gas-grid property heated by oil or LPG | Ground source heat pump | £9,000 until 31 March 2027 |
| Off-gas-grid property heated by coal or solid fuel | Air-to-water or ground source heat pump | £7,500 |
| Mains gas property | Air-to-water or ground source heat pump | £7,500 |
| Eligible property with direct electric heating | Air-to-water or ground source heat pump | £7,500 |
| Eligible rural off-gas-grid property | Biomass boiler | £5,000 |
| Eligible residential property | Air-to-air heat pump | £2,500 |
Air-to-air heat pumps sit under a separate £2,500 grant and are not part of the uplift. They heat and cool rooms directly but do not normally provide hot water. Not every air-conditioning installation qualifies: the system must meet the scheme’s requirements and the product must be listed with MCS, so check with your installer first. We have covered air-to-air eligibility separately.
What does this mean locally?
Most properties in Rugby, Coventry, Warwick and Leamington Spa are on mains gas, so the standard £7,500 grant will usually apply.
The £9,000 rate matters far more in the surrounding villages, where plenty of homes never got a gas main and run on oil or LPG instead. Those households also make the strongest financial case for a heat pump, because the comparison is against oil rather than cheap mains gas.
Am I eligible?
The main conditions are:
- You own the property. Homeowners and private landlords both qualify; tenants cannot apply.
- The property is in England or Wales. Scotland has separate schemes.
- You are replacing an eligible heating system. You cannot normally replace one heat pump with another.
- Hybrid systems, such as a gas boiler paired with a heat pump, are not eligible.
- The work is carried out by an MCS-certified installer.
- Maximum capacity for a single installation is 45kWth, which covers almost all homes.
Social housing and most new builds are excluded. Eligible self-builds can qualify for £7,500, but not for the £9,000 uplift.
Do I need an EPC?
Not any more. If your property has a valid Energy Performance Certificate your installer will include the reference, but if it does not, they can submit alternative evidence instead, such as a recent utility bill and photographs of your existing heating system. You also no longer need to complete any loft or cavity wall insulation recommendations first.
Better insulation still helps a heat pump perform well, but it is not a condition of the grant.
How does the grant reach you?
You do not apply to Ofgem yourself and the money never passes through your account. The scheme is installer-led.
You get a quote from an MCS-certified installer, who checks whether your property and proposed system are eligible. It is worth getting quotes from more than one installer so you can compare price and system design.
The full grant must be shown as an upfront discount on your quote and invoice. This is a legal requirement, and your installer must not ask you to pay the amount deducted.
Your installer then applies to Ofgem, who will contact you to confirm the installer is acting for you and verify your identity. Respond promptly, because there are set timescales for giving consent. Once the system is commissioned, your installer redeems the voucher.
What if I already had a £7,500 voucher?
The £9,000 rate applies to eligible applications properly made from 21 July 2026, so a voucher issued before then keeps its original value.
If you think your property now meets the criteria, speak to your installer before installation takes place. They can advise whether cancelling and reapplying is appropriate and whether the timescales still work.
Is there VAT on a heat pump?
Heat pump installations currently benefit from 0% VAT under the temporary relief for qualifying energy-saving materials. That relief runs until 31 March 2027, after which qualifying work is expected to revert to 5%. It is separate from the grant, so you get both, and it makes 31 March 2027 a date worth noting for two reasons.
Where to go next
Ofgem’s Boiler Upgrade Scheme guidance is the definitive source for the rules, and MCS runs a Find an Installer service.
At Custom Heat & Cool we are MCS certified and have been installing heating systems across the Midlands and South West since 1980. If you are weighing up replacing an oil, LPG, gas or electric system, we can assess your home, confirm which grant applies and recommend the right system.
Call us on 0330 383 0000 or visit customheat.co.uk.
Grant values, eligibility criteria and scheme rules can change. This article reflects the position as at August 2026. Always check the latest Ofgem guidance before making a decision.
