Boiler Upgrade Scheme: 2027 update
Thinking about replacing your gas or oil boiler with a heat pump? The government’s Boiler Upgrade Scheme could help you save thousands on the cost of installation.
With grants of up to £9,000 currently available, switching to greener home heating could be more affordable than you think.
But some of the funding is changing in March 2027. So, what does this mean for homeowners considering a heat pump?
Here’s everything you need to know.
What is the Boiler Upgrade Scheme?
The Boiler Upgrade Scheme (BUS) is a government initiative that helps homeowners in England and Wales replace fossil fuel heating systems with greener alternatives, including heat pumps.
Heat pumps use electricity to extract warmth from the air or ground, providing an efficient way to heat your home without burning fossil fuels.
While installing a heat pump can cost more upfront than replacing a gas boiler, the Boiler Upgrade Scheme helps bring down that initial investment.
And the good news? The grant is taken straight off your installation quote, so you don’t have to pay the full amount upfront and claim the money back.
How much is the Boiler Upgrade Scheme grant?
The amount you could receive depends on the type of heating system you’re installing and your property’s circumstances.
The following grants are currently available:
| Heating system | Grant available |
|---|---|
| Air source heat pump (air-to-water) | £7,500 |
| Ground source heat pump | £7,500 |
| Air-to-air heat pump | £2,500 |
| Biomass boiler | £5,000 |
| Eligible off-gas-grid homes replacing oil or LPG heating with an air-to-water or ground source heat pump | £9,000 until 31 March 2027 |
The £9,000 grant includes an additional £1,500 of temporary support for eligible homes that aren’t connected to the gas grid. This means some homeowners could save even more by making the switch before the increased grant comes to an end.
When is the Boiler Upgrade Scheme ending?
The Boiler Upgrade Scheme has been extended until 2030. So there’s still time to benefit from government funding if you’re thinking about getting a heat pump.
However, some of the financial incentives are changing sooner.
31 March 2027: The increased £9,000 grant is due to end.
Eligible off-gas-grid homeowners replacing oil or LPG heating can currently receive an extra £1,500 towards an air-to-water or ground source heat pump. This temporary increase is scheduled to end on 31 March 2027, bringing the grant back to £7,500.
31 March 2027: The current 0% VAT relief is scheduled to end.
Heat pump installations currently benefit from 0% VAT, helping to reduce the upfront cost further. This relief is scheduled to end on 31 March 2027, unless the government extends it.
2030: The Boiler Upgrade Scheme is scheduled to close.
The government has committed to continuing the scheme until 2030, although grant amounts and eligibility rules could change before then.
Who’s eligible for the Boiler Upgrade Scheme?
The Boiler Upgrade Scheme is available to many homeowners in England and Wales who want to replace their existing heating system with a greener alternative.
To qualify, you will generally need to meet the following criteria:
- Own your property. This includes homeowners, landlords and owners of second homes.
- Replace your existing heating system. You can usually qualify if you’re replacing gas, oil, LPG or electric heating with an eligible heat pump.
- Use an MCS-certified installer. Your installer must meet the scheme’s certification requirements and apply for the grant on your behalf.
- Install an eligible system. Your new heat pump must meet the scheme’s technical and efficiency standards.
Most existing homes are eligible, alongside certain self-build properties. However, most new-build properties and social housing are excluded.
And there’s another helpful change: you no longer need a valid Energy Performance Certificate (EPC) to apply. Your installer may still need information about your property’s energy performance to confirm eligibility and design the right heating system.
Not sure whether your home qualifies? An MCS-certified installer can help you find out.
How do you apply for a Boiler Upgrade Scheme grant?
Applying is simpler than you might think. You don’t need to complete a lengthy government application yourself, because your heat pump installer handles most of the process.
Here’s how it works:
1. Get a heat pump quote
Contact an MCS-certified installer for an assessment of your home. They’ll recommend a suitable system, explain any heating upgrades you might need and check your eligibility for the grant.
2. Your installer applies for the grant
Your installer submits an application to Ofgem on your behalf. You’ll then be asked to confirm that you agree to the application.
3. Your grant is deducted from the cost
The full grant amount is taken off your installation price, so you only pay the remaining balance.
4. Your heat pump is installed
Once your installation is complete, your installer claims the grant payment directly from Ofgem.
It’s worth planning ahead, particularly if you’re hoping to benefit from the temporary £9,000 grant before March 2027.
What’s next for homeowners considering a heat pump?
The good news is that support for greener home heating isn’t going away.
The Boiler Upgrade Scheme will continue until 2030, helping more households move away from fossil fuels.
And the scheme has already expanded. Since April 2026, eligible homeowners have also been able to access £2,500 grants towards air-to-air heat pumps, giving people more options for heating their homes.
So, if you’re considering making the switch, what should you do next?
Check which grant you’re eligible for. Most eligible air-to-water heat pump installations qualify for £7,500, but some off-gas-grid homes could receive £9,000 until March 2027.
Find out what your home needs. Heat pumps work in a wide range of properties, but some homes may benefit from upgraded radiators, pipework or a hot water cylinder. A professional assessment will help you understand the costs.
Plan ahead. If you’re hoping to benefit from the temporary higher grant or current VAT relief, it’s worth getting started early. Surveys, system design and installation all take time.
Think about long-term benefits. Heat pumps offer efficient, low-carbon heating. And choosing the right electricity tariff can help you make the most of your new system.
Ready to make the switch to a heat pump?
A heat pump could help you reduce your home’s reliance on fossil fuels, while keeping you comfortable all year round.
At Good Energy, we work with our trusted heat pump installation partner, Installio, to help make the switch simple. From your initial quote to system design and installation, you’ll have expert support along the way.
Find out how much a heat pump could cost for your home, including any government grants you could qualify for.
Boiler Upgrade Scheme FAQs
No. The Boiler Upgrade Scheme has been extended until 2030. However, the temporary £9,000 grant for certain off-gas-grid properties is scheduled to end on 31 March 2027.
Yes. Under current government plans, the standard £7,500 grant for eligible air-to-water and ground source heat pumps will continue beyond March 2027.
You no longer need a valid Energy Performance Certificate (EPC) to apply. However, your installer may need other evidence to confirm that your property is eligible.
Yes. Eligible electric heating systems, including storage heaters, can be replaced with a qualifying heat pump under the scheme.
No. The Boiler Upgrade Scheme is available in England and Wales. Homeowners in Scotland can explore separate funding through Home Energy Scotland.
