What Is the BUS Grant?
The Boiler Upgrade Scheme — commonly known as the BUS Grant — provides £7,500 towards the cost of installing an air source heat pump in your home, subject to eligibility criteria set by Ofgem. The scheme was launched in 2022, expanded in 2024 when the grant amount was increased from £5,000 to £7,500, and continues to run throughout 2026.
The purpose of the grant is simple: to help homeowners move away from fossil fuel heating and reduce the UK’s carbon emissions. For the average householder, it means a heat pump that might cost £10,000–£14,000 fully installed can be yours for as little as £2,500–£6,500 out of pocket (subject to eligibility).
The grant is not a loan. You do not pay it back. It is applied as a discount at the point of installation, so you never need to find the full amount upfront.
Related reading: How Much Does a Heat Pump Cost in 2026?
How Much Is the BUS Grant in 2026?
| Technology | Grant amount |
|---|---|
| Air source heat pump | £7,500 |
| Ground source heat pump | £7,500 |
| Biomass boiler (in rural areas only) | £5,000 |
For the vast majority of UK homeowners, the air source heat pump grant at £7,500 is the most relevant and accessible option. You may qualify for this grant if your property meets the eligibility requirements below.
Am I Eligible for the BUS Grant?
The eligibility criteria are straightforward, but it is important to check each point before proceeding:
Property requirements
- Your property must be located in England or Wales
- You must have a valid Energy Performance Certificate (EPC) — any rating is accepted; there is no minimum requirement
- The property must not be a new build (new builds should have heat pumps fitted as standard under current building regulations)
Ownership requirements
- You must own the property (owner-occupiers and private landlords both qualify)
- Social housing landlords can also apply, but through a different scheme
- Tenants cannot apply directly — the property owner must make the application
Heating system requirements
- The heat pump must replace an existing fossil fuel heating system (gas boiler, oil boiler, LPG, electric storage heaters, or coal)
- Properties that already have a heat pump installed are not eligible for a second grant
- The existing system does not need to be broken — you can proactively upgrade
Installer requirements
- The installation must be carried out by an MCS-certified installer
- The installer must apply for the voucher on your behalf through the official Ofgem portal
How to Apply: Step-by-Step Process
One of the best things about the BUS Grant is that your installer handles most of the paperwork. Here is how the process works from start to finish:
Step 1: Get a home survey from an MCS-certified installer
Contact an MCS-certified heat pump installer to arrange a home survey. During this visit, the installer will assess your property’s heat loss, insulation levels, existing heating system, and hot water requirements to design the right system for your home.
At Electromatic M&E Ltd, we provide free home surveys across Greater London, Surrey, and Middlesex. Our survey typically takes 60–90 minutes and includes a detailed room-by-room heat loss calculation.
Step 2: Receive your quote
After the survey, you will receive a detailed quote showing the total installation cost, the BUS Grant deduction, and the amount you will actually pay. For example:
- Total cost: £11,500
- BUS Grant (subject to eligibility): -£7,500
- Your cost: £4,000
Step 3: Your installer applies for the BUS voucher
Once you accept the quote, your MCS-certified installer submits the BUS Grant application to Ofgem on your behalf. This is done through the official online portal and typically takes 2 to 4 weeks for approval.
You will receive a confirmation email from Ofgem when your voucher has been issued.
Step 4: Installation takes place
With the voucher approved, your installer schedules the installation. A typical air source heat pump installation takes 2 to 3 days from start to finish.
Step 5: MCS certification and grant redemption
After installation, your installer commissions the system, registers it with MCS, and submits the completion paperwork to Ofgem. The £7,500 grant is then paid directly to the installer — you only ever pay the balance shown on your quote.
Step 6: Enjoy your new heating system
Your heat pump is up and running, your gas boiler is decommissioned, and you are heating your home with renewable energy at a lower carbon footprint.
Key Deadlines and Budget for 2026
The Boiler Upgrade Scheme is currently funded until March 2028. The government allocates a fixed budget each financial year, and vouchers are issued on a first-come, first-served basis.
In previous years, the scheme ran well within budget, meaning there was no rush. However, demand is increasing year on year, and there is no guarantee that the budget will not be exhausted before the end of the financial year. The prudent approach is to start the process sooner rather than later.
Important timings to keep in mind:
- Voucher applications can be submitted at any time
- Vouchers are valid for 6 months from the date of issue
- If the installation is not completed within 6 months, the voucher expires and a new application must be made
- The scheme could be amended or ended by a future government spending review
Frequently Asked Questions
Can I get the BUS Grant if I already have solar panels?
Yes, you may qualify. Having solar panels does not affect your eligibility. In fact, combining solar panels with a heat pump is one of the smartest energy upgrades you can make — the solar panels can generate free electricity to power your heat pump during the day.
Related reading: Solar Panels and Heat Pumps: The Perfect Combination
Do I need planning permission for a heat pump?
In most cases, no. Heat pumps fall under permitted development rights for most domestic properties, subject to certain conditions. There are some exceptions for listed buildings and conservation areas.
Related reading: Do I Need Planning Permission for a Heat Pump in the UK?
Can I combine the BUS Grant with other funding?
You cannot combine the BUS Grant with other government grants for the same installation (such as ECO4 or the Home Upgrade Grant). However, you can use your own savings, a personal loan, or a green mortgage product alongside the BUS Grant.
Does my home need a certain EPC rating?
No. You need to have a valid EPC on record, but there is no minimum rating requirement. Whether your home is rated A or G, you may qualify for the grant — subject to meeting all other eligibility criteria.
What if I have a combi boiler and no hot water cylinder?
A heat pump system requires a hot water cylinder to store your domestic hot water. If you do not currently have one, your installer will include the cost of a cylinder in your quote. This is a standard part of many heat pump installations and does not affect your BUS Grant eligibility.
How much will I pay after the grant?
Based on typical 2026 prices, and subject to individual eligibility:
| Property type | Typical total cost | After BUS Grant |
|---|---|---|
| 2-bed flat/terrace | £10,000–£11,000 | £2,500–£3,500 |
| 3-bed semi-detached | £11,000–£13,000 | £3,500–£5,500 |
| 4-bed detached | £13,000–£15,000 | £5,500–£7,500 |
What happens if the scheme closes before my installation?
Once your voucher has been issued by Ofgem, it is guaranteed for 6 months regardless of any changes to the scheme. The risk only exists before the voucher is issued, which is why we recommend starting the process promptly.
Why Choose an MCS-Certified Installer?
MCS certification is not optional for the BUS Grant — it is a mandatory requirement. But beyond grant eligibility, MCS certification means:
- The installer has been independently audited and meets strict quality standards
- The system design follows industry best practice (MIS 3005 for heat pumps)
- You receive an MCS certificate that may be required for future property transactions
- You are protected by the MCS consumer code and complaints process
How Electromatic Can Help
Electromatic M&E Ltd offers free home surveys across London and Surrey (TW, KT, SW postcodes). We handle BUS Grant applications, install ASHP and solar PV from a single contractor, and deliver within 2–4 weeks of survey confirmation. All work is carried out under MCS certification via our accredited umbrella partner.
Call us: 07718 059 284 | Email: admin@electromatic.uk
The information in this article is for general guidance only and does not constitute financial, legal, or technical advice. Energy savings estimates are based on typical UK household data from the Energy Saving Trust and Ofgem (April 2026 price cap). Actual savings depend on your property type, insulation levels, energy usage patterns, and electricity tariff. The Boiler Upgrade Scheme (BUS) grant of £7,500 is subject to eligibility criteria set by Ofgem — not all properties qualify. Electromatic M&E Ltd operates under MCS certification via an accredited umbrella partner. All installations comply with Building Regulations Part L and MCS standards. E&OE.
Written by Electromatic M&E Ltd — ASHP & Solar installer, London & Surrey (electromatic.uk)
Last updated: April 2026 | Electromatic M&E Ltd, Company No. 13837345
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