BUS Grant 2026: Complete Guide to £7,500 Heat Pump Grant

What Is the BUS Grant in 2026?

The BUS grant is a government-funded capital grant that gives eligible property owners in England and Wales £7,500 towards an air source heat pump or ground source heat pump installation. In practice, the Boiler Upgrade Scheme lowers the upfront cost at the point of sale because your installer applies on your behalf and deducts the grant from your final bill.

According to GOV.UK, current grants are £7,500 towards an air source heat pump, £7,500 towards a ground source heat pump, and £5,000 towards a biomass boiler, while hybrid heat pump systems are excluded. DESNZ also notes that the scheme opened to voucher applications in May 2022, so this is now an established support route rather than a brand-new pilot.

For most homeowners, the key point is simple: you do not receive a cash payment into your bank account. Instead, the installer applies for the voucher, Ofgem administers the scheme, and the grant value is taken off the installation cost if your property and project meet the rules. The BUS grant is always subject to eligibility.

The scheme is aimed at replacing older fossil fuel and direct electric heating with low-carbon heating. That usually means switching away from gas, oil, LPG, coal, or older direct electric systems and moving to a full heat pump system that can provide both space heating and hot water.

If you are still deciding whether a heat pump is right for your property, start with our complete guide to heat pumps in the UK and our article on whether your home is suitable for a heat pump. If you already know you want a quote, you can also go straight to our BUS Grant page.

How Much Does the £7,500 Heat Pump Grant Actually Save You?

For most eligible homeowners, the £7,500 heat pump grant cuts a large chunk off the upfront price, but it does not usually make the installation free. Energy Saving Trust says a typical air source heat pump costs around £11,000 to install, so many households still pay several thousand pounds after the BUS grant, subject to eligibility.

According to Energy Saving Trust (updated February 2026), the typical cost of installing an air source heat pump is around £11,000 before any grant support. That headline figure is useful, but real projects vary because some homes also need radiator upgrades, a hot water cylinder, controls changes, pipework alterations, or electrical work.

In London, Surrey, and TW postcodes, the final homeowner contribution usually depends on four things:

1. How much heat your home loses.
2. Whether your existing radiators can run efficiently at lower flow temperatures.
3. Whether you already have a suitable hot water cylinder location.
4. Whether you are pairing the heat pump with other works, such as solar panels or battery storage.

Here is a realistic way to think about pricing:

These are guide figures rather than promises, and your exact quote depends on survey findings. The safest way to assess value is to compare the post-grant price against the full scope of work, not just the outdoor unit. A cheaper quote that ignores radiators, controls, noise positioning, or commissioning can become a more expensive problem later.

The BUS grant, subject to eligibility, can also improve the economics of a wider retrofit. For example, if you combine a heat pump with solar PV, you reduce the capital barrier on the heating side whilst giving yourself a route to lower daytime electricity imports. Learn more in our guide to solar panels and heat pumps as one combined system and our breakdown of heat pump running costs.

Who Is Eligible for the Boiler Upgrade Scheme?

You are usually eligible for the Boiler Upgrade Scheme if you own the property, are replacing an existing fossil fuel or direct electric heating system, and the home meets the scheme rules on EPC and technology type. The fastest answer is that the BUS grant is aimed at existing properties, not most new builds, and every case is still subject to eligibility.

GOV.UK says you must own the property you are applying for, which includes owner-occupied homes, second homes, businesses, and properties rented out to tenants. GOV.UK also says the property must have a valid EPC, and that EPC remains valid for 10 years.

For most domestic heat pump projects, the main eligibility checks are:

1. You own the property.
2. You are replacing a fossil fuel system or a direct electric system that does not already include a heat pump.
3. The property has a valid EPC.
4. The system being installed meets scheme rules.
5. The property has not already had government support for a heat pump or biomass boiler under the scheme rules.

There is one detail many homeowners miss. Ofgem property owner guidance states that, for the scheme process, the EPC position still matters if loft or cavity wall insulation recommendations are outstanding. In practical terms, that usually means either the EPC already shows no outstanding loft or cavity wall recommendation, or the required insulation work must be completed and a new EPC produced before the installer redeems the voucher.

That does not mean every older home is automatically ruled out. In fact, Nesta reported in February 2026 that government data suggests 80% to 90% of UK homes already have enough insulation to run a heat pump. A home can therefore be eligible for a heat pump installation even if it still needs a few upgrades to make the system run better or to satisfy paperwork requirements.

You should also remember that a heat pump installation under BUS must be a proper whole-home heating solution, not a partial add-on. GOV.UK says hybrid systems are not eligible, and the heat pump must be capable of meeting the property’s space heating and hot water demand within the rules of the scheme.

If you want a more detailed suitability checklist, read our guides on how a heat pump affects EPC rating and whether your home is suitable for a heat pump.

Which Properties Qualify for the BUS Grant and Which Do Not?

The easiest way to think about BUS grant eligibility is this: existing properties with an eligible owner, a valid EPC, and a qualifying heat pump project are often workable; most developer-controlled new builds, social housing, hybrid systems, and projects that already received government low-carbon heating support are usually outside the scheme. Every project remains subject to eligibility and technical survey.

GOV.UK says you cannot get a grant for most new build properties, social housing, or a property that has already been given government funding or support for a heat pump or biomass boiler. GOV.UK also says a finished self-build can qualify if it meets the self-build definition, whilst a finished new build with a fossil fuel boiler may qualify in some cases once the developer is no longer building it.

Use the table below as a practical guide:

Flats sit in a grey area for many homeowners because the word “flat” is not itself a grant disqualifier. The real issue is whether the property can support an eligible air-to-water heat pump system, hot water provision, outdoor unit placement, ownership permissions, and planning/noise compliance. Some flats work; many do not without compromise.

Planning is another area where people assume the worst. Energy Saving Trust states that most heat pump installations are considered permitted development, but exceptions can apply, especially for listed buildings, conservation areas, unusual layouts, and tighter siting constraints. That is why a site-specific survey matters more than broad internet advice.

If you want to understand the two most common barriers before you ask for a quote, read our guides on heat pump planning permission and heat pump noise levels.

How Do You Apply for the BUS Grant Step by Step?

You do not apply to Ofgem directly as a homeowner in the normal BUS process; your installer does it for you after survey, design, and quote acceptance. GOV.UK says the installer applies on your behalf, the grant is deducted from your bill, and the installation must then be commissioned inside the scheme deadlines to remain eligible.

According to GOV.UK, the application process starts by contacting suitable MCS certified installers for quotes, agreeing a quote, and allowing the installer to apply on the Ofgem website. GOV.UK also states that the grant value is taken off the amount you pay for installation, and that your installer must commission and install the heat pump within 120 days of applying for the grant.

Here is what a well-run BUS grant process normally looks like once your installer has confirmed that you may qualify:

1. Initial conversation and desktop check
   You share your postcode, current heating system, EPC if you have it, and a rough idea of your property type. This stage quickly filters out obvious non-starters.

2. Home survey and heat loss assessment
   The installer measures rooms, insulation levels, emitter sizes, hot water needs, outdoor unit position, and pipe runs. This is where a serious design starts.

3. Eligibility and paperwork check
   Your installer checks whether your property ownership, EPC status, and heating replacement meet the scheme rules. If loft or cavity wall recommendations need resolving, this is the point to catch it.

4. System proposal and quotation
   You receive a recommendation covering heat pump size, hot water arrangement, controls, likely radiator changes, noise positioning, and the quoted price before and after the BUS grant, subject to eligibility.

5. Homeowner consent to apply
   Once you accept the quote, the installer submits the grant application. Ofgem then contacts you to confirm the installer is acting on your behalf.

6. Voucher approval, installation, and commissioning
   After approval, installation is booked. The work itself often includes the outdoor unit, cylinder, pipework, controls, flushing, commissioning, and homeowner handover.

7. Voucher redemption and final documentation
   After commissioning, the installer redeems the voucher and completes the project documentation. You pay the quoted balance after the grant deduction, not the full pre-grant amount.

The most important homeowner mistake is waiting until the boiler has completely failed and then expecting the BUS route to move at emergency-boiler speed. Heat pumps are planned installations. If your boiler is ageing, noisy, or increasingly unreliable, it is much smarter to start the survey process early.

If you want to understand what installation day actually involves, read our step-by-step guide to heat pump installation and our detailed article on heat pump radiators and whether you need upgrades.

If you are ready to discuss your own eligibility, use our BUS Grant page to book a survey request.

What Can Delay or Block a BUS Grant Application?

Most Boiler Upgrade Scheme delays happen because of paperwork gaps, unsuitable system design, avoidable survey surprises, or timing issues rather than the grant portal itself. In plain English, the fastest applications are the ones where EPC evidence, system design, outdoor unit position, hot water strategy, and homeowner approvals are sorted before the installer submits anything to Ofgem.

GOV.UK says the installer must complete and commission the heat pump within 120 days of the grant application, so any issue discovered late in the process puts the voucher at risk. Nesta also reported in February 2026 that DNO approval can add roughly 2 to 4 weeks to some installations, which is one reason early technical checks matter.

The most common blockers are:

1. EPC or insulation paperwork problems
   If the EPC is missing, expired, or shows unresolved loft or cavity wall recommendations that still need addressing before redemption, the application can stall.

2. Wrong technology choice
   A hybrid system, partial heating arrangement, or under-specified heat pump can fall outside scheme rules or fail technical review.

3. Poor emitter or hot water planning
   Many older homes need larger radiators, better balancing, or a hot water cylinder strategy. Ignoring this makes quotes look cheaper but increases the risk of redesign.

4. Space, noise, or siting issues
   The outdoor unit needs a viable location that works for airflow, maintenance access, drains, neighbour impact, and planning rules.

5. DNO or electrical constraints
   Some properties need supply-side approvals or minor upgrades before installation can proceed smoothly.

6. Last-minute homeowner decisions
   Delays often happen because the householder has not decided on unit location, cylinder cupboard, decoration reinstatement, or whether associated radiator works are acceptable.

This is also where generic online claims can mislead you. Energy Saving Trust says most installations are permitted development, but “most” is not “all”. If you live in a listed building, conservation area, tight urban plot, or flat, the survey stage is where reality matters.

The simplest way to avoid delays is to approach the grant like a full heating project rather than a discount code. A proper room-by-room survey, honest emitter assessment, and an installer who is comfortable handling the paperwork will usually save far more time than chasing the cheapest headline price.

Is the BUS Grant Worth It in London, Surrey and TW Postcodes?

For many homeowners across London, Surrey, and the TW postcode area, the BUS grant, subject to eligibility, makes a heat pump financially realistic years earlier than it would otherwise be. It is usually most worthwhile when you are replacing an ageing gas or oil boiler in an existing home, plan to stay put for several years, and want lower-carbon heating with a cleaner upgrade path.

According to Ofgem, the April 2026 price cap sets average unit rates at 24.5p/kWh for electricity and 7.4p/kWh for gas for a typical direct debit household. Those figures matter because heat pump economics depend not just on efficiency, but also on the electricity-to-gas price gap — and that gap has narrowed significantly since 2022 peaks.

For London and Surrey homes, there are a few local realities worth factoring in:

1. Period housing stock is common
   Victorian terraces, 1930s semis, chalet bungalows, and mixed-age extensions are common across Richmond, Kingston, Twickenham, Hampton, and Sunbury. These homes can work very well with heat pumps, but they often need proper heat loss calculations and emitter checks.

2. Space constraints matter more in dense areas
   Flats, side returns, narrow gardens, and neighbour proximity can all affect outdoor unit siting. That makes early planning and noise assessment more important than it is in a detached rural property.

3. Solar improves the long-term picture
   If your roof is suitable, solar PV can offset part of the daytime electricity demand from the heat pump. Battery storage can add more control over self-consumption, especially if you are home during the day or use time-of-use tariffs.

4. Home improvement timing changes the maths
   If you are already renovating, replacing a cylinder, or redoing radiators, the marginal cost of becoming heat-pump ready can be much lower than doing everything as a standalone project later.

There is also a market confidence point worth noting. DESNZ reported in Summer 2025 that 23% of owner occupiers already had or were likely to install an air source heat pump, compared with 19% in Winter 2021. MCS separately reported in August 2025 that there were 30,000 certified heat pump installations in the first six months of 2025, a 12% increase on the same period a year earlier. The direction of travel is clear: more homeowners are moving early rather than waiting for a forced boiler replacement.

If you want the lowest-risk route, treat the BUS grant, if you qualify, as part of a wider heating strategy. Compare the post-grant capital cost, likely comfort improvements, future boiler replacement risk, and whether you may also benefit from pairing the system with solar battery storage or reading our air source heat pump vs gas boiler running cost comparison.

How Electromatic Can Help

If you want a local installer to manage the process properly, Electromatic can survey your home, assess BUS grant eligibility, design the system, and handle the grant application route from quote through commissioning. The point is to give you a realistic plan, not a generic promise, and to make sure the paperwork and design are aligned before anything is submitted.

GOV.UK says the installer must apply on your behalf and complete the installation and commissioning within 120 days of the grant application. We structure the survey, design, quotation, and documentation process around that timetable so your project does not lose momentum once you decide to proceed.

What we help with:

1. Free home survey for suitable properties in London, Surrey, and nearby TW areas.
2. Heat loss assessment, system design, and radiator review.
3. BUS Grant paperwork handling, subject to eligibility.
4. Honest advice on whether your home needs cylinder, radiator, or electrical upgrades.
5. Air source heat pump and solar PV planning from one contractor if you want a combined project.

Electromatic M&E Ltd is based in Sunbury-on-Thames and focuses on practical retrofit advice for homeowners and builders across Hampton, Richmond, Kingston, Twickenham, Sunbury-on-Thames, and surrounding London and Surrey areas. We work under MCS certification via our accredited umbrella partner, and we can usually deliver a typical project in a 2 to 4 week lead-time window once survey, design, grant approval, and product availability line up.

Book your free home survey →

Call us: 07718 059 284 | Email: admin@electromatic.uk

Frequently Asked Questions

Most homeowner questions about the BUS grant come down to cost, eligibility, planning, and timing. DESNZ reported in Summer 2025 that 21% of owner occupiers still said they did not know enough about air source heat pumps to make a decision, so the answers below focus on the points that usually block progress first.

How much does a heat pump cost after the BUS Grant?

For a typical air source heat pump project, many homeowners still pay several thousand pounds after the £7,500 grant, subject to eligibility. Energy Saving Trust says a standard installation is around £11,000, so straightforward projects can land around £3,000 to £4,500 after the grant, while more complex retrofits often cost more.

Can I get the BUS grant if I have already improved insulation or had other efficiency work done?

Yes, in many cases you still can. GOV.UK says you remain eligible if you have already had funding to make your property more energy efficient, but you cannot use BUS if the property has already had government support specifically for a heat pump or biomass boiler under the scheme rules.

Do I need planning permission for a heat pump to get the BUS grant?

Usually not, but you should not assume that without checking. Energy Saving Trust says most heat pump installations are permitted development, although listed buildings, conservation areas, flats, noise siting issues, and unusual property layouts can still require additional checks or permissions.

Can I get the £7,500 heat pump grant for a new build or a flat?

Most new builds are excluded, although GOV.UK says some finished new builds with a fossil fuel boiler may qualify once the developer is no longer building them. Flats are not automatically excluded, but many flat projects fail on practical design, outdoor unit placement, hot water provision, ownership permissions, or planning constraints.

How long does the BUS grant application take?

The grant process itself can move quite quickly once survey, design, and paperwork are ready, because the installer applies on your behalf. The bigger timing point is that GOV.UK says the system must be installed and commissioned within 120 days of the grant application, so survey quality and early paperwork matter more than portal speed.

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