Boiler Upgrade Scheme (BUS)

What is the Boiler Upgrade Scheme?

The Boiler Upgrade Scheme (BUS) supports the decarbonisation of heat in buildings. It provides upfront capital grants to support the installation of heat pumps and biomass boilers in homes and non-domestic buildings in England and Wales.

Acting on behalf of property owners, installers can apply for:

  • £5000 off the cost and installation of an air source heat pump
  • £5000 off the cost and installation of a biomass boiler
  • £6000 off the cost and installation of a ground source heat pump, including water source heat pumps

Grant level change

On Thursday 21 September 2023, the Department for Energy Security and Net Zero issued a change notice in accordance with BUS Regulation 13(4) to increase the BUS grant level for air source heat pumps and ground source heat pumps. 

From Monday 23 October 2023, installers will be able to apply for the newly increased grant amounts, the grants available are based on technology types as shown below:

  • air source heat pumps: £7,500
  • ground source heat pumps: £7,500
  • biomass boilers: £5,000

Voucher applications made for heat pumps which are submitted on or after Monday 23 October 2023 will receive the increased grant amount, subject to meeting BUS eligibility criteria and successfully redeeming the voucher within the validity period. 

Any vouchers that have been issued will receive the grant value stated on the voucher when they are submitted for redemption. These vouchers will continue to be redeemable both before and after the 23 October 2023. However, installers are able to withdraw their voucher, via the installer dashboard, and reapply after the new grant levels have come into force. 

We encourage property owners and installers to discuss any potential withdrawal and make decisions based on their respective circumstances. 

Installers will not be able to withdraw vouchers after they have received confirmation that their redemption application has been approved and processed for payment. Installers that have already received their grant will not be able to apply for the higher grant value once it has come into effect.

Any installation commissioned from 1 April 2022 will continue to be eligible to apply for a grant. Installations commissioned before the grant level change has come into effect will be able to apply for the new grant value if they submit their application on or after 23 October 2023. We will be issuing further guidance shortly, as well as engaging with installers and industry.

£450 million of grant funding is available over three years from 2022 to 2025.

Our role

Ofgem is the scheme administrator. Our responsibilities include:

  • publishing procedural guidance to prospective installers and property owners
  • processing voucher applications and voucher redemption applications
  • making payments to installers following successful voucher redemption applications
  • publishing reports on how the BUS is operating
  • monitoring and enforcing compliance with the requirements of the regulations.

The Department for Business, Energy and Industrial Strategy is responsible for the scheme policy and legislation. This is set out in the Boiler Upgrade Scheme (England and Wales) Regulations 2022.

Further information

Visit our page for installers if you are thinking of installing low carbon heating with BUS support. You will need to read our detailed guidance for installers before you apply to the scheme.

If you are a property owner who is interested in installing low carbon heating at your property, please visit our page for property owners.