Boiler Upgrade Scheme (BUS)

Overview of the Scheme 

Your heating installer must be certified by the Microgeneration Certification Scheme (MCS) and on your behalf can claim: 

  • £7,500 off the cost and installation of an air-to-water heat pump and ground source heat pump, including water source heat pumps
  • £2,500 off the cost and installation of an air-to-air heat pump
  • £5,000 off the cost and installation of a biomass boiler  

If you want to know which of these technologies is right for your property, speak to a heating installer or learn about low-carbon heating options on the Energy Saving Trust website. To check if a heat pump is suitable for your home, complete the government’s heat pump service check: Tell us where you live - Check if a Heat Pump is Suitable for Your Home  

Help with VAT 

From 1 April 2022 to 31 March 2027, there is 0% VAT on the installation of energy-saving materials including heat pumps and biomass boilers. 

How the scheme works 

The scheme is designed to minimise the amount of work property owners need to do. It is ‘installer-led’, which means your chosen installer will: 

  • make a BUS application on your behalf
  • liaise with Ofgem on most matters related to the scheme
  • tell Ofgem when they have installed your heating system
  • claim the money from Ofgem at the end of the project 

The value of the grant for your chosen technology should be provided to you as an upfront discount on the quote provided to you by your installer.  

Choosing an installer 

For a heating system to be eligible under BUS, it has to be installed and commissioned by an installer certified by the Microgeneration Certification Scheme (MCS). 

As with all home improvements we recommend that you obtain quotes from multiple installers. 

You can find an installer in your area on the MCS website. 

After your chosen installer has submitted an application for your property, we will contact you to confirm that: 

  • you have consented to the installer making the application on your behalf
  • you meet the relevant eligibility criteria for the scheme 

If we do not receive your confirmations of the above within 14 calendar days, we may reject the application. 

If we need more information from you in order to progress the application, we will contact you directly. 

It is important to remember that you are only confirming you have consented to an installer making an application on your behalf. This is to provide us with assurance that the application is being made in good faith. 

It does not mean you have committed to working with a particular installer. That is something that needs to be handled separately through any contractual arrangement you make with your installer. 

Multiple applications for the same property 

In situations where more than one installer has submitted a BUS application on your behalf, you can only confirm your consent to one of them. After this, we will reject any applications from other installers. 

Where consent has been confirmed by mistake, contact us at BUS.Application@ofgem.gov.uk 

Where we identify a fraudulent confirmation of consent, we may reject the application and contact you and the installer regarding the application. If needed, we may refer the case of fraud to the police. 

Completing the project 

After you have confirmed your consent your installer has three months from the moment the application is approved to complete the installation in line with industry standards and scheme requirements (six months for ground source heat pumps). 

When the new system has been installed and fully checked, your installer can claim the grant amount from Ofgem. 

If the installer does not complete the work within the time limits set out above, they will have to submit a new application for the installation, and you will need to confirm again that you consent to this. 

Optimising the energy efficiency of your property 

Heat pumps perform best in a well-insulated home. Improving your property’s energy efficiency can help reduce running costs and improve comfort. If your property has an Energy Performance Certificate (EPC), this will include a ‘changes you could make’ section, suggesting ways to improve energy efficiency.  

Insulation measures, such as cavity wall or loft insulation, can significantly reduce heat loss and may help improve the performance of a low-carbon heating system. 

The government recommends that you consider making energy efficiency upgrades where practical and affordable to do so. Further information is available at: Energy Efficient Home - Invest to Save On Your Energy Bills. 

We recommend discussing energy efficiency measures with your installer as part of the design process, so they can advise what (if anything) may be helpful for your property. 

Checks that we need to do 

To ensure that the scheme’s public money is being used correctly, Ofgem has the legal authority to carry out routine checks on grant applications at any point in the process, including after payment has been made. 

This may involve a site audit where we visit your property. 

For full information about audit and compliance activity on the scheme, including that carried out by MCS and how it could affect you, see chapter 6 of the Boiler Upgrade Scheme guidance for property owners. 

Eligibility for a grant  

Installer eligibility 

Installers need to be certified by the Microgeneration Certification Scheme (MCS). 

This means: 

  • they are technically competent
  • the products they use in their installations meet the correct standards 

Property eligibility  

The scheme is open to residential and non-residential properties in England and Wales. New build properties are not eligible for the scheme, with the exception of self-builds that: 

  • have been built mainly using the labour or resources of the first owner
  • have never been owned by a business or organisation
  • are not part of an excluded property development 

Grants are not available for: 

  • social housing – that is, any rental or owned accommodation that is provided at lower than market value to people that could not have afforded it otherwise (including arrangements like shared ownership)
  • properties that have already received funding from government or an Energy Company Obligation for the purchase or installation of the heat pump or biomass boiler
  • non-residential buildings (where installing an air-to-air heat pump) 

Product eligibility  

BUS grants are only available for air-to-water heat pumps, air-to-air heat pumps, ground source heat pumps (including water source heat pumps and those on shared ground loops) and biomass boilers. 

Hybrid heat pump systems, for example a combination of a fossil fuel boiler and an air source heat pump, are not eligible.  

The new heating system must: 

  • not have been commissioned more than 120 days prior to the application being properly made
  • be capable of meeting the full space heating and hot water requirements of your property
  • if installing a heat pump, it must be sized to meet the full space heating needs of the property, whether it is installed alone or in combination with a supplementary heating appliance
  • replace an existing fossil fuel or electric heating system
  • not replace an existing low-carbon heating system
  • meet certain technical standards, such as minimum efficiency requirements (your installer can advise you on these, or you can learn about them yourself in chapter 3 of the BUS guidance for installers) 

In addition, biomass boilers: 

  • can only be installed in rural properties
  • can only be installed in properties with no connection to the gas grid
  • cannot be installed in eligible self-builds
  • can only be installed as a standalone system to provide both space and hot water heating 

What to do when things go wrong 

If you experience problems with your new heating system, for example underperforming equipment, repairs or safety issues, speak to your installer first. 

If you ever have problems with your installer, visit Microgeneration Certification Scheme What to do when things go wrong. 

Your rights are protected by various consumer bodies, set up to promote the renewable energy sector and protect customers. These include organisations like RECC and HIES. MCS can advise you on when and how to engage with them. 

For more information, please see Chapter 6 of our BUS guidance for property owners. 

For any issues related to the Boiler Upgrade Scheme (BUS), contact Ofgem directly: 

Email: BUS.enquiry@ofgem.gov.uk 

Tel: 0330 053 2006