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. 

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.

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

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

£450 million of grant funding is available over three years from 2022 to 2025. In March 2023, the Department for Energy Security and Net Zero announced an extension to the BUS from 2025 until April 2028. On 18 December 2023, the government announced £1.5 billion additional funding for the BUS extension over three years. 

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 Boiler Upgrade Scheme is operating
  • monitoring and enforcing compliance with the requirements of the regulations.

The Department for Energy Security and Net Zero  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 Boiler Upgrade Scheme 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.