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: 

  • £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 

Budget for the scheme

Financial years 2022 to 2025

On 30 January 2025, the Department for Energy Security and Net Zero announced a further £25 million of funding will be made available for the 2024/2025 financial year, increasing the total BUS budget to £205 million. 

In addition, the Secretary of State for Energy Security and Net Zero has also given permission for Ofgem to over-allocate vouchers to a total of £280 million, to provide certainty that vouchers will continue to be available. 

This is part of the government’s Warm Homes Plan, helping people to deliver cleaner heating and save money on their bills. 

Financial year 2025 to 2026

On 21 November 2024, the government announced that the budget for 2025/2026 for the Boiler Upgrade Scheme will be £295 million. Budgets for subsequent years will be confirmed as part of the second phase of a multi-year Spending Review which will conclude in spring 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 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.