The phrase “boiler upgrade” can be misleading because the government's current scheme is not designed to help households replace one conventional gas boiler with another. The main programme now available in England and Wales supports the move from existing heating systems to eligible heat pumps and, in more limited circumstances, biomass boilers.

For homeowners considering a heating upgrade in 2026, the grant can make a substantial difference to the upfront cost. The amount available depends on the technology being installed, the existing heating system and, for some properties, whether the home is connected to the gas grid.

Understanding those details before requesting quotations can make it much easier to work out whether the scheme is relevant to your property.

What Is the £7,500 Boiler Upgrade Scheme?

The £7500 boiler upgrade scheme is the standard grant available under the Boiler Upgrade Scheme for eligible air-to-water heat pumps and ground-source heat pumps. Water-source heat pumps and shared ground-loop systems are also included within the ground-source category.

The grant is applied for differently from a typical household payment. The homeowner does not normally receive £7,500 directly. Instead, an MCS-certified installer applies for the grant through Ofgem on the property owner's behalf. Once the application is approved, the grant is deducted from the installation price and should appear as an upfront reduction on the quotation.

That distinction matters when looking at installation prices. A heat pump quotation may be considerably higher than the grant itself because the project can include equipment, labour, controls, hot-water storage, pipework and other work required to adapt the property.

The grant reduces the eligible cost; it does not automatically cover the complete project.

What Heating Systems Can The Scheme Replace?

The scheme is intended to support a move towards eligible low-carbon heating. Qualifying installations include air-to-water heat pumps, ground-source heat pumps, air-to-air heat pumps and biomass boilers, although each technology has its own grant amount and conditions.

The standard grants currently include £7,500 for eligible air-to-water and ground-source heat pumps, £2,500 for residential air-to-air heat pumps and £5,000 for qualifying biomass boilers. Only one grant can be received per property.

The existing heating system also matters. A heat pump cannot be funded simply because a homeowner wants to replace an old heating system. The proposed installation has to meet the scheme's eligibility and technical requirements.

Hybrid systems are another important point. A combination such as a gas boiler working alongside an air-source heat pump does not qualify under the standard BUS rules.

Why Some Homes Can Now Receive £9,000

The grant structure changed in July 2026, creating a higher level of support for certain properties without a mains gas connection.

Eligible off-gas-grid properties replacing qualifying oil or LPG heating with an air-to-water or ground-source heat pump can receive £9,000. The higher amount became available from 21 July 2026 and is scheduled to run until 31 March 2027.

This does not mean every homeowner installing a heat pump can claim £9,000. A property connected to the mains gas network will generally remain within the standard grant category if it meets the other requirements.

The change is particularly relevant when comparing older information online. A page written before July 2026 may only mention £7,500, while a newer page may refer to £9,000. Both figures can be correct depending on the property.

What Is The Boiler Upgrade Scheme? A Practical Explanation

If you are asking what the Boiler Upgrade Scheme is, it is essentially an installer-led government grant programme that reduces the upfront cost of installing certain low-carbon heating systems.

The scheme is available in England and Wales and is administered by Ofgem on behalf of the government department responsible for the policy. Property owners normally start by finding an eligible MCS-certified installer and obtaining a quotation. Once they agree to proceed, the installer makes the application.

The homeowner then receives a request from Ofgem to confirm consent and eligibility. This is an important part of the process because the grant application is being made on the owner's behalf.

The homeowner should also understand that giving consent to the grant application is not, by itself, the same thing as agreeing to a private contract with the installer. The installation contract and payment arrangements need to be dealt with separately.

Why The Property Survey Is So Important

A heat pump installation cannot be assessed properly from the boiler model alone. The installer needs to consider the property's heating demand and whether the proposed system can provide the required space heating and hot water.

Heat-loss calculations can influence the required heat pump capacity. The condition and size of radiators may also need attention because heat pumps generally operate differently from conventional boilers.

A quotation might therefore include a heat pump, cylinder, controls and installation but also identify additional work such as replacing some radiators or altering pipework.

The scheme requires the new system to be capable of meeting the property's full space-heating and hot-water requirements. A system that looks inexpensive because important upgrades have been left out is not necessarily a better quotation.

Who Can Qualify?

BUS covers eligible residential and non-residential properties in England and Wales, subject to the scheme's rules. New-build properties are generally excluded, although qualifying self-build properties can be eligible.

Social housing is excluded from the standard scheme. A property that has already received certain government or Energy Company Obligation funding for the same heat pump or biomass installation may also be excluded.

The product itself has to satisfy the relevant technical requirements. There are also capacity limits and other conditions that the installer must check before submitting the application.

That is why an installer should establish eligibility before presenting the grant as a guaranteed deduction from the final bill.

What Happens After The Grant Is Approved?

Once the application is approved, the installer has a defined period to complete the installation. Current Ofgem guidance states that standard installations must be completed within three months of approval, while ground-source heat pump installations have six months.

After the system has been installed and checked, the installer claims the grant from Ofgem. The homeowner should already have seen the grant reflected as a reduction in the agreed quotation.

If the installation is not completed within the applicable period, the installer may need to submit a new application and the homeowner may need to provide consent again.

What Should You Check Before Choosing An Installer?

The grant amount should not be the only thing considered when comparing installers. Ask for the proposed heat pump capacity, expected system design, hot-water arrangement and details of any radiator or electrical work.

Check whether the quotation includes all installation costs and clearly shows the grant deduction. It is also sensible to obtain more than one quotation because two installers can approach the same property differently.

Most importantly, make sure the installer is MCS-certified. This is a requirement for BUS-eligible installations and is connected directly to the grant application process.

The current scheme can significantly reduce the upfront cost of moving away from conventional heating, but the useful figure is the complete project price after the correct grant has been applied. Understanding the property, technology and installation requirements first gives homeowners a much clearer basis for deciding whether a heat pump upgrade makes sense.