Last updated: October 2026. Heat pump grants were under review before the Budget on 28 October 2026. We’ll update this page if anything changes.
The Boiler Upgrade Scheme (BUS) is the government grant that takes money off the cost of a heat pump in England and Wales. It launched in 2022 to replace the Renewable Heat Incentive, and it has changed several times since. Here’s how it works now.
How much is the grant?
- Air source heat pump: £7,500
- Ground source heat pump: £7,500
- Water source heat pump: £7,500
- Air-to-air heat pump: £2,500
- Biomass boiler: £5,000 (rural homes off the gas grid only)
If your home is off the gas grid and currently heated by oil or LPG, the air source and ground source grant rises to £9,000 until 31 March 2027. Read more in our post on the £9,000 grant for oil and LPG homes.
Who can get it?
- You own the home (or small business property) and it’s in England or Wales.
- The heat pump replaces a fossil fuel system, such as a gas, oil or LPG boiler, or direct electric heating.
- The installer is MCS-certified and a member of a consumer code such as RECC. PBT Installations is MCS certified (26427).
- The property hasn’t already had government funding for a heat pump or biomass boiler.
New-build homes generally don’t qualify, but some self-builds do. Ask us and we’ll check your situation.
Do I need insulation to qualify?
Not any more. When the scheme launched, your EPC had to show no outstanding loft or cavity wall insulation recommendations. That requirement was removed in May 2024.
We still strongly recommend insulating first. A heat pump is sized to your home’s heat loss, so a draughty, poorly insulated house needs a bigger, more expensive system and costs more to run. Topping up loft insulation and fixing draughts is usually the cheapest way to cut your heating bills, whatever heats your home.
How do I apply?
You don’t apply yourself. Your installer applies on your behalf and takes the grant off your quote, so you only pay the balance. For our customers the process is:
- We survey your home and carry out a full room-by-room heat loss calculation.
- We design the system and send you a quote with the grant already deducted.
- Once you accept, we apply for the voucher and confirm it with you.
- We install, commission and register the system with MCS, which releases the grant.
Can I combine it with other savings?
Yes. Heat pumps currently have 0% VAT until 31 March 2027, on top of the grant. You can also pair a heat pump with solar panels and a battery to cut running costs further. We explain the combinations in solar, battery or heat pump: which should you install first?
Is the grant going to be cut?
In October 2026 several newspapers reported that ministers were considering reducing the scheme to help fund defence spending. Nothing had been confirmed when we last updated this page. We cover what it could mean in heat pump grants under threat: why now is the time to act.
Why choose PBT Installations?
We’ve installed heat pumps across Gloucestershire for more than a decade, and we fit only Stiebel Eltron heat pumps. Knowing one brand inside out means faster fault-finding, a direct line to the manufacturer and a team that can answer your questions after the install.
See our full guide to heat pump grants in Gloucestershire, or contact us on 01242 323923 to check what you could get.