Boiler Upgrade Scheme

The Boiler Upgrade Scheme is a government grant for homes and small non-domestic buildings in England and Wales that helps cover the cost of a low-carbon heating system. Crucially, the installer applies for the grant and takes it as an upfront discount off the quote — the homeowner never receives the money directly.

How it works

The scheme is run by Ofgem on behalf of the Department for Energy Security and Net Zero. It pays towards air source heat pumps, ground source heat pumps, biomass boilers and air-to-air heat pumps installed in place of an existing fossil fuel heating system, such as oil, gas, LPG or electric heating. Current grant values, which homeowners should always confirm on GOV.UK or Ofgem before applying since they can change, are £7,500 for an air source or ground source heat pump, £5,000 for a biomass boiler, and £2,500 for an air-to-air heat pump. Ofgem also offers an uplifted £9,000 grant for eligible off-gas-grid properties replacing oil or LPG heating with an air-to-water or ground source heat pump.

Who can use it

To qualify, the applicant must own the property receiving the upgrade — as a main home, a second home or a property let to tenants — and be replacing a fossil fuel heating system. New-build homes and social housing are not eligible, though self-build properties can be. The installer confirms the specific property and Energy Performance Certificate conditions that apply at the time of application. Biomass boilers are only available in limited circumstances, so most successful applications are for heat pumps.

How to apply

The first step is to contact MCS-certified installers for quotes, since only MCS-certified work qualifies for the grant. Once a homeowner chooses an installer, that installer registers the application with Ofgem on the homeowner's behalf, supplies the ownership and property documentation, and awaits approval before starting work. The grant then reduces the installer's price to the homeowner rather than being paid out separately.

Check current eligibility and grant values on GOV.UK or Ofgem before getting quotes, get more than one MCS-certified installer to quote, and remember that it is the installer, not the homeowner, who submits the application and receives the grant as a discount.