Upgrade to Green Heating: The UK government’s Boiler Upgrade Scheme (BUS) is back in the headlines — and for good reason. With soaring energy costs and climate change pushing households towards green options, the £7,500 grant to upgrade to green heating systems could be the cash boost your house needs.
This scheme allows you to save money, reduce emissions, and boost energy efficiency — but only if you act before money runs out.
Switch to Eco-Friendly Heating
| Feature | Details |
|---|---|
| Grant Amount | Up to £7,500 for air and ground source heat pumps |
| Bonus Grant | £5,000 for biomass boilers (off-gas-grid only) |
| Eligible Locations | England and Wales |
| Who Can Apply | Homeowners, landlords, and small businesses |
| Valid Until | 31 December 2027 (or until funds are exhausted) |
| Certification Required | Valid EPC and MCS-certified installer |
| Official Website | gov.uk/apply-boiler-upgrade-scheme |
The Boiler Upgrade Scheme is not just a grant — it’s a gateway to lower bills, a warmer home, and a cleaner planet. With the £7,500 grant, the switch to renewable heating has never been more affordable. But don’t wait — grants are limited and applications are accepted on a first-come, first-served basis.
Why the £7,500 Heating Grant Is a Big Deal in 2025
Space heating accounts for nearly 14% of UK carbon emissions, most of which are due to in-efficient gas and oil boilers. The Boiler Upgrade Scheme meets this partly by promoting a switch to air source heat pumps, ground source heat pumps, and biomass boilers, to be funded to cover most of the installation price.
By making the scheme simpler and eliminating requirements for insulation in 2024, the government made the scheme more accessible than ever.
Types of Eco-Friendly Heating Qualifying for the Grant
Air Source Heat Pump
- How it works: Extracts heat from the air.
- Cost: £8,000–£14,000
- Grant: £7,500
- Suitable for: Urban and suburban homes
Ground Source Heat Pump
- How it works: Draws heat from the ground using buried pipes.
- Cost: £14,000–£24,000
- Grant: £7,500
- Suitable for: Homes with large gardens or land
Biomass Boiler
- How it works: Burns organic material like wood pellets.
- Cost: £10,000–£20,000
- Grant: £5,000
- Suitable for: Rural, off-grid homes
Eco Heating vs Traditional Gas Boiler (Comparison Table)
| Feature | Eco Heating (Heat Pump/Biomass) | Gas Boiler |
|---|---|---|
| Carbon Emissions | Low to zero | High |
| Running Cost | Lower long-term | Rising with fuel prices |
| Installation Cost | High upfront (covered by grant) | Lower |
| Maintenance | Annual checkup | Annual checkup |
| Lifespan | 20–25 years | 10–15 years |
| Government Grant | Up to £7,500 | Not available |
Who qualifies for the BUS Grant?
You do if:
- You live in England or Wales
- You own the property (including landlords)
- You are replacing a fossil fuel boiler (electric, gas, oil, LPG)
- Your home has an existing EPC
- You hire an MCS-approved installer
Step-by-Step Guide: How to Apply For New £7,500 Grant
1. Find a Certified Installer
Use mcscertified.com to find local installers.
2. Get a Site Assessment & Quote
A call will be made by an installer, visit your home, and recommend the most suitable system.
3. Acceptance of Grant Application
Your installer will make an application to Ofgem. You’ll just have to sign off.
4. Installation Completion
Approved, the system is fitted and you only pay the reduced price.
Checklist Before You Apply
You are the property owner
Property located in England or Wales
Existing fossil fuel heating system in use
Up-to-date Energy Performance Certificate
MCS installer selected
Environmental Benefits
Cutting carbon emissions by 2–4 tonnes a year per house when replacing gas with an air source heat pump, as asserted by Ofgem. In 20 years’ time that’s more than 40 tones — or the planting of 600+ trees.
Myth-Busting: Common Myths About Heat Pumps
“They don’t work in cold conditions.”
New heat pumps work efficiently down to -15°C.
“They’re noisy.”
Most pumps are quieter than an average fridge.
“They’re too costly.”
Not with a £7,500 grant — the majority of installations are now under £2,000 net.
Expert Advice
“Don’t delay – demand will be arriving soon, and even though the scheme continues until 2027, there is only so much money available. Get your fitter booked and get yourself surveyed earlier rather than be left disappointed.”
— Alex Green, Energy Specialist, UK Green Homes Alliance
Real-Life Case Study: John & Lisa’s Upgrade
John and Lisa in Oxford had a 20-year-old gas boiler that they replaced with an air source heat pump costing £11,500. They paid £4,000 after being awarded the £7,500 grant. Their energy bill was reduced by 32% after one year, and their home was warmer in winter.
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Can I combine BUS with other grants?
Yes — provided those other schemes do not subsidise heating installation either.
What if I live in a rented property?
Tenants are not eligible to apply, but landlords are. Discuss the scheme with your landlord.
Is the grant repayable?
No, the grant is non-repayable and paid to the installer directly.
What’s the typical waiting time for installation?
Following approval of application, installations typically take place within 2–4 weeks.
Is planning permission required?
Most installations do not require planning permission, but it’s worth checking with your local authority.