BUS Grant Eligibility Update: £9,000 Grant for Oil & LPG Homes
The Government has implemented a significant change to the Boiler Upgrade Scheme (BUS). From 21 July 2026, eligible homeowners in England and Wales who heat their off-gas grid homes with oil or LPG could receive a £9,000 Boiler Upgrade Scheme grant towards an air source or ground source heat pump installation.
For homeowners, this means a larger contribution towards the cost of switching to a heat pump.
For installers, it represents an opportunity to help more customers take advantage of the improved BUS grant, while growing your heat pump business.
What Has Changed to BUS Grant Eligibility?
Following a Government announcement supporting households and small businesses affected by rising oil prices, the Department for Energy Security & Net Zero (DESNZ) has confirmed an increase to the Boiler Upgrade Scheme grant for certain off-gas grid properties.
The change applies specifically to properties:
Heated by heating oil
Heated by liquefied petroleum gas (LPG)
Located in England or Wales
Not connected to the gas grid
From 21 July 2026, eligible installations can receive:
£9,000 towards an air source heat pump
£9,000 towards a ground source heat pump
All other properties that meet the existing Boiler Upgrade Scheme eligibility criteria continue to qualify for the standard £7,500 grant.
Importantly, this uplift only applies to new voucher applications submitted on or after 21 July 2026. Existing BUS vouchers will remain at their original grant value; however if you’re eligible for the uplift you can cancel your old voucher and re-apply for a new one at the higher value.
Why Is the Government Increasing the Grant?
Many homes outside the gas network rely on oil or LPG for heating. These fuels can be expensive, subject to global price fluctuations and produce higher carbon emissions than heat pumps powered by electricity.
Increasing the grant helps reduce the upfront cost of replacing older heating systems, making heat pumps more financially attractive for rural homeowners who have traditionally faced higher heating costs.
For installers, this change is expected to encourage more enquiries from homeowners who previously felt the investment was out of reach.
Who Qualifies for the £9,000 Boiler Upgrade Scheme Grant?
Not every property will qualify, so it's important that installers understand the updated eligibility requirements before discussing the grant with customers.
To qualify, the property must be:
Located in England or Wales
An existing property (not a new build)
Off the gas grid
Without a mains gas meter
Heated by oil or LPG
Not connected to a heat network
Installing an eligible air-to-water or ground source heat pump
The following technologies do not qualify for the increased grant:
Biomass boilers
The Boiler Upgrade Scheme application requires confirmation that the property is off the gas grid and currently heated by oil or LPG. When installers partner with us through our MCS Umbrella Scheme, we'll handle these checks and manage the application on your behalf, giving you one less thing to worry about.
What This Means for Homeowners
For homeowners currently relying on heating oil or LPG, this announcement could significantly reduce the cost of switching to renewable heating.
With the grant increasing to £9,000, the gap between traditional heating systems and a heat pump becomes even smaller.
On top of that, the potential benefits include:
Reduced dependence on volatile oil and LPG prices
Improved home comfort
Lower carbon emissions
Increased property appeal as energy efficiency becomes increasingly important
When you choose us to install your heat pump, we deduct the full value of the BUS grant from your quotation upfront. Whether your grant is £7,500 or £9,000, you only pay the remaining installation cost.
If you're considering replacing an ageing oil or LPG boiler, now is a great time to explore your options. We can assess whether your property is suitable for a heat pump, check your eligibility, and guide you through the grant process from start to finish.
What This Means for Heat Pump Installers
For installers, this announcement is likely to generate increased demand from rural homeowners looking to take advantage of the available grant funding.
Customers who previously hesitated because of installation costs may now be ready to move forward.
However, installers still need to understand which properties qualify under the updated rules and ensure every installation meets the requirements. That's where we can help.
How Our MCS Umbrella Scheme Can Help
For many heating engineers, the biggest barrier to installing heat pumps isn't the installation itself. It's the time, cost and complexity of becoming MCS certified.
Our Umbrella Scheme removes that barrier, giving you a straightforward way to offer MCS-compliant heat pump installations while providing your customers with access to Boiler Upgrade Scheme funding.
When you work with us, we'll support you every step of the way. From confirming grant eligibility and managing the BUS application to reviewing documentation and ensuring every installation meets MCS requirements, our experienced team takes care of the compliance so you can focus on delivering a high-quality installation.
We also remove the financial burden of waiting for the grant to be paid. We deduct the full value of the Boiler Upgrade Scheme grant from our quotation upfront, meaning homeowners only pay the remaining balance rather than funding the grant amount themselves. For installers using our MCS Umbrella Scheme, we absorb the cash flow impact, so you don't need to fund the grant value while waiting for the voucher to be redeemed.
By partnering with Alto Energy, you can also:
Access our system design, supply and commissioning service
Offer customers access to the Boiler Upgrade Scheme
Deliver MCS-compliant heat pump installations with confidence
Reduce the time spent on paperwork and compliance
Benefit from our expert technical and administrative support
Grow your heat pump business without the immediate need for your own MCS certification
Whether you're installing your first heat pump or looking to expand your offering, our heat pump umbrella scheme provides a practical, supported route into the market.
Final Thoughts
The increase in BUS grant eligibility for eligible oil and LPG homes is welcome news for both homeowners and installers.
For rural households, the additional funding makes switching to a heat pump more affordable than ever before. For installers, it represents an opportunity to grow your renewable heating business as more customers become eligible for financial support.
If you're a heating engineer looking to offer heat pump installations without becoming independently MCS certified, our heat pump umbrella scheme can help you access the Boiler Upgrade Scheme and deliver compliant installations.
Likewise, if you're a homeowner with an oil or LPG heating system and want to know whether you could benefit from the new £9,000 grant, we can help you understand your eligibility and what the scheme could mean for your home.
Whether you're an installer or a homeowner, get in touch with our team today to discuss your options and find out more about our services.