Expanded Boiler Upgrade Scheme
We recently wrote an article following the Government’s November 2025 Budget, where we confirmed that the Boiler Upgrade Scheme was set to continue supporting heat pump installations. Following on from this, the Department for Energy Security and Net Zero (“DESNZ”) recently issued a wider update on the Boiler Upgrade Scheme generally, which contained some exciting updates.
What Is The Boiler Upgrade Scheme?
The Boiler Upgrade Scheme is a £7,500 grant which supports homeowners and self-builders installing heat pumps into their homes. The £7,500 is deducted directly from the cost of installing a heat pump, thereby making the decision to go with a heat pump even easier. The strategic goal for the scheme is to enable the UK’s switch away from fossil fuels – for which we are increasingly reliant on foreign imports – to clean electrical heating, powered by home-generated renewable and nuclear energy.
So far, the Boiler Upgrade Scheme has supported over 64,000 installations of low carbon heating systems, up to September 2025.
Long Term Commitment
Following the conclusion of the Spending Review earlier in the year, DESNZ announced that the Boiler Upgrade Scheme will be extended until at least 2030, with the amount of funding available for the scheme increasing each year. This long-term, increasing commitment shows a clear statement of intent to increase the size of the heat pump market over the next 5 years.
Expanded Scheme
A number of other changes have been announced which will expand the scope and impact of the scheme:
New Technologies
The scheme will soon be widened to incorporate air-to-air heat pumps, with a £2,500 grant available for such installations. This is quite exciting, as air-to-air heat pumps can be an ideal space heating (and cooling) solution for smaller properties. The scheme rules and associated MCS standards for this technology all need to be written and implemented, so we don’t expect this change to happen until the end of 2026.
The grant will also be widened to support the installation of heat batteries, again with a value of £2,500. Again, all the relevant MCS standards and grant legislation need to be written and approved before this can happen, and so the expectation is that this will start in 2026-27.
EPC Requirement
The requirement to provide a valid Energy Performance Certificate (“EPC”) will be relaxed from 2026/27 onwards. The purpose of this is simply to reduce an unnecessary barrier to entry.
Conclusion
Boiler Upgrade Scheme applications have continued to rise, who the popularity of the scheme. The changes announced by DESNZ are designed to enable the number of heat pumps installed to continue to grow. Here at Alto Energy, we’re in the top 5 installers operating within the Boiler Upgrade Scheme, meaning we have all the necessary skills and experience to guide customers through the process.
MCS Umbrella Scheme
If you want to install MCS accredited heat pumps and help your customers access funding like the Boiler Upgrade Scheme, our Alto Assured MCS Umbrella Scheme is the perfect solution. We’ll handle all the MCS paperwork and compliance for you, and our expert team will also design, supply, and commission the system, so you can focus entirely on the installation.