The Boiler Upgrade Scheme Grant Explained

Mitsubishi Ecodan air source heat pump installation

What is the Boiler Upgrade Scheme grant?

The Boiler Upgrade Scheme, often shortened to BUS, is a government grant designed to help homeowners and businesses move away from fossil fuel heating systems and install low carbon alternatives such as heat pumps.

The scheme is managed by Ofgem and funded by the Department for Energy Security and Net Zero (DESNZ). It is available in England and Wales and is currently set to run until 2030.

Under the scheme, eligible properties can receive a £7,500 grant towards the cost of installing a heat pump.

At Alto Energy, we manage the entire Boiler Upgrade Scheme grant process and take care of the full application for you. As an MCS accredited installer, we apply for the voucher directly through Ofgem and deduct the grant from your final quotation.

How much is the grant worth?

The current grant values are as follows:

Alto Energy Air Source Heat Pump Icon

Air Source Heat Pump
Grant £7,500

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Alto Energy Ground Source Heat Pump Icon

Ground Source Heat Pump
Grant £7,500

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The grant is not paid directly to the property owner. Instead, we apply for the voucher and redeem it after the installation has been completed and commissioned.

This means the grant is deducted from your project cost upfront.

Who is eligible?

The Boiler Upgrade Scheme is available for existing domestic and non-domestic properties in England and Wales.

The scheme supports:

  • Homeowners
  • Self-build properties
  • Private landlords
  • Small commercial buildings
  • Rural businesses
  • Offices and light commercial premises

To qualify for the grant, the property must:

  • Be located in England or Wales
  • Replace an existing fossil fuel heating system
  • Use an eligible heat pump system
  • Have a heating capacity of 45kW or less
  • Be installed by an MCS certified installer

The scheme does not apply if you are replacing an existing renewable heating system such as another heat pump.

What technologies are covered?

The Boiler Upgrade Scheme currently supports:

Both systems are designed to provide efficient low carbon heating and hot water for homes and businesses.

Are air-to-air heat pumps eligible?

Air-to-air heat pumps have now been added to the Boiler Upgrade Scheme framework, however there is an important limitation to be aware of.

Bosch air-to-air heat pump system

At present, MCS accreditation for air-to-air heat pump systems is still being developed. Until the accreditation process is fully in place, installers cannot yet access Boiler Upgrade Scheme funding for these systems.

The government has indicated that eligible air-to-air heat pump installations are expected to qualify for a £2,500 grant once the MCS accreditation pathway becomes available.

This remains an evolving area of the scheme, and guidance may continue to change as the accreditation process develops.

What properties are not eligible?

Some properties and heating systems are excluded from the Boiler Upgrade Scheme.

The following situations are not eligible:

  • Hybrid systems with a fossil fuel boiler
  • Replacing an existing renewable heating system
  • Social housing properties
  • Systems larger than 45kW

If you are unsure whether your property qualifies, we can advise during the early stages of the project.

Is the Boiler Upgrade Scheme available in Scotland?

No. The Boiler Upgrade Scheme is only available in England and Wales.

Properties in Scotland are covered by separate funding schemes, including support through Home Energy Scotland.

Although the schemes are different, Scottish homeowners can still access grants and loans for heat pump installations.

Alto Energy works with customers in Scotland and can advise on the funding options currently available for air source and ground source heat pumps.

Can landlords apply?

Yes. Private landlords can apply for the Boiler Upgrade Scheme for eligible rental properties.

Many landlords are now looking at heat pumps as part of wider energy efficiency improvements and future compliance planning.

The property must still meet the standard BUS eligibility rules and cannot be social housing.

Heat pumps can also help improve EPC ratings, which is becoming increasingly important in the private rental sector.

Alto Assured partner installers carrying out a Samsung heat pump installation

Can businesses apply?

Yes. The Boiler Upgrade Scheme is available for small non-domestic buildings and businesses for retrofit projects only.

This includes:

  • Offices
  • Workshops
  • Small commercial units
  • Farms
  • Rural businesses

The system must still be under 45kW in capacity and meet the technical requirements set out by Ofgem.

Commercial heat pump systems can help businesses reduce running costs and lower carbon emissions over time.

What documents do you need?

At Alto Energy, we manage the entire Boiler Upgrade Scheme grant process and take care of the full application, but there are still some documents and details required from you during the application process.

These may include:

  • Proof of property ownership
  • Details of the existing heating system, if applicable
  • EPC information if available
  • Planning permission documents where required

Relaxation of EPC Requirement — Previously, retrofit projects always needed a valid EPC at the point of applying for the BUS grant. This is no longer a requirement. Applications are still easier with a valid EPC, but there is now an alternative route where other evidence of the existing heating system can be submitted to support a BUS grant application.

The Boiler Upgrade Scheme grant process

The Boiler Upgrade Scheme grant process is managed by the MCS installer. At Alto Energy, we support customers through every stage, from the initial enquiry through to final commissioning.

1

Initial Quotation

We provide an outline quotation based on your property and heating requirements.

2

Heat Loss Survey

Full heat loss assessment and MCS-compliant system design for your property.

3

Final Quotation

After design completion, we issue the final quotation for your approval.

4

BUS Application

We apply for the Boiler Upgrade Scheme voucher directly with Ofgem.

5

Installation

We arrange delivery and professional installation with final commissioning.

6

Voucher Redemption

Grant is redeemed through Ofgem and deducted from your final invoice.

Recent changes to the scheme

Previously, the heat pump was required to provide all space heating and domestic hot water. It is now possible for other "supplementary heaters" to provide domestic hot water and to supply space heating to specific rooms or areas. Any supplementary heater must be either a renewable or direct electric heat source. It cannot, under any circumstances, be a fossil fuel system.

A common example of this rule change is the use of an electric towel rail in a bathroom. This was previously considered not allowed, but it is now permitted.

Speak to Alto Energy about eligibility

Alto Energy specialises in designing heat pump systems for homeowners, landlords and businesses throughout the UK. With years of experience and a nationwide network of trusted installation partners, we design each system and coordinate its installation. We also handle the Boiler Upgrade Scheme application process and guide you through every stage of your project.

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home energy scotland loan

What Is The Home Energy Scotland Loan?

The Home Energy Scotland Loan is a scheme funded by the Scottish Government to help homeowners finance the costs associated with the installation of a heat pumps and energy efficiency improvements. This is an interest-free loan, and cashback is available for eligible renewable heating systems.

What access to funding does the Scottish Government scheme provide?

  • Up to £15,000 to improve home energy efficiency.

  • Up to £17,500 for installing renewable energy systems, such as £10,000 for a heat pump (also available to self-builders).

  • Up to £6,000 for energy storage systems.

  • Up to £500 for installing a heat meter alongside a new heat pump.

There is also a cashback available for certain measures which means that you won’t need to pay back that portion of the funding.

To give you an idea of what the costs might look like, here is an example:

  • Receive up to £10,000 in funding for a heat pump.

  • Up to £7,500 could be cashback (75%).

  • Choose the loan period (this will depend on the amount borrowed).

  • Pay back the remaining interest-free loan of £2,500 over a maximum of 5 years.

What Is Covered Under The Home Energy Scotland Loan?

The amount you can borrow will vary depending on the type of work being carried out and the work will fall under two categories:

  • Home energy efficiency funding - Up to £15,000 of funding available and covers measures such as insulation and heating systems (gas boilers, warm air units and high heat retention electric storage heaters).

  • Home renewables systems - Up to £17,500 of funding available and covers wind and hydro turbines, solar (PV) and water heating systems, and more.

If you are looking to have a heat pump installed, this is classed as a home renewable system and means you are eligible for up to £10,000 in funding. Of the £10,000, up to 75% can be claimed as cashback. The size of the loan available will either be the total cost of the heat pump installation or the maximum value available for that measure, whichever is less. For example, if a heat pump costs £7,500, then £7,500 is the maximum funding available.

Homeowners or business will receive a grant of £5,000 for installing an air source heat pump, or £6,000 for installing a ground source heat pump. As an MCS accredited installer, Alto Energy will administer the grant with Ofgem on your behalf, and deduct the full grant amount from your quotation. In this way, the amount you pay upfront for your heat pump will be much closer to the amount you would pay for a traditional fossil fuel system, making it easier for you to access the significant carbon savings and running cost savings.

How Do I Get The Home Energy Scotland Loan?

If you’d like to apply for the Scottish Government loan, here are the steps you should follow:

  1. Speak to a Home Energy Scotland advisor for free and impartial advice (0808 808 2282).

  2. Check your home energy efficiency and the suitability of a heat pump for your property. This is something we can help you with.

  3. Review your Energy Performance Certificate (EPC) and look for any work that needs to be completed before claiming loan funding. A Home Energy Scotland advisor can discuss your EPC with you and offer advice. You may be able to apply for loan funding (with cashback available) for any measures recommended on your EPC.

  4. Gather at least 3 quotes from MCS-registered installers like Alto Energy.

  5. Complete the Home Energy Scotland Loan online application form and provide any relevant supporting documents.

  6. Once the online application has been completed and a loan has been approved, Home Energy Scotland will send you a written loan offer. Work must only commence after you have received a written loan offer from Home Energy Scotland and must be completed within six months of receiving the offer.

  7. Once all work has been completed, submit your claim documents as well as your updated EPC. The updated EPC must show that all energy efficiency improvements have been completed and that a heat pump has been installed.

Any Questions?

If you have questions about the Home Energy Scotland Loan, please do not hesitate to get in touch with our team.

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What is the connected for warmth programme?

The Connected for Warmth programme is a government-backed scheme, funded by National Grid and administered by Affordable Warmth Solutions offering fully-funded air source heat pumps to eligible households across England and Wales. It’s designed to help households that need it most by providing low-carbon heating systems and improving energy efficiency. If you’re eligible, it covers the full cost of the heat pump, installation, and any necessary property upgrades, with nothing to pay as the homeowner.

The goal is to help households reduce their energy bills, move away from fossil fuel heating, and cut carbon emissions. If you meet the criteria, you could receive a brand new, energy-efficient heat pump system at no cost to you.

Connected for Warmth free heat pump eligibility
Connected for Warmth free heat pump eligibility

Our engineer completes the handover of a Samsung heat pump to a customer, as part of the Connected for Warmth programme.

connected for warmth eligibility

You may qualify for a free air source heat pump if both you and your property meet the scheme’s requirements. To qualify for support, you’ll need to meet all three of the following criteria.

  • Income based Jobseekers Allowance (JSA)
  • Income related Employment and Support Allowance (ESA)
  • Income Support
  • Pension Credit Guarantee Credit (PGGC)
  • Pension Credit Savings Credit (PCSC)
  • Universal Credit (UC)
  • Housing Benefit
  • Child Tax Credit (CTC)

OR

Your total household income from all sources is under £31,000

You meet a combination of these criteria:

  • Live in a Low Super Output Area (LSOA) or a Data Zone 1–3 (England, Wales, Scotland)
  • Your household receives a Council Tax reduction (low income)
  • Your household is vulnerable to living in a cold home as identified in the NICE guidance
  • A child in your household receives free school meals due to low income
  • Your household was referred under a Local Authority run scheme
  • Your household was referred for support by your energy supplier or Citizens Advice

Please note: combination 1 & 3 cannot be used together

OR

You have an NHS referral confirming someone in your household has a severe and/or long-term health condition that could be severely impacted by living in a cold home. This may include:

  • A cardiovascular condition
  • A respiratory disease
  • Limited mobility
  • Immunosuppression

At least one of the following must apply to your household:

  • A person living in the home has a chronic health condition
  • There is a child in school years 3 to 7 in the household who receives free school meals
  • At least one resident in the property is aged 70 or more
  • You either own and live in your property, or you privately rent it with your landlord’s approval to apply.
  • If renting privately, your property must not have a gas boiler or air source heat pump now or at any time in the past.
  • Your property has an electric credit meter or smart meter, or you agree to have one installed.
  • Before installation, the property should have an EPC with a rating of D, E, F, or G.

Trusted by homeowners across the UK

Alto Energy is proud to be a delivery partner for the Connect for Warmth scheme, managing the full installation process from assessment to commissioning. When you choose Alto Energy to install your heat pump through the programme, you're in safe hands. We’ve been delivering installations under this scheme since the pilot launched in 2022, so we know exactly what’s needed to make sure everything runs smoothly from start to finish.

Our team is here to take care of the whole process for you. We’ll check your eligibility, carry out detailed surveys and make sure your new heat pump is perfectly matched to your home. Every system we install is designed to work efficiently and reliably, and meets all the standards set out by the scheme.

We’re fully MCS-certified, so you can trust that your heat pump installation meets the highest industry standards. Plus, our support continues long after your system is up and running, ensuring your heating system stays efficient and reliable. As part of the Connected for Warmth scheme, your first service is completely free and is carried out by one of our experienced Alto Energy engineers. We’ll also contact you to schedule the service at a convenient time.

Connected for Warmth Frequently Asked Questions

What is a heat pump system?

A heat pump system is an energy-efficient way to heat your home. It works by capturing heat from the air outside and using it to warm your home and hot water. Even in cold weather, it can provide reliable heating while using far less energy than traditional systems like gas boilers. Heat pumps are low-carbon and can help reduce your energy bills over time.

What is the connected for warmth scheme?

Connected for Warmth is a fully funded, government-backed scheme that provides free energy efficiency upgrades to eligible households. It offers low-carbon heating systems, such as air source heat pumps, along with any required property improvements to ensure the system runs efficiently. The scheme is administered by Affordable Warmth Solutions and supported by National Grid, with no cost to the homeowner if eligible.

Is Connected for Warmth Legitimate?

Yes, Connected for Warmth is a legitimate scheme backed by the UK government and National Grid. It is administered by Affordable Warmth Solutions, a trusted organisation that has helped thousands of households across the UK improve their energy efficiency. All installations are carried out by certified professionals, and there’s no cost to eligible homeowners.

Check if you qualify for the Connected for Warmth scheme

Want to know if you're eligible for a free heat pump system through the Connected for Warmth programme? Simply complete the form below.

 

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