Boiler Upgrade Scheme Eligibility: Check Who Can Apply and Save on Heating
If you’re a homeowner or run a small business in England or Wales facing rising heating costs, you could be eligible for the Boiler Upgrade Scheme. This guide explains Boiler Upgrade Scheme Eligibility, who can apply, and how to claim grants of £7,500 for heat pumps or £5,000 for eligible biomass boilers—helping you cut your bills while upgrading to low-carbon heating.
Overview of the Boiler Upgrade Scheme (BUS)
The BUS is a government heat pump grant programme launched in May 2022, designed to support the decarbonization of homes and small non-domestic buildings. The scheme aims to replace fossil fuel heating systems with more sustainable, low-carbon technologies. Ofgem acts as the scheme administrator, overseeing the process of publishing guidance, processing voucher applications, and making payments to the installers. The scheme is currently planned to run until December 31, 2027.
A key benefit of the BUS, aside from the grant itself, is the 0% VAT rate on the installation of energy-saving materials, including heat pumps and biomass boilers, which is in effect from April 1, 2022, until March 31, 2027. The grants provided through the scheme are structured as upfront capital grants, meaning the installer applies for the voucher on your behalf, and the grant value is immediately deducted from the total installation cost.
Key UK Boiler Upgrade Scheme Eligibility Criteria
A stringent set of criteria defines who is eligible for boiler upgrade scheme funding, based on the property type, ownership, location, and the system being replaced. Meeting these core requirements is mandatory for a successful application:
Property and Ownership Requirements: To establish boiler upgrade scheme eligibility, you must own the property, which can be a residential home or a small non-domestic building located in England or Wales. Eligible owners include owner-occupiers, second homeowners, and private landlords who rent out properties to tenants.
Excluded Properties and Previous Funding: Crucially, grants are not available for most new-build properties, social housing, or properties that have already received government funding for a heat pump or biomass boiler.
Replacing Fossil Fuel Systems: A core requirement for eligibility for boiler upgrade scheme funding is that the new system must entirely replace an existing fossil fuel-based heating system or an electric system that does not include a heat pump. Fossil fuel systems include those running on oil, gas, LPG (liquefied petroleum gas), or coal.
Energy Performance Certificate (EPC) Requirements and Insulation: For retrofit properties, a valid Energy Performance Certificate (EPC) must be provided at the voucher application stage. An EPC is valid for 10 years. Historically, the EPC had to show no recommendations for loft or cavity wall insulation.
The Self-Build Route: While new builds are generally excluded, self-build properties are eligible for BUS funding for heat pumps (but notably, biomass boilers are not eligible in self-builds). An eligible self-build is one constructed primarily using the labor or resources of the first owner and has never been owned by a company or developer. To prove this boiler upgrade scheme’s eligibility under the self-build route, the installer must provide supporting evidence on behalf of the property owner.
Specific Eligibility Details by Technology
The grant amounts and criteria differ based on whether you choose a heat pump or a biomass boiler, reflecting varying environmental impacts and geographical suitability.
Heat Pumps (ASHP and GSHP): Air source, ground source, and water source heat pumps are eligible for the £7,500 grant. Heat pumps must use electricity to drive the compressor. The installed system must be hydronic (using a liquid to distribute heat, such as radiators or underfloor heating). It must be capable of meeting the full heating and hot water demands of the property.
Biomass Boilers: Biomass boilers (typically burning wood pellets or chips) are eligible for a £5,000 grant, but only under highly restricted circumstances. The UK boiler upgrade scheme eligibility for biomass is limited by three critical conditions:
Off the Gas Grid: The property cannot be connected to the mains gas network. This exclusion applies even if the gas supply has been capped or clamped.
Rural Location: The property must be located in a rural area, defined by the Office for National Statistics (ONS) as being outside settlements with populations exceeding 10,000 people.
Emissions Certificate: The biomass boiler must have a valid emissions certificate demonstrating that emissions of particulate matter and NOx are kept below prescribed limits. As noted above, biomass boilers are explicitly ineligible for support in self-build properties.
The Installer-Led Application Process and Deadlines
The Boiler Upgrade Scheme is intentionally an ‘installer-led’ scheme to simplify the administrative burden for property owners.
Finding and Engaging an MCS-Certified Installer: The first step is selecting an installer who is certified by the Microgeneration Certification Scheme (MCS).
The Application and Property Owner Consent: The installer confirms the property meets all eligibility for the boiler upgrade scheme, provides a quote, and applies for the grant voucher via the Ofgem portal.
Critical Deadlines and Adhering to the 120-Day Commissioning Rule: Timeliness is critical for maintaining boiler upgrade scheme eligibility. The installer must ensure that the eligible system is fully commissioned (i.e., installed and operational) within 120 days of the date the voucher application is properly made.
Enhancing Savings with Energy Storage and Solar
While replacing an old boiler secures your grant, maximizing the efficiency of your new heat pump—which runs on electricity—requires a forward-thinking energy strategy.
Integrating Solar Battery Storage to Offset Electricity Costs
Heat pumps offer superior efficiency compared to fossil fuels, but their running costs are tied to fluctuating electricity prices. The most effective countermeasure is the integration of solar battery storage. Solar PV systems generate free energy during the day, and when paired with batteries, any excess energy is stored instead of being exported to the grid immediately. This stored, clean energy can then be utilized to run the electric heat pump when the sun isn't shining or during expensive peak tariff periods. This maximizes the self-consumption of renewable power, which is essential for maximizing savings.
Assessing Solar Battery Storage Cost and Value in the UK
The initial solar battery storage cost in the UK varies, typically ranging from £3,000 to £10,000 for a residential system in 2025. For a typical 5kWh system, installation alongside a new solar system generally costs between £2,500 and £4,000. This investment is made more attractive by the 0% VAT rate on energy-saving materials, including solar batteries, until March 2027. The long-term savings, potentially leading to near-zero electricity bills, result in an average payback period of between 5 and 12 years. Advanced systems featuring "peak-valley scheduling" and smart energy management, such as the EcoFlow STREAM Series, further enhance value by intelligently distributing power based on real-time tariffs, driving greater energy autonomy.
Advanced Power and Off-Grid Solar System Components
For property owners aiming for greater energy independence or robust protection against grid failures, adopting an off-grid solar system strategy is the next logical step. These decentralized solutions ensure a continuous power supply, which is critical for operating modern electric heat pumps during blackouts. A typical residential off-grid solar system in the UK can cost between £10,000 and £20,000, covering panels, battery storage, and necessary hardware.
Modern solar and storage solutions emphasize ease of use and safety. The EcoFlow STREAM Ultra + STREAM AC Pro package offers a plug-and-play approach, integrating energy storage and a built-in microinverter into one hybrid system. These systems are designed to be safe to use and offer long-lasting power through durable LFP battery technology. This makes them ideal partners for BUS-funded heat pumps, ensuring that the heavy power demands of the heating system are met reliably, even when the grid is compromised.
For households requiring substantial solar capacity, the EcoFlow STREAM Ultra Home Solar Battery + 4×450 W Rigid Solar Panel package provides enhanced solar capture and storage. This setup delivers high-performance coverage for your home while offering backup power, helping you maximise self-generated energy and further reduce reliance on the grid.
With these solutions, modern solar and storage technology not only supports sustainable energy usage but also ensures that homes remain comfortable and fully powered, even under the heaviest electrical loads.
Conclusion
The UK Boiler Upgrade Scheme provides a vital lifeline to homeowners and small businesses, offering financial support of up to £7,500 to cover part of the cost of low-carbon heating systems. This substantial support reduces the high initial investment criticized by many, making the path toward net-zero heating far more accessible. Understanding who is eligible for boiler upgrade scheme funding, particularly the relaxed insulation requirements and the need to replace a fossil fuel system, is the first crucial step. By partnering with an MCS-certified installer, the complex administrative burdens are managed on your behalf.
FAQs
Is the Boiler Upgrade Scheme worth it?
Yes, the Boiler Upgrade Scheme can be worthwhile for homeowners and landlords in England and Wales. It provides up to £7,500 for heat pumps or £5,000 for biomass boilers, helping offset upfront costs. Combined with energy savings, reduced carbon emissions, and the 0% VAT on energy-saving materials, it can make low-carbon heating more affordable and environmentally friendly.
How long will the Boiler Upgrade Scheme last?
The scheme was launched in May 2022 and is currently planned to run until 31 December 2027, giving eligible property owners over five years to apply. Timely applications are essential, as the scheme operates on a first-come, first-served basis through certified installers.
How quickly must the installation be completed after applying?
The installation must be commissioned by your MCS-certified installer within 120 days of the grant application being properly made. If this deadline is missed, the application will not be eligible. Once the voucher is issued, installers typically have three months (ASHP/biomass) or six months (GSHP) to redeem it after commissioning.
Can I receive funding if I’m installing a system in a new-build house?
Most new-build properties are ineligible for the scheme. However, eligible self-build properties (houses built mainly using the owner’s labor or resources and never owned by a business) are eligible for heat pump funding, though they cannot receive grants for biomass boilers.