What is the Boiler Upgrade Scheme?

The Boiler Upgrade Scheme (BUS) will launch in spring 2022 (1st April) to aid the decarbonisation of buildings. It will provide upfront capital grants to support the installation of heat pumps, and in some circumstances biomass boilers, in homes and some non-domestic buildings. The BUS will be open to properties located in England and Wales.

New grants of £5,000 will be available from April next year to encourage homeowners to install more efficient, low carbon heating systems – like heat pumps that do not emit carbon when used – through a new £450 million 3-year Boiler Upgrade Scheme. These grants mean people choosing to install a heat pump will pay a similar amount as if they were installing a traditional gas boiler.

The £450 million Boiler Upgrade Scheme is part of more than £3.9 billion of new funding being announced today by the government for decarbonising heat and buildings. This will fund the next 3 years of investment through the Social Housing Decarbonisation Fund, the Home Upgrade Grant scheme, the Boiler Upgrade Scheme and the Heat Networks Transformation Programme and reducing carbon emissions from public buildings through the Public Sector Decarbonisation Scheme.

The government and industry will also work together to help meet the aim of heat pumps costing the same to buy and run as fossil fuel boilers by 2030, with big cost reductions of between a quarter and a half by 2025 expected as the market expands and technology develops.

This will support the government’s new target for all new heating systems installed in UK homes by 2035 to be either using low-carbon technologies, such as electric heat pumps, or supporting new technologies like hydrogen-ready boilers, where we are confident we can supply clean, green fuel.

No-one will be forced to remove their existing fossil fuel boilers, with this transition of the next 14 years seeing the UK’s households gradually move away from fossil fuel boilers in an affordable, practical and fair way, enabling homeowners to easily make these green choices when the time comes to replace their old boiler.

The £5000 (£6000 for Ground Source) grant will be available to anyone looking to upgrade their existing fossil fueled boiler to an Air or Ground Source Heat Pump and will reduce the upfront capital cost as a result. The grant is also available to new build, self builds as the push for renewable technology continues. 

The Grant is not eligible to anyone that already has an Air Source or Ground Source Heat Pump and wish to upgrade to a newer model. Housing developers are also ineligible to apply for grants under the scheme.

HeatSource Energy Solutions Ltd are delighted to hold all the necessary certifications and registrations to enable us to offer

Air and Ground Source Heat Pumps under the new Boiler Upgrade Scheme (BUS). If you are interested in the scheme and would like to enquire further, please give us a call on 01978 228110 or email us at