Government grants for heat pumps | A complete guide to the Boiler Upgrade Scheme (BUS)

01 July 2024 | OVO

Everything you need to know about the Boiler Upgrade Scheme. Including who’s eligible, and how you can get up to £7,500 off your heat pump installation.

What is the Boiler Upgrade Scheme (BUS)? 

The Boiler Upgrade Scheme (BUS) was launched by the government to make it more affordable to install low carbon heating systems. The scheme offers a grant of up to £7,500 to cover the cost of replacing heating systems that run on fossil fuels. This includes air source and ground source heat pumps, as well as biomass boilers for some off-grid properties.

The government used to offer support through the Renewable Heat Incentive, which ended in 2022. 

Who’s eligible for the BUS grant? 

You might be eligible for the grant if:

  • You’re replacing a fossil fuelled heating system with a renewable one. For example, a gas boiler replaced by a heat pump. 
  • You own the home you’re applying for. This also includes some business properties, second homes, or properties you rent out.
  • You’re applying for a property in England or Wales. 

Based in Scotland or Northern Ireland? Check the Energy Saving Trust for more information on what funding is available to you. 

Your home must also have a valid Energy Performance Certificate (EPC). You can check if it has an EPC here. If your home doesn’t have an EPC, you might be able to get one through an OVO Energy Expert visit. 

Good to know: The Boiler Upgrade Scheme was expanded in May 2024 to include more homes. From May, homes with an Energy Performance Certificate (EPC) that recommends insulation are also eligible.

Some homes aren’t eligible for funding, including:

  • Homes that have already had government funding for a heat pump or biomass boiler.
  • Social housing.
  • Most new build properties. But if you move into a finished new build with a fossil fuel heating system, you might be able to get the BUS grant. 

For full eligibility criteria, check the government website. 

How do I get the BUS grant? 

If you get a heat pump installed through OVO, your Heat Geek installer will apply for the Boiler Upgrade Scheme on your behalf. If you’re eligible, a grant voucher will be given to your installer when the heat pump’s up and running. The amount gets taken off your total costs.  

Is the Boiler Upgrade Scheme (BUS) grant still available in 2024?

Yes. The Boiler Upgrade Scheme is available until 2028.

OVO Engineer showing customers how to use heat pump with OVO app

Interested in saying goodbye to gas? Get your heat pump through OVO.

You can now get your heat pump installed through our exclusive partnership with Heat Geek. You’ll also unlock our free add-on, Heat Pump Plus, which gives you a better electricity rate for powering your heat pump. With a heat pump, you can save up to £150 a year on your heating bills compared to a gas boiler.1

Find out more and register your interest

Sources and references:

1 Savings of £150 are based on the following comparison: a gas boiler running at 90% efficiency (as per the national average for A-rated boilers) with an annual consumption of 11,500 kWh at 5.21p/kWh, and 77% of consumption used for heating and hot water, versus an air source heat pump with a Seasonal Coefficient of Performance (or efficiency rating) of 4 and an annual consumption of 1,992 kWh at 15p/kWh with the Heat Pump Plus add-on.