The Boiler Upgrade Scheme (BUS)
The UK government's Boiler Upgrade Scheme provides grants of £7,500 for air source heat pumps and £7,500 for ground source heat pumps. This significantly reduces the upfront cost of installation.
To qualify, you must use an MCS-certified installer, meet minimum efficiency standards (SCOP of 2.8 or higher), and have an EPC rating with no outstanding recommendations for loft or cavity wall insulation.
How to Apply
You don't apply directly for the BUS grant. Instead, your chosen installer applies on your behalf during the installation process. The grant is deducted from your invoice, so you only pay the reduced amount.
The application process typically takes 2-4 weeks, and your installer will guide you through the required documentation.
Additional Regional Support
Scotland offers the Home Energy Scotland Grant and Loan scheme, providing up to £7,500 in grants plus interest-free loans. Wales has the Nest scheme for eligible households. Northern Ireland offers grants through the NI Sustainable Energy Programme.
Energy Company Obligation (ECO4)
Low-income households may qualify for additional support through ECO4, which can cover the full cost of heat pump installation plus necessary insulation improvements. Check eligibility based on your benefits status and property EPC rating.
Tax Benefits for Rental Properties
Landlords can claim the full installation cost as a revenue expense for tax purposes, rather than treating it as a capital improvement. This can result in significant tax savings.
