What is the Boiler Upgrade Scheme and How It Works

What is the Boiler Upgrade Scheme and How It Works
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There is always some hidden catch in most government grant programs. However, the Boiler Upgrade Scheme is one program that stands out from the crowd.

The Boiler Upgrade Scheme is a government scheme worth 2.7 billion pounds to be used in England and Wales for homeowners.

It provides a subsidy to replace heating systems using fossil fuels with newer heating systems using low-carbon fuels.

This article looks at what the program entails, who qualifies, and the cost after the government grant.

What the Boiler Upgrade Scheme Is

The Boiler Upgrade Scheme is a grant scheme implemented by Ofgem. This scheme provides you with a one-time payment towards replacing a gas boiler with a new low-carbon heat source.

As mentioned earlier, the new heat source will replace your current fossil fuel boiler.

  • The Boiler Upgrade Scheme is not the same as the ECO4 scheme.
  • The ECO4 scheme supports low-income families.
  • The Boiler Upgrade Scheme is different from this.
  • It does not consider your income level.
 

Therefore, whether you have an annual income of 20,000 pounds or 200,000 pounds, you can participate in the grant program.

The Boiler Upgrade Scheme is a government project that will allow many individuals in England and Wales to benefit financially from upgrading their old fossil fuel heating systems.

How Much You Can Get

The Boiler Upgrade Scheme is different from the ECO4 scheme because it does not matter how much money you make. You can make £20,000 or £200,000 per year. You will still be able to get the grant if you own a house that is eligible. 

Now you can get £7,500 for an air-to-water heat pump, £7,500 for a ground source heat pump, £5,000 for a biomass boiler, and £2,500 for an air-to-air heat pump.

Claim Your 7,500 Voucher Now

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Who Is Eligible for the Boiler Upgrade Scheme?

You need to be upgrading from a system such as fossil fuel heating, gas boiler, oil boiler, LPG, electric storage heaters, or coal, and it cannot be a newly built property. In addition to this, you will have to install through an MCS-certified installer.

Buildings that do not apply to this scheme include typical new builds from commercial builders, social housing projects, and buildings that have previously been funded by the government for the purpose of installing a heat pump or biomass boiler.

There is the possibility of self-built homes applying for this scheme as long as they fit the criteria of being considered a self-built home.

How the Boiler Upgrade Scheme Works: The Application Process

The Boiler Upgrade Scheme is run by installers. Do not make an application with Ofgem. The main things you have to do are select a certified installer, give correct details, and confirm your consent.

Step 1: Find an installer on the MCS register

You can use mcscertified.com. Your installer will survey your property, determine if your home is suitable for a heat pump installation, confirm that you qualify for the BUS, and give you a fixed-price quotation.

Step 2: The installer applies to Ofgem

If you accept the quote, your installer applies to Ofgem for the grant voucher on your behalf. You do not need to fill out complex government forms. 

Step 3: You give consent

Ofgem sends you an automated email. You click a secure link to confirm that you own the property and consent to the installer doing the work. 

Step 4: The voucher is issued

Ofgem typically issues vouchers within five working days. Vouchers are valid for three months. Ground source heat pump installations get six months, given the more complex groundworks involved. 

Step 5: Installation and payment

An air source heat pump installation takes two to three days; a ground source heat pump takes one to two weeks. Once the job is done, Ofgem pays the £7,500 directly into the installer’s bank account. 

The Bottom Line

The Boiler Upgrade Scheme is genuinely one of the more straightforward government grant programmes available to homeowners right now. No means-testing, no complex application, no repayment. You find a certified installer, they handle Ofgem, and the grant comes off your bill before you pay it.

The catch, if there is one, is timing. The scheme runs to March 2028, installer lead times are stretching, and budget availability isn’t unlimited. The structure is right. The grant amount is meaningful.

Frequently Asked Questions

Is the Boiler Upgrade Scheme a loan or a grant?

It’s a grant, non-repayable and paid upfront as a deduction from your installation invoice. You never receive the money directly; your MCS-certified installer claims it from Ofgem and passes the savings to you.

No. The scheme is entirely installer-led under Ofgem’s rules. Your MCS-certified installer submits the application, provides the eligibility evidence, and redeems the voucher.

Not always in the way you’d expect. The SAP methodology used to calculate EPC ratings has historically penalised electric heating because of legacy assumptions about grid carbon intensity.

These are separate schemes with separate eligibility criteria, but you cannot double-fund the same measure from two public sources. 

If ECO4 has already funded a heat pump at your property, the BUS is not available for further heat pump installation there.

Standard vouchers are valid for three months. Ground source heat pump vouchers run for six months, given the longer installation timeline. 

If your voucher expires before the work is complete, your installer will need to apply for a new one. This isn’t automatically granted and depends on scheme budget availability at the time of reapplication.