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The Boiler Upgrade Scheme explained

How much the grant is worth, what “off the gas grid” really means, and why the grant is a contribution rather than the whole cost.

The Boiler Upgrade Scheme is the main government grant for replacing a fossil-fuel boiler with a heat pump. It is run by Ofgem, it is paid to your installer rather than to you, and it comes off your quote before you pay anything.

How much you can get

There are two rates, and which one applies to you depends on how your home is heated today.

  • £7,500 towards an air source or ground source heat pump. This is the standard rate and covers most homes.
  • £9,000 if your home is off the gas grid and currently heated by oil or LPG. This higher rate runs until 31 March 2027.

Two smaller rates also exist: £2,500 for an air-to-air heat pump and £5,000 for a biomass boiler. Neither qualifies for the £9,000 uplift.

What “off the gas grid” actually means

This trips people up, so it is worth being precise. To qualify for the higher rate your property must not be fuelled by mains gas — and a capped or clamped gas meter still counts as mains gas. There must be no record of an existing gas meter point at the property, it cannot be connected to a heat network, and it cannot be a new build.

Solid fuel, coal and electric heating do not qualify for the £9,000. Those homes remain on the £7,500 rate.

The grant is a contribution, not the full cost

This is the part we would rather be straight about than have you find out at quote stage. The grant covers a substantial share of a heat pump installation, but in most homes you will still pay something towards it. How much depends on your property:

  • The size of the property and the heat loss it has
  • Whether any radiators need upgrading
  • Whether you need a hot water cylinder
  • Pipework alterations and electrical work

Every quote we send shows the grant and your contribution as separate lines, so you can see exactly where the money goes.

What you need to qualify

You need to own the property — landlords can claim, tenants cannot. The installation has to be carried out by an MCS-certified installer, and the heat pump has to replace a fossil-fuel heating system. You no longer need a valid EPC without outstanding insulation recommendations, which was a requirement in earlier versions of the scheme.

Is a heat pump right for your home?

Heat pumps run at their best in a well-insulated property. Where insulation would make a material difference we will say so, and quote for it separately — insulation is not covered by the Boiler Upgrade Scheme, so it is an additional cost rather than a hidden one.

If you would like us to look at your property, the survey is free and there is no obligation either way.

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