Happily enough, the Boiler Upgrade Scheme in Wales gives you £7,500 towards the installation of a heat pump. Not a loan. Not a tax credit. Money off your bill. Most homeowners are unaware that this is there.
If you’re still using fossil fuels in 2025, you’re leaving cash on the table as your carbon footprint remains cringingly high. Here’s all you need to claim your grant by March 2028.
What Is the Boiler Upgrade Scheme?
The UK government introduced BUS in April 2022 to replace fossil fuel heating. It’s run by Ofgem. The budget? £450 million to March 2028; enough for more than 200,000 installs.
The scheme only applies to England and Wales. Scotland has its own scheme. Northern Ireland? A whole different story.
Grant levels are simple:
| System Type | Grant Amount | Restrictions |
| Air-source heat pump | £7,500 | None |
| Ground-source heat pump | £7,500 | None |
| Biomass boiler | £5,000 | Rural Only |
Your installer submits on your behalf. They collect the voucher, complete the work, and exchange it. The grant comes off your last bill directly. You never see the cash, but you certainly notice the savings.
Why BUS Actually Matters
Government grants usually complicate things. Boiler Upgrade Scheme in Wales simplifies them. Let me show you why this scheme works when most subsidies fail.
Does It Really Cut Costs Enough?
Yes. Dramatically. Heat pump installations cost £12,000 to £15,000. That’s steep compared to a £2,500 gas boiler replacement. The £7,500 grant cuts the price gap by more than half.
Do the math. £14,000 heat pump minus £7,500 grant equals £6,500 net cost. Suddenly, you’re in reasonable territory for a heating system that’ll last 20+ years and slash your running costs.
This isn’t charity. It’s market acceleration until economies of scale drive prices down naturally. More installations mean more trained installers, better supply chains, and cheaper equipment. Classic mechanics.
Does It Improve Quality Standards?
Absolutely. Only MCS-certified or TrustMark-registered installers can claim BUS vouchers. No cowboys. No fly-by-night operations.
This requirement forces quality across the industry. Installers need proper training to access funding. Homeowners get guaranteed quality. The industry professionalizes. Everyone wins except bad installers.
Does It Create Sustainable Market Growth?
Funding through 2028 creates a predictable demand. That’s what manufacturers and installers need to invest seriously in.
Predictable demand means predictable business. Installers hire staff. Manufacturers tool up production. Supply chains optimize. Technology improves. Prices drop. The positive feedback loop is already visible in installation data.
Who Actually Qualifies?
Not everyone gets in. The eligibility rules are specific, and missing one requirement kills your application. Here’s what you need.
- Property Requirements
Your property must be in England or Wales. Homeowners qualify. Landlords qualify. Small businesses qualify. Self-build homes qualify.
New-build social housing? Doesn’t qualify. The scheme targets retrofits, not new construction.
- System Requirements
You must be replacing an existing fossil fuel heating system. Gas, oil, LPG, or electric resistance heating all count. Already running renewables? Ineligible.
Hybrid systems don’t qualify. It’s a full heat pump or nothing. The government wants complete decarbonization, not half measures.
- Energy Performance Requirements
You need a valid EPC issued within the last 10 years. That EPC cannot have outstanding recommendations for loft or cavity insulation unless you’re exempt.
Why? Because installing a heat pump in a poorly insulated house is wasteful. Fix the building fabric first. Air Source Heat Pump Grants work best in well-insulated properties.
- Capacity Limits
Individual heat pumps cannot exceed 45 kW output. For shared ground loops serving multiple properties, the total can reach 300 kW, but no single property exceeds 45 kW.
These limits target residential and small commercial installations. Large commercial systems need different funding routes.
How to Apply for Your Grant
The application runs through your installer. You don’t apply directly to Ofgem. Your installer handles the paperwork. Here’s the process.
Step 1: Choose Your Installer
Find an MCS-certified or TrustMark-registered installer. Check credentials carefully. No certification means no voucher.
Get multiple quotes. Even with the grant, prices vary significantly. Shop around.
Step 2: Installer Submits Voucher Application
Your installer submits to Ofgem before starting work. They provide property details, system specs, and EPC information.
Ofgem reviews the application. Approval typically takes a few days.
Step 3: Homeowner Consent
Ofgem contacts you directly to confirm authorization. This prevents fraud. Respond promptly. Delays here hold up everything.
Step 4: Installation Happens
Your installer completes the heat pump installation according to the scheme requirements and MCS standards. Quality matters here. Poor installation, tank performance, and your satisfaction.
Step 5: Voucher Redemption
After commissioning, your installer redeems the voucher. The £7,500 grant gets deducted from your invoice.
You pay the net amount. The installer gets the grant from Ofgem.
Step 6: Final Certification
Your installer submits the post-installation MCS certificate to Ofgem. This closes the process officially.
Keep copies of everything. Documentation protects you if issues arise later.
Benefits Beyond Upfront Savings
The grant is great. But it’s not the only reason to install a heat pump. The operational benefits compound over decades.
What’s the Environmental Impact?
Heating produces 18% of UK greenhouse gas emissions. Switching from gas to a heat pump cuts your home’s carbon footprint by 1.5 to 2 tonnes of CO₂ annually.
Multiply that by 20 years. You’re looking at 30-40 tonnes of avoided emissions per installation. That’s significant.
Do Running Costs Actually Drop?
Yes, if your property is well-insulated. Heat pumps deliver 300-400% efficiency compared to gas boilers at 85-95% efficiency. Current energy prices make savings less dramatic than they should be. But as electricity decarbonizes and gas prices stay volatile, the economic advantage grows.
The Bottom Line
The Boiler Upgrade Scheme makes heat pumps financially viable for most homeowners in England and Wales. £7,500 off installation costs removes the primary barrier to adoption.
The scheme runs until March 2028. That’s your window. Miss it, and you’re paying full price while your neighbors get subsidized.
Want lower emissions and operating costs? Find an MCS installer, check your EPC, and claim your grant.
