Upgrade to Eco-Friendly Heating: The UK government’s Boiler Upgrade Scheme (BUS) is making headlines once again — and for good reason. With energy costs rising and climate change pushing households toward sustainable solutions, the £7,500 grant to upgrade to eco-friendly heating systems could be the financial boost your home needs.
This scheme lets you cut costs, slash emissions, and increase energy efficiency — but only if you apply before funds run out.
Upgrade to Eco-Friendly Heating
| Feature | Details |
|---|---|
| Grant Amount | Up to £7,500 for air and ground source heat pumps |
| Bonus Grant | £5,000 for biomass boilers (off-gas-grid only) |
| Eligible Locations | England and Wales |
| Who Can Apply | Homeowners, landlords, and small businesses |
| Valid Until | 31 December 2027 (or until funds are exhausted) |
| Certification Required | Valid EPC and MCS-certified installer |
| Official Website | gov.uk/apply-boiler-upgrade-scheme |
The Boiler Upgrade Scheme is more than just a grant — it’s a gateway to lower energy bills, a warmer home, and a greener planet. With the £7,500 incentive, switching to sustainable heating has never been more affordable. But don’t wait too long — funding is limited and applications are handled on a first-come, first-served basis.
Why the £7,500 Heating Grant Is a Big Deal in 2025
Heating accounts for nearly 14% of UK carbon emissions, largely due to old gas and oil boilers. The Boiler Upgrade Scheme helps address this by encouraging a transition to air source heat pumps, ground source heat pumps, and biomass boilers, with funding that covers a majority of installation costs.
By simplifying eligibility and removing insulation prerequisites in 2024, the government made this scheme more accessible than ever.
Types of Eco-Friendly Heating Covered by the Grant
Air Source Heat Pump
- How it works: Extracts heat from the air.
- Cost: £8,000–£14,000
- Grant: £7,500
- Ideal for: Urban and suburban homes
Ground Source Heat Pump
- How it works: Uses underground heat via buried pipes.
- Cost: £14,000–£24,000
- Grant: £7,500
- Ideal for: Homes with large gardens or land
Biomass Boiler
- How it works: Burns organic materials like wood pellets.
- Cost: £10,000–£20,000
- Grant: £5,000
- Ideal for: Rural, off-grid properties
Eco Heating vs Traditional Gas Boiler (Comparison Table)
| Feature | Eco Heating (Heat Pump/Biomass) | Gas Boiler |
|---|---|---|
| Carbon Emissions | Low to zero | High |
| Running Cost | Lower long-term | Rising with fuel prices |
| Installation Cost | High upfront (covered by grant) | Lower |
| Maintenance | Annual checkup | Annual checkup |
| Lifespan | 20–25 years | 10–15 years |
| Government Grant | Up to £7,500 | Not available |
Who Is Eligible for the BUS Grant?
You qualify if:
- You live in England or Wales
- You own the property (includes landlords)
- You’re replacing a fossil fuel boiler (gas, oil, electric, LPG)
- Your home has a valid EPC
- You hire an MCS-certified installer
Step-by-Step Guide: How to Apply For New £7,500 Grant
1. Find a Certified Installer
Use mcscertified.com to find installers in your area.
2. Get a Site Assessment & Quote
An installer will visit, inspect your property, and recommend the best system.
3. Consent to the Grant Application
Your installer will apply to Ofgem. You’ll just need to approve it.
4. Final Installation
Once approved, the system is installed and you only pay the reduced price.
Checklist Before You Apply
You own the property
Property is in England or Wales
Fossil fuel heating currently in use
Valid Energy Performance Certificate
MCS installer selected
Environmental Benefits
According to Ofgem, switching from gas to an air source heat pump can reduce carbon emissions by 2–4 tonnes per year per household. Over 20 years, that’s more than 40 tonnes — equivalent to planting 600+ trees.
Myth-Busting: Common Misconceptions About Heat Pumps
“They don’t work in cold weather.”
Modern heat pumps work efficiently in temperatures as low as -15°C.
“They’re noisy.”
Most pumps are quieter than a standard fridge.
“They’re too expensive.”
Not with a £7,500 grant — many installations now cost under £2,000 net.
Expert Tip
“Don’t delay — demand is rising fast, and while the scheme is open until 2027, funds are limited. Book your installer and get assessed early to avoid disappointment.”
— Alex Green, Energy Consultant, UK Green Homes Alliance
Real-Life Example: John & Lisa’s Upgrade
John and Lisa from Oxford had a 20-year-old gas boiler. They upgraded to an air source heat pump costing £11,500. With the £7,500 grant, their out-of-pocket cost was £4,000. A year later, their energy bill dropped by 32%, and their home stayed warmer in winter.
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FAQs About Upgrade to Eco-Friendly Heating
Q1: Can I combine BUS with other grants?
Yes — as long as those other schemes don’t also subsidise heating installation.
Q2: What if I live in a rented property?
Tenants can’t apply, but landlords can. Talk to your landlord about the scheme.
Q3: Is the grant repayable?
No, the grant is non-repayable and paid directly to the installer.
Q4: What’s the typical waiting time for installation?
After application approval, installations usually happen within 2–4 weeks.
Q5: Is planning permission required?
Most installations don’t need planning permission, but it’s worth confirming with your local authority.
Government Updates & Future Plans
- Funding Boost: In late 2024, £30 million extra was allocated to BUS
- Next Phase: An additional £295 million is earmarked for FY 2025–26
- Talks Underway: Expansion may include heat battery systems by 2026
