Who qualifies for the £7,500 Boiler Upgrade Scheme (BUS) grant?

Homeowners and small business owners in England and Wales replacing an existing fossil fuel system (gas, oil, LPG, or electric storage) with an MCS-certified heat pump qualify for the non-repayable £7,500 discount applied directly to their invoice.

How much does an air source heat pump cost after the £7,500 grant?

A typical domestic installation costs £9,500 to £13,500. After deducting the £7,500 government grant, homeowner net outlay typically ranges between £2,000 and £6,000, making it comparable to replacing a premium gas boiler.

Do I need cavity wall or loft insulation to claim the grant?

Under updated government rules, mandatory insulation requirements have been relaxed. While an EPC is required with no outstanding loft/cavity insulation recommendations, homes without cavity walls can still qualify.

£7,500 Non-Repayable GrantEngland & Wales 2026/27

UK Boiler Upgrade Scheme (£7,500 BUS) Grant Calculator

Calculate your net installation cost after the statutory £7,500 voucher, annual fuel bill reductions against oil/LPG/gas, and local MCS certified installer quotes.

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Property & Current Heating Details

Property Type

Current Heating Fuel

Current Annual Heating Bill£1,800/yr

£800/yr£2,000/yr£4,000/yr

Government Grant VoucherStatutory 2026

Approved Government BUS Grant

-£7,500

Deducted directly off your installer quote (Non-repayable voucher)

Net Cost After Grant

£5,000

Estimated Annual Savings

+£396/yr

🌱 Carbon Footprint Reduction:3.4 Tonnes CO₂ / year

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Grant Net Cost Matrix

2026 Air Source Heat Pump Installed Costs vs. £7,500 Grant

Turnkey installation costs including outdoor heat pump unit, hot water cylinder replacement, minor radiator upgrades, and MCS commissioning.

Property Size / Heat Demand	Heat Pump Capacity	Gross Installed Cost	BUS Grant Voucher	Net Homeowner Cost
2–3 Bed Semi-Detached	5 kW – 7 kW	£9,500 – £11,200	-£7,500	£2,000 – £3,700
4 Bed Detached Home	8 kW – 12 kW	£11,800 – £14,500	-£7,500	£4,300 – £7,000
Large 5+ Bed Country Home	14 kW – 16 kW+	£14,500 – £18,000	-£7,500	£7,000 – £10,500

Fuel Comparison

Replacing Oil, LPG & Mains Gas: Running Cost Realities

Air source heat pumps operate at an average seasonal efficiency (SCOP) of 300% to 400%, generating 3 to 4 units of heat for every 1 unit of electricity consumed.

Replacing Oil or LPG

Biggest savings: Off-gas grid homeowners switching from expensive heating oil or bulk LPG save £600 to £1,200 annually on running costs.

Replacing Old Mains Gas Boilers

Pairing with specialized heat pump electricity tariffs (e.g. Octopus Cozy at 12p/kWh off-peak) keeps running costs lower than modern condensing combi boilers.

Heat Pump FAQ

Frequently Asked Heat Pump & Grant Questions

How is the £7,500 grant applied? Do I have to claim it back myself?

No paperwork for you: Your MCS-certified installer applies for the BUS grant voucher from Ofgem on your behalf and deducts the full £7,500 directly from your initial quote and final invoice.

Will I need to replace all the radiators in my house?

Usually only 20% to 40% of radiators need upgrading to slightly larger double-panel (Type 22) units to heat rooms effectively at the lower 45°C–50°C water flow temperatures used by heat pumps.

Are heat pumps noisy?

Modern domestic units operate at 40–48 dB(A) at a distance of 1 metre—roughly equivalent to the sound level of a domestic refrigerator or gentle background hum.

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