The Boiler Upgrade Scheme (BUS) represents one of the government’s key initiatives to help homeowners transition to low-carbon heating systems. As heating specialists in Frome, we’ve helped numerous customers navigate this grant scheme to make renewable heating more affordable. This guide covers everything you need to know about the BUS in 2025, including recent updates and how to maximise your chances of a successful application.
What Is the Boiler Upgrade Scheme?
The Boiler Upgrade Scheme provides upfront grants to help property owners in England and Wales cover the cost of installing low carbon heating systems, including:
- Air source heat pumps
- Ground source heat pumps
- Biomass boilers (in rural areas with no gas connection)
The scheme, which replaced the Renewable Heat Incentive (RHI), was initially set to run from 2022 to 2025, but has now been extended to 2028 with increased funding.
2025 Grant Amounts
The government recently increased the grant amounts to reflect rising installation costs:
- £7,500 for air source heat pumps (up from the previous £5,000)
- £7,500 for ground source heat pumps (up from the previous £6,000)
- £5,000 for biomass boilers (unchanged)
These grants are applied directly to your installation cost, meaning you don’t need to pay the full amount and claim money back later. Instead, your installer claims the grant and you pay the balance.
Key Eligibility Criteria
To qualify for the BUS in 2025, your property must meet these criteria:
- Located in England or Wales
- Installation completed on or after 1st April 2022
- Have an Energy Performance Certificate (EPC) issued in the last 10 years with no outstanding recommendations for loft or cavity wall insulation (some exemptions apply)
- Installing a qualifying heat pump or biomass boiler that meets the scheme requirements
- Replacing an existing fossil fuel system (such as gas, oil, or LPG) or direct electric heating
- The installation must be carried out by an MCS-certified installer
Notably, new-build properties are generally not eligible unless they’re self-built.
The Application Process
The application process follows these steps:
- Find an MCS-certified installer (like our team at AN Heating)
- Property assessment to determine suitability and system requirements
- Installer applies for the grant on your behalf
- Ofgem reviews the application and issues consent to proceed
- System installation is completed
- Installer submits evidence to Ofgem
- Grant payment is made to the installer, reducing your upfront cost
The entire process typically takes 4-12 weeks from initial enquiry to installation completion.
2025 Updates and Changes
Several important changes have been made to the BUS for 2025:
- Increased budget allocation: The government has significantly increased funding for the scheme, making more grants available
- Streamlined application process: Ofgem has simplified applications, reducing processing times
- New heat pump ready standard: Properties now need to meet specific energy efficiency requirements
- Enhanced support for low-income households: Additional funding is available for households meeting certain criteria
- Integration with other schemes: Better coordination with the ECO4 scheme and the Great British Insulation Scheme for comprehensive home improvements
Is Your Property Suitable?
While heat pumps can work effectively in most properties, certain factors affect their performance and installation costs:
- Insulation levels: Well-insulated properties achieve better efficiency
- Current heating system: Properties with existing radiators may need upgrades for optimal heat pump performance
- Available space: External units require adequate space with good airflow
- Property age and type: Period properties may require additional considerations
As we explain in our article about whether your house is suitable for a heat pump, a professional assessment is crucial to determine suitability.
Costs After Grant Deduction
Even with the increased grant amounts, homeowners should expect to contribute towards installation costs:
- Air source heat pump: £4,000-£8,000 customer contribution (after grant)
- Ground source heat pump: £10,000-£15,000 customer contribution (after grant)
- Biomass boiler: £5,000-£10,000 customer contribution (after grant)
However, it’s important to consider the long-term energy savings and reduced carbon emissions when evaluating these costs.
How We Can Help
Navigating the Boiler Upgrade Scheme can be complex, which is why working with experienced installers makes all the difference. Our team of heat pump specialists in Frome can:
- Assess your property’s suitability for renewable heating
- Calculate potential energy savings based on your specific circumstances
- Handle the entire grant application process on your behalf
- Install high-quality, efficient systems that maximise the benefits of renewable heating
- Provide ongoing support and maintenance
Ready to upgrade your heating system with government support? Contact our team today for a no-obligation assessment and discover how the Boiler Upgrade Scheme could help you transition to cleaner, greener heating.
