BUS Grant 2026 Update: £7,500 Heat Pump Funding for UK Homeowners

The UK Boiler Upgrade Scheme (BUS) continues to be the most generous heat pump grant available to homeowners in England and Wales. As of April 2026, the scheme still offers up to £7,500 off the cost of an air source heat pump, with even more available for ground source systems. This guide breaks down everything that has changed in 2026, who qualifies, and exactly how to claim your funding.

What Has Changed in 2026?

The Department for Energy Security and Net Zero (DESNZ) confirmed in February 2026 that the BUS will continue running until at least March 2028. Several important updates have been introduced this year that homeowners need to be aware of before applying.

• Increased budget: £1.8 billion total funding allocated for 2026-2028 (up from £1.5 billion)
• Faster processing: Average application time reduced from 8 weeks to 4 weeks
• Hybrid system eligibility: Hybrid heat pumps now qualify under specific conditions
• Expanded property types: Park homes and certain HMOs now included
• Higher voucher value: Ground source grants increased to £7,500 (was £6,000 in 2024)

2026 Grant Amounts at a Glance

System Type	Grant Amount (2026)	Typical Total Cost	Cost After Grant
Air Source Heat Pump	£7,500	£10,000 - £14,000	£2,500 - £6,500
Ground Source Heat Pump	£7,500	£20,000 - £35,000	£12,500 - £27,500
Biomass Boiler (rural only)	£5,000	£10,000 - £19,000	£5,000 - £14,000
Hybrid Heat Pump (new 2026)	£3,750	£8,000 - £12,000	£4,250 - £8,250

Eligibility Requirements in 2026

Not every property qualifies for the BUS grant. The scheme has specific requirements that have been clarified further in 2026 to reduce application rejections, which previously stood at around 15% of all submissions.

Property Eligibility

Your property must meet all of the following criteria:

1. Located in England or Wales (Scotland uses Home Energy Scotland; Northern Ireland has separate schemes)
2. Have a valid EPC certificate issued within the last 10 years
3. No outstanding loft or cavity wall insulation recommendations on your EPC, unless exempt
4. Be a domestic property (your main home, second home, or rental property)
5. Have a capacity of 45 kWth or less for the new system

Who Cannot Apply?

The following are not eligible for BUS funding in 2026:

• New build properties (with limited exceptions for self-builds)
• Social housing
• Properties already heated by a low-carbon system
• Commercial premises or mixed-use buildings

How to Apply: Step-by-Step Process for 2026

The application process in 2026 is handled entirely by your installer, not the homeowner directly. This is intentional, as Ofgem found that homeowner-led applications had a 40% higher rejection rate. Here is how it works:

Step 1: Find an MCS-Certified Installer

You must use an installer certified by the Microgeneration Certification Scheme (MCS). Get at least three quotes to compare prices. Reputable installers will handle the entire grant application on your behalf.

Step 2: Get a Heat Loss Survey

Your installer will conduct a heat loss assessment using MCS 3005 methodology. This determines the correct heat pump capacity for your home and is mandatory for grant approval.

Step 3: Apply for the Voucher

Your installer submits the application through the Ofgem portal. They will need:

• Your EPC certificate number
• Property address and postcode
• Council tax band
• Your bank details for payment confirmation

Step 4: Installation and Payment

Once approved, the voucher is valid for 3 months for air source and 6 months for ground source installations. The grant is paid directly to your installer, who deducts it from your final invoice.

Common Application Problems and How to Avoid Them

Based on Ofgem data from Q1 2026, the most common reasons for grant rejection are:

Problem	% of Rejections	How to Avoid
EPC issues (expired or missing)	34%	Check EPC status before applying; renew if older than 10 years
Outstanding insulation recommendations	22%	Address loft/cavity insulation first or apply for exemption
Property not eligible	18%	Confirm eligibility with installer before quote
Incorrect heat loss calculations	14%	Use only MCS-certified installers
Other	12%	Various - work closely with installer

Combining BUS with Other Schemes

One of the biggest changes in 2026 is the ability to stack BUS grants with other schemes. You can now combine your £7,500 with:

• ECO4 (Energy Company Obligation): Up to £10,000 additional support for low-income households
• Great British Insulation Scheme: Free or subsidised insulation upgrades
• 0% Green Loans: Available from major banks for the remaining cost
• Local council grants: Some councils offer top-up funding (varies by area)

Is It Worth Applying in 2026?

For most UK homeowners, the answer is a clear yes. With electricity prices stabilising at around 27p/kWh in early 2026 and gas prices remaining high at 7.4p/kWh, the running cost gap has narrowed significantly. Combined with the £7,500 grant and smart tariffs designed for heat pumps, the typical payback period has dropped to 6-9 years for an average UK home.

"The BUS scheme has been a transformational policy. We have seen heat pump installations triple since 2024, and the 2026 expansion makes it accessible to even more households." — Energy UK, March 2026

Final Checklist Before Applying

• Get a current EPC certificate (within 10 years)
• Address any outstanding insulation recommendations
• Obtain at least 3 quotes from MCS-certified installers
• Verify your property type is eligible
• Check whether you can stack other grants
• Ask about smart tariffs for heat pump owners

For more information on specific aspects of heat pump installation, see our guides on heat pump costs and BUS eligibility.