The £7,500 BUS Grant, explained.

What the BUS actually is

The Boiler Upgrade Scheme is an Ofgem-run grant, funded by the Department for Energy Security and Net Zero (DESNZ). It's open to homeowners (including small landlords) in England and Wales and covers:

• £7,500 towards an air-source heat pump
• £7,500 towards a ground-source or water-source heat pump
• £5,000 towards a biomass boiler (rural only)

Scotland has its own equivalent through Home Energy Scotland Grant & Loan. Northern Ireland currently has no direct equivalent.

Who qualifies

To claim the grant, your property must meet three conditions:

• It's an owner-occupied home or private rental in England or Wales
• It has a valid EPC (Energy Performance Certificate) issued in the last 10 years, with no outstanding recommendations for loft or cavity wall insulation
• The install is carried out by an MCS-certified installer

You don'tneed to be on benefits, you don't need to hit an income cap, and there's no cap on your home's value.

How the money reaches you

You never actually see the £7,500 — it's paid directly to your installer, who discounts it off your quote before you pay. This avoids you having to front the full install cost and wait for a refund.

The installer handles the Ofgem paperwork too. The typical flow is:

1. You accept a quote with an MCS-certified installer.
2. They apply to Ofgem on your behalf, citing your property's EPC.
3. Ofgem approves the grant (usually within 15 working days).
4. Install goes ahead.
5. Installer invoices you for the post-grant price.

What you'll actually pay

A typical 8-10kW air-source heat pump installed in a standard 3-bed UK semi costs £10,500–£15,500 before the grant. With the £7,500 discount applied, homeowners typically pay:

• £3,000–£5,000 for a standard retrofit
• £5,000–£8,000 for a tricky install (period home, listed building, upgrade required)
• Ground-source can push to £20,000+ after grant due to borehole cost

Stacking with other schemes

You can combine BUS with:

• 0% VAT on the installation (until 2027)
• ECO4 (if low-income — can fund insulation upgrades so the heat pump runs efficiently)
• Local council schemes — variable, ask your installer

Common mistakes to avoid

Don't apply to the grant yourself. The scheme requires it to be claimed byan MCS installer, not the homeowner. If you try to apply direct, you'll be rejected and you may invalidate your future claim.

Don't sign anything before the EPC is checked.If your EPC shows unresolved insulation recommendations, you won't qualify. A good installer will flag this before quoting.