Government funding can significantly reduce the upfront cost of installing a heat pump, but the support available and who applies for it, depends on where the property is located.
The Boiler Upgrade Scheme (BUS) applies to England and Wales only. Scotland operates its own funding through Home Energy Scotland, while Northern Ireland has separate energy-efficiency support schemes.
The Boiler Upgrade Scheme provides an upfront grant towards replacing an existing fossil-fuel heating system with eligible low-carbon heating.
BUS is installer-led.
The homeowner does not submit the voucher application themselves. They choose an MCS-certified installer, agree the installation and the installer applies to Ofgem on their behalf.
Ofgem then contacts the property owner to confirm their consent. Once the installation has been completed and commissioned, the installer redeems the voucher and receives the grant payment.
The grant is therefore deducted from the amount the customer pays for their installation rather than being paid directly to the homeowner.
Homeowner chooses an MCS installer → Installer confirms eligibility → Quote agreed → Installer applies to Ofgem → Homeowner confirms consent → Heat pump installed and commissioned → Installer redeems voucher → Grant deducted from the customer's installation cost.
Generally, the applicant must own the property and be replacing an existing fossil-fuel heating system such as gas, oil, LPG or direct electric heating.
This can include a:
The heat pump must meet the scheme requirements and the installer must be appropriately MCS certified.
GOV.UK – Boiler Upgrade Scheme
Ofgem – Boiler Upgrade Scheme for installers
Properties in Wales are covered by the same Boiler Upgrade Scheme as England, so eligible homeowners can access the same BUS heat-pump grants through an MCS-certified installer.
However, Wales also has additional Welsh Government energy-efficiency support.
For example, the Nest Warm Homes Scheme can provide eligible households with energy-efficiency improvements, while Green Homes Wales offers support including interest-free finance for eligible home improvements.
For a standard private heat-pump installation using BUS, the process remains:
MCS installer applies → homeowner confirms consent → installer completes the installation → installer redeems the BUS voucher.
Welsh Government – Heat pumps and financial support
Welsh Government – Home energy financial support
The Boiler Upgrade Scheme does not apply in Scotland.
Instead, eligible homeowners can access funding through the Home Energy Scotland Grant and Loan Scheme.
Eligible households can also receive an additional £1,500 rural uplift towards the clean-heating grant.
This works differently from BUS.
The homeowner applies for the funding, rather than the installer applying for a BUS voucher on their behalf.
The homeowner first contacts Home Energy Scotland and, once referred to the scheme, submits their funding application before work starts. Once the installation is complete, the homeowner submits a claim for the agreed funding.
Homeowner contacts Home Energy Scotland → Advice/referral → Homeowner applies for funding → Funding agreed → Installation completed → Homeowner submits claim.
Scottish Government – Home Energy Scotland Grant and Loan Scheme
The Boiler Upgrade Scheme does not apply in Northern Ireland and there is currently no direct Northern Irish equivalent offering the same standard £7,500/£9,000 BUS heat-pump voucher.
The previous Boiler Replacement Scheme closed to new applicants in September 2023.
Instead, homeowners should check the energy-efficiency support currently available through NI Energy Advice and the Northern Ireland Housing Executive (NIHE).
The Affordable Warmth Scheme, for example, is aimed at lower-income households and can provide support for eligible heating and energy-efficiency improvements. Applications and eligibility are handled separately from BUS.
This means installers should not assume a Northern Ireland heat-pump project is eligible for the same grant available in England and Wales. The homeowner should check the current funding available for their individual circumstances before work begins.
nidirect – Energy saving grants
nidirect – Energy grants in your area
For installations in England and Wales, BUS forms part of the installation journey. The installer needs to be MCS certified, check that the property and proposed system meet the scheme requirements, submit the voucher application and complete the evidence required to redeem it.
In Scotland and Northern Ireland, don't treat the project as a BUS installation. Funding follows different processes and should be confirmed with the relevant scheme before work begins.
Getting the funding route right from the start helps avoid delays and makes sure the homeowner understands what support is available, who needs to apply and what evidence will be required before the installation begins.