The Boiler Upgrade Scheme remains the UK governments primary incentive for encouraging the adoption of low-carbon heating systems, particularly air source and ground source heat pumps. Since its launch in 2022, the scheme has undergone several important updates aimed at improving accessibility, increasing uptake, and accelerating the transition away from fossil fuel heating.
Below, we’ve summarised a detailed overview of the most significant changes introduced over the past two years.
Increased Grant Funding: £7,500 for Heat Pumps
The most impactful update to the scheme came in late 2023, when the government increased grant levels to:
- £7,500 for air source heat pumps
- £7,500 for ground source heat pumps
- £5,000 for biomass boilers (in limited circumstances)
This represented a substantial uplift from the original funding levels of £5,000 (ASHP) and £6,000 (GSHP). The increase was introduced to better reflect installation costs and to reduce the upfront financial barrier for homeowners.
From an economic perspective, this change significantly improves the capital cost viability of heat pump installations, particularly when compared to traditional gas boiler replacements. It also brings the UK closer in line with incentive levels seen in other European markets.
Extension of Scheme Funding and Long-Term Commitment
Another key development is the government’s continued financial commitment to the scheme. While the Boiler Upgrade Scheme was initially introduced with a defined budget and timeframe, subsequent funding allocations have extended its lifespan.
- The scheme now has confirmed funding through to at least 2027
- Annual budgets (e.g. ~£295 million for 2025-26) indicate ongoing support
- Additional funding commitments have been signalled in broader net zero political frameworks
This provides greater certainty for both homeowners and installers, supporting long-term investment in the heat pump supply chain and workforce development.
Refinements to Eligibility and System Scope
While the core structure of the scheme has remained consistent, there have been incremental updates to eligibility criteria and system configurations.
Notable refinements include:
- Greater flexibility around shared ground loop systems
- Clarifications on system size limits (typically up to 45kW, with some exceptions)
- Ongoing alignment with MCS (Microgeneration Certification Scheme) standards
The changes reflect a maturing policy framework, allowing the scheme to accommodate a wider range of property types and installation scenarios, without compromising quality or compliance.
Updated Ofgem Guidance and Scheme Administration
As the scheme administrator, Ofgem has released updated guidance documents (2024) to improve clarity around:
- Installer responsibilities and compliance requirements
- Application and voucher redemption processes
- Audit and verification procedures
These updates are particularly relevant for installers and industry professionals, but they also benefit homeowners by ensuring a more robust and transparent delivery mechanism.
The scheme continues to operate as an installer-led process, meaning homeowners do not apply directly. Instead, an MCS-certified installer, like us at VIA Energy, submits the application on their behalf. The grant is then applied as an upfront discount on the installation cost.
Significant Increase in Uptake
Following the grant increase and improved policy clarity, the Boiler Upgrade Scheme has seen a marked rise in adoption.
Application volumes increased significantly throughout 2024, and have continued to do so to the present day. Monthly application rates also reached record highs after the £7,500 grant was introduced.
The upfront financial incentive from schemes such as BUS are tantamount to driving behavioural change and accelerating the adoption of low-carbon technologies. All the while offering UK homeowners relief from astronomical energy bills.
What Has Stayed the Same?
Amongst all its recent updates, the fundamental structure of the scheme remains unchanged:
- It is still an upfront capital grant, not a tariff-based payment scheme like its predecessor, the Renewable Heat Incentive
- It is not means-tested, meaning it is accessible to a broad range of homeowners
- It applies to properties in England and Wales (with separate schemes for those in Scotland and Northern Ireland)
- It requires installation by an MCS-certified contractor
What These Changes Mean for UK Homeowners
Taken together, these updates make the Boiler Upgrade Scheme significantly more attractive than it was at first launch.
For homeowners in the South West and across the UK, the key implications are:
- Lower upfront installation costs due to higher grant values
- Greater confidence in long-term availability of funding
- Improved accessibility for a wider range of property types
- A more streamlined and transparent installation process
In practical terms, the scheme now removes a substantial portion of the cost barrier that previously prevented many UK households from considering heat pump technology.
A Strengthened Scheme – and a Clear Opportunity to Upgrade
Rather than replacing existing incentives, the UK government has strengthened the Boiler Upgrade Scheme to make low-carbon heating more accessible than ever. The increase to £7,500 in grant funding, combined with the extended support and clearer guidance has significantly reduced the upfront cost of installing both air source and ground source heat pumps.
For homeowners, this represents a genuine opportunity to upgrade to a more efficient, future-proof heating system. All the while taking advantage of one of the most generous levels of support the scheme has offered to date.
With energy prices remaining volatile and the UK continuing its transition away from fossil fuels, there has never been a better time to consider switching to a heat pump. Whether you are exploring air source systems for a straightforward retrofit, or ground source solutions for maximum efficiency and long-term performance, the right design and installation approach is key to achieving the best results.
Working with an experienced installer ensures your system is correctly specified, fully compliant, and optimised for your property – and at VIA Energy, our professional engineers do just that. Our goal is to help North Devon homeowners maximise long-term energy and carbon savings, utilising such grants to make an option that is sustainable for the future both operationally and financially.
