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The Boiler Upgrade Scheme, explained properly

Last verified: 28 July 2026 — checked line by line against Ofgem and GOV.UK.

Quick answer: The Boiler Upgrade Scheme gives you an upfront grant toward replacing a fossil fuel heating system with a heat pump or biomass boiler, in England and Wales. £7,500 air-to-water / ground source / water source, £2,500 air-to-air (residential only), £5,000 biomass — or £9,000 if the property is eligible and off the gas grid, until 31 March 2027. An MCS certified installer applies for you.

What counts as the system you are replacing

GOV.UK describes the scheme as replacing fossil fuel heating systems — and is explicit that this includes oil, gas, electric and LPG. It works for a home or a building used for your business.

What it will not do: you cannot use the grant to replace an existing low carbon heating system. If you already have a heat pump, this is not a route to a newer one.

The capacity limits

These are the ceilings GOV.UK publishes. Most domestic installations sit well under the first one, but they matter for larger properties:

  • 45kWth for individual systems
  • 70kWth where a heat pump is installed with one or more additional heat pumps
  • 300kWth for shared ground loops

The system must also meet minimum efficiency standards. Your installer is the one who confirms a specific model qualifies — that is part of what MCS certification is for.

Three things that disqualify people

  • Hybrids. A gas boiler combined with an air source heat pump does not qualify. GOV.UK says this outright.
  • A second grant on the same property. It is one grant per property.
  • Going it alone. There is no self-application route. If an installer is not MCS certified, there is no voucher.

Eligibility: only two conditions

GOV.UK’s eligibility page is shorter than most people expect. You qualify if both of these are true:

  • you own the property — including a business, a second home, or one you rent to tenants
  • you are replacing a fossil fuel heating system — oil, gas, electric or LPG

There is no EPC requirement. Older guidance told people to sort out loft and cavity wall insulation before they could qualify; that is out of date. GOV.UK now states the opposite of the common assumption: “You’re still eligible if you’ve already had funding to make your property more energy efficient, for example by insulating it.”

Electric heating counts as a system you can replace. A lot of guidance says “oil or gas” and stops there, which wrongly rules out electrically heated homes.

One deadline that catches people: “Your installer must commission and install the heat pump within 120 days of applying for the grant or it will not be eligible.”

Properties that cannot get a grant: most new builds, social housing, and any property already given government funding or support for a heat pump or biomass boiler. Self builds qualify if you or the original owner built it and it has never been owned by a business.

Who does what

Ofgem administers the scheme — it processes voucher applications and payments, publishes the guidance and monitors compliance. The Department for Energy Security and Net Zero (DESNZ) owns the policy and legislation. If a figure on this page ever disagrees with Ofgem, Ofgem is right and we are out of date — tell us.

Sources

📧 Get the free grant cheat sheet

One page, both countries: what each scheme pays, who qualifies, and the deadlines that matter. We email it once and tell you when a figure changes.

Last verified 28 July 2026. Confirm current rules with Ofgem and your MCS installer before committing to an installation. Informational only, not financial or technical advice.