10 Essential Tips for Government Boiler Grants

If you are a UK homeowner looking to replace your old boiler with a more energy-efficient model, government boiler grants can be a significant help. Here are 10 essential tips to guide you through the process of applying for and benefiting from these schemes.

Understanding the Boiler Upgrade Scheme

The Boiler Upgrade Scheme (BUS) is a key initiative by the UK government to encourage the replacement of fossil fuel heating systems with low-carbon alternatives such as heat pumps and biomass boilers. This scheme is available to homeowners in England and Wales[1][4][5).

Eligibility Criteria

To qualify for the Boiler Upgrade Scheme, you need to ensure that your current heating system is a fossil fuel-based system (such as oil, gas, electric, or LPG) and that you are replacing it with a heat pump or biomass boiler. Here are some steps to check your eligibility:

1. Check Your Heating System: Ensure your current heating system is eligible for replacement under the scheme.
2. Assess Your Property: The property must be in England or Wales to be eligible for the BUS.
3. Consult with a Qualified Installer: Only installations carried out by certified installers are eligible for the grant.

Benefits of the Boiler Upgrade Scheme

The Boiler Upgrade Scheme offers several benefits to homeowners:

• Cost Savings: The grant can cover a significant portion of the installation cost, reducing the financial burden on homeowners.
• Energy Efficiency: Low-carbon heating systems are more energy-efficient, leading to lower energy bills and reduced carbon emissions.
• Government Support: The scheme is backed by the UK government, ensuring a reliable source of funding for eligible homeowners.

Step-by-Step Application Process

Here’s a step-by-step guide to applying for the Boiler Upgrade Scheme:

1. Check Eligibility: Ensure you meet the eligibility criteria as outlined above.
2. Gather Documents: Prepare all necessary documents, including proof of property ownership and details of your current heating system.
3. Find a Certified Installer: Locate a certified installer who can carry out the installation and help you with the application process.
4. Apply Online: Submit your application through the official government website or through your chosen installer.
5. Receive the Grant: Once your application is approved, the grant will be provided to help cover the installation costs.

Changes to the Boiler Upgrade Scheme in 2025

The Boiler Upgrade Scheme has seen significant enhancements in 2025, making it more accessible and beneficial for homeowners:

• Increased Funding: The government has allocated an additional £30 million for the current financial year and plans to nearly double the budget to £295 million for the 2025/26 financial year[5).
• Enhanced Grant Values: The grant amount has been increased to up to £7,500 to make heat pumps more competitive with traditional gas boilers.
• Relaxation of Planning Regulations: The removal of distance requirements for heat pump installations simplifies the process and reduces associated costs.
• New Upgrade Options: The scheme now includes new upgrade options such as air-to-air heat pumps and heat batteries, and offers flexible purchase and ownership models like hire purchase or leasing[4][5).

"The proposals set out to expand the scope of the Boiler Upgrade Scheme are a welcome step in the right direction which would allow more people to benefit from low carbon heating in their home." - Abigail Ward, Policy Manager[4].

ECO4 Scheme: An Additional Option for Homeowners

Besides the Boiler Upgrade Scheme, the ECO4 (Energy Company Obligation) scheme is another initiative that helps low-income households and vulnerable individuals replace their old boilers with more energy-efficient models. Here’s what you need to know:

• Full or Partial Cost Coverage: The ECO4 grant can cover the full or partial cost of replacing an old boiler with a more energy-efficient model.
• Eligibility Criteria: Primarily targets low-income households, those receiving benefits, and vulnerable individuals, though there may be an expansion of eligibility criteria in the future[3).
• Additional Support: The grant also provides support for additional energy-efficient measures such as insulation and window replacements.

Energy Efficiency and Cost Savings

Upgrading to a low-carbon heating system not only helps the environment but also offers significant cost savings in the long run:

• Lower Energy Bills: Energy-efficient heating systems consume less energy, leading to lower utility bills.
• Reduced Maintenance Costs: Modern heating systems often require less maintenance compared to older models.
• Increased Property Value: Installing a new, energy-efficient heating system can increase the value of your property.

Boiler Type	Efficiency	Cost Range
Heat Pump	300-400% (in terms of CoP)	£7,000-£14,000
Biomass Boiler	80-90%	£7,000-£15,000
Gas Boiler	90-94%	£1,500-£3,000

Frequently Asked Questions (FAQs)

Who is eligible for the Boiler Upgrade Scheme?

Homeowners in England and Wales who are replacing a fossil fuel heating system with a heat pump or biomass boiler are eligible for the scheme.

How much can I receive from the Boiler Upgrade Scheme?

You can receive a grant of up to £7,500 to help cover the cost of installing a low-carbon heating system.

What are the new upgrade options under the Boiler Upgrade Scheme in 2025?

The scheme now includes new upgrade options such as air-to-air heat pumps and heat batteries, and offers flexible purchase and ownership models like hire purchase or leasing.

Can I combine the Boiler Upgrade Scheme with the ECO4 scheme?

Yes, if you are eligible for both schemes, you can combine them to maximize your financial assistance.

How do I apply for the Boiler Upgrade Scheme?

You can apply through the official government website or through a certified installer who can guide you through the application process.