If you are considering replacing an old gas, oil, LPG, or electric heating system with a modern, eco-friendly heat pump, there has never been a better time to make the transition. Under the UK government’s Boiler Upgrade Scheme (BUS), domestic homeowners across England and Wales can access an upfront £7,500 grant to help cover the purchase and installation costs of an air source heat pump.
While the prospect of securing £7,500 in grant funding is attractive, many homeowners feel uncertain about eligibility criteria, paper processes, and how the application actually works.
This step-by-step guide explains how the Boiler Upgrade Scheme operates, who qualifies, and how you can access this government grant for your home.
What is the Boiler Upgrade Scheme (BUS)?
The Boiler Upgrade Scheme is a £450 million government funding initiative designed to help property owners in England and Wales transition away from fossil-fuel heating to low-carbon heating systems.
Under the scheme, property owners can receive:
- £7,500 upfront grant towards the installation of an air source heat pump.
- £7,500 upfront grant towards the installation of a ground source heat pump.
The grant is applied directly as a discount against the total cost of your heat pump installation, significantly reducing your upfront capital expenditure.
Who is Eligible for the £7,500 Grant?
To qualify for the Boiler Upgrade Scheme, your property and current heating system must satisfy specific criteria set by Ofgem:
- Property Ownership: You must own the property (this includes domestic homeowners, private landlords, and self-builders).
- Existing Heating System: The heat pump must replace an existing fossil-fuel heating system (such as oil, LPG, mains gas, or direct electric heating).
- Valid Energy Performance Certificate (EPC): Your property must have an active Energy Performance Certificate (EPC). The EPC must show no outstanding recommendations for cavity wall or loft insulation (if recommendations are listed, the insulation must be installed and a new EPC issued before the grant redemption).
- System Sizing and Capacity: The replacement heat pump system must have a maximum capacity of up to 45kWth, making it suitable for almost all domestic homes.
Step-by-Step Guide: How the Claim Process Works
One of the best aspects of the Boiler Upgrade Scheme is that property owners do not have to apply for the grant themselves. Ofgem requires the installer or designated scheme coordinator to manage the application process on your behalf.
Here is how the journey works from start to finish:
Step 1: Technical Site Survey and Heat-Loss Analysis
A qualified heating engineer visits your property to evaluate your insulation levels, radiator emitter sizes, domestic hot water cylinder space, and electrical incoming panel capacity. Detailed room-by-room heat loss calculations determine the exact heat pump sizing required.
Step 2: EPC Audit and Eligibility Check
We review your property’s Energy Performance Certificate to confirm that cavity wall and loft insulation criteria are met. If minor insulation works are required, these can be completed prior to installation.
Step 3: Quotation and Grant Voucher Application
Following the site survey, you receive a detailed, itemised quotation. The quotation clearly shows the full installation cost, the £7,500 grant deduction, and the net balance. With your consent, the installer or grant coordinator submits the BUS application to Ofgem to reserve your £7,500 voucher.
Step 4: Physical Installation and System Integration
Our multi-discipline engineering team carries out the physical installation. This includes removing your old boiler, fitting the outdoor heat pump, plumbing the new domestic hot water cylinder, upgrading necessary pipework or radiators, and completing all electrical control wiring.
Step 5: Commissioning, Sign-Off, and Grant Redemption
Once installation is complete, the system is fully commissioned, tested, and handed over. The installer submits commissioning documentation to Ofgem, and the £7,500 grant voucher is redeemed directly, covering that portion of your installation invoice.
Why Choose Newton Electrical and Mechanical for Your Heat Pump Upgrade?
Installing an air source heat pump is a major mechanical and electrical home upgrade. It requires accurate pipework balancing, cylinder plumbing, and high-voltage electrical sub-board wiring to ensure safe, efficient performance.
At Newton Electrical and Mechanical (NEM Services), we make your heating transition simple and stress-free:
- A Single, Trusted Contractor: Because our local team spans electrical, plumbing, HVAC, and mechanical disciplines under one roof, you do not need to coordinate separate trades. We handle the entire cylinder plumbing, heat pump placement, radiator upgrades, and electrical control wiring internally.
- Daikin D1 Approved Partners: Our engineers are factory-trained by Daikin, one of the world’s leading heat pump manufacturers. This ensures premium installation quality and grants access to extended Daikin manufacturer warranties.
- Streamlined Grant Administration: We work closely alongside approved BUS grant partners and coordinators to handle all technical paperwork, Ofgem portal submissions, and voucher redemptions seamlessly.
Check Your Grant Eligibility Today
Ready to replace your outdated boiler with a clean, low-carbon air source heat pump? Contact our friendly local heating specialists today to check your eligibility and schedule a technical home survey.
- Telephone: 01455 230 114
- Online: Submit your property details via our short website contact form to receive a prompt callback from our green energy design desk.