Boiler Upgrade Scheme (BUS) 2025/26: How to Get £7,500 Off a Heat Pump in Cheshire & Greater Manchester
The UK government’s Boiler Upgrade Scheme (BUS) is one of the most generous home improvement grants ever made available to property owners in England and Wales. With up to £7,500 available towards the cost of a qualifying air source or ground source heat pump deducted from your invoice before you pay this scheme removes the single biggest barrier to switching from a gas or oil boiler to a clean, low-carbon heating system.
This guide covers everything you need to know about the BUS in 2025/26: what it pays, who qualifies, how to apply, what to watch out for, and why acting now while the grant remains fully funded gives you the best financial outcome.
| £7,500 Maximum BUS grant for air source or ground source heat pump installation in England & Wales |
What Is the Boiler Upgrade Scheme?
The Boiler Upgrade Scheme (BUS) is a government grant programme administered by Ofgem and operated by the Department for Energy Security and Net Zero (DESNZ). It launched in May 2022 and runs until 2028 as part of the government’s Warm Homes Plan. Its purpose is to remove the upfront cost barrier that has historically prevented homeowners from switching from fossil fuel heating to low-carbon alternatives. Full eligibility and scheme rules are published at ofgem.gov.uk Boiler Upgrade Scheme.
The scheme is entirely grant-funded not a loan, not repayable, and not means-tested. The budget for 2025/26 has been confirmed at £295 million, following strong demand growth in 2024 and early 2025.
How Much Is the BUS Grant?
Grant values depend on the technology installed:
- Air Source Heat Pump (ASHP): £7,500 off the total cost and installation
- Ground Source Heat Pump (GSHP): £7,500 off the total cost and installation (includes water source heat pumps and shared ground loops)
- Biomass Boiler: £5,000 off the total cost and installation (rural properties with no gas grid connection only)
- Air-to-Air Heat Pump: £2,500 newly introduced from late 2025 (grants not yet live at time of publication; update pending)
- Heat Battery: £2,500 newly introduced from late 2025 (grants not yet live at time of publication; update pending)
| 💰 Stack Your Savings The BUS grant of £7,500 can be combined with 0% VAT on qualifying heat pump installations (valid until 31 March 2027). If you’re an eligible Octopus Energy customer, you can also access the Octopus Cosy tariff designed to reduce heat pump running costs by charging at off-peak electricity rates. These three savings stack and for many homes, they make a heat pump cheaper to run than a gas boiler within 2–3 years. |
Who Qualifies for the BUS Grant?
Property Eligibility
- Location: England or Wales only (Scotland has a separate Home Energy Scotland scheme offering up to £15,000)
- Ownership: You must own the property residential or small commercial
- Existing heating: Must currently have a fossil fuel or electric heating system to be replaced (gas, oil, LPG, direct electric)
- EPC requirement: A valid Energy Performance Certificate (EPC) issued within the last 10 years is required. No minimum EPC rating the previous insulation requirements were removed from May 2024
- Capacity: Maximum system size of 45kWth (covers the vast majority of domestic properties)
- Previous grants: Properties that have previously received government support specifically for a heat pump or biomass boiler are excluded
What You Cannot Get a BUS Grant For
- Hybrid systems (e.g. a gas boiler combined with an air source heat pump) not eligible for BUS
- New-build properties the BUS is for retrofit installations in existing buildings only
- Replacing an existing low-carbon heating system with another low-carbon system
- Systems above 45kWth capacity (individual) or 300kWth (shared ground loops)
How Does the BUS Application Process Work?
The BUS is an installer-led scheme. You don’t apply directly your MCS-certified installer applies on your behalf. Here’s the process step by step:
- Contact an MCS-certified installer for a free survey and written quotation
- Your installer confirms eligibility system type, EPC status, property ownership
- Installer submits a BUS application to Ofgem before work begins
- Ofgem confirms and issues a voucher typically within a few days
- Installation must be completed within 3 months of voucher issue (6 months for GSHP)
- System is installed, commissioned, and MCS certificate issued
- Installer redeems voucher with Ofgem and passes the £7,500 to you as a discount from your invoice
| ⚠️ Important: Application Must Be Made BEFORE Installation A BUS application cannot be made retrospectively. If your installer completes the installation before the voucher is issued, you will not be eligible for the grant. Always confirm your installer has submitted the application and received Ofgem confirmation before any work starts. |
Why MCS Certification Is Non-Negotiable
The BUS grant is only available when your heat pump is installed by an MCS-certified contractor. MCS (Microgeneration Certification Scheme) is the nationally recognised quality standard for low-carbon technology installation in the UK. Check any installer’s MCS status at mcscertified.com/find-an-installer.
Beyond grant eligibility, MCS certification protects you in two additional ways:
- Your installation is independently quality-assured you have recourse if something goes wrong
- Your MCS certificate is required by most heat pump manufacturers to activate their product warranty
What Does a Heat Pump Actually Cost After the BUS Grant?
The total installed cost of an air source heat pump varies depending on property size, existing heating infrastructure, and whether additional works are required (e.g. radiator upgrades, cylinder installation). Typical installed costs in the North West in 2025/26 are in the range of £8,000 to £14,000 for a fully installed ASHP system.
After applying the £7,500 BUS grant and 0% VAT, the net homeowner cost for a typical 3-4 bedroom home in our area is in the region of £2,000 to £6,500 depending on system specification. For many properties, that’s comparable to or less than the cost of a premium boiler replacement & Boiler Installation.
| 📋 Example: Typical Semi-Detached in Warrington Installed ASHP system cost: £11,500 (including cylinder, controls, commissioning) Less BUS grant: -£7,500 Less 0% VAT saving (qualifying materials/labour): ~-£300–£500 Net homeowner cost: ~£3,500–£4,000 Annual running cost saving vs gas (Octopus Cosy tariff): potentially £400–£800/year depending on usage Simple payback estimate: 5–10 years (improving as electricity-to-gas price ratio narrows) |
The BUS and the Clean Heat Market Mechanism (CHMM) A Joined-Up Policy
The BUS doesn’t operate in isolation. Since April 2025, major boiler manufacturers are also subject to the Clean Heat Market Mechanism (CHMM) an obligation requiring them to match a rising proportion of their boiler sales with MCS-certified heat pump installations (6% in Year 1, rising to 8% in Year 2 from April 2026).
This creates a virtuous cycle: the BUS reduces demand-side cost barriers; the CHMM forces manufacturers to fund supply-side investment in heat pumps; rising installation volumes drive further unit cost reductions; and lower costs make the grant stretch further for homeowners.
Read our full explanation of the CHMM in our companion blog: What Is the Clean Heat Market Mechanism?
Is Now the Right Time to Apply?
Financially, 2025/26 is one of the strongest windows the BUS has ever offered:
- £295 million budget confirmed for 2025/26 the largest annual BUS allocation to date
- 0% VAT on energy-saving installations continues until 31 March 2027
- CHMM driving manufacturer competition more heat pump models, better pricing
- Over 100,000 BUS applications have now been approved installer experience and confidence is at an all-time high
- The scheme is demand-led and budget-capped; vouchers are allocated on a first-come, first-served basis
| ⏰ Don’t Wait Until the Budget Runs Out Previous BUS years have seen demand outpace expectations. The 2025/26 £295 million budget is the largest ever, but there is no guarantee it will not be exhausted before March 2027. Applying early in the financial year gives you the greatest certainty of securing a voucher. |
Why Choose Aquila Heating & Plumbing for Your Heat Pump Installation?
- MCS Certified: Every Aquila heat pump installation is MCS-registered your BUS grant eligibility is guaranteed
- Octopus Energy Approved Partner: We can help Octopus customers access Cosy tariff benefits on top of their BUS grant
- NICEIC Approved: Electrical works associated with your heat pump installation meet BS 7671 requirements
- Worcester Bosch Accredited Partner: Access to Worcester Bosch heat pump products with full manufacturer warranty support
- Local engineering expertise: Based in Warrington, serving WA, CH, M, WN, SK, CW, and L postcodes
- Top-20 UK Trustpilot ranking: Independently verified customer satisfaction at the highest level
- End-to-end service: We handle the full BUS application on your behalf survey, specification, application, installation, commissioning, and MCS certification
How to Get Started
Getting a free, no-obligation assessment takes minutes:
- Call or message Aquila we’ll arrange a free home survey at a time to suit you
- Our engineer assesses your property’s suitability for an ASHP, confirms BUS eligibility, and designs a system to meet your heating and hot water needs
- We provide a written, fixed-price quotation showing your total cost after the £7,500 BUS grant has been applied
- If you proceed, we submit the BUS application to Ofgem and manage the entire process to completion
For full BUS guidance, visit gov.uk Apply for the Boiler Upgrade Scheme. For MCS installer verification, visit mcscertified.com.
Aquila Heating & Plumbing Ltd
MCS · Gas Safe · NICEIC · OFTEC · Worcester Bosch Accredited · Octopus Energy Approved · HEIS Serving Warrington, Cheshire & Greater Manchester | WA · CH · M · WN · SK · CW · L