Now is the time to upgrade to an air source heat pump system


There is currently one key government backed incentive scheme available to the owners of domestic properties.

The Boiler Upgrade Scheme (BUS) replaces the old Domestic Renewable Heat Incentive Scheme (RHI), and is aimed at reducing carbon emissions generated from heat production in properties in England & Wales.

It offers home owners a very significant one-off contribution towards the cost of replacing old fossil-based heating systems with new, energy efficient technology.

What is the Boiler Upgrade Scheme?

The Boiler Upgrade Scheme (BUS) scheme provides up-front capital grants to support the installation of heat pumps and biomass boilers in homes and small non-domestic buildings in England and Wales, but as the name suggests, the grants are only available where the new system is replacing an existing fossil fuel system.

The government has allocated £450 million to the Boiler Upgrade Scheme with a cap of £150 million per year, which will see around 90,000 households benefit over three years. The scheme is open to domestic and small non-domestic properties and runs from 2022 to 2025.

With the heightened concerns about rising energy prices and the importance of tackling climate change and carbon emissions, there’s little doubt that heat pumps are becoming a far more attractive source of heating as opposed to fossil fuel boilers. It is just one of the ways in which the Government are hoping to meet the net zero emissions target by 2050.

Boiler Upgrade Scheme – Key Elements

Boiler Upgrade Scheme

What does it offer?

The Boiler Upgrade Scheme (BUS) scheme provides up-front capital grants in the form of:

  • A £5,000 voucher towards the cost and installation of an Air Source Heat Pump
  • A £6,000 voucher towards the cost and installation of a Ground Source Heat Pump including water source Heat Pumps

The scheme is exclusively for property owners who fully replace an existing fossil fuel system (such as oil, gas or direct electric).

The scheme is also installer-led. This means that AES, as an MCS accredited organisation, will apply for the voucher on your behalf. You will pay the full cost of the system up front, with the voucher redeemable once the installation has been completed and MCS certified. You read more about this below in the application process overview section.

The scheme has a set of clear eligibility criteria, along with relevant exclusions, and these are detailed in the following panel.

Additional Help with VAT

From 1 April 2022 to 31 March 2027, there is 0% VAT on the installation of energy saving materials including heat pumps and biomass boilers.

Eligibility Criteria for Boiler Upgrade Scheme

We will work with you to ensure that your property and technology meet the full range of eligibility requirements

The key requirements for the grant are that:

  • You own your property (home or small business)
  • You are replacing an old fossil fuel heating system
  • The new heat pump is MCS approved and achieves a minimum COP 2.8*
  • New-builds will require a planning application reference


Also you will need to ensure:

  • A valid Energy Performance Certificate (EPC) is a requirement for existing properties
  • No recommendations for Loft and/cavity wall insulation
  • The installation must be carried out by a MCS Accredited installer
  • Insulation capacity of no more than 45kWh (covers most homes)
  • Meet the full space heating and hot water demands of the property


Ineligible Properties:

  • Properties with previous energy grants e.g. RHI or ECO
  • Social Housing
  • New builds (excluding some self-builds)

*Co-efficient of performance

Voucher Application Process Overview

4 Simple Stages

We will work with you to check your eligibility, and then design an heat pump solution, that will supply your property with both heat and hot water, which achieves the minimum COP (co-efficient of performance) of 2.8.

Once this is complete, we will be able to proceed with the voucher application process which is as follows.

Stage 1.

Installer submits a voucher application

Ofgem assesses the application and seeks confirmation of property owner’s consent.

Stage 2.

BUS Voucher is Issued

3 month validity for ASHPs and Biomass boilers

6 month validity for GSHPs

Stage 3.

Installer submits a voucher redemption application

This is done following the commissioning of the plant and within the voucher validity period.

Stage 4.

Installer receives payment

£5000 for ASPs and Biomass boilers

£6000 for GSHPs

Boiler Upgrade Scheme Notes

Energy Performance Certificates

For existing homes, you’ll need a valid EPC.  If your project is a retrofit, there needs to be a valid EPC on the property that’s less than 10 years old and has no recommendations for cavity wall or loft insulation. The scheme has been designed for well-insulated properties that will benefit from a low-temperature heat source such as an Air Source Heat Pump.

You can check your EPC at:

If you EPC has expired you can apply for a new one at:


New Builds

Whilst you won’t need an EPC if you’re installing a heat pump in a new build (known as a self-build within the scheme), you will need to provide the planning application reference instead.

Get a Free Boiler Upgrade Scheme Appraisal Today

Contact us today and we can discuss your BUS options.