UK Boiler Upgrade Scheme: The Complete 2026 Guide

Upgrading your home’s heating system is no longer just about efficiency; it’s about cost, compliance, and long-term value. The Boiler Upgrade Scheme is evolving in 2026 to make low-carbon heating more accessible, with higher grants, expanded technologies, and simpler application rules.

This guide breaks down exactly what’s changing, what support is available, and how much you’ll actually pay after the grant. 

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Key Takeaways

• The Boiler Upgrade Scheme is increasing support to £9,000 for oil and LPG homes (July 2026–March 2027), targeting off-grid properties.
• Grants of £7,500 for heat pumps and £5,000 for biomass remain, with new technologies like air-to-air systems and heat batteries added.
• The scheme is becoming easier to access, with relaxed EPC requirements and installer-led applications.
• Real value comes from combining the grant with long-term energy savings, lower maintenance, and improved efficiency.

What’s Changing In The Boiler Upgrade Scheme In 2026

The Boiler Upgrade Scheme is set for its most significant update yet in 2026, with targeted funding increases and broader technology support designed to accelerate the shift to low-carbon heating.

These changes are focused on making heat pumps and alternative systems more accessible, particularly for homes that are currently hardest to decarbonise.

Confirmed Increase To £9,000 For Oil And LPG Homes

From July 2026 to March 2027, homes currently using oil or LPG heating are expected to qualify for an increased grant of £9,000, up from the standard £7,500.

This targeted uplift reflects the higher installation challenges and carbon impact of off-grid properties. By increasing support, the government aims to make switching to heat pumps financially viable for households that would otherwise face higher upfront costs.

Why Off-Grid Homes Are Being Prioritised

Homes without access to the gas grid typically rely on higher-emission fuels like oil and LPG. These properties also tend to face additional barriers, including older building structures and lower insulation levels.

Prioritising these homes delivers a greater carbon reduction per installation and ensures the scheme supports households that need the most financial help to transition.

New Technologies Added To The Scheme

The 2026 update expands eligibility beyond traditional systems, introducing new supported technologies:

• Air-to-air heat pumps with grants of around £2,500
• Heat batteries, also supported at around £2,500

This broadens the scheme’s appeal, particularly for smaller homes or properties where traditional wet heating systems aren’t suitable.

Simpler Applications And Scheme Extension

To make the scheme more accessible, EPC requirements are being relaxed, reducing administrative barriers for homeowners. The scheme has also been extended until 2030, giving households more time to plan upgrades and take advantage of funding.

Installers will now be required to apply the grant directly to upfront costs, making savings clearer and more immediate for homeowners.

What The Boiler Upgrade Scheme Currently Covers

The scheme continues to provide substantial upfront support for low-carbon heating systems, helping reduce the initial cost of installation.

£7,500 Grant For Air Source Heat Pumps

Air source heat pumps remain the most widely adopted option due to their flexibility and lower installation complexity. The £7,500 grant significantly reduces upfront costs, making them a practical choice for many UK homes.

£7,500 Grant For Ground Source Heat Pumps

Ground source heat pumps deliver highly efficient, consistent heating by drawing energy from stable underground temperatures. While installation is more complex and requires sufficient outdoor space, the £7,500 grant helps offset the higher upfront cost.  

£5,000 Grant For Biomass Boilers

Biomass boilers are still supported, particularly in rural settings where alternative options may be limited. The £5,000 grant helps reduce installation costs, although suitability depends on property type and fuel availability.

Who The Boiler Upgrade Scheme Is Designed For

The Boiler Upgrade Scheme is designed to target the homes that benefit most from switching to low-carbon heating, both financially and environmentally.

Rather than a one-size-fits-all approach, the scheme focuses on properties where upgrading delivers the biggest impact, reducing energy costs, improving efficiency, and cutting reliance on high-carbon fuels.

Rural And Off-Gas-Grid Homes

Homes without access to the gas network are a key priority. These properties often rely on expensive, carbon-intensive fuels, making them some of the most costly homes to heat in the UK.

By supporting off-grid households, the scheme helps replace outdated systems with modern alternatives like heat pumps. The result is more stable energy costs, improved efficiency, and a long-term move away from volatile fuel prices.

Homes Using Oil, LPG, Or Electric Heating

If your home currently relies on oil, LPG, or direct electric heating, you’re among the strongest candidates for support. These systems are typically more expensive to run and produce significantly higher emissions compared to low-carbon alternatives.

Switching from a boiler to a heat pump or biomass system doesn’t just reduce environmental impact. It can also deliver more predictable running costs and better overall energy performance.

Why Oil Boiler Households Are Strong Candidates

Oil-heated homes often see the biggest immediate benefit from upgrading. High fuel costs, regular deliveries, and ongoing maintenance make oil systems one of the most expensive ways to heat a home.

Replacing an oil boiler with a modern system removes these ongoing challenges. With the right setup, you gain lower running costs, fewer maintenance concerns, and a more efficient, future-proof heating solution.

What You’ll Actually Pay After The Grant

The grant significantly reduces upfront costs, but your final investment depends on your property, system choice, and installation requirements.

In most cases, you’re not paying the full system cost; you’re paying the difference after government support is applied.

Typical Costs After The Current £7,500 Grant

The figures below show realistic cost ranges after the grant has been deducted. These are estimates, but they give a clear indication of what most homeowners can expect.

Why Costs Vary Between Homes

No two installations are the same. Your final cost depends on how well your home is prepared for low-carbon heating.

Key factors include insulation levels, existing radiators, pipework, and overall system design. Homes switching from oil or LPG may also require upgrades such as larger radiators or improved insulation to get the best performance from a heat pump.

When Switching Becomes Financially Viable

The real value isn’t just in the upfront grant, it’s in the long-term savings.

Lower fuel costs, reduced maintenance, and improved efficiency all contribute to a system that becomes more cost-effective over time. For many homes, especially off-grid properties, the combination of grant support and ongoing savings makes the switch not just environmentally sensible, but financially worthwhile.

Boiler Upgrade Scheme Eligibility Overview

While the scheme is widely accessible, eligibility depends on your property type, existing heating system, and whether your home is suitable for low-carbon technology. Getting this right early makes the application process smoother and avoids delays.

Property Type Requirements

The scheme is open to most domestic properties in England and Wales, including detached, semi-detached, terraced homes, and bungalows. Some small non-domestic buildings may also qualify under specific conditions.

However, the grant is primarily aimed at existing properties replacing fossil fuel systems. Most new-build homes and social housing are not eligible under the standard scheme rules.

EPC And Insulation Expectations

Historically, a valid Energy Performance Certificate (EPC) was required, along with no outstanding insulation recommendations.

From 2026, these requirements are being relaxed, making the scheme more accessible. While insulation is still important for performance, strict EPC compliance is no longer always a barrier to applying.

That said, improving insulation remains strongly recommended, as it directly affects how efficiently your new heating system will operate.

Ownership And Occupancy Rules

The scheme is available to homeowners and private landlords, provided they meet the installation and property criteria. Landlords can apply for eligible rental properties, subject to compliance with regulations.

Second homes may be eligible in some cases, but this depends on how the property is used and whether it meets scheme requirements. All properties must be located in England or Wales and be suitable for the installation of a low-carbon heating system.

How To Apply For The Boiler Upgrade Scheme

Applying for the Boiler Upgrade Scheme is simpler than most homeowners expect. The process is largely handled by your installer, meaning you don’t need to manage complex paperwork or navigate government systems yourself.

With the right professional in place, the scheme is designed to be straightforward, with the grant applied directly to your installation cost.

Working With An MCS-Certified Installer

The first and most important step is choosing an MCS-certified installer. Certification under Microgeneration Certification Scheme is required to access the grant and ensures your system meets quality and performance standards.

A qualified installer will assess your home, confirm eligibility, and recommend the most suitable system. This early stage is critical, as it determines whether your property is technically and financially viable for the upgrade.

Installer-Led Application Process

Once you proceed, your installer manages the application on your behalf. This removes most of the administrative burden and ensures everything is submitted correctly.

The process typically works as follows:

• Your installer confirms your property meets scheme requirements
• They submit the grant application through the official system
• You receive a request to confirm your consent
• The grant is deducted directly from your upfront installation cost

This structure means you never need to claim the money yourself; the savings are applied automatically.

What Happens After Your Application Is Submitted

After submission, the application is reviewed by Ofgem to ensure it meets scheme criteria. You’ll be asked to confirm your participation, which is a required step before approval.

Once approved, installation can begin. From that point, your installer completes the system, and the grant is already factored into your final price.

Clear communication with your installer throughout the process helps ensure everything stays on track and avoids delays.

How The Scheme Has Changed Since The RHI

The shift from the Renewable Heat Incentive (RHI) to the Boiler Upgrade Scheme (BUS) marks a major change in how the UK supports low-carbon heating.

Instead of rewarding performance over time, the focus has moved to removing the biggest barrier upfront: the cost of installation. This change is designed to accelerate adoption and make switching to renewable heating far more accessible.

Upfront Grant Vs Long-Term Payments

Under the RHI, homeowners received quarterly payments over several years based on how much renewable heat their system generated. While this rewarded efficiency, it required significant upfront investment before seeing any return.

The BUS replaces this with a single upfront grant, reducing the initial cost immediately. This makes it far easier for homeowners to move forward with installation without needing to fund the full system cost themselves.

Simpler Application Process

The application process has also been streamlined significantly.

Where the RHI required ongoing reporting and more complex administration, the BUS is largely installer-led. Your installer manages the application, and the grant is applied directly to your installation cost, removing much of the administrative burden.

Key Differences Homeowners Should Know

The table below highlights how the two schemes differ in structure, accessibility, and overall approach:

How Upvolt Helps Homeowners Navigate The Boiler Upgrade Scheme

Navigating the Boiler Upgrade Scheme can be the difference between a smooth, cost-effective upgrade and a frustrating, expensive process. Upvolt removes that uncertainty, giving you a clear path from eligibility to installation, without the guesswork.

Assessing Eligibility And Property Suitability

Everything starts with knowing whether your home actually qualifies, and more importantly, whether a heat pump will perform efficiently once installed.

Upvolt carries out a detailed assessment of your property, reviewing your current heating system, insulation levels, and EPC status. This ensures you’re not just eligible for the grant, but set up for long-term performance and savings.

Managing MCS-Compliant Installations

Installation quality directly affects performance, efficiency, and even grant approval.

Upvolt works exclusively with MCS-certified installers, ensuring your system meets all regulatory and manufacturer standards. Every detail is handled correctly, from system design to final commissioning, so your installation is safe, compliant, and built to last.

• Verified, qualified installers
• Full compliance with UK safety and performance standards
• Seamless integration with your existing home setup

Handling The Grant Application Process

The application process can be confusing, and mistakes can delay or even invalidate your grant.

Upvolt manages the entire process on your behalf. From submission to approval, everything is handled correctly, ensuring the grant is applied smoothly and deducted directly from your installation cost.

Ensuring Long-Term System Performance

A successful installation is only part of the equation; long-term performance is where real value is created.

Upvolt ensures your system continues to operate efficiently through proper setup, monitoring guidance, and ongoing support. The result is a heating system that doesn’t just qualify for funding but consistently delivers savings, reliability, and lower energy costs over time.

Let’s Recap

The Boiler Upgrade Scheme is shifting from a niche incentive to a mainstream pathway for upgrading home heating. With higher grants, broader eligibility, and simplified processes, it’s becoming far easier for homeowners to make the switch.

For many properties, especially those off the gas grid, the combination of upfront funding and long-term savings makes upgrading not just environmentally responsible, but financially practical. The key is getting the system design, installation, and application process right from the start.

About Upvolt

Upgrading your heating system is a significant investment, and getting it wrong can lead to poor performance, missed savings, or even invalid grant applications. Upvolt removes that risk by guiding you through every stage of the Boiler Upgrade Scheme, from initial assessment to final installation.

You get a system designed around your home, not a generic recommendation. That means accurate sizing, full compliance with UK standards, and a setup built to deliver reliable performance and long-term savings.

If you’re considering a heat pump or want to understand what funding you qualify for, get in touch with Upvolt today. A tailored assessment will show exactly what your home needs, what you could save, and how to move forward with confidence.

FAQ

What is the primary purpose of the UK Boiler Upgrade Scheme in 2026?

The Boiler Upgrade Scheme is designed to reduce the upfront cost of switching from fossil fuel heating to low-carbon systems. In 2026, it focuses even more on accelerating adoption, especially in off-grid homes. The goal is to cut carbon emissions while making modern heating more financially accessible.

How much can I currently claim for a heat pump installation under the Boiler Upgrade Scheme?

You can currently claim up to £7,500 towards an air source or ground source heat pump installation. This grant is applied upfront through your installer, reducing the amount you pay directly. From July 2026, some oil and LPG homes may qualify for up to £9,000.

Am I eligible for the scheme if my home uses oil or electric heating?

Yes, homes using oil, LPG, or direct electric heating are among the strongest candidates for the scheme. These systems are typically more expensive to run and produce higher emissions. As a result, the scheme prioritises these properties for support, especially off-grid homes.

Will the £7,500 grant cover the entire cost of my new heating system?

In most cases, the grant will not cover the full cost of installation. You’ll typically pay the remaining balance, which varies depending on your home and system type. However, the grant significantly reduces upfront costs, making the switch much more affordable.

Should I choose an air source heat pump or a biomass boiler for my rural property?

Air source heat pumps are usually the most common choice due to easier installation and lower maintenance. Biomass boilers can suit rural homes with access to fuel supply and enough space, but they require more ongoing upkeep. The best option depends on your property, energy usage, and long-term goals, so a professional assessment is recommended.

Alex Lomax

CEO & Co-Founder

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