If you’re keen to make your home heating greener and cheaper to run, but feel intimidated by the idea of navigating a government grant, you’re not alone. Subsidies can be complex, jargon-heavy and time-consuming. The good news is that when it comes to heat pumps, the UK’s flagship scheme is far more straightforward than many people expect, especially with the right installer.
What is the Boiler Upgrade Scheme?
In 2022, the UK government launched the Boiler Upgrade Scheme (BUS) as part of its wider plan to decarbonise home heating. The scheme provides upfront capital grants to support the installation of low-carbon heating systems, including air-source heat pumps and biomass boilers, in homes and small non-domestic buildings in England and Wales.
Under the scheme, households can receive £7,500 towards the cost of an air-source heat pump. That support is significant, particularly given that home heating accounts for around 30 per cent of household carbon emissions in the UK. Switching from a gas boiler to a heat pump can reduce a home’s heating-related emissions by up to 70 per cent, depending on insulation and electricity source. In October 2023, the government announced that the scheme would be extended from its original end date in 2025, and continue to run until 2028.
How popular is the scheme?
Uptake has grown steadily. By late 2025, the Boiler Upgrade Scheme had issued more than 76,000 vouchers, paying out over £485 million in grants. Each year has seen rising interest, driven by higher gas prices, improved heat pump technology and wider public awareness. 2026 is widely expected to be another strong year for installations, as supply chains mature and costs continue to fall. But how exactly does the scheme work, and who can apply?
Who is eligible?
Eligibility is broader than many homeowners assume. To qualify in England and Wales, you must:
- Own the property you’re applying for (you don’t need to live there)
- Be replacing an existing fossil fuel heating system, including gas, oil, LPG or electric
- Install an MCS-certified heat pump
Importantly, the property can be a rental home, holiday let or small business premises, not just a main residence. And if you’ve previously received government funding for energy efficiency improvements, such as loft or cavity wall insulation, you can still apply.
Most homes do not need to reach a specific EPC rating, but installers must confirm the property is suitably insulated for a heat pump to perform efficiently.
How do you actually apply?
This is where many people expect the process to become complicated, but in practice, it doesn’t have to be. If you request a heat pump quote from Octopus Energy, the company manages the entire Boiler Upgrade Scheme process on your behalf. First, they assess whether your home is suitable for a heat pump and meets the scheme’s criteria. That includes checking you have a valid Energy Performance Certificate (EPC). If you don’t, Octopus can help arrange one and cover the cost.
Once suitability is confirmed, Octopus applies for the £7,500 grant for you. The value of the grant is then deducted directly from your installation quote, meaning you only pay the remaining balance. There’s no reimbursement to chase and no forms to submit yourself.
From grant to installation – all under one roof
Assuming your property qualifies (and the vast majority do), Octopus then recommends the most suitable heat pump system for your home, carries out the installation and supplies the electricity to run it. That end-to-end approach removes much of the friction that has historically put homeowners off low-carbon upgrades.
This “single provider” model is increasingly seen as best practice, reducing delays, errors and cost overruns that can occur when multiple contractors are involved. Throughout the process, customers also benefit from Octopus’s five-star-rated customer service, which supports everything from surveys to aftercare.
The bottom line
Government support has transformed the economics of heat pumps, but only if homeowners know how to access it. The Boiler Upgrade Scheme offers substantial upfront help, and with providers like Octopus Energy handling the application process from start to finish, securing the grant no longer needs to be daunting. For anyone considering a move away from fossil fuel heating, the subsidy is not just a bonus, it’s a key part of making the switch more affordable and practical.
Explore Octopus heat pumps or verify our claims on the Octopus Energy website.
