The Boiler Upgrade Scheme Explained

If you have been putting off replacing an old, inefficient heating system because of the upfront cost, the Boiler Upgrade Scheme is worth understanding properly before you decide what to do next. It is a government grant designed to make low-carbon heating more affordable, and it comes up a lot when homeowners are weighing up their options for a new boiler or a heat pump.

What the Boiler Upgrade Scheme Actually Covers

The scheme is run in England and Wales and gives homeowners a grant towards the cost of installing an air source heat pump, ground source heat pump, or biomass boiler in certain rural, off-grid properties. The grant is paid directly to your installer, who deducts it from your quote, so you are not chasing paperwork after the job is done.

It is important to be clear on one point that catches a lot of people out: the Boiler Upgrade Scheme does not cover the replacement of one gas boiler with another gas boiler. It is specifically there to encourage a move away from fossil fuel heating. Full details of eligibility and current grant amounts are published on GOV.UK.

Who Can Apply

Broadly, you need to:

• Own the property (owner-occupiers and private landlords can apply, social landlords have separate routes)
• Have a valid Energy Performance Certificate with no outstanding loft or cavity wall insulation recommendations
• Be replacing a fossil fuel heating system, such as an oil, LPG, or mains gas boiler
• Use an installer certified under the Microgeneration Certification Scheme

The property does not need to be off-grid to qualify for an air source heat pump grant, that requirement only applies to biomass boiler installations.

How Much You Can Get

Grant values are set by the government and reviewed periodically, so it is always worth checking the current figures on GOV.UK before budgeting. As a general rule, air source heat pumps attract a lower grant than ground source systems, reflecting the difference in installation cost and complexity. The grant is applied at the quote stage, so the price you see already has it factored in rather than being something you claim back later.

If a Heat Pump Is not Right for Your Home

Plenty of Midlands properties, particularly older terraces and homes with limited outdoor space, are still better served by a modern gas combi, system, or regular boiler for now. There is no shame in that decision, and it is one worth making with proper advice rather than guesswork. Our guide to combi vs system vs regular boilers breaks down which setup suits which kind of home, and our piece on signs you need a new boiler will help you work out if it is time to replace at all.

The Energy Saving Trust also publishes independent advice on heating options and running costs if you want a second opinion before committing either way.

Getting the Right Advice Before You Decide

Whether you end up applying for the Boiler Upgrade Scheme or sticking with a gas boiler, the sizing and specification matter just as much as the funding. An oversized or undersized system wastes money for years, so it is worth reading our guide on what size boiler you need before any quotes come in. All installers working on gas systems in the UK must be registered with Gas Safe Register, and it is worth checking that regardless of which route you take.

If finance is a factor either way, our page on boiler finance explained covers the options for spreading the cost.

Next Steps

If you are ready to explore what a straightforward, fixed price gas boiler replacement would cost, or you want to talk through whether a heat pump makes sense for your home first, we can help you weigh it up properly. Get a fixed price and we will talk you through the right options for your property, no pressure either way.