Rising oil bills, ready customers
Off-grid homeowners on oil and LPG have been hit hardest by volatile fuel prices, and many are actively looking for a way out. With a bigger Boiler Upgrade Scheme (BUS) grant about to land, you've got a clear, commercial reason to start the conversation now.
£9,000 BUS grant for oil and LPG homes
From 21 July 2026, the BUS grant rises from £7,500 to £9,000 for eligible oil and LPG properties in England and Wales. That's a £1,500 uplift, available for this financial year only.
The uplift covers air-to-water and ground source heat pumps. The standard £7,500 grant continues for properties on mains gas.
0% VAT on the full installation
Zero-rate VAT applies to the whole heat pump install, not just the unit. The zero rate currently runs until 31 March 2027, after which it's scheduled to revert to 5%. Stacked with the £9,000 grant, the upfront cost drops sharply and your quote works harder against the competition.
A stronger pitch to off-grid customers
Daikin heat pumps give your customers clean electric heating, predictable running costs and freedom from oil price swings they can't control. The grant comes off the quote as an upfront discount, so the numbers stack up clearly from the first conversation.
Why the timing matters
- The £9,000 uplift is available for this financial year only
- Off-grid homeowners are actively shopping for alternatives
- Demand is expected to spike once applications open, so early surveys win the work
- The scheme has been extended to 2030, giving you a longer runway for training and growth
Build your off-grid expertise
With demand expected to jump when the £9,000 grant opens, now's the time to get your team trained on the Daikin Altherma range and ready to quote oil and LPG replacements.
Frequently Asked Questions
Applications for the uplift open on 21 July 2026. Until then, Ofgem is processing applications at £7,500 under the existing rules.
The uplift runs from 21 July 2026 to the end of the 2026/27 financial year (31 March 2027), based on Ofgem and Energy Saving Trust guidance. The official GOV.UK grant notice confirms the start date, and the grant value, eligibility or end date could change subject to government policy and scheme funding. Always check the latest position with Ofgem before applying.
Off-gas-grid homes and small businesses in England and Wales currently heated by oil or LPG. The uplift also covers off-gas-grid properties on coal, fossil fuel hybrids and certain other fossil fuel or electric systems, see Ofgem guidance for the full list.
Air-to-water and ground source heat pumps qualify for the £9,000 uplift. Air-to-air heat pumps are in scope of the wider BUS but at a separate grant level.
No. As the MCS-certified installer, you apply on their behalf and the grant must be shown on the quote as an upfront discount, not a later refund.
A separate set of rule changes came into force on 28 April 2026: the EPC requirement was removed, MCS certification is now written into the regulations, air-to-air heat pumps are eligible, and the scheme has been extended to 2030.
Yes. The standard £7,500 BUS grant continues unchanged for properties on mains gas.
Your practical guide to the Boiler Upgrade Scheme in 2026
For installers working with the Boiler Upgrade Scheme, this quick-reference guide has everything you need, from grant values and eligibility through to the voucher application process, in short, easy-to-navigate sections.