The Boiler Upgrade Scheme (BUS) is a UK Government initiative that helps homeowners in England and Wales switch from fossil fuel heating to low-carbon systems.
The scheme now supports both air-to-water (A2W) heat pumps and air-to-air (A2A) heat pumps that provide space heating.
Whether you’re replacing an old boiler or upgrading to efficient electric heating, the BUS grant makes it easier and more affordable to choose a Daikin system.
How does it work?
The Boiler Upgrade Scheme is administered by Ofgem and has been extended to 2030. To apply, you will need an MCS-certified installer who will manage the application process for you.
Available grants:
- £7,500 towards an air-to-water heat pump or ground source heat pump.
- £9,000 from 21 July 2026 to 31 March 2027 for eligible off-gas-grid properties replacing oil or LPG, coal, electric or other fossil fuel heating with an air-to-water or ground source heat pump.
- £2,500 towards an air-to-air heat pump in a residential property.
Any remaining costs are paid by the homeowner.
Recent updates to the BUS scheme
The Boiler Upgrade Scheme was updated in 2026, extending the scheme to 2030 and making it more flexible and open to more homes. The key updates now in force are:
1. Additional support for eligible off-gas-grid homes
A temporary £9,000 grant is available from 21 July 2026 to 31 March 2027 for eligible off-gas-grid properties replacing oil, LPG, coal, electric or other fossil fuel heating with an air-to-water or ground source heat pump. Installations commissioned up to 120 days before voucher application may qualify, so projects already underway could benefit.
2. Air-to-air heat pumps included (£2,500 grant)
A2A systems are eligible for a £2,500 grant when installed for space heating in residential properties. They can be fitted alongside other electric heating appliances but cannot be installed with any fossil fuel heating system. Compatible electric appliances include:
- Domestic Hot Water Heat Pumps (DHW HP)
- Exhaust Air Heat Pumps (EAHPs)
- Heat batteries
- Electric heaters
Only one grant per property will be awarded.
3. Exhaust Air Heat Pumps included
Exhaust Air Heat Pumps (EAHPs) are eligible for the £7,500 hydronic heat pump grant when they meet the criteria for hydronic systems.
4. EPC no longer a mandatory requirement
A valid Energy Performance Certificate (EPC) is no longer required to apply. Where a current EPC exists it remains the primary evidence. Where it doesn't, the installer submits alternative evidence such as a recent utility bill showing the existing fuel type and photographs of the current heating system.
5. Grant now shown as an upfront discount
Installers are required to deduct the grant from the quoted installation cost and show it as a discount on both the quote and the invoice. Homeowners pay only the net amount, and installers cannot request or accept payment of the discounted amount.
6. No third-party ownership
Heating systems funded through BUS cannot be owned by a third party.
7. Coming next: heat batteries
Heat batteries that provide both space heating and hot water are expected to become eligible for a £2,500 grant once the required standards are in place, but this is not yet in force.
Who is eligible?
You may be eligible if:
- Your property is in England or Wales
- You are replacing a fossil fuel heating system
- Your heat pump will provide space heating (and hot water for A2W systems)
- Your installer is MCS-certified
- You have a valid Energy Performance Certificate (EPC), or your installer can provide alternative evidence (such as a recent utility bill and photos of the existing heating system) where no EPC exists
BUS will not fund:
- Systems that provide hot water only
- Installations alongside fossil-fuel appliances
- More than one grant per property
Six steps to BUS funding
A simple guide to installing either an air-to-air or air-to-water heat pump with BUS support.
- 1. Check your home
- 2. Find an installer
- 3. Choose the right heat pump
- 4. Grant application
- 5. Installation
- 6. Enjoy efficient comfort
Step 1 - Check your home
Good insulation helps any heat pump work efficiently. Your installer will advise if any upgrades are needed.
Step 2 – Find an installer
A BUS-registered, MCS-certified installer must apply for the grant for you.
Use our network of Daikin Sustainable Home Centres to find a trained expert.
Step 3 – Choose the right heat pump
Your installer will recommend the best Daikin system for your home:
Air-to-air (for efficient space heating and optional cooling)
Air-to-water (for heating and hot water)
They will give you a clear quote for the full installation cost.
Step 4 – Grant application
Your installer submits the application to Ofgem.
Ofgem will email you to confirm your consent. You need to respond within 14 calendar days, or the application may be rejected.
Most applications are processed within a few weeks, provided all the required information has been supplied.
Step 5 – Installation
Your installer will fit the indoor and outdoor units, complete electrical and plumbing works, test the system and make sure everything is running smoothly.
Step 6 - Enjoy efficient comfort
Your system is set up for optimal performance.
Your installer will show you how to use your heat pump and set you up on Onecta, so you can adjust settings and schedule heating from your phone.
Frequently Asked Questions
Air-to-water (A2W): The £7,500 grant is available now, with a temporary £9,000 uplift available for eligible off-gas-grid properties from 21 July 2026 to 31 March 2027.
Air-to-air (A2A): The £2,500 grant is now included in the scheme for residential properties, though MCS accreditation for air-to-air systems is still being finalised, so timings for claims may vary.
With the £7,500 grant applied, a fully installed air-to-water heat pump can cost between £0 and £2,255, depending on whether your home needs a hot water tank or radiator upgrades. These example prices already include installation, plumbing and electrical work, and the required equipment.
Eligible off-gas-grid properties can claim the uplifted £9,000 grant between 21 July 2026 and 31 March 2027, which reduces upfront costs further.
No. Only one grant per property is available. Your installer can help you choose which option is the best fit for your home.
Once your system is installed and approved, the grant is paid directly to your MCS-certified installer. In practice, the value of the grant is shown as an upfront discount on the quote you receive, so you only pay the net price.
Yes. Cooling-only systems are not eligible. The system must deliver space heating as part of its main function. All Daikin A2A residential heat pumps are designed to deliver both heating and cooling.
Yes. Solar PV does not affect your eligibility. In fact, pairing solar with a heat pump can help reduce your running costs even further.
Only for air-to-water systems. A2A systems provide space heating only. Your installer will explain what type of cylinder you need, if required. Daikin Multi+ does not need a hot water cylinder, although the grant for this technology will still be £2,500.
No. Domestic Hot Water Heat Pumps (DHW HP) only produce hot water and do not provide space heating, which is a core requirement of the BUS scheme. Because they cannot heat the home, they do not qualify for any BUS funding on their own.
No, an EPC is no longer mandatory. Where you have a valid EPC it should still be submitted, and it must show no outstanding recommendations for cavity or loft insulation. Where no EPC exists, your installer can submit alternative evidence, such as a recent utility bill showing the existing fuel type and photos of the current heating system.
Some are, depending on the project. BUS is not available for homes that are newly built by a developer, as these are classed as new build installations. However, if a homeowner buys a new build property and then makes changes to the heating system, it is treated as a retrofit and can be eligible for BUS. Self-build homes are also eligible under the scheme
Why choose Daikin?
Global expertise you can trust
With over 100 years of heating and cooling experience, Daikin is a global leader and the No.1 air-conditioning manufacturer in Europe. Our technology is trusted by homeowners, developers and leading brands worldwide.
Expert support
You’ll get expert guidance at every stage through our Sustainable Home Network, from your first consultation to installation and aftercare. The network also connects you with MCS-certified installers, giving you confidence that your system is designed and fitted by qualified professionals.
Comfort that lasts for years
Our heat pumps are efficient, reliable and built to keep your home comfortable in every season, while helping to lower your running costs. With nationwide support and long-term warranty options, you can rely on us well into the future.