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 now been extended to 2030. To apply, you will need an MCS certified installer with a BUS installer account who will manage the application process for you.
Available grants:
- £7,500 towards an air-to-water heat pump
- £2,500 towards an air-to-air heat pump (including single, multi and Multi+ systems)
Any remaining costs are paid by the homeowner.
Changes to the BUS scheme
The UK Government has outlined planned changes to make the BUS scheme more flexible and open to more homes. These changes are not in place yet and are expected to take effect in 2026, but the exact timing has not been confirmed:
1. Air-to-air heat pumps are now included (£2,500 grant)
A2A systems are eligible when they are installed for space heating. 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.
2. Wider support for electric heating combinations
A2A heat pumps can be installed alongside other electric heating technologies, as long as they are not combined with fossil-fuel systems.
3. EAHPs and heat batteries included
- Exhaust Air Heat Pumps (EAHPs) can receive the £7,500 hydronic heat pump grant if they meet the criteria for hydronic systems.
- Heat batteries can receive £2,500 if they provide both space heating and hot water.
4. EPC requirements becoming more flexible
From 2026/27, applicants without a valid Energy Performance Certificate (EPC) will be able to provide alternative evidence to Ofgem instead.
5. Grant must be deducted upfront
The Government has confirmed that installers will be required to deduct the grant from the upfront cost in future, but this change has not yet come into effect.
6. No third-party ownership
Heating systems funded through BUS cannot be owned by a third party.
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 and has a BUS installer account
- You have a valid Energy Performance Certificate (EPC). From 2026/27, you can provide alternative evidence if 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.
Ofgem will email you to confirm the details. Reply quickly to avoid delays.
Most decisions come back within 15 working days.
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
The grant reduces the cost of your system by £7,500 (A2W) or £2,500 (A2A). The rule requiring installers to deduct this upfront comes in next year, so your installer will give you a full quote based on the current process.
Air-to-water (A2W): The £7,500 grant is available now.
Air-to-air (A2A): The new £2,500 grant is expected to become payable from April 2026 (subject to the scheme timeline and final confirmation from government).
With the £7,500 grant applied, a fully installed A2W 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.
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 installer, which reduces the amount you need to pay. The Government plans to update the scheme so installers subtract the grant from your quote straight away, but this is not in place yet.
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.
Yes. From 2026/27, alternative evidence can be submitted if no valid EPC exists. Right now, your EPC must show no outstanding recommendations for cavity or loft insulation.
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 and certified installers
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.