The Boiler Upgrade Scheme explained

The Boiler Upgrade Scheme is a grant from the Government offering:

• £7,500 off the cost of an air source or ground source heat pump, or
• £5,000 off the cost of a biomass boiler

It aims to encourage homeowners to replace their existing fossil fuel heating system with one that's more efficient and better for the environment.

And unlike other government schemes, there’s no income rules or need to be claiming benefits to be able to apply. As it’s a grant it doesn’t need to be repaid to the government at any point.

So as long as your home is suitable for a heat pump it’s very likely you’ll be able to benefit from the £7,500 grant.

Homeowners and business owners in England and Wales can apply (including if it’s a business, a second home, or a property you rent out to tenants).

If you’re in Scotland, you can apply for a £7,500 grant through the Home Energy Scotland Scheme, with an additional £7,500 available as an interest free loan (or £9,000 if you qualify for a ‘rural’ uplift).

To claim the grant you must be replacing fossil fuel heating systems - such as oil, gas, electric or LPG (liquefied petroleum gas)

Your heat pump will need to provide both the heating and hot water to your home, and you’ll need to work with an MCS approved installer, like Octopus, who can make sure all of the government’s criteria is taken care of for you.

The good news is that we take care of it all for you!

When you get a heat pump quote with us, we’ll apply the £7,500 grant to your quote so you’ll only need to pay the remaining amount. We’ll make sure your home is suitable for a heat pump and meets all of the criteria for the Boiler Upgrade Scheme.

To claim the grant, your property must have a valid Energy Performance Certificate (EPC), (an EPC is valid for 10 years). If you don't have one - we will cover the cost and help to arrange this for you.

Then, when you’ve paid your deposit, we’ll claim the grant on your behalf from Ofgem. It’s that simple.

Unfortunately, if you’re living in a new-build or social housing you’re not eligible for the Boiler Upgrade Scheme.

Likewise, if you’ve been given government funding or support for a heat pump already you can’t apply. But this doesn’t include funding for other energy efficiency upgrades such as insulation, doors and windows.

And it’s important to remember the aim of the scheme is to replace dirty fossil fuel heating systems so funding isn’t available to replace existing low carbon systems. So you’re good to apply if you’re replacing an oil or gas boiler or electric systems, such as electric boilers, storage or panel heaters.

Check out this government guidance for a full list of exclusions.

Here’s some things to help you check that your home’s suitable for a heat pump. We’re always on-hand to help with anything you’re unsure about.

Do I need insulation?

Insulating your home is always a good idea, as it means your heat pump will work more efficiently and you’ll benefit from lower running costs.

Generally homes with an EPC Rating of D and above are likely to have at least a couple of types of insulation (wall, loft or double glazing) which means they should be well insulated enough for a heat pump already. If not, you might have to insulate before you can get a heat pump. This is something we can help arrange for you.

Do I have enough space for a heat pump?

Here’s a rough guide of the space you’d need:

Outside. You’ll need roughly 1m x 1m x 2m for the heat pump itself. Think of the size of a moped to help you visualise the space you’ll need. The heat pump needs space of around a metre in-front and to each side to breathe. And the heat pump needs to stand on solid ground (not suitable for decking for example).

Inside. You’ll need space for a hot water tank - 2m x 1m x 1m. Think of the size of a modern fridge freezer. Ideally this would be located on the ground or first floor - the closer to the outside the better. But we can use areas such as a garage, outside store or a loft too - but this can impact the efficiency. Check out our FAQs for more information.