The UK government has updated the rules for the £7,500 heat pump grant, affecting all households eligible under the Boiler Upgrade Scheme (BUS). Going forward, BUS installers are required to deduct the full grant amount directly from the customer’s initial installation quote.
This change ensures that property owners benefit from the grant discount upfront, rather than being reimbursed later. The Department for Energy Security and Net Zero (DESNZ) introduced these revised regulations, which came into effect on 28 April 2026.
The Boiler Upgrade Scheme encourages the adoption of low-carbon heating systems by providing capital grants. These grants support the installation of heat pumps and biomass boilers in both residential and certain non-residential properties. The current grant amounts are £7,500 for air-to-water (AWHP) and ground source heat pumps (GSHP), £2,500 for air-to-air heat pumps (AAHP) in residential properties, and £5,000 for biomass boilers under specific conditions.
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Installers must include the full grant deduction in their quotes before any payment is made by the homeowner. This discount should be clearly displayed on both the initial quote and the final invoice after installation.
To comply with BUS rules, installers cannot ask property owners to pay the grant amount directly. If a funding application is rejected or a voucher is revoked, any further payment obligations depend on the contractual agreement between installers and customers. Ofgem, the scheme’s regulator, does not intervene in these private contracts.
Non-compliance with the upfront deduction requirement could lead to a voucher application being rejected or an existing voucher being revoked.
Once the customer consents to proceed, installers have three months to complete the installation following industry and scheme standards—this period extends to six months for ground source heat pumps.
After installation and inspections are complete, installers can claim the grant from Ofgem. If the work is not finished within the set timeframe, a new application and customer consent will be necessary.