The Boiler Upgrade Scheme (BUS) offers homeowners a £7,500 grant towards replacing their gas or oil boiler with an air source heat pump. It's one of the most generous energy grants currently available — and Greater Manchester homeowners have a unique advantage thanks to the GMCA's involvement.

What Is the Boiler Upgrade Scheme?

The BUS is a UK government scheme administered by Ofgem. It provides upfront grants to help homeowners switch from fossil fuel heating to low-carbon alternatives. The scheme has a £295 million budget for 2025/26 and has been extended to run until at least 2028.

Grant values in 2026:

£7,500 for an air source heat pump (ASHP)
£7,500 for a ground source heat pump (GSHP)
£5,000 for a biomass boiler (rural properties only)

Ofgem data shows that 97% of all BUS grants go towards air source heat pumps — they're the most practical option for the vast majority of homes.

Greater Manchester: The GMCA Advantage

Greater Manchester Combined Authority (GMCA) actively promotes the BUS as part of its Five Year Environment Plan. The GM Green City initiative supports homeowners in all ten GM boroughs — Manchester, Salford, Bolton, Bury, Oldham, Rochdale, Stockport, Tameside, Trafford, and Wigan.

While the BUS application itself goes through a certified MCS installer and Ofgem, GMCA provides additional support including:

The GM Retrofit Portal — a free assessment tool to check what upgrades suit your home
Links to vetted local installers
Guidance on combining BUS with other schemes (like the Warm Homes: Local Grant)

Am I Eligible?

To qualify for the BUS in 2026, you need to meet all of these criteria:

Your current heating must use fossil fuels — gas, oil, LPG, or electric (if it's your primary heating). You can't replace an existing heat pump.
You need a valid EPC (Energy Performance Certificate) for the property. If you don't have one, an MCS installer can arrange this.
The heat pump must be 45 kWth or less (this covers virtually all residential systems).
The installer must be MCS-certified — this is non-negotiable. The grant is applied directly to your quote.
The property must be in England or Wales (Scotland has a separate scheme).

There's no income test or means testing. The BUS is available to all homeowners regardless of income — it's a universal grant.

Step-by-Step: How to Apply

Get a heat pump quote from an MCS-certified installer. They'll survey your home, recommend the right system, and include the BUS grant in the quote. The £7,500 is deducted directly — you never handle the grant money yourself.
The installer applies to Ofgem on your behalf. They submit the application through the BUS portal. You'll receive a confirmation email from Ofgem.
Ofgem reviews and approves. This typically takes 2–4 weeks. Once approved, the installer is notified and can proceed with the installation.
Installation takes place. A typical ASHP installation takes 2–3 days. Your installer handles everything including decommissioning the old boiler.
Ofgem pays the installer directly. You pay only your share (typically £4,000–£8,000 after the grant, depending on the system).

What Does a Heat Pump Actually Cost After the Grant?

A typical air source heat pump installation in 2026 costs £10,000–£15,000 before the grant. After the £7,500 BUS grant:

Small system (5–8 kW): £3,000–£5,000 out of pocket
Medium system (8–12 kW): £5,000–£7,500 out of pocket
Large system (12–16 kW): £7,500–£10,000 out of pocket

What If I Don't Qualify for BUS?

If you don't qualify for the BUS (for example, if you already have electric heating that isn't a storage heater system), you may still be eligible for the Warm Homes: Local Grant. In Greater Manchester, this is delivered through the GMCA and offers grants of up to £15,000 for energy efficiency measures including heat pumps — though it is means-tested.

The two schemes can sometimes be combined. Speak to your installer or check the eligibility criteria to understand your options.

Key Takeaway

The BUS makes heat pumps genuinely affordable. At £3,000–£7,500 after the grant, the running cost savings (heat pumps are 3–4x more efficient than gas boilers) mean most homeowners see a payback within 7–10 years. In Greater Manchester, GMCA's support infrastructure makes the process smoother than in most parts of England.

Get a free heat pump quote — we'll include the BUS grant and show you exactly what you'll pay.

Not affiliated with the UK Government. Always verify official guidance on GOV.UK.

Boiler Upgrade Scheme 2026: Step-by-Step Guide for Greater Manchester Homeowners