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25 September 2023

Boiler Upgrade Scheme

The scheme provides up to £6,000 for small businesses to cover part of the cost to install a heat pump or biomass boiler.

Heating and hot water accounts for over half of what you spend in a year on energy bills, so an efficient boiler makes a big difference.

All modern, well-maintained boilers burn their fuel efficiently, but they inevitably lose some heat in the hot gases that escape up the flue (a pipe used to extract fumes and supply fresh air to the boiler).

Through the Boiler Upgrade Scheme, you could get a grant to cover part of the cost of replacing fossil fuel heating systems with a heat pump or biomass boiler.

Fossil fuel heating systems include oil, gas or electric and you can get one grant per property.

Grants are available for:

  • £5,000 towards an air source heat pump
  • £6,000 towards a ground source heat pump (including water source heat pumps and those on shared ground loops)
  • £5,000 towards a biomass boiler

You cannot get a grant for a hybrid heat pump system (for example a combination of gas boiler and air source heat pump).

The system you install must meet certain standards, such as minimum efficiency levels (your installer can advise you on these).

The system’s maximum capacity must be less than 45kWth – anything over is not eligible.

Check if you're eligible

You’re eligible for a grant if all the following are true. You must:

  • Own the property you’re applying for (including if it’s a business, a second home, or a property you rent out to tenants)
  • Have installed (or plan to install) your new heating system on or after 1 April 2022
  • Be replacing fossil fuel heating systems (such as oil, gas or electric)

You’re still eligible if you’ve already had funding to make your property more energy efficient, for example by insulating it.

Check if your property is eligible

Your property must have a valid Energy Performance Certificate (EPC) with no outstanding recommendations for loft or cavity wall insulation.

Find out what to do if your property has recommendations for loft or cavity wall insulation.

If you’re not sure whether your property is suitable for a low carbon heating system, speak to an MCS certified installer. They can tell you about your options.

Biomass boilers

You can get a grant for a biomass boiler if all the following are true:

  • your property is off the gas grid
  • your property is in a rural location (check the Ofgem guidance for property owners if you’re not sure)
  • your boiler has an emissions certificate showing that polluting emissions are kept to a minimum

You cannot get a grant to install a biomass boiler in a self build property.

Properties you cannot get a grant for

You cannot get a grant for:

  • most new build properties
  • social housing
  • a property that’s already been given government funding or support for a heat pump or biomass boiler

How to apply

  • Contact suitable MCS certified installers to get quotes for the work.
  • Confirm you’re eligible (your installer will tell you).

Agree a quote with your chosen installer.

  • The installer will apply on your behalf on the Ofgem website.
  • The value of the grant will be taken off the amount you pay for installation.

What happens next

Ofgem will contact you to confirm that the installer is acting on your behalf. They might also contact you by phone or visit your property in order to check the installation.

MCS might contact you to carry out their own checks.

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