Boiler Upgrade Scheme uplift begins for off-gas-grid buildings

UK – Eligible off-gas-grid homes and non-residential properties in England and Wales can now access a £9,000 Boiler Upgrade Scheme grant when replacing oil or LPG heating with an air-to-water or ground source heat pump.

The temporary uplift, which took effect on 21 July 2026, increases the standard £7,500 grant by £1,500 and will remain available until 31 March 2027.

Eligibility is limited to oil and LPG replacements

To qualify for the higher grant, the property must be off the gas grid, and its existing heating system must be fuelled by oil or liquefied petroleum gas.

Under Ofgem’s Boiler Upgrade Scheme guidance, a property must not be fuelled by mains gas and must have no current record of an existing gas meter point. Capped or clamped gas connections are still treated as mains-gas connections.

Properties connected to a heat network and new-build properties are excluded from the uplift. Both residential and eligible non-residential buildings can qualify, although self-build properties remain restricted to the standard grant.

The £9,000 funding applies only to air-to-water and ground source heat pumps. Applications must be properly made on or after 21 July to receive the uplift. Applications submitted before that date are assessed against the grant values in force when they were made.

The Boiler Upgrade Scheme continues to play a vital role in supporting households to adopt heat pumps, and this £1,500 uplift will make the transition significantly more affordable for the thousands of oil-heated homes

Charlotte Lee, chief executive, HPA UK

Other replacement fuels remain at £7,500

Off-gas-grid properties replacing coal, direct electric heating, fossil-fuel hybrid systems or other eligible heating systems do not receive the uplift.

Subject to the wider scheme criteria, these installations can continue to qualify for the standard £7,500 grant for an air-to-water or ground source heat pump.

The distinction will be important for installers assessing enquiries, particularly where customers interpret being off the gas grid as sufficient to qualify for the higher payment. The existing fuel type and the property’s gas-connection record must also meet Ofgem’s requirements.

Air-to-air support remains separate

Air-to-air heat pumps are supported through a separate £2,500 grant and are eligible only in residential properties.

They do not qualify for the £9,000 off-gas-grid uplift, including when replacing oil or LPG heating.

The Boiler Upgrade Scheme now provides three principal levels of heat pump support: £9,000 for qualifying off-gas-grid oil or LPG replacements, £7,500 for other eligible air-to-water and ground source installations, and £2,500 for eligible residential air-to-air systems.