BUS record as oil-heated homes turn to heat pumps
UK – Boiler Upgrade Scheme (BUS) applications rose to a record 8,150 in July, up 81% on June and 112% on the same month last year, as the government reported increased interest in heat pumps from households replacing oil-fired heating.
The surge coincides with the introduction of an enhanced £9,000 heat pump grant for eligible off-gas properties using oil or LPG.
Higher heat pump grant targets off-grid homes
The enhanced grant, which took effect on 21 July, increases support from £7,500 to £9,000 for qualifying households without a mains gas connection that are replacing oil or LPG heating with an eligible heat pump. The additional £1,500 will remain available until 31 March 2027.
The government has specifically targeted the increase at off-grid properties because of their exposure to movements in fossil fuel prices. Around 200,000 households were sent information about the higher grant in June ahead of its introduction.
Announcing the figures today, Martin McCluskey, Minister for Local Energy and Jobs, said households reliant on heating oil had been particularly exposed to recent increases in fuel prices and urged eligible consumers to consider using the higher level of BUS support.
Installing a heat pump is the best way for people on heating oil to get certainty over their bills and avoid costly spikes in prices due to events out of our control.
Martin McCluskey
“Seeing record numbers in applications for the Boiler Upgrade Scheme is really promising. I would urge eligible billpayers on oil to take advantage of the £9,000 grant to make the switch.”
Rural properties remain important to heat pump market
Rural and off-gas-grid properties already represent a significant share of installations supported by BUS. Government figures show that 49% of grants awarded since the scheme launched have gone to rural properties, while 38% have been for homes that are not connected to the gas grid.
The figures are said underline the importance of the rural retrofit market for heat pump installers, particularly where existing oil boilers are approaching replacement and homeowners are assessing the cost of retaining fossil fuel heating against moving to an electric system.
The £9,000 rate applies to eligible air-to-water and ground source heat pump installations in qualifying off-gas properties. Elsewhere, the standard BUS grant remains £7,500 for air-to-water and ground source systems, while separate support of £2,500 is available for eligible air-to-air heat pumps.
The government says it plans further support for low-carbon heating through its Warm Homes Plan, including low and no-interest finance for measures such as heat pumps, solar PV and battery storage.
The latest figures were announced alongside the rollout of plug-in solar, which is now legal to buy and install in Great Britain.
