Change to guidance on Boiler Upgrade Scheme upfront costs

UK – Following the most recent update to the Boiler Upgrade Scheme (BUS), installers must now deduct the grant amount from the customer’s upfront costs.

The installer-led BUS, which has now been extended to 2030, is designed to incentivise the deployment of low carbon heating by providing upfront capital grants to support the installation of heat pumps, biomass boilers solar pv and battery storage.

It offers grants of up to £7,500 for air source and ground source heat pumps (temporarily increased to £9,000 when replacing oil or LPG systems) and £2,500 for residential air-to-air installations.

More than 61,000 MCS-certified installations were carried out in 2025, of which 60,000 were air source. During the same period, more than 258,000 solar pv installations were approved.

The latest guidance from energy regulator Ofgem says that property owners must verify the discount before allowing the installer to submit the application. Installers must not request or accept payment of the deducted grant amount to remain compliant with BUS requirements.

The guidance states: “Installers must deduct the full BUS grant value from the quote before any payment is made by the property owner.

“This discount must appear at the quote stage (preinstallation) and on the invoice after the installation.

Installers must not request or accept payment of the BUS grant amount from the property owner to remain compliant with BUS requirements. If an application has been rejected or a voucher revoked, the installer’s ability to seek payment of the deducted amount will depend on the contractual terms agreed between the installer and the property owner.”

It adds that failure to deduct the grant value upfront may lead to the rejection of a voucher application or revocation of a voucher.

The full guidance is available here.