The UK government has introduced a significant rule change for the Boiler Upgrade Scheme (BUS) that could impact households seeking heat pump grants worth up to £7,500. Under the new regulations, installers must now deduct the full grant amount from the customer's upfront costs, ensuring property owners receive the discount immediately.
Key Details of the Rule Change
The Department for Energy Security and Net Zero (DESNZ) amended the BUS regulations, which came into force on 28 April 2026. The scheme provides upfront capital grants to support the installation of low-carbon heating systems, including heat pumps and biomass boilers, in residential and non-residential properties.
Grant Values
- £7,500 for air-to-water heat pumps (AWHP) and ground source heat pumps (GSHPs)
- £2,500 for air-to-air heat pumps (AAHP) in residential properties only
- £5,000 for biomass boilers in limited circumstances
What Installers Must Do
Installers are now required to 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 (pre-installation) and on the invoice after installation. Installers must not request or accept payment of the BUS grant amount from the property owner to remain compliant.
Consequences of Non-Compliance
Failure to deduct the grant value upfront may lead to the rejection of a voucher application or revocation of a voucher. Ofgem, the regulator, has stated that if an application is 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. Ofgem does not have any role in these contractual arrangements.
Timeline for Installation
After the property owner confirms consent, the installer has three months from the approval of the application to complete the installation in line with industry standards and scheme requirements. For ground source heat pumps, this period is extended to six months. Once the new system is installed and fully checked, the installer can claim the grant amount from Ofgem.
If the installer fails to complete the work within the specified time limits, they must submit a new application for the installation, and the property owner will need to confirm consent again.
This rule change aims to ensure that households benefit from the grant upfront, reducing financial barriers to adopting low-carbon heating technologies.
