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Ofgem £50m Grants Announcement - Blog Post - 939830362 (1)

£50 million boost to heat pump installation grants

The UK Government has added £50 million to the Boiler Upgrade Scheme (BUS), helping keep it running into the next financial year.

So what does that mean for you? More funded jobs, more customers asking about heat pumps, and a solid opportunity to grow your renewables work.

What is the Boiler Upgrade Scheme? 

The Boiler Upgrade Scheme (BUS) is a government initiative designed to help property owners switch to low-carbon heating systems, particularly heat pumps, by offering upfront grants.

Here’s the important bit:

  • Grants of £7,500 are available for air-source heat pumps (ASHPs) and ground-source heat pumps (GSHPs) 

  • £5,000 grants are offered for biomass boilers 

  • This scheme applies to properties in England and Wales only 

In Scotland, the Home Energy Scotland Grant and Loan Scheme offers a mix of grants and interest-free loans for clean heating and energy efficiency improvements.

In Northern Ireland, the Boiler Replacement Scheme is no longer accepting applications, so homeowners should check NI Energy Advice for the latest guidance.

Electricians and installers – here’s where it pays off

This extra funding isn’t just good news, it’s work on the table.

  • More funding means more customers ready to upgrade

  • If you’re MCS certified, you’re already in a strong position to win that work

  • Heat pump skills are only getting more valuable as the UK pushes towards net zero

  • You’re helping customers reduce running costs—not just swap systems

How can I claim a BUS grant?

To access BUS funding, you’ll need to meet a few key requirements:

  • You’ll need to be MCS (Microgeneration Certification Scheme) registered

  • You must be signed up to the BUS scheme

  • The property must be suitable for a heat pump or biomass system

  • The system must replace an existing fossil fuel or electric heating system

  • The new system must meet all heating and hot water demand

  • Hybrid systems (with a backup boiler) aren’t eligible

  • Heat pump capacity must be 45kW or below

  • The property must have a valid EPC and recommended insulation in place (e.g. loft or cavity wall)

  • Social housing and most new builds aren’t eligible

What’s the application process?

The BUS is installer-led, which means you handle the process for your customer.

Here’s how it works in practice:

  1. Assess the property’s suitability

  2. Apply for the grant through the BUS portal

  3. Wait for Ofgem approval (they’ll contact the customer directly)

  4. Complete the installation within:

    • 3 months for air source heat pumps and biomass

    • 6 months for ground source heat pumps

  5. Claim the grant and deduct it from the customer’s bill

How to make the most of this opportunity 

If you’re looking to win more of this work, a few simple things make a big difference:

  • Keep your MCS certification up to date

  • Get familiar with the BUS portal—it’ll save you time on jobs

  • Stay sharp on heat pump installs and product options

  • Talk to your customers about the grants—many won’t know what’s available

How CEF can support you 

If you’re getting into heat pumps—or just doing more of them—we’ve got your back.

  • Stock you can rely on: Heat pumps ready for next-day delivery

  • Straightforward advice: Help with specs and choosing the right kit

  • Training support: Access to MCS-accredited courses

  • Real people to talk to: Our renewables team is here when you need a hand