Boiler Upgrade Scheme
£7,500 off a heat pump. £9,000 if you are on oil or LPG.
The Boiler Upgrade Scheme is a government grant towards replacing a fossil-fuel boiler with a heat pump in England and Wales. It is paid to the installer, so it simply comes off your quote. Here is what it pays, who qualifies and how it works, with links to the official pages.
Grant amounts
What the scheme pays.
| System | Grant | Notes |
|---|---|---|
| Air source (air-to-water) heat pump | £7,500 | The standard rate. What most Dorset homes replacing a gas boiler receive. |
| Air source or ground source heat pump, off-gas-grid home | £9,000 | Enhanced rate for properties heated by oil or LPG with no mains gas connection. Applications from 21 July 2026 to 31 March 2027. |
Figures checked against GOV.UK and Ofgem on 9 September 2026. Installation is also zero-rated for VAT until 31 March 2027.
Eligibility
Who qualifies.
- You own the property. Homes, second homes, rented-out property and small business premises all count.
- The property is in England or Wales.
- The heat pump replaces a fossil-fuel or electric heating system: oil, gas, LPG or electric. It cannot replace an existing low-carbon system.
- The new system meets the full space heating and hot water needs of the property.
- The installer is MCS certified and a member of a consumer code. The installer applies, not you.
- The property has not already had government or Energy Company Obligation funding for a heat pump.
Not eligible
Where it does not apply.
- Most new-build properties still under development (self-builds can qualify).
- Social housing.
- Replacing a heat pump or biomass boiler that is already low-carbon.
The official checker is the final word: check your eligibility on GOV.UK.
How it works
Installer-led, from survey to grant.
- 01
Survey and eligibility check
At the heat-loss survey we confirm the property and the existing heating qualify, and which rate applies.
- 02
Vanadium applies
The scheme is installer-led. Vanadium holds the MCS heat pump certification and makes the voucher application on your behalf; you never pay the grant amount.
- 03
You confirm consent
Ofgem emails you to confirm the application. Reply within 14 days or it can be rejected.
- 04
Install within the window
The system must be installed and commissioned within three months of the voucher being issued (six months for ground source).
- 05
Grant redeemed
The installer redeems the voucher after commissioning and the grant is paid to them. It has already come off your quote.
Good to know
Grant questions.
Do I apply for the grant myself?
No. The scheme is installer-led: Vanadium, as the MCS-certified installer, applies on your behalf and the grant is paid to us. You see it as a deduction on the quote. Ofgem will email you to confirm you consent to the application.
Is there an EPC or insulation requirement?
The earlier requirement to have no outstanding loft or cavity-wall insulation recommendations on your EPC was removed in 2024. Insulation is still worth doing for running costs, and the heat-loss survey will tell you if it changes the heat pump size.
Does the £9,000 rate apply to me?
Only if the property has no mains gas connection and is currently heated by oil or LPG, and the application is made between 21 July 2026 and 31 March 2027. Homes on mains gas receive the standard £7,500.
Is VAT charged on the installation?
Energy-saving materials including heat pumps are zero-rated for VAT on residential installations until 31 March 2027.
How long does the scheme run?
The scheme is currently funded to 31 March 2027 and the government has committed funding through to 2028. Rates and rules can change at a Budget, so we re-check them before every application. Figures on this page were checked on 9 September 2026.
Can I get the grant for a heat pump with solar and a battery?
Yes. The grant applies to the heat pump; solar and battery are separate and zero-rated for VAT. We design and quote all three together.
Start here
Find out which rate you qualify for.
Tell us about the house and the current boiler. We confirm eligibility at the heat-loss survey and apply for the grant for you. Prefer to talk? Call 0330 320 1500.