The Boiler Upgrade Scheme has jumped from £7,500 to £9,000 for off-gas-grid homes switching from oil or LPG to a heat pump. Here's exactly who qualifies and how to claim it.
Quick answer
- Grant amount £9,000 (up from £7,500)
- Start date 21 July 2026
- End date (uplift period) 31 March 2027
- Eligible systems Air-to-water & ground-source heat pumps
- Where England and Wales only
- Income test None
- Who applies Your MCS-certified installer
If your home runs on heating oil or LPG and you have been putting off switching to a heat pump because of the upfront cost, this is worth revisiting now. Below, the Fitsolar team explains exactly who qualifies, how much you can get, and how the application process works.
What is the Boiler Upgrade Scheme?
The Boiler Upgrade Scheme is a UK government grant that reduces the upfront cost of replacing a fossil fuel heating system with a low-carbon alternative, such as a heat pump. It is administered by Ofgem and applies to homes and small non-domestic properties in England and Wales. Since 21 July 2026, the scheme pays a higher rate to off-gas-grid households moving away from oil or LPG.
What has changed on 21 July 2026
Since 21 July 2026, the Boiler Upgrade Scheme pays £9,000 towards an air-to-water or ground-source heat pump for off-gas-grid homes currently heated by oil or LPG. That is a £1,500 uplift on the standard £7,500 rate, which continues to apply to homes on mains gas or other off-grid fuels such as coal or electric storage heating.
Air-to-air heat pumps, which provide warm-air space heating rather than wet central heating and hot water, remain capped at £2,500 regardless of property type.
Grant values can be revised by the government at any time, so always check the current figures on GOV.UK before putting anything in writing to a customer.
Boiler Upgrade Scheme grant rates 2026
| Heating system | Property / fuel type | Grant value | Key condition |
|---|---|---|---|
| Air-to-water or ground-source heat pump | Off-gas-grid, replacing oil or LPG | £9,000 | Uplift runs 21 July 2026 to 31 March 2027 |
| Air-to-water or ground-source heat pump | Mains gas or other off-grid fuels (coal, electric) | £7,500 | Standard baseline rate |
| Air-to-air heat pump | Any property, on or off-grid | £2,500 | Warm-air space heating only, not wet central heating or hot water |
| Biomass boiler | Off-gas-grid rural properties | £5,000 | Unchanged |
Who qualifies for the £9,000 Boiler Upgrade Scheme grant
Timing matters most
Only voucher applications submitted to Ofgem on or after 21 July 2026 receive the £9,000 rate. If a voucher was already issued before that date, it stays at £7,500 unless it is cancelled and resubmitted.
A full system swap is required
Hybrid setups, where an old oil or LPG boiler is kept as a backup alongside the new heat pump, are not eligible. The existing fossil fuel system has to be removed completely.
Property type is flexible
Owner-occupiers, private landlords and small commercial property owners can all apply. New-build developments are excluded, with one exception: genuine self-builds still qualify.
There is no income test
Every eligible property in England and Wales can claim the grant regardless of household earnings.
How to apply for the Boiler Upgrade Scheme grant
You will not receive a cash payment or need to fill in forms yourself. The process runs through your installer:
- Your installer applies for you. An MCS-certified installer submits the voucher application to Ofgem on your behalf.
- The discount is applied upfront. The £9,000 (or £7,500) grant is deducted directly from the installer's quote, so you only pay the balance.
- You confirm by email. Ofgem sends a short verification link so you can confirm you own the property and consent to the installer acting for you.
Is the funding likely to run out?
The scheme has £2.39 billion behind it through to 2029/30 as part of the Warm Homes Plan, with £400 million allocated for the current financial year. That is a large enough budget that homeowners considering a switch this year should not expect the money to disappear overnight, though it is still sensible to move ahead promptly rather than wait.
DESNZ has also started posting leaflets to around 200,000 eligible households, so expect a rise in enquiries and calls from oil and LPG postcodes through August. The first official uptake figures for the new rate are due towards the end of August.
Should you switch from oil or LPG to a heat pump now?
For most oil and LPG households, the case has always come down to running costs as much as the grant itself. Oil and LPG prices are volatile and have crept up over recent years, while a well-specified heat pump on a reasonable tariff tends to bring steadier monthly costs and far less exposure to fuel price spikes. The extra £1,500 simply improves the upfront maths on a switch that was already worth considering for many off-grid homes.
If you are thinking about combining a heat pump with solar panels or a battery, this is also a good point to plan both together, since a well-sized solar and battery setup can further reduce what you pay to run a heat pump through the year.
Frequently Asked Questions About Plug-In Solar Panels
Off-gas-grid homes replacing oil or LPG heating with an air-to-water or ground-source heat pump can claim £9,000, provided the voucher application was submitted on or after 21 July 2026.
The higher rate took effect on 21 July 2026 and is scheduled to run until 31 March 2027.
No. Vouchers issued before that date keep their original £7,500 value unless they are cancelled and a new application is submitted.
No. Hybrid systems are not eligible. The existing fossil fuel system must be fully removed as part of the installation.
No. The grant is available to eligible properties in England and Wales regardless of household income.
No. An MCS-certified installer submits the application to Ofgem on your behalf, and the grant is deducted from your quote before you pay.
No, new-build developments are generally excluded, except for genuine self-builds.
No. The £9,000 uplift applies only to air-to-water and ground-source heat pumps. Biomass boilers remain at £5,000 and air-to-air heat pumps remain at £2,500.
No. The Boiler Upgrade Scheme covers England and Wales only. Scotland has its own scheme through Home Energy Scotland, and Northern Ireland has separate funding routes.
Grant values and eligibility rules can change. Always check the current figures on GOV.UK before relying on them for a quote.
