How the Boiler Upgrade Scheme Works Step by Step

The Boiler Upgrade Scheme provides a government grant (£7,500, or £9,000 until 31 March 2027 if your home is heated by oil or LPG and has no mains gas connection) towards the cost of an air source heat pump or ground source heat pump to replace your existing fossil fuel or electric heating system. The grant is available to all homeowners in England and Wales – there is no means test, no income threshold and no benefits requirement. You do not apply for the grant yourself; your MCS certified installer applies on your behalf as part of the installation process. The scheme runs until 31 March 2030 and has been one of the most successful heat pump incentives in the UK.

How Does the Boiler Upgrade Scheme Work?

1. Check your eligibility — you must own your property in England or Wales and currently heat with gas, oil, LPG, coal or electric storage heaters (not an existing heat pump)
2. Check your EPC — no longer required since 28 April 2026, but if your home has a valid one your installer must give its number
3. Contact installers certified under MCS — get two to three quotes from installers registered on the Microgeneration Certification Scheme
4. Your installer applies to Ofgem — they submit your application through the Boiler Upgrade Scheme portal on your behalf
5. Receive your voucher — Ofgem issues a £7,500 voucher valid for 3 months (6 months for a ground source heat pump)
6. Installation is completed — your installer fits the heat pump system and commissions it
7. Grant is paid to your installer — Ofgem pays the £7,500 directly to the installer, reducing your final invoice by that amount

The entire process from first enquiry to completed installation typically takes 6 to 12 weeks. You do not apply for the grant yourself — your MCS-certified installer handles the Ofgem application. The £7,500 grant covers air source and ground source heat pumps, bringing the typical homeowner cost down to £3,000 to £5,500 for an air source system or £7,000 to £12,000 for a ground source installation.

Despite the grant being worth a significant amount, many Lancashire homeowners find the process confusing or worry about hidden complications. The reality is straightforward, but there are specific steps and requirements you need to follow. Here is the complete process from start to finish.

Am I Eligible?

The eligibility criteria are simpler than most people expect:

• You own the property (owner-occupier or landlord). The scheme does not cover social housing – that has separate funding routes.
• The property is in England or Wales.
• You are replacing a fossil fuel or electric heating system – gas boiler, oil boiler, LPG boiler, coal or electric storage heaters. You cannot use the grant for a new-build property or to replace an existing heat pump.
• No EPC is needed since 28 April 2026, and loft or cavity wall insulation recommendations stopped counting in May 2024. If your home has a valid EPC, your installer gives its number with the application.
• The property has not previously received a Boiler Upgrade Scheme voucher.

Notably, there is no income or savings threshold. Whether you earn £20,000 or £200,000, you qualify. The grant amount is the same whatever your income: £7,500 for an air source or ground source heat pump, or £9,000 until 31 March 2027 if your home is heated by oil or LPG and has no mains gas connection.

Step 1: Check Your EPC (If You Have One)

You no longer need an EPC to get the grant (since 28 April 2026), but if your property has a valid one, your installer must give its number. Search the government EPC register with your postcode to find it; EPCs are valid for 10 years. If you want a new one anyway, an EPC assessment costs £60-£120 and takes about an hour.

Loft or cavity wall insulation recommendations on your EPC no longer hold up the grant (that rule ended in May 2024), but they are still worth doing before a heat pump goes in, because a warmer home needs a smaller heat pump. In Lancashire, many older homes have EPC recommendations for loft top-up or cavity wall insulation that can be done privately (about £600 for a loft top-up or £750 for an empty loft, and about £2,200 for cavity wall insulation in a typical home, on Energy Saving Trust figures) or for free through ECO4 if you are on qualifying benefits.

Step 2: Find an MCS Certified Installer

The installer must be MCS certified (Microgeneration Certification Scheme) to apply for the government grant on your behalf. Only installers certified under MCS can access the voucher system. You can search for certified installers in your area on the MCS website.

Get at least three quotes from different installers. In Lancashire, there is a growing number of qualified heat pump installers, but demand is high so book early. Expect to wait 4-12 weeks between initial contact and installation, depending on the installer’s schedule.

A good installer will:

• Visit your property to assess suitability
• Calculate your heat loss and recommend an appropriately sized heat pump
• Advise on any radiator upgrades or insulation needed
• Provide a detailed written quote showing the total cost, the government grant deduction and your net cost
• Explain the running costs you can expect

Step 3: Accept a Quote and Sign the Contract

Once you have chosen an installer and accepted their quote, you sign a contract. The quote should clearly show:

• Total installation cost (e.g. £12,000)
• Boiler Upgrade Scheme grant amount (£7,500)
• Your contribution (e.g. £4,500)
• What is included (heat pump unit, installation, radiator upgrades, hot water cylinder, controls, commissioning)
• Timeline for installation
• Warranty terms

You should never be asked to pay the full amount upfront. A reasonable deposit (10-20% of your contribution) is normal, with the balance due on completion.

Step 4: The Installer Applies for the Voucher

After you sign the contract, your installer applies for a Boiler Upgrade Scheme voucher through Ofgem’s online portal. They provide details about your property, the proposed heat pump system and the EPC number, if the property has one.

Voucher approval typically takes 1-3 weeks. You will receive email confirmation from Ofgem when the voucher is issued. The voucher is valid for 3 months from the date of issue (6 months for a ground source heat pump), during which time the installation must be completed.

If the voucher application is rejected, it is usually because of a documentation error. Your installer should resolve any issues and resubmit.

Step 5: Installation

The installation itself typically takes 2-5 days depending on the complexity. Here is what to expect:

Day 1: The outdoor unit is positioned and mounted on its base. Pipework connections are made between the outdoor unit and the indoor components. If scaffolding is needed, it goes up on day 1.

Day 2-3: The hot water cylinder is installed (if new or replacement). Radiator upgrades are carried out if needed. Internal pipework modifications are completed. The heat pump control system is installed.

Day 3-5: Electrical connections are made. The system is filled, pressurised and tested. The installer commissions the system, sets up weather compensation controls and walks you through how to use the heating controls. Your old boiler is disconnected and removed.

Step 6: Completion and Payment

After installation, the installer completes the MCS certification paperwork and submits the voucher redemption to Ofgem. Ofgem pays the £7,500 directly to the installer. You pay the remaining balance to the installer (your contribution).

You should receive:

• MCS installation certificate
• Commissioning certificate
• Manufacturer warranty documents
• User manual for your heat pump system
• Building control notification (the installer handles this)
• DNO notification confirmation

Common Questions and Concerns

Can I combine the Boiler Upgrade Scheme with other grants? You cannot combine the Boiler Upgrade Scheme with ECO4 for the same heat pump installation. However, you can use ECO4 for insulation improvements and then use the Boiler Upgrade Scheme for the heat pump – they fund different measures.

What if my quote is less than £7,500? The grant covers up to £7,500 but will not exceed the installation cost. If the installation costs £6,000, the grant is £6,000 and you pay nothing.

Can landlords apply? Yes. Landlords can apply for the Boiler Upgrade Scheme on their rental properties. The existing heating must be fossil fuel or electric storage heaters (not a heat pump); an EPC is no longer required.

Is there a deadline? The scheme currently runs until 31 March 2030. Budget is allocated annually, and the government has been increasing funding each year as demand grows. There is no indication the scheme will be withdrawn before then.

How much will I pay after the government grant?

A typical air source heat pump installation in Lancashire costs £10,000-£14,000. After the £7,500 Boiler Upgrade Scheme grant, you pay £2,500-£6,500. The exact amount depends on the heat pump model, complexity of the installation and whether you need radiator upgrades or a new hot water cylinder.

What if I need loft insulation to qualify?

You don’t: since May 2024 an EPC recommendation for loft insulation no longer affects the grant, though insulating first still means a smaller heat pump. Loft insulation costs about £600 for a top-up or £750 for an empty loft privately (Energy Saving Trust), or may be free through ECO4 for eligible low-income households until 31 December 2026; the Great British Insulation Scheme closed on 31 March 2026, but in England your council may fund the work through the Warm Homes: Local Grant. Many heat pump installers can arrange loft insulation as part of the project or recommend a specialist.

Can I choose any heat pump brand?

Yes, as long as the heat pump is MCS certified. Most major brands qualify, including Vaillant, Daikin, Mitsubishi, Samsung, Grant and others. Your installer may recommend specific models based on your property’s needs, but the choice is ultimately yours. Compare quotes and models from different installers to ensure you get the right system at a fair price.