The Boiler Upgrade Scheme (BUS) allows households to benefit from government grants towards the cost of a low carbon heating system. The scheme was set up to accelerate the rollout of these eco technologies, cut carbon emissions and reduce reliance on fossil fuels. As of November 2025, the BUS has paid out over £485 million, supporting over 70,000 installations of efficient heating systems*.
The June 2025 spending review announced the BUS will be extended until 2030, funding is set to increase each year, and further details of the funding increase will be announced in the Warm Homes Plan update in due course.
In December 2025, the Department for Energy Security and Net Zero (DESNZ) announced that, after a consultation with a range of stakeholders, they would be introducing some regulatory changes to enable greater uptake of the scheme. Some of these changes will come into effect from early 2026, and others are outlined in future amendments. In this update, we break down the changes and how they will impact your installations going forward.
Changes to the BUS taking effect early this year
Of all the changes to the Boiler Upgrade Scheme discussed during the consultation, two have been confirmed by the BUS team to come into effect early this year.
Expanding the BUS system eligibility
Extending the supported technologies to allow more installations of heat pumps and other electric heating appliances within the scheme will give consumers a wider choice of how they power their homes. The new technologies include:
- Exhaust air heat pumps for smaller heating requirements in very low energy buildings
- Air-to-air heat pumps, which can be a better solution for smaller dwellings with less or no available outdoor space (qualifying for grants up to £2,500 to support the installation)
Martin McCluskey, the government minister for Energy Consumers, commented:
“With heat pumps more popular than ever, we want to make sure as many people as possible can benefit, especially those in flats or small homes without central heating, so they have greater choice when upgrading their property.**”
Grant payments under the BUS
The other change taking effect at the beginning of 2026 is the requirement for installers to deduct the grant amount from the upfront costs of the eligible system. Formalising this requirement:
- Sets a standardised process for all installers to follow
- Removes some potential entrance barriers for consumers
- Provides a level of reassurance that might make consumers more inclined to opt for an installation
Planned future amendments to the BUS
Additionally, in this announcement the DESNZ set out their areas of interest for future scheme amendments which include;
- Simplifying the heat pump installation by relaxing the requirement for a valid Energy Performance Certificate from 2026/2027 onwards
- Continuing the system expansion, starting with heat batteries which are anticipated to become available in 2026/2027
- Considering the eligibility of third-party ownership agreements for BUS funded systems under the scheme, ensuring this is viable and can be offered within the framework while still offering robust protections for consumers
These amendments aim to improve the Boiler Upgrade Scheme for consumers and installers. Demand for low-carbon heating installations remains strong, and DESNZ has authorised Ofgem to over-allocate BUS vouchers of up to £395 million this financial year to ensure the scheme remains accessible, supporting low-carbon heating installations across England and Wales***.
If you want more details on these changes, you can find the full announcement here – https://www.gov.uk/government/consultations/boiler-upgrade-scheme-and-certification-requirements-for-clean-heat-schemes or explore our information sources below.