£9,000 Boiler Upgrade Scheme Grant for Oil and LPG Homes
£9,000 Boiler Upgrade Scheme Grant Announced for Oil and LPG Homes
If your home runs on heating oil or LPG, the UK government has just made it significantly cheaper to switch to a heat pump.
As of April 2026, the Boiler Upgrade Scheme still offers £7,500 towards eligible heat pump installations in England and Wales. The UK Government has announced a targeted £1,500 uplift for homes currently heated by oil or LPG, with the higher £9,000 grant expected to become available from July 2026, subject to final scheme confirmation.
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What This Means
Up to £9,000 Support
The uplift is designed for homes currently heated by oil or LPG.
Expected From July 2026
The higher grant is expected to become available once final scheme details are confirmed.
Applied Upfront
The grant is deducted from your installation cost by your MCS-certified installer.
Oil Homes
LPG Homes
Here is what the change means
The new grant level would make the Boiler Upgrade Scheme more attractive for off-gas and rural households looking to switch from oil or LPG heating to a low-carbon heat pump system.
What Is the Boiler Upgrade Scheme?
The Boiler Upgrade Scheme is a UK government programme that reduces the upfront cost of installing a heat pump by providing a grant directly through your MCS-certified installer.
The grant is not a cashback you claim after the fact. Your installer deducts it from the total installation price before you pay, so you never need to handle the grant money yourself.
Since its launch, the BUS has provided grants to thousands of households across England and Wales switching from fossil fuel heating to air source or ground source heat pumps. Until now, the standard grant for most eligible homes was £7,500.
The £9,000 Grant for Oil and LPG Homes
The government has announced a targeted £1,500 uplift for homes that currently rely on heating oil or LPG. This takes the grant for those households up to £9,000.
The uplift is specifically aimed at properties that are not connected to the gas grid, often described as off-grid homes. These households are disproportionately found in rural areas across England and Wales.
The increase mirrors the support already available in Scotland, where rural households can access a £9,000 subsidy through the Home Energy Scotland Grant and Loan scheme. England and Wales are now catching up.
Why Has the Grant Been Increased for Oil and LPG Homes?
Price Volatility
Off-grid households have no protection from the energy price cap. Heating oil and LPG prices move with global commodity markets.
Delivery Risk
Homes relying on tank deliveries can face heating disruption if fuel deliveries are delayed during cold periods.
Cleaner Heating
The grant increase supports the move away from volatile fossil fuel heating towards cleaner, more stable home heating.
Who Qualifies for the £9,000 BUS Grant?
To receive the increased £9,000 grant, your property will need to meet the following criteria:
England or Wales
Your home must be in England or Wales. Scotland has its own scheme through Home Energy Scotland.
Oil or LPG Heating
The uplift is specifically for properties replacing an oil or LPG heating system with a heat pump.
Valid EPC
Your property must have a valid Energy Performance Certificate, known as an EPC.
MCS-Certified Installer
Only MCS-certified installers can apply for the BUS grant on your behalf.
Whole-Home Replacement
The grant is for replacing a fossil fuel heating system, not adding a supplementary system.
Property Ownership
You must own the property you are applying for, including second homes, business properties or rented properties.
How Does the £9,000 Grant Work in Practice?
The process is straightforward and your installer handles the bulk of it.
1. Home Survey
An MCS-certified installer assesses your property, insulation, layout and hot water requirements.
2. Quote With Grant Applied
The £9,000 grant is deducted directly from your installation cost before you pay.
3. Installer Claims Grant
The installer claims the grant from Ofgem after the work is completed.
What Will a Heat Pump Cost After the £9,000 Grant?
Heat pump installation costs vary based on the type of system, the size of your property, and the amount of preparation work required.
Typical Detached House
Around £3,600
Estimated upfront cost after the £9,000 grant has been applied.
Smaller Properties
Around £2,500
For bungalows, semi-detached and terraced homes.
Oil Boiler Replacement
£3,500 to £5,500
Typical cost of replacing an oil boiler like for like.
Not every property is straightforward. A proper home survey will identify anything that may affect cost or feasibility, including hot water cylinder requirements.
Will I Save Money by Switching from Oil to a Heat Pump?
For homes currently on heating oil or LPG, switching to a heat pump could reduce running costs for some households, but savings depend on your property, electricity tariff, heat pump design, usage habits and future fuel prices.
Potential Annual Saving
Over £650
Nesta modelling suggests a medium-sized home could save over £650 per year by switching from oil to a heat pump at current energy prices.
Less Exposure to Oil Prices
Oil and LPG prices are volatile and unregulated, with no price cap protection.
Higher Efficiency
Heat pumps typically produce three to four units of heat for every one unit of electricity consumed.
Can Rural Homes in Wales Get the £9,000 Grant?
Yes. The £9,000 BUS grant applies to eligible homes in England and Wales, which is directly relevant for the many rural Welsh households currently relying on heating oil or LPG.
Wales has a substantial proportion of off-grid properties, particularly in mid and west Wales, and households in these areas stand to benefit significantly from the increased grant level.
Princes LHS operates across Wales and England, and our team is experienced in working with rural properties and off-grid heating systems.
How to Get the £9,000 Boiler Upgrade Scheme Grant Through Princes LHS
Check Your EPC
If you do not have a current EPC, or if yours recommends insulation improvements, address this first.
Book a Survey
We assess your property, confirm eligibility and recommend the right system for your home.
Receive Your Quote
The £9,000 grant will be deducted from your installation cost before you pay.
We install the system and claim the grant from Ofgem. You do not need to deal with the application process directly.
£9,000 Boiler Upgrade Scheme Grant FAQs
When does the £9,000 BUS grant come into effect?
The increased grant for oil and LPG homes is expected to come into effect in July 2026. Until then, eligible homes can still apply under the current scheme and receive the existing £7,500 grant.
Does the £9,000 grant apply to gas boiler homes?
No. The £9,000 uplift is specifically for homes currently heated by oil or LPG. Homes on mains gas can still apply for the standard BUS grant.
Do I need a new EPC to apply?
Your EPC must be current and must not include recommendations for loft or cavity wall insulation that have not been acted upon. If yours is out of date or flags unresolved insulation issues, you will need to address those before applying.
Can I get the grant in Scotland?
Scotland has a separate scheme, the Home Energy Scotland Grant and Loan, which already offers up to £9,000 for eligible households. The BUS grant is for England and Wales only.
Is Princes LHS MCS-certified?
Yes. Princes LHS is MCS-certified, which means we are authorised to install heat pumps under the Boiler Upgrade Scheme and apply for the grant on your behalf.
What type of heat pump does the £9,000 grant cover?
The grant can be applied to air source heat pumps and ground source heat pumps. Air source systems are the most common choice for residential properties due to lower installation complexity and cost.
How long does the installation take?
Most heat pump installations take between one and three days depending on the size and type of system. Your Princes LHS surveyor will be able to give you a more precise estimate based on your property.
The £9,000 BUS grant for oil and LPG homes is expected from July 2026 based on government announcement. Grant levels and eligibility criteria are subject to confirmation by Ofgem. Contact Princes LHS for the most current guidance.
Check Your £9,000 Boiler Upgrade Scheme Grant Eligibility
Book a home survey with Princes LHS and find out whether your oil or LPG home could qualify for the higher grant.