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£9,000 Boiler Upgrade Scheme Grant for Oil and LPG Homes

Oil and LPG Homes, 2026 Grant Update

£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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Or call us now: 01691 624336

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.

Book a Heat Pump Survey

Boiler Upgrade Scheme

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.

What Has Changed

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 It Matters

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.

Eligibility

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 It Works

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.

After Grant Cost

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.

Running Costs

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.

Wales and Rural Homes

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.

Princes LHS Process

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.

Frequently Asked Questions

£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.

Get in Touch

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.

Book My Heat Pump Survey
01691 624336

Am I eligible for the Boiler Upgrade Scheme?

The Boiler Upgrade Scheme (BUS) was launched in April 2022 and is administered by the energy regulator OFGEM. The BUS scheme is part of a wide range of decarbonising and energy-saving plans by the UK government. It is hoped the scheme will allow up to 90000 homes in England and Wales to install low-carbon heat technology and reduce carbon emissions.

It is available to homes in England and Wales and provides a financial grant that can be used against the cost of installing a heat pump or biomass boiler to replace a fossil fuel heating system.

You can get one grant per property. Grants are available for –

  • £5000 towards an air-source heat pump
  • £6000 towards a ground source heat pump
  • £5000 towards a biomass boiler

What is a Heat Pump?

An air or ground-source heat pump will be the best option for most people. You can learn more about what a heat pump is and how it can help to heat your home and reduce your energy bills on our website here. If you prefer to see something before you commit you can visit the Low Carbon Homes Showroom in Ellesmere where a number of heat-pump devices (air-source and ground-source) are set up and ready for demonstration. Visit the showroom website here to learn more and arrange a visit.

How do you apply for the Boiler Upgrade Scheme?

If you decide to go ahead and install a heat pump in your home. There are two stages you need to go through to make a successful application.

1. Before you apply to the BUS scheme

You will need to find an MCS-accredited installer to help you apply to the BUS scheme. Princes LHS are MCS accredited so that we can help you every step of the way.
A few eligibility checks are carried out and OFGEM will confirm your consent to the scheme conditions. Once OFGEM is satisfied with your application and has your consent, the grant approval will be given through your chosen MCS-accredited installer.

2. After your heat pump has been installed

Once your new equipment has been installed and is working, the installer provides evidence to OFGEM that the work has been completed. OFGEM will then assess the installation and pay the grant amount to the installer on your behalf.

So – would I be eligible?

To be successful in your Boiler Upgrade Scheme application, it must meet the following criteria –

  • The installer must be MCS certified
  • Your new heat pump or biomass boiler must be replacing a fossil-fuelled system
  • Your home must have a current EPC certificate (issued in the last 10 years) without recommendations to install cavity wall insulation (unless exempt)
  • Biomass boilers can only be installed in rural areas and not in properties connected to mains gas.
  • Heat pumps and biomass boilers must meet approved standards
  • There is a 45kwth total capacity limit
  • Domestic and non-domestic buildings are eligible including self-build homes.

How do I apply?

You will need to appoint an MCS-accredited installer to apply for the scheme, Princes LHS are MCS accredited and since the scheme launched earlier this year, we have helped a number of customers claim a grant under the BUS scheme.

Contact our team here or by calling 01691 624336 and one of our team will help you confirm your eligibility.

Get money off the cost and installation of a heat pump

Did you know you could be eligible for a £6,000 green grant for the installation of a heat pump? In a one off, upfront payment when removing a fossil fuel boiler.

The Boiler Upgrade Scheme (BUS) was introduced earlier this year and it will run till 2025. The aim of the scheme is to encourage property owners to install low carbon heating systems, heat pumps, to replace their fossil fuel burners.

Am I eligible?

You are eligible for the grant if you live in England or Wales, you own your property and you have an energy performance certificate with no outstanding recommendations for cavity wall or loft insulation.
The grant is not available for social housing, new builds (apart from certain self-builds) or properties that have already had government funding or support for a heat pump or biomass boiler.

How much is the grant?

£5,000 off the cost and installation of an air source heat pump.
£6,000 off the cost and installation of a ground source heat pump.

We are a MCS certified installer, so we can advise on whether you are eligible for the grant. We can also apply for the grant for you.

Give us a call on 01691 624336, email us at mail@princeslhs.ltd or get in touch via our contact form.