The boiler upgrade scheme for UK homes is expanding to £2500, including an air-to-air heat pump grant in 2026. This is the golden opportunity to target net-zero emissions gradually. The government has decided to broaden the domain and add heat pumps and battery storage systems under one umbrella.
The Boiler Upgrade Scheme is seen as a great initiative for millions of households who were previously excluded from the grant. This grant is for those 4.2 million beneficiaries who are relying on traditional heating systems. If you think so, you are among them, so this grant is for you. Now, you can easily upgrade your heating systems. You can also help the government to reduce its carbon footprint by up to 75%.
The 2026 Energy Shift: Why Air-to-Air is the New Frontier
The net-zero path is taking its practical turn this year. The expansion in the BUS scheme in 2026 is not only designed for large garden homeowners. This new energy shift covers millions of UK residents who are living in flats or even the smaller terrace homes. The air-to-air pumps help them to stop using their wet central heating and start moving to the latest retrofit trend.
The government has decided to accelerate the heating system that minimises the use of fossil fuel heating to renewable alternatives. This offer is expanding to England and Wales, and a great initiative offered by Ofgem. The grant is to provide higher installations to homeowners at lower costs.
Is There Anything New in the Boiler Upgrade Scheme (BUS) in 2026?
The BUS is the same flagship government program for England and Wales that works as a capital grant for homeowners. Their target is to lower the low-carbon emissions to compensate for the heating costs of the netizens.
Current 2026 Grant Levels
The current heating grant comprises these levels.
- £7,500 for Air-to-Water Heat Pumps that are the standard for most homes in the UK.
- £7,500 for Ground-Source Heat Pumps. This includes the water-source also.
- £5,000 for Biomass Boilers. They are the best choice for rural and off-gas grid systems.
- £2,500 (New for 2026) for Air-to-Air Heat Pumps.
- £2,500 (New for 2026) for Heat Batteries that have thermal storage.
The Environmental and Economic Context of Boiler Upgrade Scheme
Sustainability is a must for the safety and security of this planet. While specifically talking about the boiler upgrade scheme, it’s an inexpensive and less harmful approach if implemented properly.
The residential heating systems in the UK represents 17% of the greenhouse gas emissions. As the Energy Crisis report 2022-2023 demonstrated, the vulnerability is on average. The energy bills have surged from £1,277 to over £2,500 annually. So, heat pumps are the only solution.
Who Funds the Scheme and How Much Is Available?
From 2022 to 2025, the UK government allocated approximately £450 million to the boiler upgrade scheme. This program is extended till 2028. The estimate suggests that more than 90,000 installations are planned to support till the end date.
A report of Energy Saving Trust states that modern heat pumps can achieve SPF. These seasonal performance factors (SPFs) range between 2.8 and 4.0. It simply means they generate 2.8 to 4.0 units of heat as compared per electric unit consumed. That means heat pumps have great efficiency, which is 30-50% lower than oil, LPG heating, or electricity.
How Do BUS Schemes Link to ECO4 and Free Boiler Schemes ?
Free Boiler Scheme UK explicitly aims to help deserving netizens with heavily funded boiler upgrades and insulation services that depend on their income, benefits, and the Energy Ratings of their homes. Although the boiler upgrade scheme is a completely separate government grant, they are quite similar in these particular ways.
| Key Takeaways | Boiler Upgrade Scheme | ECO4 Scheme |
| Warm and Efficient Homes | Yes | Yes |
| Low Carbon Emissions | Yes | Yes |
| Main Purpose | Support heat pumps & other low-carbon technologies | Help with free boiler replacements, first-time central heating & insulation |
By understanding both schemes, homeowners and eligible candidates can get an idea of the clear path to choose the specific scheme according to their requirements.
The Golden Rule for 2026 Funding
Tip for Application: You cannot “double-dip” by using BUS and ECO4 for the same unit. However, a smart homeowner in 2026 can use ECO4 for whole-house insulation and BUS for their primary heating upgrade. This “staged retrofit” is the most efficient way to reach a Band C EPC rating this year.
The New £2,500 Air-to-Air Heat Pump Grant Expansion
Conventionally, an air-to-air heat pump grant is a perfect strategic move that is recognised as a prime heating source. It explicitly represents the functional shift in the heating policy. These system extracts heat from the outside air and then transfer it directly to the fan units.
Technical Advantages of Air-to-Air Over Traditional Systems – Why Its A Game-Changer
Some of the amazing properties distinct this system from others are as follows:
- Improved Efficiency: This system has dual functionality. It provides the best and high-efficiency heating in the winter season and extravagant cooling in the summer season.
- Low Installation Costs: unlike other traditional sources, this system can be installed at low costs.
- Duration Setup: Air-to-air heat system can be installed within 24-48 hours.
- Space Efficient: Air-to-air systems are known as space efficient system as they do not require any radiator, pipework, or cylinder. They have built-in compact properties.
- Lower Maintenance: This system requires annual filter cleaning and servicing.
How Air-to-Air Technology Works?
The air-to-air system functions by extracting thermal energy from ambient air. No matter if the temperature drops to -15°C, the system transfers compressions easily. The same is the case in summers, the process and functioning shift from hot to cool features.
As per the Met Office report, 2022 was the hottest year, as they project warning against tough weather. Air-to-air become their fundamental solution that can help them in climate control.
Cut Your Energy Costs Up to 50% Off.
It is 2026, and if you are still using direct electric heaters or other storage heaters, you are at a loss. Shift your heating systems to air-to-air, so you can cut your energy costs up to 50%. The high Seasonal Coefficient of Performance (SCOP) rating is a mandate in 2026.
Boiler Upgrade Scheme vs. ECO4 Scheme – Which Performs Better
It is difficult to differentiate between the BUS and ECO4 schemes, deciding which performs better. It actually depends on your budget and property end goals. As we know that ECO4 scheme is designed for lower households with up to 100% free installation. On the other hand, the BUS scheme would be your choice for better performance and to invest in low-carbon technology.
| Feature | Boiler Upgrade Scheme (BUS) | ECO4 Scheme |
| Eligibility | Homeowners & Landlords | Low-income and Vulnerable Households who receive Benefits |
| Purpose | Low-carbon Emission | Whole-house retrofit |
| Cost to User | Grant offers Upfront discount | It’s 100% Free if eligible |
| Target Property | EPC D or higher usually | EPC D, E, F, or G for the least efficient |
| Key 2026 Update | Air-to-Air & Heat Batteries added with Thermal Storage | Focus on “First Time Central Heating” (FTCH) |
How to Qualify for Boiler Upgrade Scheme 2026 Checklist?
Now, let’s check the criterion where you stand in 2026. This checklist will tell you about your stance.
Property Requirements
- EPC Status: The eligibility mainly depends on a valid Energy Performance Certificate (EPC). The BUS scheme often requires no outstanding ranking, so you can get it on top priority. You must own the property as a private landlord, not a social housing that is not acceptable.
- Current Heating System: Your property must own a fossil fuel heating system or have an electrical heating system. If you have existing heating pumps, you do not qualify for the grant.
- Local Entity: This scheme covers England and Wales. If you are living in any other state, like Scotland or Ireland, you may not get this grant. Your local state has its own state-related grants. You may apply there.
Technical and Installer Requirements
Once you become eligible for the grant, in the next step, you need to search for professional installers. They can set up the system so you may enjoy the warmth to the fullest.
- MCS Certification: This Microgeneration Certification Scheme (MCS) is a must in 2026. As per the recent updates, only the MCS-certified installers can qualify for this grant. This process clearly shows the transparency and protection.
- Heat Pump Sizing: The heat pump or the system must be sized according to your property. Oversized and undersized systems can cause wastage of energy. So, choose wisely.
- Radiator Upgrades: Your existing radiators need upgrading to larger models that operate at a lower temperature.
Who Benefits Most from Air-to-Air Systems?
Air-to-air systems are best for the following:
- Flat and apartment that does not have wet heating systems.
- Listed buildings where the radiator’s pipework causes damage.
- Off-grid properties that are relying on oil, LPG, or electricity.
- Small homes, usually under 70m², have low installation costs.
- Warmer Region Properties that demand dual-functionality equipment
Strategic Combination of ECO4 & BUS Approach
As we have discussed, both schemes target perfect and sustainable home heating solutions for UK families with different end goals.
Research data from the Department of Energy Security and Net Zero shows that combining insulation with heat pumps results in amazing. It increases functionality and results in up to 45-60% reduction in energy consumption.
What Would Be Your Next Step in the 2026 Act, Or Wait?
The boiler upgrade scheme is continued for the next few years, but the government has already allocated its budget. It is now on a “First-come-First-served” basis. The scheme is heading towards its mission and it seen a massive turnaround this year. With the record-breaking applications, the process is also faster than ever.
Choose a new £2,500 air-to-air grant if you are living in a flat to get rid of expensive electric heaters. You must go with a £7,500 air-to-water grant if you have a house. As your heat pump’s carbon footprint improves automatically as the grid cleans up. So act now and improve your lifestyle.
Disclaimer: This guide is based on 2026 UK Government policy. Grant levels and eligibility criteria are subject to change. Always verify with an MCS-certified installer before signing a contract.