Boiler Upgrade Scheme UK — Get Up to £7,500 Towards a Heat Pump
The Boiler Upgrade Scheme (BUS) offers eligible homeowners in Manchester a government grant of up to £7,500 towards the installation of an air source or ground source heat pump. Switching to a low-carbon heating system can help reduce your home’s carbon emissions and improve long-term energy efficiency.
What Is the Boiler Upgrade Scheme and How Does It Work in Manchester?
The Boiler Upgrade Scheme (BUS) is a UK government grant that helps homeowners in England and Wales install low-carbon heating systems, replacing fossil fuel heating with cleaner alternatives. It is open to homeowners and small businesses across Manchester and surrounding areas — with no income limit and no means testing.
£7,500
Standard grant towards an air source or ground source heat pump (air-to-air heat pumps and heat batteries qualify for £2,500).
£9,000
Enhanced grant for eligible off-gas-grid homes (oil or LPG heating) — available from 21 July 2026 to 31 March 2027.
The grant is deducted from your installation cost upfront — you do not need to claim the money back. The voucher is applied for and redeemed by the MCS-certified installer.
How Much Does a Heat Pump Cost After the BUS Grant in UK?
Costs below are indicative estimates based on MCS-certified installer data for typical properties on mains gas (£7,500 grant). Actual costs vary by property complexity, system size and installation requirements.
| Property type | Typical cost | BUS grant | Your indicative cost |
|---|---|---|---|
| Flat (5kW system) | £7,000–£9,000 | £7,500 | £0–£1,500 |
| Semi-detached (8kW system) | £8,000–£11,000 | £7,500 | £500–£3,500 |
| Detached (12kW system) | £10,000–£13,000 | £7,500 | £2,500–£5,500 |
Off-gas properties (oil or LPG): from 21 July 2026 to 31 March 2027 the grant rises to £9,000 for eligible homes — for example, an 8kW system typically costing £8,000–£11,000 could leave an indicative cost of £0–£2,000.
These costs include
- Heat pump unit and outdoor condenser
- Hot water cylinder (if required)
- Pipework and fittings
- System design and commissioning
- BUS grant application and paperwork (handled by the certified installer)
Additional costs (if required)
- Radiator upgrades (larger radiators or underfloor heating)
- Electrical upgrades (consumer unit, wiring)
- Insulation improvements (loft, cavity wall)
- Planning permission (rare for heat pumps)
Who Qualifies for the BUS Scheme in Manchester?
Own a property in England or Wales
Replacing a fossil fuel heating system (gas, oil or LPG) or electric heating — with no existing heat pump
Installing an eligible heat pump, fitted by an MCS-certified installer
Tick all three? You are likely to qualify — the scheme administrator (Ofgem) confirms final eligibility when the certified installer applies for your voucher.
No income limit
Open to all homeowners regardless of income.
No means testing
You do not need to receive benefits.
Landlords
You can apply for BUS grants for your rental properties.
Small businesses
You can apply for BUS grants for your business premises.
What Heat Pumps Are Covered by the BUS Scheme?
Covered by BUS
- Air-to-water heat pumps (for radiators or underfloor heating) — £7,500
- Ground source heat pumps (including shared ground loops) — £7,500
- Air-to-air heat pumps (warm-air heating only, no hot water) — £2,500
- Heat batteries for central heating — £2,500
- Water source heat pumps — £7,500 (subject to conditions)
- Biomass boilers — £5,000, in limited circumstances (rural, off-gas-grid properties)
- Domestic properties (houses, bungalows, flats) and small commercial (shops, offices, pubs)
Not Covered by BUS
- Hybrid heat pumps (combined with a gas boiler) — not eligible
- Hydrogen boilers — not eligible
- Electric boilers — not eligible
- Like-for-like gas boiler replacements — BUS funds heat pumps, not new gas boilers
What Is the BUS Scheme Application Process in UK?
Free Consultation
Contact Compliant Retrofits for a free, no-obligation consultation. We discuss your property, heating needs and BUS grant eligibility.
Free Site Survey
We assess insulation levels, your existing heating system and radiators, space for the outdoor unit and hot water cylinder, and electrical capacity.
Fixed-Price Quote & Design
Your quote shows the full installation cost, the BUS grant amount (£7,500 — or £9,000 for eligible off-gas homes from 21 July 2026), your net cost after the grant, and estimated running costs.
You Approve the Quote
You approve the quote and we schedule the installation — with a 14-day cooling-off period as standard.
Voucher Application
Our MCS-certified installation partner applies for your BUS voucher through Ofgem — vouchers are typically issued within 5–10 working days.
Installation
The heat pump is installed by the MCS-certified team: outdoor unit, hot water cylinder (if required), pipework and electrics, system flush and pressure test, commissioning and performance testing. Typically 2–5 days.
Grant Redemption
The certified installer redeems the BUS voucher from Ofgem — you pay only your net amount (full cost minus grant).
Handover & Certification
You receive the MCS certificate issued by the certified installer, the Building Regulations compliance certificate, warranty documentation, and a user manual with maintenance guidance.
Is Your Manchester Home Suitable for a Heat Pump?
Most homes in Manchester are suitable for a heat pump — we assess your property properly during the free site survey.
Good for Heat Pumps
- Good insulation — heat pumps work best in energy-efficient homes; loft and cavity wall insulation help most, and solid wall insulation (IWI/EWI) is beneficial
- Larger radiators or underfloor heating — heat pumps run at lower flow temperatures (40–55°C) than boilers (60–75°C)
- Space for the outdoor unit — needs airflow, with roughly 300–500mm clearance at the sides and 1,000mm above
- Space for a hot water cylinder — typically 500–800mm wide and 1,200–1,800mm tall (unlike a combi boiler)
Less Ideal for Heat Pumps
- Poor insulation — the heat pump will struggle and cost more to run; we can recommend insulation improvements first
- No space for the outdoor unit — e.g. a flat with no outside space, or a terrace with no garden or side passage
- No space for a cylinder — e.g. a small flat with a combi boiler and no airing cupboard
If a Heat Pump Is Not Right, We Recommend Alternatives
- High-efficiency gas boiler
- Heating controls and zoning
- Insulation improvements (ECO4 funding may be available if eligible)
- Solar panels to offset electricity costs
Heat Pump Running Costs in Manchester — and How They Compare to Gas
The running cost of a heat pump depends on your property’s heat demand, insulation levels, electricity tariff and system efficiency. A simple way to estimate it:
Annual heat demand (kWh) × electricity cost (p/kWh) ÷ heat pump efficiency (SCOP)
Indicative Annual Running Costs
| Property type | Estimated annual cost |
|---|---|
| Flat | £400–£600 |
| Terrace house | £500–£700 |
| Semi-detached house | £600–£900 |
| Detached house | £900–£1,400 |
Why so efficient? Heat pumps are 300–400% efficient — every unit of electricity produces 3–4 units of heat. A gas boiler is 85–92% efficient.
Annual Comparison — Typical 3-Bed Semi
- Gas boiler: £800–£1,000
- Oil boiler: £1,200–£1,600
- LPG boiler: £1,500–£2,000
- Electric storage heaters: £1,800–£2,500
- Air source heat pump (standard tariff, ~25p/kWh): £700–£900
- Air source heat pump (Economy 7 / EV tariff, 7.5–15p/kWh): £500–£700
Heat pumps are typically cheaper to run than oil, LPG or electric heating. Compared to mains gas, savings depend on your electricity tariff: on a standard tariff running costs are similar to gas; on an Economy 7 or EV tariff they can be 30–50% lower.
Why Choose Compliant Retrofits for Your Heat Pump Installation in Manchester?
MCS Standards on Every Job
BUS requires MCS-certified installation — delivered through our MCS-certified installation partners — and we follow MCS installation standards proactively across all of our work.
BUS Grant Experts
The entire BUS grant journey is handled for you — from voucher application to redemption by the certified installer, coordinated by us. You do nothing.
Local Manchester Installer
Based in Manchester, serving surrounding areas including Stockport, Oldham, Droylsden and Ashton-under-Lyne. We understand Manchester properties — Victorian terraces, 1930s semis, modern homes.
Whole-System Approach
We don’t just fit heat pumps. We assess your insulation, radiators and heating controls first — and if your home needs insulation improvements, we can help with ECO4 funding if you are eligible.
RECC Standards Followed
Consumer protection built in — transparent pricing, a 14-day cooling-off period, and free dispute resolution. We follow the RECC Code of Practice proactively.
TrustMark Framework
We work to the TrustMark framework — the government-endorsed quality scheme for home improvements — across every project.
Free Consultation and Survey
No-obligation advice and site survey. We will tell you honestly if a heat pump is right for your Manchester home.
Frequently Asked Questions
Can I get a heat pump if I live in a flat or terrace in Manchester?
Yes, but you may need permission from your landlord or management company, and you need space for the outdoor unit and hot water cylinder. We will advise you during the free site survey.
Is my Manchester home suitable for a heat pump?
Most homes are suitable. Heat pumps work best with good insulation and larger radiators or underfloor heating. We assess your property properly during the free site survey — and tell you honestly if it is not right for you.
How long does heat pump installation take in Manchester?
Typical installation takes 2 to 5 days, depending on system complexity and whether radiator upgrades are needed.
Will a heat pump save me money on my energy bills in Manchester?
Typically yes, compared to oil, LPG or electric heating. Compared to mains gas, savings depend on your electricity tariff — similar running costs on a standard tariff, potentially 30–50% lower on an Economy 7 or EV tariff. We provide estimated running costs for your property before you commit.
What if the BUS Scheme funding runs out?
The scheme is extended to 2030, but vouchers are issued on a first-come, first-served basis within annual budgets. We recommend applying early to secure your grant.
Can I replace a gas boiler with a heat pump?
Yes. The Boiler Upgrade Scheme helps homeowners replace gas boilers with low-carbon heating such as air source or ground source heat pumps. We assess your home’s suitability before installation.
Is the Boiler Upgrade Scheme available in 2026?
Yes. The Boiler Upgrade Scheme is live in 2026 and has been extended to 2030. Funding is allocated in annual budgets, so early applications are recommended — and from 21 July 2026 eligible off-gas homes can access the higher £9,000 grant (until 31 March 2027).
Can I combine BUS with ECO4 funding?
Yes — for different measures. ECO4 can cover insulation improvements (loft, cavity wall, solid wall) and solar panels for eligible households, while BUS covers the heat pump. We can help you access both schemes.
Ready to Apply for the BUS Scheme in UK?
Check your BUS Scheme eligibility today — contact Compliant Retrofits for a free, no-obligation heat pump survey in UK.
ECO4 and the Warm Homes Plan·Warm Homes Plan — register interest·Air source heat pumps UK