If you’re currently heating your home with oil or LPG, this is news worth paying attention to.
The UK Government has just announced an increase to the Boiler Upgrade Scheme (BUS) — raising the available grant from £7,500 to £9,000 for homeowners switching from oil or LPG heating to an air source heat pump. That’s a significant sum of money taken directly off the cost of your installation, and it could make switching to a greener, more efficient heating system far more achievable than you might expect.
At Dynamic Eco, we help homeowners across Dorset and Hampshire navigate exactly these kinds of opportunities. So let’s break down what this grant is, who qualifies, and what the process actually looks like.
What Is the Boiler Upgrade Scheme?
The Boiler Upgrade Scheme is a government-backed grant programme designed to help homeowners in England and Wales replace fossil fuel heating systems with low-carbon alternatives — primarily air source heat pumps.
It’s been running since 2022, and in that time it has helped thousands of households make the switch. The grant isn’t means-tested, which means it’s open to homeowners regardless of income — and it comes with no repayment obligation. It’s not a loan; it’s money off the upfront cost of your installation.
The scheme is administered by Ofgem, and the government has committed significant funding to it — with £295 million budgeted for 2025–26 alone. This is a scheme that’s here to stay for the foreseeable future.
What’s Changed? The New £9,000 Grant
Previously, the BUS grant for an air source heat pump was £7,500. That figure still applies for most homeowners.
However, the Government has now announced an uplift to £9,000 — specifically for homes currently heated by oil or LPG. This additional £1,500 has been introduced in direct response to the rising cost of heating oil, driven in part by global energy market instability.
For rural homeowners across Dorset and Hampshire — many of whom are off the gas grid and rely on oil-fired boilers — this is particularly relevant news. If that sounds like your situation, you could now receive £9,000 off the cost of switching to an air source heat pump.
It’s worth noting: the standard £7,500 grant remains in place for homes currently connected to gas, so if you’re on mains gas and looking to make the switch, you’re still eligible — just at the standard rate.
How Does the Grant Work in Practice?
One of the things that surprises many homeowners is how the grant is actually applied.
You don’t apply for the grant yourself, and you don’t receive the money directly. Instead, your MCS-certified installer applies on your behalf. The grant is then deducted directly from your installation quote — so the reduced price is what you see and what you pay from the outset.
There’s no claiming back after the fact, no waiting for a cheque. It’s a straightforward discount at the point of installation.
Here’s a simplified overview of the process:
- Check your eligibility (more on that below)
- Get quotes from an MCS-certified installer like Dynamic Eco
- Your installer applies for the BUS voucher on your behalf
- You confirm your consent to the application via Ofgem
- Installation takes place and the grant is deducted from your cost
- Your installer claims the grant from Ofgem upon completion
The whole process is managed by your installer — making it far simpler than many homeowners expect.
Am I Eligible? Key Criteria Explained
Before getting too excited, it’s worth checking whether your property qualifies. The good news is that the criteria are relatively straightforward, and a reputable installer will confirm your eligibility before any commitment is made.
Here’s what you’ll generally need:
You must own the property
The scheme is open to homeowners and small business property owners. It’s not available to renters.
Your current heating system must be fossil fuel-based
You need to be replacing an existing oil, gas, LPG, or electric heating system. The scheme is specifically designed to support people moving away from fossil fuels.
The property must have a valid EPC
You’ll need an Energy Performance Certificate (EPC) issued within the last ten years. If you don’t have one, or yours has expired, your installer can help you arrange an updated assessment. It’s worth noting that, as of recent updates to the scheme, there are no minimum insulation requirements — so a lower EPC rating doesn’t automatically disqualify you.
The property must not be a new build or social housing
The scheme is aimed at existing homes. New builds are generally excluded, as is social housing — although self-build properties may be eligible in certain circumstances.
The installation must be carried out by an MCS-certified installer
This is non-negotiable. The Microgeneration Certification Scheme (MCS) sets industry standards for heat pump installations, and only certified installers can apply for BUS grants. Dynamic Eco is MCS certified.
No previous government heat pump funding
If your property has previously received government support for a heat pump or biomass boiler — such as through the now-closed Green Homes Grant — it won’t be eligible for BUS funding.
Why Air Source Heat Pumps Make Sense for Dorset & Hampshire Homes
Some homeowners worry that heat pumps aren’t suited to the UK climate. It’s a reasonable concern — but it’s largely a myth.
Modern air source heat pumps are designed to operate effectively in temperatures well below zero. Across Dorset and Hampshire, where winters are relatively mild compared to much of the UK, they typically perform very well indeed.
Here’s what makes them a strong choice for homes in this region:
Running costs. Heat pumps are significantly more efficient than gas or oil boilers. For every unit of electricity they consume, a well-specified heat pump can deliver three or more units of heat — a ratio known as the Coefficient of Performance (COP). Over time, this efficiency can translate into meaningful reductions in heating costs, particularly as the UK’s electricity grid becomes increasingly powered by renewables.
Energy independence. Rural properties that currently rely on oil deliveries understand the frustration of price volatility and the logistics of fuel storage. A heat pump removes that dependency entirely.
Compatibility with solar PV. If you already have — or are considering — solar panels, a heat pump pairs exceptionally well. Running your heat pump partly on energy generated by your own roof is a genuinely compelling combination for reducing bills further.
Long-term home value. As EPC ratings become increasingly important to buyers and mortgage lenders alike, upgrading to a low-carbon heating system can enhance your property’s energy rating and appeal.
What Does an Air Source Heat Pump Installation Typically Cost?
It’s important to be transparent here: heat pumps do represent a more significant upfront investment than replacing a like-for-like boiler.
A typical air source heat pump installation for a domestic property can range from approximately £10,000 to £18,000 or more, depending on the size of the property, the system specification, and whether any additional work is required (such as upgrading radiators or adding a hot water cylinder).
However, with the BUS grant applied, that cost is reduced by £7,500 or £9,000 immediately. So for a homeowner on oil or LPG, a £14,000 installation could effectively cost closer to £5,000 out of pocket — a very different conversation.
Every property is different, which is why we always recommend a proper survey and personalised quote before drawing any conclusions. What we can say is that for many homes in Dorset and Hampshire, the grant-adjusted figures make the decision far more compelling than they might initially appear.
Key Takeaways
- The UK Government has increased the Boiler Upgrade Scheme grant to £9,000 for oil and LPG homes (£7,500 for gas)
- The grant is applied directly to your installation cost — you never receive or handle the money
- Your installer applies on your behalf, and must be MCS certified
- Eligibility requires owner-occupation, a fossil fuel heating system, and a valid EPC
- Air source heat pumps are well-suited to the Dorset and Hampshire climate
- The scheme has no means-testing — it’s open to homeowners regardless of income
- The scheme has confirmed funding through to at least 2027
If you’ve been thinking about switching your heating system, this is one of the most financially supportive moments to do so.
Take the Next Step With Dynamic Eco
If you’re in Dorset or Hampshire and ready to discover how solar, battery storage and heat pump systems fit your home or business, our team is here to help every step of the way.
👉 Start with a personalised consultation and free quote.
👉 Visit: https://www.dynamiceco.co.uk
👉 Call: 01202 985522
Let’s power a greener, smarter future together. 🌞💡
