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Boiler Upgrade Scheme Explained: A Guide for Birmingham Homeowners

Everything you need to know about the Boiler Upgrade Scheme — what it covers, who may be eligible, how much the grant is worth and how to apply through a local installer.

The Boiler Upgrade Scheme (BUS) is one of the most significant government incentives available to homeowners looking to switch from fossil fuel heating to a low-carbon alternative. For homeowners in Birmingham and the West Midlands, it can make the transition to a heat pump considerably more affordable.

This guide explains what the scheme covers, who may be eligible and how the application process works.

What Is the Boiler Upgrade Scheme?

The Boiler Upgrade Scheme is a government-backed programme available in England and Wales. It provides grants towards the cost of replacing fossil fuel heating systems — such as gas boilers, oil boilers or LPG systems — with low-carbon heating alternatives, primarily air source heat pumps and ground source heat pumps.

The scheme is administered by Ofgem and the grant is applied by the installer (such as Eco Simply), meaning the discount is taken off your installation cost directly. You do not need to apply to Ofgem yourself or claim the money back afterwards.

How Much Is the Grant?

The Boiler Upgrade Scheme currently offers:

  • Up to £7,500 towards an air source heat pump
  • Up to £7,500 towards a ground source heat pump

This grant can significantly reduce the upfront cost of switching to a heat pump. For many Birmingham homeowners, the net cost after the grant can be comparable to a premium gas boiler installation — but with much lower running costs and carbon emissions over the lifetime of the system.

Who May Be Eligible?

To be eligible for the Boiler Upgrade Scheme, you generally need to meet the following criteria:

  • You must be the homeowner (the scheme is not available to new-build properties or social housing)
  • Your property must have a valid Energy Performance Certificate (EPC)
  • You must be replacing an existing fossil fuel heating system (gas, oil or LPG)
  • The property must be in England or Wales
  • The installation must be carried out by an MCS-certified installer

The scheme is not means-tested — your household income does not affect eligibility. However, there are property-specific requirements that our team checks during the home energy assessment.

How Does the Application Process Work?

The process is designed to be straightforward for the homeowner:

  • Step 1: Contact Eco Simply for a free home assessment
  • Step 2: We assess your property and confirm whether a heat pump is suitable
  • Step 3: We check your eligibility for the Boiler Upgrade Scheme
  • Step 4: We provide a quote showing the grant applied to the total cost
  • Step 5: If you agree, we submit the grant application to Ofgem on your behalf
  • Step 6: Once approved, we schedule and carry out the installation
  • Step 7: The grant is paid directly to us — you only pay the remaining balance

You do not need to deal with Ofgem directly or pay the full cost upfront. The grant is deducted from your invoice.

What Does the Scheme Not Cover?

It is worth understanding what the Boiler Upgrade Scheme does not include:

  • It does not cover like-for-like gas boiler replacements — you must be switching to a heat pump
  • It does not cover new-build properties
  • It does not cover rental properties where the tenant applies (the landlord must apply)
  • Additional work such as radiator upgrades, insulation or pipework is not covered by the grant, although it may be included in the overall installation quote

Can I Combine the BUS with Other Grants?

You cannot combine the Boiler Upgrade Scheme with other government energy obligation schemes for the same measure. However, you may be able to access separate support for improvements such as insulation alongside a BUS-funded heat pump. 0% VAT may also apply to the installation, further reducing costs.

Is It Worth Applying?

For homeowners in Birmingham and the West Midlands with an ageing gas boiler or oil heating system, the Boiler Upgrade Scheme makes the financial case for a heat pump significantly stronger. The £7,500 grant can reduce the payback period considerably, and once installed, a heat pump provides low-carbon heating and hot water with lower long-term running costs than fossil fuel alternatives.

Combined with solar PV and battery storage, you can create a highly efficient home energy system that runs largely on self-generated renewable electricity.

Grant Availability Can Change

The Boiler Upgrade Scheme has a fixed budget. While the scheme is currently open, grant availability and eligibility criteria can change. If you are considering a heat pump, it is worth checking your eligibility sooner rather than later to avoid missing out.

Frequently Asked Questions

Do I need to pay anything upfront?

You pay only the balance after the grant has been deducted. We show the grant clearly on your quote so you know exactly what you will pay.

How long does the process take?

From initial enquiry to installation, the process typically takes a few weeks. The grant application itself is usually processed within a few working days once submitted.

Can I choose my own installer?

The installer must be MCS-certified. Eco Simply handles the entire process — assessment, grant application and installation — so you do not need to coordinate between different parties.

Check Your Eligibility for the Boiler Upgrade Scheme

Eco Simply can check whether you qualify and handle the entire application process.

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