Boiler Upgrade Scheme (BUS) � �7,500 grant, landlord eligibility, MCS certification and how the grant is applied
The Boiler Upgrade Scheme provides a �7,500 grant towards an ASHP or GSHP installation. Landlords ARE eligible � the BUS is open to buy-to-let and portfolio landlords as well as homeowners. The grant is paid directly to the MCS-certified installer, who applies to Ofgem and deducts it from the installation price. Key eligibility requirements: (a) property in England or Wales (Scotland: Home Energy Scotland (HES) scheme � separate programme); (b) valid EPC issued within the last 10 years; (c) no outstanding EPC recommendation for loft insulation or cavity wall insulation (unless the installer confirms in writing that these measures are technically unsuitable � e.g., solid walls, no loft access); (d) heat pump replaces a fossil fuel heating system (gas, oil, LPG boiler or direct electric with fossil fuel element). Total ASHP installation cost: typically �8,000-�18,000; net landlord cost after �7,500 BUS grant: typically �500-�10,500 depending on property size, specification, and enabling works required.
ASHP technical requirements, SAP and EPC rating impact, operating costs and gas boiler phase-out timeline
ASHP TECHNICAL REQUIREMENTS: (a) adequate insulation � heat pumps deliver heat at lower flow temperatures (35-55�C vs 70-80�C for gas boilers); loft insulation at least 270mm; cavity or solid wall insulation where feasible; double/triple glazed windows; (b) heat distribution � at lower flow temperatures, more radiator surface area is needed; existing radiators may need upsizing 20-50%; underfloor heating (UFH) is ideal at 30-40�C flow temperature; (c) SCOP (Seasonal Coefficient of Performance) 2.5-4.0 � for every 1 kWh of electricity consumed, 2.5-4.0 kWh of heat produced; (d) hot water cylinder required (unvented or thermal store � combi boilers cannot be replaced directly without cylinder space). SAP AND EPC IMPACT: ASHP installation typically improves EPC rating by 1-2 bands (e.g., D to C, E to C/D) � combined with insulation measures, ASHP is one of the most effective routes to EPC C for properties currently rated D or E. Relevant for the proposed EPC C minimum standard for rental properties (England: new tenancies from 2028; all tenancies from 2030 � subject to cost cap and exemptions). OPERATING COSTS: electricity is typically 3-4x the unit price of gas (p/kWh) but ASHPs with SCOP 3.0 produce 3x more heat per kWh � making running costs broadly comparable to gas at SCOP 3.0; at SCOP 3.5-4.0 an ASHP can be cheaper to run. GAS BOILER PHASE-OUT: from 2025, new gas boilers cannot be installed in new-build homes in England (Future Homes Standard); the government is consulting on phasing out gas boiler replacements in existing homes � no confirmed end date for existing homes yet.