The BUS replaced the Renewable Heat Incentive (RHI) and has operated since April 2022. Unlike the RHI, BUS is a one-off capital payment rather than a quarterly tariff — the installer claims the voucher on your behalf at the point of installation, reducing the upfront cost you pay.
For landlords, BUS intersects directly with two regulatory pressures: the MEES EPC C requirement for rental properties (expected from 2028 for new tenancies, 2030 for all tenancies) and the government's trajectory toward phasing out gas boiler installations in new builds and, eventually, the wider housing stock. A heat pump installation funded partly by BUS can satisfy both.
This guide explains eligibility for rental properties, how to apply, what the grant covers, and the EPC and tenancy-law implications for landlords in England, Wales, and Scotland.
BUS grant amounts in 2026
The current grant rates under the Boiler Upgrade Scheme are:
- Air source heat pump (ASHP): £7,500 grant per property
- Ground source heat pump (GSHP) and water source heat pump: £7,500 grant per property
- Biomass boiler: £5,000 grant (limited availability, rural areas only, subject to Ofgem quota allocation)
- The grant is paid to the MCS-certified installer, who deducts it from the price they charge you — you see the saving directly at invoice
- There is no income or means-testing — any landlord with an eligible property can apply
Eligibility: rental property requirements
A rental property qualifies for BUS if all of the following are met:
- The property must be in England, Wales, or Scotland
- The property must have a valid EPC with a rating of D or above (EPC E, F, and G properties must first be upgraded — a Catch-22 explored below)
- The existing heating system must be a fossil fuel boiler (gas, oil, or LPG) or a direct electric system — replacing an existing heat pump does not qualify
- The property must not have received a previous BUS grant for that address
- The installer must be MCS-certified for heat pump installations
- The installer must apply for a voucher from Ofgem before works begin — vouchers issued after installation are not valid
The EPC D floor and MEES interaction
The BUS EPC eligibility requirement creates a potential conflict with MEES for the properties that most need upgrading:
- Properties rated EPC E, F, or G cannot receive a BUS grant until the EPC is upgraded to at least D
- However, EPC E, F, or G properties are already non-compliant with MEES (which requires EPC E as a minimum for lettings, rising to EPC C from 2028/2030)
- The correct sequencing for landlords with sub-D properties: first install insulation and fabric improvements to reach EPC D, then apply for BUS to fund the heat pump that will take the property to EPC C or above
- Landlords who install a heat pump first without meeting the EPC D floor will not receive the BUS grant — the voucher application will be rejected by Ofgem
- Some loft insulation and cavity wall insulation is available free or heavily subsidised through the Great British Insulation Scheme (GBIS) and ECO4 — layer these grants before applying for BUS
Applying for BUS as a landlord
The BUS application process is installer-led, not landlord-led. The steps are:
- Step 1: Obtain quotes from at least two MCS-certified heat pump installers. Verify MCS certification at mcscertified.com
- Step 2: The chosen installer submits a voucher application to Ofgem (via the Ofgem BUS portal) before any work begins. The voucher is valid for 3 months
- Step 3: Installation is completed within the voucher validity window
- Step 4: The installer redeems the voucher with Ofgem, receiving the grant directly. Your invoice is reduced by the grant amount
- Step 5: Ofgem may audit the installation — retain the MCS installation certificate, commissioning report, and updated EPC as evidence
- Landlords cannot apply directly to Ofgem — the entire application must be made by the MCS-certified installer on your behalf
Tenant rights and heat pump installations
Installing a heat pump in an occupied tenanted property requires careful management of tenant relations and legal obligations:
- Section 11 of the Landlord and Tenant Act 1985 imposes a duty to keep installations in working order — during the transition from gas boiler to heat pump, ensure heating is maintained (provide temporary heaters if needed)
- You must give tenants at least 24 hours' written notice before entering to carry out works unless it is an emergency
- Heat pump installation typically takes 1–3 days and involves significant disruption — agree a programme of works with your tenant in advance
- Under the Renters' Rights Act 2025, any agreement to allow works that may temporarily interrupt heating must be clearly documented
- Inform tenants that their heating system operation will change: heat pumps run at lower flow temperatures and require longer operating periods — tenants unfamiliar with heat pumps may inadvertently use them inefficiently, raising their bills
- If the works fundamentally change the nature of the property, update the tenancy agreement or issue a side letter documenting the new heating system
BUS and the MEES 2030 EPC C requirement
The government has confirmed a trajectory toward requiring all privately rented properties to achieve EPC C by 2030. BUS is the primary government mechanism to help landlords bridge this gap:
- An air source heat pump in a well-insulated property typically delivers EPC C or above
- For properties currently rated D or E, combining loft insulation + cavity wall insulation + BUS-funded heat pump is the most cost-effective path to EPC C
- The £7,500 BUS grant substantially offsets heat pump installation costs, which typically range from £8,000 to £14,000 for an air source unit
- An improved EPC also increases the property's value and lettability — a factor relevant to portfolio valuations and remortgage assessments
- Landlords with multiple properties can apply for BUS on each property separately — there is no portfolio-level cap, only a per-address restriction
Frequently asked questions
Can a landlord claim the Boiler Upgrade Scheme grant for a rental property?+
Yes. The BUS grant is available for rental properties. The property must be in England, Wales, or Scotland, have a valid EPC rated D or above, and be replacing a fossil fuel boiler or direct electric heating system. The MCS-certified installer applies for the voucher on your behalf before works begin — the grant is deducted from your invoice.
What is the BUS grant amount for an air source heat pump in 2026?+
The current grant is £7,500 for an air source heat pump and £7,500 for a ground source or water source heat pump. The grant is paid directly to the installer and reduces the price you pay. There is no means-testing or income requirement — any eligible landlord can apply.
My rental property is EPC E — can I still get the BUS grant?+
No. The BUS requires an existing EPC of D or above. EPC E, F, or G properties must first be improved to at least EPC D before a BUS voucher can be applied for. Use the Great British Insulation Scheme (GBIS) or ECO4 to fund insulation improvements first, then apply for BUS once the EPC is upgraded.
Do I need to tell my tenant before installing a heat pump?+
Yes. You must give at least 24 hours' written notice before entering to carry out works. Heat pump installation typically takes 1–3 days — agree a programme of works in advance. Inform your tenant how the new system works, as heat pumps operate differently from gas boilers and misuse can increase running costs.
How does BUS help with the MEES EPC C requirement?+
A heat pump installed in a properly insulated property typically achieves EPC C or above. The £7,500 BUS grant substantially offsets the installation cost (typically £8,000–£14,000 for ASHP). For landlords with D or E-rated properties, the most cost-effective MEES compliance route is often: insulate to EPC D, then apply BUS for the heat pump to reach EPC C.