If your home runs on oil or LPG, the government has just made switching to a heat pump considerably cheaper. From 21 July 2026, eligible homes off the mains gas grid may be able to claim a £9,000 grant towards an air source or ground source heat pump through the Boiler Upgrade Scheme (BUS). That’s £1,500 more than the standard heat pump grant available to everyone else.
Around 865,000 homes in England and Wales heat with oil or LPG, most of them in rural areas without access to mains gas. If yours is one of them, here’s exactly what’s on offer, whether you qualify, and how the process works.
The Boiler Upgrade Scheme already offers £7,500 off the cost of installing an air-to-water or ground source heat pump. From 21 July 2026 until 31 March 2027, that grant rises to £9,000 specifically for off-gas-grid properties switching from oil or LPG heating.
For context, the wider scheme also covers:
There’s also been a bigger change that’s had less attention: from 28 April 2026, a valid EPC is no longer required to apply for BUS at all. Where a property doesn’t have one, installers can use alternative evidence instead, such as a recent utility bill or fuel receipt, photos of the existing heating system, or the number of an expired EPC. This has opened the scheme to a significantly wider group of homeowners.
You’re likely to qualify for the £9,000 rate if:
You don’t need a valid EPC to apply. If one exists, your installer will use it, but if not, they can support your application with alternative evidence instead.
If you’re on mains gas or heat with coal, you can still claim the standard £7,500 grant, you just won’t qualify for the oil/LPG uplift.
Not sure whether your property qualifies? Cahill Renewables can check your heating type, property suitability and grant position before you commit to a quote.
Beyond the upfront grant, there may also be a significant running-cost benefit. Analysis by Nesta published in April 2026 found that oil-heated households switching to a heat pump could save over £650 a year on energy bills at current prices, though the actual figure depends on your property, the heat pump design, your tariff, and current oil or LPG prices. Combined with the £9,000 knocked off the installation cost, the payback case for oil and LPG homes is stronger than it’s been at any point in the scheme’s history.
It’s worth noting the savings are typically even better when a heat pump is paired with solar panels and battery storage, since you’re generating and storing some of the electricity that runs the heat pump rather than buying all of it from the grid. More on that below.
The good news: there’s no form-filling for you to do. The Boiler Upgrade Scheme is installer-led, which means:
Because the discount is applied upfront, the price you’re quoted is the price you pay after the grant. No waiting, no separate application process, no paperwork chasing.
If you’re already switching away from oil or LPG, it’s worth looking at the full picture rather than just the heating system. A heat pump does increase your electricity usage, and for off-grid rural properties, that often means a longer drive to the nearest fuel supplier becomes a bigger electricity bill instead.
Solar panels and a battery, such as a Tesla Powerwall or GivEnergy system, let you generate and store your own electricity, so a larger share of what your heat pump uses comes from your roof rather than the grid. For rural, off-gas-grid properties in particular, this combination is often where the real long-term savings are made.
We’ve been installing solar, battery storage and heat pump systems across Essex and Kent for over 11 years, and we’re MCS, NICEIC and HIES accredited: the exact credentials required to process your Boiler Upgrade Scheme grant correctly and without delay.
As a family-run business, we don’t do pushy sales visits. We’ll give you honest advice on whether a heat pump, solar, or a combination of both makes sense for your property, walk you through exactly what you qualify for, and handle the grant application for you.
Ready to see what you could save? Book a free consultation, and we’ll tell you exactly what grant you qualify for and what it means for your quote.
No. Your installer applies on your behalf as part of the installation process. You don’t need to fill in any forms.
The uplifted rate is available from 21 July 2026 to 31 March 2027, after which it’s expected to revert to the standard rate. It’s worth acting within that window if you’re eligible.
Yes, but at the standard £7,500 rate rather than £9,000. The higher rate is specifically for eligible off-gas-grid homes currently heating with oil or LPG.
No. Since 28 April 2026, a valid EPC is no longer a requirement for BUS. If you have one, your installer will use it, but if not, they can support your application with alternative evidence such as a recent utility bill or fuel receipt.
Last updated: July 2026. Based on current GOV.UK, Ofgem and Boiler Upgrade Scheme guidance. Scheme rules can change, so always confirm current terms before committing to an installation.
