How Do I Know If I Qualify For A Boiler Grant?

According to the End Fuel Poverty coalition, about 12.1 million UK households are struggling with energy costs right now.

Fuel poverty is defined as a household that cannot afford to heat (or power) their property to a comfortable standard without falling behind on bills.

Of the 12.1 million households mentioned above, almost five million are in deep fuel poverty, spending more than 20% of their income on energy.

If you are struggling to pay for your energy bills, it goes without saying that you’re unlikely to be able to afford a new boiler.

However, there are government grants that will help pay for or sponsor a boiler installation.

But how do you know if you qualify for one of these boiler grants?

Let’s review the main UK boiler grants.

Key Boiler Grant Schemes In The UK

There are two main government-backed boiler grants for UK citizens to apply for, which are:

• Boiler Upgrade Scheme (BUS)
• Energy Company Obligation (ECO) scheme

While both schemes will help households obtain a new boiler, there are several key differences.

Let’s dive into each grant and discuss how to know if you qualify for help from it.

BUS Grant

The BUS grant is a government-backed scheme that’s been created to help property owners replace their old fossil fuel heating systems with new low-carbon heating options.

What Low-Carbon Options Are Covered By BUS?

As mentioned, BUS aims to accelerate the move of UK homeowners away from their older fossil fuel heating systems.

There are three types of low-carbon heating options to choose from, which include the following:

Air Source Heat Pump (ASHP)

An Air Source Heat Pump is a low-carbon heating system that works by extracting heat from the outside air, capturing it, and transferring it into your home, which can be used to warm your home and its water.

In layman’s terms, it works in reverse order compared to a fridge, and works as follows:

• A fan draws in outdoor air.
• When the air is drawn in, a refrigerant absorbs heat from the air, even at low temperatures down to -15°C.
• The refrigerant is compressed, raising its temperature.
• This heat is transferred into your home’s heating system (radiators, underfloor heating, or hot water cylinder).
• When the refrigerant cools, it goes back outside, and the process continues.

There are numerous benefits of using an ASHP that include:

• Energy Efficient

ASHPs typically deliver 3 to 4 units of heat for every 1 unit of electricity used, resulting in a Coefficient of Performance (COP) of 3 to 4.

COP measures how efficiently a heating system (like a heat pump) converts electricity into usable heat.

In simple terms:

COP = heat output (kW) divided by the electrical input (kW)

So, if a heat pump uses 1 kW of electricity to produce 3 kW of heat, its COP = 3. A higher COP means a more efficient system.

• Lower Carbon Footprint

ASHP uses electricity (which is increasingly renewable in the UK grid) rather than fossil fuels.

• Dual Function

Can provide heating, hot water, and even cooling (if set up with reversible systems).

• Low Maintenance

Generally requires only annual servicing, similar to a boiler check.

However, there are also some ASHP drawbacks that homeowners need to be aware of:

• High Upfront Costs

An ASHP typically costs anywhere between £7,000 and £13,000 before grants.

These price variations can change dramatically depending on property size and system design.

• Home Insulation

ASHP works best when installed in well-insulated homes (EPC C or better). Otherwise, efficiency drops and running costs rise.

• Loads Of Space Needed

ASHPs need an outdoor unit (looks like an AC box) plus space indoors for a hot water cylinder.

If you don’t have access to this outdoor space, you won’t be able to install an ASHP into your home.

• Radiator Upgrades

Older homes may need bigger radiators or underfloor heating to run efficiently, since ASHPs provide lower-temperature heat (35–55°C vs 60–75°C for gas boilers).

• Electricity Bills

It’s unavoidable, but your electricity use will rise, though overall heating bills may fall depending on gas/oil prices and insulation.

ASHPs are best suited for homes that are off-grid and are well-insulated.

But for homeowners looking for a long-term and environmentally friendly solution that will last up to two decades.

Additionally, ASHPs offer up to 300% to 400% efficiency compared to gas boilers, which typically range from 90% to 94%.

As a result, you will save a significant amount over time.

Ground Source Heat Pump (GSHP)

A GSHP is a renewable heating system that extracts heat stored in the ground and transfers it into your home for heating and hot water.

Because the ground maintains a relatively stable temperature year-round (around 8–12°C in the UK), GSHPs can deliver very consistent and efficient heating, even in cold weather.

A GSHP works via a ground loop installation or a network of pipes, either installed in horizontal trenches or vertical holes, around the home.

A water–antifreeze mixture circulates through the pipes, absorbing heat from the ground.

The absorbed low-grade heat is passed to a refrigerant, which is compressed to raise the temperature.

This heat is transferred to your home’s central heating and hot water system.

The process is repeated when the collected mixture is recirculated back into the ground loop system.

There are numerous benefits of using a GSHP that include:

• Energy Efficient

A GSHP delivers 3.5–5 units of heat for every 1 unit of electricity (higher COP than air source systems).

• Stable Performance

GSHPs are not as affected by the outside environmental temperature compared to other systems like ASHP.

The heating performance is stable throughout the year.

• Lower Running Costs

Compared to other heating systems, GSHPs have low running costs, making them particularly good for off-grid homes, replacing oil, LPG, or direct electric heating.

• Long Lifespans

Ground loops can last 40+ years; the heat pump unit ~20–25 years.

However, there are also some GSHP drawbacks that homeowners need to be aware of:

• High Upfront Costs

A GSHP typically costs anywhere between £15,000 and £30,000 before grants, depending on whether horizontal trenches or deep boreholes are used.

• Space Requirements

GSHPs need significant outdoor land (for horizontal ground loops) or specialist drilling (for boreholes).

• Disruptive Installation Process

During the installation of a GSHP, your garden and surrounding land will need to be dug up or prepared for drilling, which is a significantly larger job compared to an air source installation.

Biomass Boiler

A biomass boiler is a renewable heating system that burns organic material.

These organic materials are usually wood pellets, chips, or logs, which generate heat when burnt for central heating and hot water.

Unlike heat pumps, which transfer existing heat, a biomass boiler operates more like a traditional boiler, creating heat through combustion.

The main advantage is that it uses renewable, carbon-neutral fuel. Other benefits of using a biomass boiler include:

• It Uses Renewable Energy

Biomass boilers use wood for their combustion energy source, which is considered carbon-neutral (trees absorb CO₂ while growing, balancing emissions when burned).

• Cost Savings

Biomass boilers are cheaper to run than oil, LPG, or direct electric heating, especially in off-grid rural homes.

• Large Property Heating

For a homeowner with a larger property size, a biomass boiler can generate a lot of heat, suitable for big homes or even commercial premises.

However, when installing a biomass boiler, you need to know that they are:

• More expensive upfront, with costs ranging between £10,000 and £20,000, and become more costly when the property increases in size.
• Biomass boilers require more space indoors and outdoors for the boiler unit and fuel storage.
• For biomass boilers, you need to handle the fuel physically.
• While pellets can be automatically fed, logs and chips often require manual loading. Additionally, ashtrays must be emptied regularly.
• Unlike the other carbon-friendly heating systems, biomass boilers require regular maintenance via an annual service plus regular cleaning of ash and soot.
• As you burn your biomass fuel, it’s essential to consider the air quality and emissions requirements, as modern systems must comply with strict emissions standards.

What Assistance Can You Get Via BUS For These Heating Systems?

If you are planning to apply via your installer for an ASHP or GSHP, you can redeem a voucher up to £7,500, while those choosing to install a biomass boiler can claim up to £5,000.

Process For Application

The installer usually applies for the voucher/grant on your behalf.

The grant amount is deducted from the upfront cost when you get the quote.

Only contractors with a Microgeneration Certification Scheme (MCS) (or an equivalent if one is established) can complete work to receive a BUS grant.

Also, the contractors must commission the installation within 120 days after the BUS voucher is issued (for most technologies).

For ground source heat pumps, there’s a longer allowed time period for commissioning.

Additionally, the contractors must design and install a system that complies with BUS rules.

An example of this is that it needs to meet capacity limits (maximum kW), ensure correct heat distribution (radiators or underfloor heating, etc.), and be suitable for replacing fossil fuel/electric heating.

Residents Eligibility Requirements

To receive BUS funding, you need to fulfil the following requirements:

Location

Your property must be located in England or Wales. For property owners in Northern Ireland and Scotland, there are similar local programmes you can apply for funding.

Ownership

You must own the property.

This includes:

• • Private homeowners
• • People with second homes
• • Landlords and property owners who rent out (as long as other conditions are met)

Capacity Limit

The system being installed must not exceed 45 kW thermal (kWth) capacity for a single property.

Shared ground loops have other aggregate limits.

Existing Heating System

You must be replacing an existing fossil fuel-heating system, such as a gas, oil, LPG, or electric heating (but not already a heat pump).

Also, the new system must fully replace the old fossil fuel or electric heating system for space heating and hot water (or meet the entire demand) in the property (or in a related annex/home connected to the property).

Additionally, there are also technology-specific requirements when choosing a biomass boiler or heat pump system:

The following table:

You will not qualify for a BUS grant if:

• The property is social housing (as defined under the Housing & Regeneration Act 2008).
• The property has already received public funding for the purchase or installation of a heat pump or biomass boiler.
• Or a new heating system has been installed and is a hybrid (fossil fuel along with a heat pump) or includes a fossil fuel heating component in some cases (does not fully replace the fossil fuel heating).

Now, let’s look at what ECO4 grant has to offer.

ECO4

ECO4 (Energy Company Obligation 4) is the UK government’s current scheme that requires large energy suppliers to help improve energy efficiency in homes, especially for low-income and vulnerable households.

The ECO schemes first started in the UK in January 2013. The government launched it to replace earlier energy-efficiency schemes, such as:

• CERT (Carbon Emissions Reduction Target)
• And CESP (Community Energy Saving Programme)

Now in its fourth version, which has been running from April 2022 to March 2026.

Administered by Ofgem, the ECO4 scheme provides funding, either fully or partially, depending on eligibility, for a wide range of improvements, such as:

• Loft, cavity wall, and solid wall insulation
• Upgrades or replacements for heating systems
• Renewable energy installations like solar panels

Like BUS, you, as the homeowner, do not apply directly to Ofgem for help, as your contractor will claim directly from the fund on your behalf.

Only contractors listed as a TrustMark service provider are allowed to complete the work.

But what are the eligibility requirements to apply successfully from ECO4?

ECO4 Eligibility Requirements

To claim from the ECO4 scheme, you need to answer the following questions?

What’s Your Home’s Energy Rating?

When you buy or sell a property, it must have an Energy Performance Certificate (EPC).

An EPC rating is a government-issued document that assesses a property’s energy efficiency, rated on a scale from A to G, with A being the highest rating and G being the lowest.

When issuing an EPC certificate, the assessor is inspecting a few key elements of your home’s energy usage, including:

• Insulation (loft, cavity wall, floor)
• Heating system efficiency
• Double/triple glazing
• Boiler type and controls
• Lighting (energy-saving bulbs)

To qualify for the ECO4 scheme, your home must have an EPC rating of D, E, F, or G. This means your home is not energy-efficient and would likely benefit most from funded upgrades, such as insulation or more efficient heating systems.

An EPC rating is valid for a period of ten years.

If you can’t locate it, you can look it up on the official UK register.

Does Someone In Your Home Receive An Income-Based Benefit?

To qualify for the ECO4 benefit, a resident of the household must be getting one of the following:

• Income-related Jobseeker’s Allowance (JSA)
• Employment and Support Allowance (ESA)
• Pension Credit (Savings or Guarantee Credit)
• Universal Credit (within qualifying income limits)
• Working Tax Credit or Child Tax Credit
• Child Benefit (subject to income thresholds)
• Housing Benefit
• Or a Warm Home Discount

While certain disability benefits (e.g., PIP, DLA) were removed from eligibility under ECO4, you can also take an alternative route if you’re not currently receiving a benefit.

Check If You Can Apply Via The Flex ECO4 Route

An alternative route to receive a benefit is to apply to your local authority board for a Flex ECO4.

To qualify under Local Authority (LA) Flex, your home needs to meet these requirements:

• Household income typically must be under £31,000 per year
• Home must still have an EPC rated D–G
• Your local council must nominate you under this scheme

How Do I Apply for the ECO4 Scheme?

Applying for ECO4 is simpler than you might think. Once you’ve checked your eligibility, follow these steps:

Step 1: Find A TrustMark-Registered Installer

You can’t apply directly through the government. Instead, you’ll need to go through an approved installer or energy provider.

You can approach:

• Large energy suppliers (British Gas, EDF, E.ON, Octopus, OVO, Scottish Power)
• Specialist ECO4 partners (Interglow, EcoGiants, BTS Grants)

Ensure that whoever you choose is TrustMark-registered and compliant with PAS 2030 standards, which means they’re officially accredited to carry out ECO4 work.

Step 2: Home Assessment

Your chosen provider will arrange for an energy assessor to visit your home.

During the assessment, they’ll evaluate:

• Your current insulation
• The efficiency of your heating system
• Any additional upgrades that could reduce your energy bills

This assessment is free and helps determine which improvements you qualify for.

Step 3: Get Approved And Book Your Installation

If everything checks out, you’ll be approved for ECO4 support.

Your installer will then schedule a convenient time to carry out the upgrades, whether that involves adding insulation, replacing a boiler, or installing solar panels.

For those who do not qualify for a boiler grant, you can always finance the purchase of one, spreading the cost over a set period of time.

Time To Finance Your New Boiler

Instead of facing a huge upfront bill, you can spread the cost into affordable monthly payments.

This allows you to keep your home warm without blowing your budget.

Finance plans are available (with 0% interest and payment plans) specifically for purchasing more energy-efficient boilers or making repairs to the heating system.

These finance plans are ideal for homeowners who need a boiler urgently but don’t have the upfront cash.

WarmZilla has a comprehensive range of financial packages that promise:

• Low monthly payments
• Fast online quotes
• Fixed repayment rates
• Choice of terms
• And include installation costs for a trusted Gas Safe registered engineer to complete the work.

If this is something you’re interested in doing, feel free to take our quick boiler survey to confirm what new boiler you need for your home.

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