In a major boost for rural heating decarbonisation, the UK Government and Ofgem have officially launched an increased £9,000 Boiler Upgrade Scheme (BUS) grant. Effective from 21 July 2026, installers can now apply for this elevated funding on behalf of eligible property owners in England and Wales who are currently heating their homes with oil or liquefied petroleum gas (LPG).

This represents a £1,500 increase over the standard £7,500 heat pump grant and is specifically targeted at off-gas grid properties that face higher fuel costs and price volatility. Below is a complete breakdown of the new rules, property eligibility criteria, technical requirements, and application guidelines.

1. What Qualifies as an Off-Gas Grid Property?

To ensure this increased funding directly assists homes without access to mains gas, Ofgem has laid out strict technical definitions for off-gas grid eligibility under Regulation 13.

A property is considered off-gas grid for the £9,000 BUS grant if it meets all of the following criteria:

• It is not connected to mains gas.
• It has no gas meter installed, nor any capped or clamped gas supply line on site.
• It is not connected to a district heat network.
• It is not a standard new build or a self-build property (self-builds remain eligible under standard BUS rules, but are excluded from the specific off-gas grid oil/LPG £9,000 category).

BUS Grant Categories & Supported Technologies (From 21 July 2026)

2. Critical Rules for Installers and Property Owners

A. Application Date Cutoff

The £9,000 grant value applies only to voucher applications properly submitted to Ofgem on or after 21 July 2026. Any voucher applications submitted prior to this date will remain locked at the previous £7,500 rate.

B. Existing Vouchers & The 120-Day Rule

If an installer previously submitted a voucher application at £7,500 for an oil or LPG home that has not yet been completed, the existing voucher remains at £7,500. However, if the installation was recently commissioned, installers and property owners may choose to withdraw the existing voucher and re-apply on or after 21 July 2026—provided the new voucher application is properly submitted within 120 days of the commissioning date listed on the MCS certificate.

C. Installer Responsibilities & Verification

The Boiler Upgrade Scheme remains an installer-led process. When submitting an application for the £9,000 grant, MCS-certified installers must formally verify and confirm:

1. That the existing, operational heating system runs on heating oil or LPG.
2. That the property meets all off-gas grid conditions (no gas meter, no active or capped gas connection).
3. That the full £9,000 grant amount is passed directly to the property owner as a transparent upfront deduction on their quote and invoice.

3. Step-by-Step Guide for Homeowners Switching From Oil or LPG

4. Duration & Future Outlook

This enhanced £9,000 grant rate is currently set to run until 31 March 2027. The Department for Energy Security and Net Zero (DESNZ) and Ofgem will conduct a review prior to the 2027/28 financial year to evaluate whether this level of financial support remains appropriate for off-gas grid decarbonisation.

With high oil and LPG fuel costs and 0% VAT on heat pump installations remaining active until March 2027, rural homeowners have a clear window to upgrade to low-carbon heating at significantly reduced upfront costs.