Replace your oil boiler with a heat pump or modern heating system at no cost through government grants. The Boiler Upgrade Scheme (BUS) offers £7,500 towards air source heat pumps, while ECO4 provides fully funded replacements for eligible households. Over 600,000 UK homes still rely on oil heating — switching to a heat pump saves £500–£1,200 per year.
Boiler Upgrade Scheme (BUS): £7,500 grant for air source heat pumps, £5,000 for ground source heat pumps. Available to all homeowners in England and Wales regardless of income. Voucher applied directly by your installer — you pay the balance only.
ECO4 Scheme: Fully funded heating upgrades for low-income households, those on qualifying benefits (Universal Credit, Pension Credit, Child Tax Credit), or properties in Council Tax bands A–D with EPC ratings of D, E, F, or G. No contribution required from the homeowner.
Yes, if you qualify for ECO4. Homeowners receiving qualifying benefits or living in energy-inefficient properties (EPC D–G) can receive a fully funded heat pump or modern heating system replacement at no cost. The scheme is funded by energy suppliers and administered through approved installers.
An air source heat pump costs £8,000–£14,000 installed. After the £7,500 BUS grant, you pay £500–£6,500. Running costs are typically £500–£1,200 less per year than oil, so the system pays for itself within 1–5 years depending on your current oil consumption.
Yes. The BUS has been extended to March 2028 with increased funding. The grant for air source heat pumps was raised from £5,000 to £7,500 in October 2024. Available to all homeowners in England and Wales with no income restrictions.
Boiler Upgrade Scheme: £7,500 for ASHP replacing oil. No means testing. Applied by your MCS installer via Ofgem. Average cost after grant: £3,000–£6,500. Full heat pump grant guide.
ECO4: Fully funded for qualifying households — zero cost. Eligibility: benefits OR EPC D-G property. Covers removal, ASHP installation, and required upgrades.
Scotland: Interest-free loans £7,500 + cashback £7,500–£9,000. Rural homeowners can receive £15,000+ combined support.
| Cost | Oil | ASHP | ASHP+Solar |
|---|---|---|---|
| Annual fuel | £1,400–£2,200 | £600–£900 | £200–£400 |
| 10yr total | £17,000–£27,000 | £7,000–£11,000 | £3,000–£6,000 |
Suitability: Detached/semi-detached houses ideal — space for outdoor unit. Bungalows excellent. Properties need cavity wall insulation, 270mm loft insulation, and double glazing for optimal heat pump performance. ECO4 covers insulation upgrades alongside heat pump. Radiator upgrades may be needed (2–4 radiators, £200–£400 each). Your MCS installer conducts a heat loss calculation to determine requirements.
Oil tank removal: OFTEC-registered technician drains remaining oil, cleans tank, removes or fills with inert material. Above-ground: £300–£800. Underground: £1,500–£4,000 including soil testing. Usually included in installer's heat pump quote.
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Get £7,500 from the Boiler Upgrade Scheme to replace your oil boiler with a heat pump. ECO4 covers up to 100% for low-income households. 0% VAT on heat pumps. After grants, most homeowners pay just £2,000-£6,000.
Oil boilers: £1,200-£1,800/year. Heat pumps: £700-£1,100/year (300% COP efficiency). Save £400-£700/year plus protection from volatile oil prices. Heat pumps last 20-25 years vs 15 for oil boilers.
Boiler Upgrade Scheme: £7,500 for ASHP replacing oil. No means testing. Applied by your MCS installer via Ofgem. Average cost after grant: £3,000–£6,500. Full heat pump grant guide.
ECO4: Fully funded for qualifying households — zero cost. Eligibility: benefits OR EPC D-G property. Covers removal, ASHP installation, and required upgrades.
Scotland: Interest-free loans £7,500 + cashback £7,500–£9,000. Rural homeowners can receive £15,000+ combined support.
| Cost | Oil | ASHP | ASHP+Solar |
|---|---|---|---|
| Annual fuel | £1,400–£2,200 | £600–£900 | £200–£400 |
| 10yr total | £17,000–£27,000 | £7,000–£11,000 | £3,000–£6,000 |
Suitability: Detached/semi-detached houses ideal — space for outdoor unit. Bungalows excellent. Properties need cavity wall insulation, 270mm loft insulation, and double glazing for optimal heat pump performance. ECO4 covers insulation upgrades alongside heat pump. Radiator upgrades may be needed (2–4 radiators, £200–£400 each). Your MCS installer conducts a heat loss calculation to determine requirements.
Oil tank removal: OFTEC-registered technician drains remaining oil, cleans tank, removes or fills with inert material. Above-ground: £300–£800. Underground: £1,500–£4,000 including soil testing. Usually included in installer's heat pump quote.
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Solar Costs · Business Grants · Energy Audits · EPC Assessors