Boiler Upgrade Scheme Wales | Get a £7,500 Grant

Wales Boiler Upgrade Scheme: A Smarter Way to Reduce Heating Costs

If your heating bills have been painful lately, you are not imagining it. Older gas boilers are expensive to run, and with energy prices doing what they have done over the past few years, many households in Wales are actively looking for a way out.

The Wales boiler upgrade scheme is worth knowing about. It is a government grant that reduces what you pay upfront when switching to a low-carbon heating system. A lot of homeowners are choosing air source heat pumps, and the appeal is simple: lower running costs and far less exposure to gas price volatility.

boiler upgrade scheme wales​
wales boiler upgrade scheme​

The Decline of Traditional Gas Heating

Gas boilers have been around forever, but they are becoming an increasingly costly habit. Every bit of heat requires burning fuel, so your bills are always tied to whatever gas prices are doing.

Heat pumps are built around a different idea entirely. They move warmth from outside air into your home rather than generating heat by burning something. That process takes far less energy, which is why running costs tend to be lower month to month. The Boiler Upgrade Scheme was designed to make switching affordable for regular households, not just those with deep pockets.

What the Scheme Helps You Replace

The scheme covers the cost of replacing fossil fuel heating with low-carbon systems. Your main options are air source heat pumps, ground source heat pumps, and in some cases biomass boilers. Air source heat pumps are by far the most common choice because they work across a wide variety of homes and are relatively easy to install.

Biomass boilers are a different story. They only qualify if your property sits in a rural area and is not connected to the gas grid, so most urban and suburban homeowners will not be looking at this option.

boiler upgrade scheme wales​ UK
wales boiler upgrade scheme​ UK

Understanding Costs and Real Savings

Heat pump installation generally costs between £10,000 and £18,000. Through the scheme, you can get £7,500 off an air source or ground source heat pump, and £5,000 off a biomass boiler. Your installer takes this off the quote directly, so you are not waiting to claim anything back.

Running cost savings vary, but according to the Energy Saving Trust, a typical semi-detached home in Wales could save up to £1,200 a year after switching. Even against an older G-rated gas boiler, savings of around £290 per year are realistic. Households moving away from oil or LPG tend to see the most significant difference.

Who Is Eligible in Wales?

You need to own the property, currently heat it using a fossil fuel system or an electric system without a heat pump, and hold a valid Energy Performance Certificate issued within the last ten years. If the property has already received government funding for the same type of heating upgrade before, it will not qualify again.

An MCS-certified installer can check your eligibility quickly and tell you whether your home is suitable before anything is committed.

Landlords Can Benefit Too

Landlords are not excluded. Rental properties and small business premises in Wales can qualify under the same conditions as a standard home. Given that energy performance standards for rented homes are getting stricter, upgrading to a heat pump can improve an EPC rating and make a property more lettable at the same time.

boiler upgrade scheme wales​

Air-to-Air Systems Explained

Following a government announcement in November 2024, air-to-air heat pumps are being added to the scheme. These push warm air around the home rather than heating water, and they can provide cooling in summer too. However, the grants for these systems are not yet active while funding details are confirmed. They also do not produce hot water, so a separate system would be needed to cover that.
boiler upgrade scheme wales​

What Your Home Needs Before Installation

Before anything gets installed, your home needs to meet certain practical requirements. Insulation levels, space for the equipment, and compatibility with your existing setup all factor in. Some properties need radiator upgrades to get proper performance from a heat pump, though this is common enough that most installers handle it as part of the job.

The scheme has loosened some of the insulation requirements that were in place in earlier years, making it accessible to more properties than before.

Why Acting Sooner Makes Sense

The scheme runs until 31 December 2027, but funding is allocated on a first-come, first-served basis and applications have been growing. There is no guarantee conditions will stay the same the longer you wait. On top of that, every month spent running an inefficient boiler is money that does not come back.

Start Your Upgrade Journey in Wales

The process is more straightforward than most people expect. Your MCS-certified installer applies for the grant through Ofgem on your behalf and deducts it from your bill before you pay. With up to £7,500 available, the gap between what a heat pump costs and what you actually pay is much smaller than going it alone. Start by checking whether your property qualifies.

grant for air source heat pump​

Asked General Question

Possibly. The BUS grant covers a large portion of the cost. If you also qualify for ECO4 or the Welsh Government’s Nest scheme, your share of the bill could be very small or nothing at all.
Own the property, heat it with a fossil fuel or electric system without a heat pump, and have a valid EPC from the past ten years. Previous government funding for the same upgrade at the same property disqualifies you.
Homeowners, landlords, and small business property owners in Wales. The installation must fully replace the existing fossil fuel system.
Air source and ground source heat pumps get £7,500. Biomass boilers get £5,000 but only in rural, off-grid properties. Air-to-air heat pump grants are coming but not yet available.
Yes. Hybrid systems that keep a gas boiler running alongside a heat pump do not qualify.
Once eligibility is confirmed it moves fairly quickly. Most installations are completed within a few days.
No. Most property types qualify. New builds are generally excluded unless a fossil fuel system was already in place on arrival.
For most people, yes. Heat pumps use less energy than gas boilers, so bills go down. Homes on oil or LPG tend to see the biggest savings.

Get Started

The boiler upgrade scheme Wales gives you a real chance to upgrade your heating without carrying the full cost yourself.