BUS Grant vs ECO4 — Which Heat Pump Grant Applies to Me?

Boiler Upgrade Scheme (BUS) — £7,500 government grant for an air source heat pump (ASHP), or £7,500 for ground source. One grant per property, paid directly to the MCS-certified installer who reduces your invoice by the grant amount.

Energy Company Obligation 4 (ECO4) — supplier-funded scheme. Energy suppliers must fund energy efficiency improvements for low-income or vulnerable households. Can cover heat pumps, insulation, full retrofits.

BUS is universal — any homeowner with an EPC and an MCS installer can claim. ECO4 is means-tested — only specific household types qualify.

Property must have an EPC of any rating (no minimum). For London period properties at band E or F, this is achievable — though some councils now want a band D minimum.

MCS-certified installer must do the install. Verify on mcscertified.com.

ASHP or GSHP, not biomass (biomass was removed from BUS in 2024). Hybrid heat pumps eligible only if the gas boiler is removed.

Grant size: £7,500 (ASHP), £7,500 (GSHP). Plus 0% VAT on the install until 1 May 2027 — saves another £1,500-2,500 on a typical £10-13k installed cost.

Means-tested. Household income under £31,000/year, or in receipt of qualifying benefits (Universal Credit, Pension Credit, Income Support, ESA, JSA).

Property must have EPC band D, E, F or G — band C and above are excluded.

Tenants of private landlords can qualify (with landlord consent) — useful for MEES band C by 1 October 2030 prep.

Funding amount is uncapped in principle but limited by the supplier's obligation budget. Typical heat pump install + insulation upgrade fully funded.

Owner-occupier, no benefits, EPC band D or above — BUS. Apply via MCS installer at quote stage. The £7,500 comes off the invoice; you pay the balance directly.

Owner-occupier, qualifying benefits, EPC band E or F — ECO4. Apply via your energy supplier or an ECO4-approved managing agent. Process is slower (3-6 months) but funding is higher.

Private landlord with tenants on benefits — ECO4 via the tenant, but only with landlord consent and signed agreement. The landlord must also commit to a 5-year rental period post-install.

Social housing tenant — ECO4 via your housing association. They typically apply on the tenant's behalf as part of stock retrofit.

1. Get an EPC. If yours is over 10 years old, refresh it (£60-90).

2. Get 3 MCS-installer quotes. Quotes should show the £7,500 grant deducted from the invoice.

3. Choose installer; sign contract. Installer applies for the grant on your behalf via the BUS portal.

4. Grant approved (usually 5-15 days). Install proceeds.

5. Post-install, installer submits commissioning evidence. Grant paid to installer; you pay net balance.

Skipping the EPC step — installers can't apply without one. Refresh it first.

Using a non-MCS installer — grant ineligible, no exceptions.

Trying to stack BUS with ECO4 on the same heat pump — generally not allowed. Choose one.

Choosing a heat pump that's not in the MCS-approved product list — common with cheap-import units. Stick to recognisable brands (Daikin, Mitsubishi, Vaillant, Samsung, Grant, Bosch, Worcester).

Hybrid systems where the gas boiler stays — ineligible. BUS requires full gas removal.