The Boiler Upgrade Scheme (England and Wales) (Amendment) Regulations 2026 have been laid and will take legal effect on 28 April 2026. The instrument (S.I. 2026/390) amends the 2022 BUS regulations and is subject to the negative procedure. This Policy Wire brief sets out the material changes for eligibility, capacity, and process. (statutoryinstruments.parliament.uk)
Air-to-air heat pumps (A2A) are added as an eligible technology for grants, with a specific boundary: A2A is not eligible in relation to non‑residential buildings. Government signalled this shift in its consultation response to widen options for properties without hydronic systems; the regulation now gives that policy practical effect for domestic settings. Ofgem guidance previously confirmed A2A systems were out of scope under earlier rules. (assets.publishing.service.gov.uk)
The instrument removes the requirement for an eligible property to hold a valid Energy Performance Certificate (EPC). DESNZ had already indicated it would relax EPC‑related hurdles and drop mandatory loft or cavity wall insulation to simplify uptake. In practice, Ofgem may still use an EPC where available for verification, but the presence of a current certificate is no longer a gateway requirement. (assets.publishing.service.gov.uk)
Technical thresholds are clarified. Individual plant capacity remains capped at 45 kWth and shared ground loop systems are permitted up to 300 kWth. Where two or more heat pumps are installed to serve a single property, the combined capacity must not exceed 70 kWth. For air‑to‑water and ground source units, a minimum seasonal coefficient of performance (SCOP) of 2.8 applies under the approved standard at commissioning. (assets.publishing.service.gov.uk)
Whole‑home heating remains the design principle. Hydronic heat pumps supported by BUS must be capable of meeting the full space‑heating demand of the property alone; other electric appliances (such as heat batteries or exhaust‑air units) can be installed alongside, but fossil‑fuel hybrids are still excluded. BUS‑funded heat pumps cannot be paired with a biomass boiler in a multi‑technology configuration. (assets.publishing.service.gov.uk)
Certification and consumer protections are strengthened. “Installer” is tied to the Microgeneration Certification Scheme (MCS), with provision for updated scheme versions approved by the Secretary of State. Installers must deduct the value of the BUS voucher from the customer quote upfront and must not seek payment of that deducted amount unless the application is refused or a voucher is revoked-shifting cash‑flow risk away from consumers. (ofgem.gov.uk)
The definition of “urban area” is updated to align BUS administration with the Office for National Statistics 2021 rural‑urban classification of output areas, last updated on 22 August 2025. This maintains consistency with current official geography across England and Wales. (ons.gov.uk)
Transitional rules apply. Applications properly made before the new regulations commence on 28 April 2026 continue under the pre‑existing regime. New applications made on or after that date must meet the revised eligibility and process requirements. DESNZ also confirmed commissioning‑date limits for eligibility to keep installations aligned with the most recent standards. (statutoryinstruments.parliament.uk)
For delivery teams, immediate operational actions include: confirming MCS certification; updating heat‑loss calculations and product selections to respect the 45 kWth per unit and 70 kWth combined caps; and revising quotations and customer documentation so the BUS grant is deducted at source. Property owners should note that A2A becomes a viable grant‑supported option for domestic space heating, while non‑residential premises remain excluded for A2A. (assets.publishing.service.gov.uk)
The scheme’s lifespan is extended. DESNZ has confirmed continuation of BUS to 2029/30, and Ofgem continues to publish annual budget information, with £295 million set for 2025/26. Grant categories and values are set by Secretary of State notice under Regulation 13; the current notice lists hydronic heat pumps and biomass boilers and will govern payments unless and until superseded. (assets.publishing.service.gov.uk)