The Boiler Upgrade Scheme: a landlord's guide to grants for low carbon heating

With the government's Warm Homes Plan confirming that all domestic rented properties will need to reach EPC Band C by 1 October 2030, many Sheffield landlords are now weighing up heating system upgrades for the first time. Replacing an ageing gas boiler with a low carbon alternative is one of the biggest single investments in that process — and one of the biggest costs.

The Boiler Upgrade Scheme (BUS) offers government grant support of up to £7,500 towards that cost, which can materially change the economics of upgrading. This guide sets out exactly what's available, who qualifies, and how it fits into your wider MEES 2030 planning.

2. Which heating systems qualify?

Last verified: 7 September 2026 — grant values are set by government and have changed more than once. Always confirm the current figure on GOV.UK before budgeting.

You can only claim one grant per property, and the scheme excludes hybrid heating systems and the replacement of an existing low carbon heating system.

4. How BUS improvements affect your EPC rating

Swapping a fossil fuel boiler for a heat pump will typically move the needle on your EPC rating — heating is one of the largest factors in the calculation. But how much it moves depends heavily on the rest of the property, including its construction and existing insulation, so the improvement isn't the same from one property to the next.

Crucially, your existing EPC won't update itself once the work is done — you'll need a new assessment to get a certificate that reflects the improved rating, which matters both for MEES compliance and for demonstrating the improvement to future tenants or buyers.

Because the improvement is so property-specific, it's worth understanding the likely outcome before committing to the cost of a heat pump installation. A MEES Consultancy report uses the raw data from your property's EPC assessment to model realistic rating scenarios — so you can see whether a heat pump alone gets you to Band C, or whether it needs to be paired with insulation work, before you spend the money.

6. Other grants and schemes to be aware of

ECO4 (Energy Company Obligation)

Funded by energy suppliers rather than government directly, ECO4 targets low-income and vulnerable households rather than landlords generally. For a privately rented property to qualify, it must have an EPC band of E, F, or G, and the tenant — not the landlord — must meet income or benefit criteria (part of the “Help to Heat Group”) or be declared eligible by the local authority. Landlord consent is required for any work to go ahead. ECO4 runs until 31 December 2026.

Warm Homes: Local Grant

Delivered locally rather than nationally — Sheffield City Council currently delivers this scheme in partnership with E.ON, having secured funding to cover the period to 2028. It targets owner-occupied and privately rented homes rated EPC Band D–G, where the tenant's household income is typically under £36,000 with savings under £16,000. For landlords, the first property in a portfolio can be fully funded; a 50% landlord contribution applies to any further properties.

Both schemes are income- and EPC-band targeted rather than open to all landlords, so BUS remains the most broadly accessible grant route for a straightforward heating system upgrade.