Boiler Upgrade Scheme demand: what the new July 2026 figures show

What to know first

This summary explains what July’s application, voucher, redemption and spending figures do — and do not — show.

The latest figures show that demand through the Boiler Upgrade Scheme (BUS) is continuing to grow. The increase in applications was faster than the increase in completed, paid installations between the end of June and the end of July 2026.

Applications show work entering the pipeline. Redeemed vouchers are a closer measure of installations that passed final checks and led to payment. Air source heat pumps accounted for 97.6% of all BUS grants paid from launch to 31 March 2026.

What the July 2026 figures show

Ofgem’s update published on 11 August 2026 covers activity from the scheme’s launch on 23 May 2022 to 31 July 2026. The June comparison comes from Ofgem’s previous update, which covered the period to 30 June 2026.

Source: Ofgem’s 10 July and 11 August updates. Percentage changes are calculated from the published cumulative totals and rounded to one decimal place.

The clearest signal is the 6.0% rise in applications, compared with a 3.3% rise in redeemed vouchers. Demand entered the pipeline faster than completed installations were added, but the totals do not measure waiting times or backlog.

Ofgem’s annual data points in the same broad direction:

The annual figure is not directly comparable with July’s one-month change, but it shows that application growth predates the latest update.

Good to know

The “remaining budget” is not simply money sitting unspent. Ofgem says it includes undetermined applications and issued vouchers that have not yet been redeemed. The figure can rise again when vouchers expire or funds return to the scheme.

Why applications and completed grants are different

The BUS process has several stages, so its figures cannot be combined into one measure of installations.

1. The installer applies. This records a proposed installation and starts Ofgem’s checks.

2. Ofgem issues a voucher. The application has passed that stage, but the work is not complete.

3. The installer completes and commissions the system. It must meet BUS and Microgeneration Certification Scheme (MCS) requirements.

4. The installer applies to redeem the voucher. Ofgem checks the installation evidence.

5. Ofgem redeems the voucher and pays the installer. The customer should already have received the grant as an upfront discount.

Application totals also need care. They can include multiple applications for one property, such as reapplication after expiry. In Scheme Year 4, 6,352 vouchers expired; 2,887 had already reapplied and been paid when Ofgem analysed them.

Ofgem excludes expired, revoked and withdrawn vouchers from the current issued total, and removes revoked, rejected or withdrawn redemption applications. Editorial interpretation: the gap between stages is therefore not a simple count of unfinished installations.

Expert insight

“Treat applications as a demand signal and redemptions as evidence of completed, paid installations. Reading both trends together gives a more useful picture than relying on either total alone.”

Giles Crosse

Energy Editor

Experienced editor, journalist and communications consultant specialising in consumer energy and low carbon technologies.

• Editor and campaign author for Shell, EDF Energy and Good Energy.
• Consultant to the United Nations and contributor to the World Economic Forum.
• Journalist for Reuters, the BBC, The Economist and The Guardian.

More about Giles Crosse

What the figures mean if you are considering a heat pump

Higher demand does not remove the need for a property assessment. Air-to-water systems supply radiators, underfloor heating and often a hot-water cylinder. Air-to-air systems warm rooms through indoor units and now have a separate residential BUS category.

The standard grants are £7,500 for air-to-water and ground source heat pumps. An eligible residential air-to-air system gets £2,500, while an eligible biomass boiler gets £5,000. Until 31 March 2027, an eligible off-gas-grid property replacing oil or liquefied petroleum gas heating may receive £9,000 for an air-to-water or ground source heat pump.

“Properly made” has a specific meaning. Ofgem must have the information needed to assess eligibility, and the property owner must have provided consent and completed identity verification. The £9,000 uplift therefore depends on when the application reaches that stage, not simply when an installer starts preparing it.

The uplift began only ten days before the data cut. The monthly update does not identify what caused July’s rise, so attributing it to the uplift would be unsupported.

Costs need context. Ofgem’s 2025–26 average total quote for paid air source heat pump grants was £13,441, including the grant, system, labour and VAT where applicable. It removed the highest and lowest 10% but did not validate submitted prices. Energy Saving Trust’s July 2026 typical estimate was about £12,000.

Neither figure is a fixed market price. A quote may change with the size of the home and heat pump. Radiator, pipework, cylinder or electrical upgrades can add cost, as can a difficult installation. The grant should appear as an upfront deduction, but it may not cover all the work needed.

A room-by-room heat-loss calculation helps size the heat pump and radiators. MCS advises a full survey before finalising the design or contract.

Planning and consent can affect a project. Listed buildings, conservation areas, flats and leasehold homes may require checks with the local authority, freeholder or managing agent. Welsh planning rules differ from England’s.

How to use the Boiler Upgrade Scheme

The scheme is installer-led, so the property owner does not apply directly to Ofgem.

1. Get quotes. Contact more than one MCS-certified installer where practical and check what each price includes.

2. Check the design. Ask for the heat-loss calculation, system size, home upgrades, hot-water plan, controls and permissions.

3. Read the contract. Check deposits, cancellation rights, warranties, timescales and what happens if the voucher is refused or expires.

4. Let the installer apply. Ofgem contacts the owner to confirm consent and identity.

5. Do not treat submission as approval. Ofgem cannot confirm eligibility before assessing a full application.

6. Keep the final documents. Check the grant deduction and retain the quote, contract, invoice, payment proof, MCS certificate and warranty.

Consumer-facing BUS installers must be MCS-certified and belong to an approved consumer code. The installer assesses the system, relevant authorities decide consent questions, and Ofgem determines scheme eligibility through the application.

What the demand data cannot tell us

The monthly totals do not show whether a heat pump will suit a particular property. They also cannot predict bills or performance, which depend on the building, design, controls, electricity tariff and previous heating system.

The figures do not identify unique households, causes of the July rise or installer lead times. Official BUS statistics are provisional and may be revised, so the data should be date-stamped.

Key takeaways

• Ofgem recorded 143,650 applications and 90,115 redeemed vouchers by 31 July 2026.

• Applications increased 6.0% from the June update; redeemed vouchers increased 3.3%.

• Applications show proposed work entering the scheme, not completed installations.

• Reapplications mean the application total is not necessarily a count of unique properties.

• Grant values and eligibility depend on the technology, property and date an application is properly made.

• Costs, suitability, performance and running bills still require a property-specific assessment.

Frequently asked questions