The UK Government has released its official response to the consultation on upcoming regulatory changes to the Boiler Upgrade Scheme (BUS), with several important updates set to take effect in early 2026. These changes are designed to make low-carbon heating more accessible, more flexible, and more affordable for households across the country.
At Sun-Lite, we’re committed to keeping homeowners informed about the evolving landscape of renewable heating. Here’s a breakdown of what’s changing and what it means for you.
Major Changes Coming in 2026
Following the consultation, the Department for Energy Security and Net Zero (DESNZ) has confirmed a number of amendments to the BUS that will shape how heat pumps and electric heating systems are supported under the scheme.
1. Air-to-Air Heat Pumps Added to the Scheme
For the first time, air-to-air heat pumps will be eligible for government support under BUS. Homeowners installing these systems will be able to access a £2,500 grant, bringing down installation costs and making this efficient heating option more accessible.
2. Greater Flexibility for Hybrid Systems
The eligibility criteria will be adjusted to allow more installations where heat pumps work in combination with other electric heating appliances. This gives households more flexibility when upgrading their heating systems, especially useful for unique property types or staged retrofit projects.
3. Exhaust Air Heat Pumps Now Eligible
Exhaust air heat pumps, which recover warm air from inside the home and use it to produce heating and hot water, will now qualify for BUS grants. These systems can be an ideal solution for homes with limited outdoor space.
4. Grant Must Be Deducted Upfront
A key administrative change: installers will now be required to deduct the BUS grant amount directly from the customer’s upfront cost.
This means:
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- No waiting for rebate-style payments
- Clearer pricing transparency
- Lower upfront financial commitment for homeowners
This applies to all eligible systems once the regulations come into force.
Future Updates Planned for 2026/27 and Beyond
DESNZ has also outlined several areas where further adjustments are expected as the scheme continues to evolve.
1. Simplifying the Heat Pump Journey
From Year 5 of the scheme (2026/27), EPC requirements may be relaxed to make the process simpler and reduce administrative barriers for homeowners.
2. New Support for Heat Batteries
Heat batteries, which store energy for heating and hot water, are expected to become eligible for a £2,500 grant once the required standards are in place.
3. Improved Options for Third-Party Ownership
Further clarity and work on third-party ownership models will help create more accessible finance options, such as leasing or service agreements.
4. Stronger Consumer Protections
The government will assess updates to the MCS Customer Commitment to ensure high standards of installation quality and homeowner confidence.
What This Means for Homeowners
Overall, these changes are designed to make the switch to low-carbon heating easier and more affordable. By reducing upfront costs, expanding the range of eligible systems, and simplifying the upgrade journey, homeowners will have more choice and fewer barriers when considering a heat pump or other electric heating solution.
With the Boiler Upgrade Scheme recently passing its 100,000-application milestone, it’s clear that demand is growing — and the 2026 updates are set to build on that momentum, helping even more households move away from traditional fossil-fuel boilers.
What This Means for Sun-Lite Customers
As a provider committed to high-quality, sustainable heating solutions, Sun-Lite welcomes these changes. Expanding eligibility and simplifying the process make it easier for us to help homeowners transition to efficient, low-carbon heating.
We’ll continue to monitor updates from DESNZ and Ofgem closely and ensure our customers have clear, accurate guidance as the new rules take shape.
If you’re considering a heat pump installation or want to understand how the 2026 changes might impact your upgrade plans, our team is here to help.
Stay Informed
Sun-Lite will share further updates as soon as new details become available.
For questions on the government response itself, DESNZ can be contacted directly at boilerupgradescheme@energysecurity.gov.uk.
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