Boiler Installation Grants & Government Schemes Explained (ECO4, BUS & More)
The UK government offers several grants and funding schemes in 2025 to help households replace inefficient boilers with modern, energy-efficient systems. At ARA Services Ltd, we assist homeowners across London with ECO4 and Boiler Upgrade Scheme applications to reduce installation costs. You can also review why high-efficiency boilers are worth the investment before applying.
Overview of UK Boiler Grants in 2025
Government boiler grants are designed to help improve home heating efficiency and reduce carbon emissions. Eligible households may receive free or heavily discounted boiler installations through approved installers like ARA Services Ltd. Unsure how much your new system might cost? Read our breakdown of boiler installation costs in 2025.
Check Your Eligibility1. ECO4 Boiler Scheme (Energy Company Obligation)
The ECO4 scheme runs until 2026 and targets low-income households or those living in energy-inefficient homes. It covers the cost of upgrading old or broken boilers with modern, A-rated systems. Learn more about how new boilers save money on heating bills.
- Available for homeowners and private tenants in England, Scotland, and Wales.
- Must receive qualifying benefits such as Universal Credit or Pension Credit.
- Covers replacement of non-condensing boilers or first-time installations.
2. Boiler Upgrade Scheme (BUS)
The Boiler Upgrade Scheme (BUS) provides up to £7,500 towards the cost of installing low-carbon heating systems such as air-source or ground-source heat pumps. If you’re considering switching energy types, see our full guide on Gas vs Electric Boilers – Pros, Cons & Costs (2025 Guide).
- Available to owner-occupiers and small landlords in England and Wales.
- Requires replacing an existing fossil fuel heating system (gas, oil, LPG).
- Must be installed by an MCS-certified installer.
3. Local Council & Energy Provider Grants
Some local councils and energy suppliers run additional boiler funding programs under LA Flex (Local Authority Flexible Eligibility). These schemes allow local authorities to define their own eligibility criteria for households not covered under ECO4.
Who Qualifies for a Free Boiler Grant?
- Homeowners receiving income-related benefits.
- Properties with an EPC rating of D or lower.
- Existing boilers that are over 10 years old or inefficient.
Use our free eligibility checker or contact ARA Services Ltd — we can verify your status and help manage your grant application from start to finish. Choosing the right brand also matters; discover the best boiler brands for homes in 2025 to make your investment last.
Documents You'll Need
- Proof of ownership or tenancy.
- Proof of benefits or income support.
- Property Energy Performance Certificate (EPC).
Estimated Savings with a New Boiler
Upgrading to a high-efficiency A-rated boiler can reduce your heating bills by up to £400 per year and lower carbon emissions by around 1.5 tonnes annually (source: Energy Saving Trust). For further insight, see our article on why high-efficiency boilers are worth the investment.
Related Guides
FAQs
What is the ECO4 boiler grant?
ECO4 helps low-income households replace old boilers with new energy-efficient models — fully or partially funded by major energy suppliers.
Learn more about how a new boiler can save you money.
How much can I get from the Boiler Upgrade Scheme?
Homeowners can claim up to £7,500 toward a heat pump installation under the BUS program.
You can also explore which boiler type suits your property best.
Can landlords apply for boiler grants?
Yes, under certain schemes like ECO4 LA Flex or BUS, landlords of eligible properties can also apply.
For ongoing maintenance, check how often to service your boiler for efficiency and safety.