The Boiler Upgrade Scheme (England and Wales) (Amendment) Regulations 2026

Published: Wed 1st Apr 26

Expanded the Boiler Upgrade Scheme to include air-to-air heat pumps for residential properties and extended the grant program's lifespan to 2030.

These Regulations amend the Boiler Upgrade Scheme (England and Wales) Regulations 2022 to expand the scope of eligible renewable heating technologies and extend the duration of the program.

They introduce air-to-air heat pumps as eligible plant for residential properties, remove the mandatory requirement for a valid energy performance certificate, and extend the scheme's operational timeline until 2030.

The regulations apply to heat pump and biomass boiler installers and property owners in England and Wales, overseen by the Secretary of State for Energy Security and Net Zero.

Arguments For

The regulations state that the inclusion of air-to-air heat pumps expands the range of renewable technologies eligible for support, provided they are not in non-residential buildings.
The document notes that the amendments extend the scheme's relevant financial years through to 2030, providing a longer-term framework for the renewable heat incentive.
The order asserts that removing the mandatory requirement for a valid Energy Performance Certificate (EPC) to qualify as an 'eligible property' simplifies the application process.
The explanatory note indicates the changes are intended to facilitate and encourage the use of heat pumps and biomass boilers to transition away from fossil fuel heating.

Arguments Against

Legal scholars might note that the regulations confer significant discretion to the Secretary of State to approve subsequent versions of the Microgeneration Certification Scheme without further legislative oversight.
Installers may face increased administrative burdens due to the new requirement to deduct the voucher value from quotes before an application is determined, as specified in Regulation 10.
Property owners in non-residential buildings are expressly excluded from accessing grants for air-to-air heat pumps under new Regulation 9A, creating a disparity in technology eligibility based on building type.
The removal of 'equivalent schemes' to the Microgeneration Certification Scheme (MCS) effectively mandates participation in one specific commercial certification body, which could be challenged as a restriction on competition.

Citation, commencement and extent

-(1) These Regulations may be cited as the Boiler Upgrade Scheme (England and Wales) (Amendment) Regulations 2026.

(2) These Regulations come into force on 28th April 2026.
(3) These Regulations extend to England and Wales.

This section establishes the official name of the regulations and sets the start date for these legal changes as 28 April 2026.

It specifies that the legal jurisdiction is limited to England and Wales.

Amendments to the Boiler Upgrade Scheme (England and Wales) Regulations 2022

The Boiler Upgrade Scheme (England and Wales) Regulations 2022 are amended in accordance with regulations 3 to 19.

This regulation acts as a formal instruction to modify the primary 2022 legislation.

It lists the subsequent regulations in this document that contain the specific textual changes.

Regulation 2 amended (interpretation)

-(1) Regulation 2 is amended as follows.

(2) In paragraph (1), at the appropriate places, insert—

'air-to-air heat pump' means a plant which generates heat using a thermodynamic cycle by transferring energy stored in the form of heat in the air and uses that energy to heat air for the purposes of space heating;

'Microgeneration Certification Scheme'means the scheme under that name operated by the MCS Service Company Ltd (a company registered in England and Wales with company number 07759366);

'non-residential building' means a building or building unit which is used—

(a) for the purposes of a trade, profession or vocation,
(b) as an office (whether or not for the purposes of a trade, profession or vocation),
(c) for educational purposes, or
(d) for religious purposes,

and which is not in use as, or as part of, a dwelling house;

'supplementary appliance' means a heating appliance installed in an eligible property that is not fuelled by fossil fuel'.

(3) For the definition of 'air source heat pump', substitute—

''air-to-water heat pump' means a plant which generates heat using a thermodynamic cycle by transferring energy stored in the form of heat in the air and uses that energy to heat a liquid for the purposes of space heating;'.

(4) In the definition of 'building', after 'roofed' , insert ', permanent'.

(5) In the definition of 'ground source heat pump', after 'to heat a liquid', insert 'for the purposes of space heating'.

(6) In the definition of 'heat pump'—

(a) for 'air source heat pump', substitute 'air-to-air heat pump or an air-to-water heat pump',
(b) for 'or both', substitute 'or any combination of the three'.

(7) For the definition of 'installer', substitute—

''installer' means a person who is certified by the Microgeneration Certification Scheme or a subsequent version of the Microgeneration Certification Scheme, approved by the Secretary of State under regulation 4(1A);'.

(8) In the definition of 'related property', omit 'and where the building, building unit or swimming pool is not covered by the valid energy performance certificate for that property'.

(9) In the definition of 'relevant financial year', for sub-paragraphs (e) and (f), substitute—

'(e) 1st April 2026,
(f) 1st April 2027,
(g) 1st April 2028, or
(h) 1st April 2029;'.

(10) For the definition of 'urban area', substitute—

''urban area' means an area classified as urban in the '2021 rural-urban classification of output areas' published by the Office for National Statistics in August 2025;'.

(11) Omit paragraph (4).

This section updates the definitions used within the Boiler Upgrade Scheme to reflect new technologies and data.

It distinguishes between air-to-air heat pumps (which heat air) and air-to-water pumps (which heat liquid) and extends the definition of relevant financial years to include dates up to 2029.

It also updates the definition of an authorized installer to specifically refer to the Microgeneration Certification Scheme (MCS).

Regulation 4 amended (approval of standards or schemes by the Secretary of State)

In regulation 4—
(a) in paragraph (1)—
(i) omit sub-paragraph (a),
(ii) in sub-paragraph (c), for 'a standard' substitute 'one or more standards',
(iii) at the end of sub-paragraph (h), insert 'and',
(iv) omit sub-paragraph (i),
(b) after paragraph (1), insert—

'(1A) The Secretary of State may approve a subsequent version of the Microgeneration Certification Scheme for the purpose of the definition of 'installer' in regulation 2(1).',

(c) in paragraph (2), after 'paragraph (1)', insert 'or (1A)',
(d) in paragraph (3)(b), after 'paragraph (1)', insert 'or (1A)'.

This section modifies how technical standards and certification schemes are approved.

It grants the Secretary of State the specific power to approve future versions of the Microgeneration Certification Scheme (MCS).

This ensures that as the MCS evolves, the legal definition of a qualified installer can be updated to match the new version.

Regulation 5 amended (eligible properties)

In regulation 5(1)(c)—
(a) in paragraph (ii)—
(i) after 'or water heating', insert '(if water heating is present)',
(ii) omit ', or both,',
(b) omit paragraph (v).

This regulation alters the criteria that a property must meet to be eligible for the scheme.

It removes the previous requirement for a property to have a valid Energy Performance Certificate (EPC) to be considered eligible.

It also adjusts the wording regarding hot water systems to account for properties where water heating might not be present.

Regulation 8 amended (eligible plant)

In regulation 8(1), after 'For the purposes of these Regulations,' insert, 'subject to regulation 9A,'.

This section makes a technical adjustment to the definition of eligible heating equipment (plant).

It subjects the general eligibility rules to a new restriction found in Regulation 9A.

Regulation 9 amended (requirements for heat pumps)

In regulation 9—
(a) in paragraph (1)—
(i) for sub-paragraph (b), substitute—
'(b) it has a capacity of—
(i) no more than 45 kilowatt thermal; or
(ii) no more than 300 kilowatt thermal, in the case of a shared ground loop system only; or
(iii) no more than a combined capacity of 70 kilowatt thermal, if it is installed in combination with one or more additional heat pumps,',

(ii) for sub-paragraph (d), substitute—

'(d) if it is an air-to-water heat pump, or a ground source heat pump, it has a seasonal coefficient of performance of at least 2.8, determined in accordance with the standard approved by the Secretary of State under regulation 4(1)(c) which is applicable when the plant is first commissioned, and',
(iii) in sub-paragraph (e), omit 'and',
(iv) omit sub-paragraph (f),
(b) in paragraph (2)—
(i) for sub-paragraph (a)(ii), substitute—
'(ii) for the purpose of space heating—
(aa) if it is an air-to-water heat pump, or a ground source heat pump, using liquid as a medium to deliver that heat, or
(bb) if it is an air-to-air heat pump, using air as a medium to deliver that heat,',

(ii) for sub-paragraph (b), substitute—

'(b) it is capable of meeting the full space heating and hot water heating demands of that property, whether alone or in combination with supplementary appliances that are not biomass boilers,',

(iii) after sub-paragraph (b), insert—

'(ba) it has sufficient kilowatt thermal capacity to meet the full space heating demand for the eligible property alone, whether or not it is installed alongside a supplementary appliance, and',
(iv) for sub-paragraph (c), substitute—
'(c) it replaces the heat generating components of the original heating system installed in that property (where applicable), other than any supplementary appliance.'.

This section sets the technical performance and capacity standards for heat pumps to qualify for a grant.

It establishes thermal capacity limits (ranging from 45kW to 300kW depending on the system type) and requires a minimum seasonal coefficient of performance (efficiency) of 2.8 for liquid-based systems.

It also mandates that the installed heat pump must be capable of meeting the entire property's heating demand and must replace the original system's main components.

Regulation 9A inserted

After regulation 9, insert—

' Properties in relation to which an air-to-air heat pump is not an eligible plant

9A. An air-to-air heat pump is not an eligible plant in relation to a non-residential building.'

This section prohibits the use of air-to-air heat pumps in non-residential buildings under the Boiler Upgrade Scheme.

These buildings include offices, shops, and properties used for professional, educational, or religious purposes.

Regulation 13 amended (determination and publication of boiler upgrade grant values)

In regulation 13(1), for '2024', substitute '2026'.

This section updates the internal date for determining and publishing the monetary value of grants.

It changes the reference year from 2024 to 2026.

Regulation 14 amended (grant applications)

In regulation 14—

(a) in paragraph (1)(a), omit 'or',
(b) in paragraph (2)(a)—
(i) in sub-paragraph (v), at the end, insert 'and',
(ii) omit sub-paragraph (vi),
(c) in paragraph (2)(c), omit 'and',
(d) after paragraph (2)(c), insert—
'(ca) the installer has deducted the value of the boiler upgrade voucher for which the application is being made from the total amount quoted to the property owner in relation to the installation of the eligible plant, and'.

This section introduces a new requirement for the grant application process.

Installers must now show that they have already subtracted the value of the grant voucher from the final price quoted to the customer.

Regulation 15 amended (determination of grant applications)

In regulation 15—
(a) in paragraph (2)—
(i) in sub-paragraph (a), for 'air source heat pump', substitute 'air-to-water heat pump or an air-to-air heat pump,'.
(ii) in sub-paragraph (b)(ii), for '2028', substitute '2030',
(b) in paragraph (7)(c), 'for 2027', substitute '2029',
(c) in paragraph (9), omit 'or an equivalent scheme,'.

This section extends the timeline for the scheme's voucher and reporting periods.

It pushes expiration dates from 2028 to 2030 and removes references to certification schemes 'equivalent' to the MCS, effectively narrowing the path for installer qualification.

Regulation 17 amended (obligations on installers)

In regulation 17(1), after sub-paragraph (c), insert—
'(d) not request or accept payment of the deducted amount in regulation 14(2)(ca) unless the grant application is refused by the Authority or the boiler upgrade voucher is revoked in accordance with regulation 16(8) or 21.'.

This section places a new legal obligation on installers regarding payment.

They are prohibited from asking the property owner for the portion of the bill covered by the grant unless the grant application has been officially rejected or the voucher revoked.

Regulation 19 amended (power to temporarily withhold grant payment during investigation)

In regulation 19(2), omit—
(a) 'or an equivalent scheme' and
(b) ', the equivalent scheme'.

This amendment removes references to 'equivalent schemes' concerning the Authority's power to withhold payments.

This ensures the regulation aligns with the new policy of only recognizing the Microgeneration Certification Scheme (MCS).

Regulation 30 amended (reporting obligations)

In regulation 30(4), for '2028', substitute '2030'.

This section extends the mandatory reporting period for the program from 2028 to 2030, ensuring oversight remains in place for the extended duration of the scheme.

Schedule 1A amended (sets of grant categories)

In Schedule 1A—
(a) for Table 1, substitute - ... [The text provides new tables for grant sets 1, 2, 3, and 4, incorporating air-to-air heat pumps into various property types and replacement scenarios.]

This section replaces the tables that categorize different grant types.

It integrates air-to-air heat pumps into the existing grant structure, covering new-builds, off-gas grid properties, and different types of fossil fuel system replacements.

Schedule 2 amended (information required for grant application)

-(1) Schedule 2 is amended in accordance with this regulation. (2) In paragraph 2—

(a) in sub-paragraph (b), for 'or an equivalent scheme', substitute 'or a subsequent version of the Microgeneration Certification Scheme',
(b) in sub-paragraph (i), for 'air source heat pump', substitute 'air-to-water heat pump, air-to-air heat pump',
(c) after sub-paragraph (i), insert—
'(ia) details of any supplementary appliance installed or retained in the property, where applicable,',
(d) for sub-paragraph (j), substitute—
'(j) where the property—
(i) has a valid energy performance certificate, the unique reference number for the valid energy performance certificate for the property, or
(ii) does not have a valid energy performance certificate—
(aa) the unique reference number for an expired energy performance certificate for the property (if any) where required by the Authority, and
(bb) any other information that the Authority may require to verify any information provided under this Schedule,'. (3) After paragraph 2, insert— ' 3. In this Schedule, an 'expired energy performance certificate' is an energy performance certificate that has passed its validity period given in regulation 9(2)(a) of the EPB Regulations, but remains listed on the register maintained under regulation 27(1) of the EPB Regulations.'

This section updates the list of information an applicant must provide. Key changes include providing the unique reference number for either a valid or expired Energy Performance Certificate (EPC) and disclosing any supplementary (non-fossil fuel) heating appliances kept on the property.

Transitional and saving provision

-(1) In relation to a grant application that was properly made before these Regulations come into force, the Boiler Upgrade Scheme (England and Wales) Regulations 2022 continue to have effect as if they had not been amended by these Regulations.

(2) For the purpose of paragraph (1)— 'grant application' has the meaning given in regulation 14(1) of the Boiler Upgrade Scheme (England and Wales) Regulations 2022, 'properly made' has the meaning given in regulation 2(1) of the Boiler Upgrade Scheme (England and Wales) Regulations 2022.

This section ensures that any applications submitted correctly before 28 April 2026 are processed under the old rules.

This 'grandfathering' clause prevents new requirements from being applied retroactively to existing applicants.

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