The three conditions
GOV.UK’s eligibility page, read on 8 October 2026, says a biomass boiler grant needs all of these:
- The property is off the gas grid.
- It is in a rural location.
- The boiler has an emissions certificate showing that polluting emissions are kept to a minimum.
The general rules also apply. You own the property in England or Wales and are replacing a fossil fuel or electric heating system, and an MCS-certified installer applies for you. GOV.UK states that biomass boilers cannot be installed with the grant in self-build properties, and that you cannot claim where the property has already been given government funding or support for a heat pump or biomass boiler. Social housing is excluded across the scheme. Small details such as the efficiency levels are for the installer to confirm.
Would the biomass grant apply to you?
Six quick answers; contact details are optional and only needed if you want us to reply by email. Indicative only — your MCS installer checks eligibility and Ofgem makes the decision.
Likely £7,500
Owner-occupied home in England on mains gas replacing the boiler with an air-to-water heat pump.
Rules: GOV.UK “Apply for the Boiler Upgrade Scheme” and Ofgem’s property owner guidance (v5.1). Grant bands from the notice of grant categories updated 21 July 2026.
The amount: £5,000
The grant for a biomass boiler is £5,000, shown on GOV.UK next to £7,500 for air and ground source heat pumps and £2,500 for air-to-air (which DESNZ recorded as having no vouchers issued by the end of September 2026). It is a fixed sum, not a percentage of the cost, and it comes off your quote at the start. The extra £1,500 for oil and LPG homes with no mains gas connection is for heat pumps, so biomass does not reach £9,000. That uplift also ends for applications after 31 March 2027.
Biomass is a small part of the scheme: 421 of the 96,611 grants paid by end of September 2026 were for biomass boilers (DESNZ).
Rural, off-gas homes are concentrated in some regions more than others; the South West guide shows the region with the most ground source grants and the highest share of oil replacements.
Biomass or heat pump?
| Factor | Biomass boiler | Air source heat pump | Ground source heat pump |
|---|---|---|---|
| Grant | £5,000 | £9,000 | £9,000 |
| Location rule | Rural and off-gas only | Any eligible property | Any eligible property |
| Self-build | Not eligible | Eligible, £7,500 | Eligible, £7,500 |
| Voucher validity | 3 months | 3 months | 6 months |
| Fuel | Typically wood pellets, chips or logs, delivered and stored | Electricity | Electricity |
For most off-gas homes replacing oil the heat pump comes out ahead on grant, because it can reach the higher band that biomass cannot. Run the running costs for your own situation using the running-cost calculator and read the £9,000 band page to see the exact test. Self-build owners should note that a heat pump is open to them where biomass is not.
Practical points
- Fuel storage and delivery. A biomass boiler needs dry storage, access for deliveries and regular ash removal.
- Air quality. The emissions certificate is a condition of the grant. Local rules, including smoke control areas, are separate and the installer should check them for your address.
- Flue and consents. Ask the installer to confirm in writing whether planning or building regulations approval is needed and who handles it.
- VAT. The 0% rate to 31 March 2027 is set out in VAT Notice 708/6 for heat pumps. We have not confirmed from a primary source that it covers a biomass boiler, so ask the installer to show the VAT treatment on the quote.
- Loans. The Warm Homes Loan Scheme rules cap a biomass loan at £20,000 before the grant is deducted. Loans come from participating lenders on their own terms.
How it is claimed
The route is the same as for a heat pump. The MCS-certified installer applies to Ofgem, you confirm the application when Ofgem emails you (guidance expects a response within 14 days), and the voucher then lasts 3 months. The installer needs evidence that the property is off-gas and rural and that the boiler has a valid emissions certificate. The grant comes off the quote upfront. The steps are on how to apply, and the scheme itself is explained on the Boiler Upgrade Scheme page.
Paying the balance after the grant
The grant comes off the price before you pay anything, so the question is only how to fund what is left. These are the routes people use — this site does not arrange credit or recommend a lender.
| Route | How it works | What to check |
|---|---|---|
| Savings | Pay the balance on the installer’s payment schedule. You own the system outright. | How much deposit is asked for up front, and whether it is protected under the installer’s consumer code. |
| Mortgage further advance or green home loan | Some lenders offer borrowing earmarked for energy improvements, sometimes at reduced rates. | The representative APR, the total amount repayable and any fees — compare against simply paying from savings. |
| Installer-arranged credit | Some installers introduce a credit broker so the balance is paid monthly. | The lender must be authorised by the Financial Conduct Authority. Ask for the APR and total repayable in writing before you sign anything. |
| Scotland only | Home Energy Scotland offers an interest-free loan of up to £7,500 alongside its own grant (not the Boiler Upgrade Scheme). | Apply to Home Energy Scotland before work starts. |
A note on VAT (not a finance route): installers apply 0% VAT to a supply-and-install job in a home until 31 March 2027, and 5% after. Check the quote shows no VAT on the installation; equipment bought without installation is standard-rated.
Honest questions about the biomass grant
“Wood is renewable, so surely the grant should match a heat pump.”
The scheme pays £5,000 for biomass against £7,500 for a heat pump (£9,000 for oil and LPG homes with no mains gas). We do not set that; it is how the government’s notice of grant categories is written. Whatever your view on the policy, the practical question is which system suits the building and the fuel supply.
“I live in the countryside, so I qualify.”
Not automatically. All three tests must be met together: off the gas grid, rural, and a boiler with an emissions certificate. Ownership and a fossil fuel or electric system being replaced also apply. Self-build properties are excluded for biomass.
Whether a particular address counts as rural is for the installer and Ofgem to assess; we cannot decide it from a postcode.
“A heat pump will not work in my big old farmhouse.”
Often it can: the Electrification of Heat trial of 742 heat pumps found no property type or architectural era that is unsuitable for a heat pump. The grant for a heat pump is also larger. A good installer will price both and explain the trade-offs.
Biomass can still be the practical choice where there is a large wood supply and space for storage, or high heat demand that a heat pump would struggle to meet economically.