The new BUS rules leave your cashflow waiting on Ofgem

TLDR: From 21 July, the BUS grant must be net from the customer invoice total. The increased grant for off-grid homes combined with MCS restrictions on deposits and stage payments means that many installers will find themselves waiting weeks after commissioning to see any cash on a job.This can put real pressure on cashflow, particularly in a growing business where every new job costs you money to take on. 

On the 21st of July in response to the latest oil shock, the government updated the rules, increasing the BUS grant to £9,000 for homes using oil or LPG. 

On the surface, this is good news; a more generous grant at times when fuel costs are spiking should be that extra push for those hesitating on making the switch. But the money now arrives on a different timetable, and it isn't yours until Ofgem pays.

The BUS must now be deducted from the quoted project cost before invoicing the customer, which creates a major cash constraint on every project. Consider this example:,

• You quote a £13,500 job which qualifies for a £9,000 BUS grant

• The customer owes £4,500, so that's all you can collect from them

• £3,375 as deposit (25% of the £13,500 project cost), the remaining £1,125 before commencement

• The £9,000 is claimed from Ofgem, paid weeks after completion 

Equipment runs at roughly half a job, so £6,750 here. The customer's £4,500 covers some of that and nothing else. Your team, your van, your overheads and the last of the kit all come out of your own pocket until Ofgem pays. Run three off-grid jobs at once and that's £27,000 of your money with the government while you carry on trading. That's not a paperwork problem. It's the difference between taking the fourth job and turning it down.

BUS opens up the door for homeowners who couldn’t have afforded the upfront cost of a heat pump. Someone has to fund the gap in the meantime, and it's you.

How this affects you and your business

Rural areas, this is your moment: The government is leafleting 200,000 off-grid homes, and the £9,000 only runs to 31 March 2027. Demand is going to arrive in a window, not a trickle.

You're carrying the risk now: First, check your templates say the grant is deducted, not refunded. Whilst your quote now shows a lower total, but if the grant claim is delayed or rejected, that’s £9,000 of exposure per job sitting with you. 

Bridging finance is no longer optional: Multiply the off-grid jobs you can run at once by £9,000. That's what you need to be able to carry. Talk to your bank, ask your supplier about credit terms, or bridge against the grant itself. That last one is what Ample does. 

Finding the right setup for you means you can say yes to more jobs without putting pressure on your own business.