Heat Pump Installation Grants

Updated for 2026 · Boiler Upgrade Scheme

Heat Pump Grants UK — £7,500 Off Your Installation

The Boiler Upgrade Scheme pays £7,500 towards an air or ground source heat pump in England and Wales. No income test, no repayment, deducted from your quote upfront. Here is exactly how to claim it in 2026.

  • £7,500 BUS Grant
  • 0% VAT to Mar 2027
  • MCS Installers Only

The UK's heat pump grants, in plain English

If you own a home in England or Wales and heat it with a gas, oil, or LPG boiler — or with electric storage heaters — the government will currently pay £7,500 towards replacing that system with a heat pump. That is the Boiler Upgrade Scheme (BUS), and it is the single most generous home energy grant running in 2026. It is not means-tested, it is not a loan, and you never handle the money: your MCS-certified installer claims it from Ofgem and knocks it off your bill. Scotland runs a parallel scheme through Home Energy Scotland that is, if anything, better. Northern Ireland is the gap in the map, with no direct equivalent yet.

This site exists because the official guidance is scattered across gov.uk, Ofgem, MCS, and three devolved administrations, and because a lot of what fills that vacuum online is sales copy pretending to be advice. We keep one job: explain every UK heat pump grant accurately — who qualifies, what you will actually pay after the grant, what the running costs really look like against a boiler, and where the catches are. When the facts change, the pages change.

The headline numbers for 2026

The practical effect: a typical three-bed semi that would have paid around £13,000 for an air source heat pump installation pays £5,500 after the grant. That is no longer "green premium" territory — it is in the same conversation as a like-for-like boiler replacement plus a few radiators, which is exactly the comparison the scheme was designed to win.

Start with the page that matches your question

"How does the grant actually work?" The Boiler Upgrade Scheme explained — where the money comes from, how the voucher process runs, what your installer does, and the application steps on gov.uk.

"Do I qualify?" The eligibility guide — ownership, EPC requirements, which heating systems count as "replaceable", the 45 kWth capacity cap, and the small-non-domestic route that landlords and small businesses miss.

"What will I pay?" Two cost pages with real 2026 numbers: air source costs after the grant and ground source costs after the grant, including the radiator, cylinder, and ground-works items quotes bury.

"Will it cost more to run than my boiler?" The running costs comparison — gas, oil, LPG, and electric baselines against a heat pump at realistic efficiencies, on standard and heat-pump tariffs.

"Who can install it?" The MCS installer guide — why certification is a hard requirement for the grant, how to verify an installer, and the questions that separate good from cheap.

"Do they even work in winter?" The myths page — cold-weather performance, radiator upsizing, noise, insulation, and the other objections, tested against evidence rather than folklore.

Why the grant exists — and why it may not last forever

Heating is the UK's largest single source of household emissions: around 14% of the national total comes from gas boilers. The government's Clean Heat Market Mechanism now obliges boiler manufacturers to sell rising numbers of heat pumps, and the BUS is the demand-side half of that bargain — public money to close the upfront cost gap while the supply chain scales. The scheme has a fixed budget allocated by spending review, and uptake has accelerated sharply: recent years have seen record application volumes, with the budget for each year capped. Nobody can promise the £7,500 figure survives the next fiscal event. What we can say is that in 2026 it is live, it is claimable, and the 0% VAT window that compounds it has a published end date of 31 March 2027. If a heat pump is in your plans, the financial case for acting inside this window is straightforward.

What claiming actually involves — the 60-second version

The process is shorter than its reputation. You get quotes from two or three MCS-certified installers, each showing the £7,500 deducted as a line item. You accept one. The installer applies to Ofgem for your voucher — you fill in nothing — and Ofgem emails you once to confirm the installer is acting with your consent. Reply, and the voucher issues, valid for three months on an air source system or six on ground source. The installer fits and commissions the system, registers it with MCS, redeems the voucher, and invoices you for the post-grant balance only. The single document you must have in order beforehand is an EPC issued within the last ten years; if yours has lapsed, a £60–£120 assessment fixes it inside a week. In Scotland the sequence differs — you apply yourself through Home Energy Scotland and need approval before work starts — which is one of several reasons the country guide is worth two minutes of your time before you do anything else.

Timing is the underrated variable. Installer diaries fill from September; households who start the process in spring get keener prices, shorter waits, and a system commissioned and tuned before the first cold snap asks it to perform. The voucher windows also reward preparedness: agree your installation slot before the application goes in, and the three-month clock never comes close to mattering.

The honest caveats

Three things this site will always tell you that brochures will not. First, a heat pump is a system change, not a boiler swap — flow temperatures drop, some radiators may need upsizing, and a hot water cylinder is usually required, all of which belongs in the quote, not in the surprises column. Second, running-cost savings depend on installation quality: a system designed to run at 35–45°C flow temperature delivers the efficiency the brochure promises, while a rushed install running at 55°C quietly doesn't. Third, the grant's biggest practical constraint is installer capacity — good MCS firms book out weeks ahead in autumn. Start the process in spring or summer and the whole experience improves. If your situation doesn't suit a heat pump — some homes genuinely don't — the honest answer is to say so, and we do.

THE 2026 PICTURE

UK heat pump support at a glance

£7,500
BUS grant — ASHP and GSHP, England & Wales
0% VAT
on installations until 31 March 2027
£9,000
maximum Scottish grant with rural uplift
45 kWth
capacity cap — covers virtually every home
QUICK ANSWERS

Heat pump grants — the five questions everyone asks first

Fuller answers throughout the site, and a complete FAQ page for the rest.

How much is the heat pump grant in 2026?

The Boiler Upgrade Scheme pays £7,500 towards an air source or ground source heat pump in England and Wales — the same amount for either technology. The grant is deducted from your installer’s quote upfront, so you only ever pay the difference. Scotland runs its own scheme through Home Energy Scotland with a £7,500 grant plus a £1,500 rural uplift and an optional interest-free loan on top.

Who qualifies for the Boiler Upgrade Scheme?

You need to own the property (homes and small non-domestic buildings both qualify), be replacing a fossil fuel or direct electric heating system, and have a valid EPC issued within the last ten years. The capacity limit is 45 kWth, which covers virtually every home. There is no income test and no requirement to be on benefits — the BUS is open to ordinary homeowners.

Do I apply for the grant myself?

No — and this surprises most people. Your MCS-certified installer applies to Ofgem on your behalf and deducts the £7,500 from your quote. You confirm to Ofgem that the installer is acting for you, and that is the extent of your paperwork. If an installer asks you to claim the money yourself, walk away.

What does a heat pump actually cost after the grant?

A typical air source heat pump installation costs £11,000–£16,000 before support, so most households pay £3,500–£8,500 after the £7,500 grant — and 0% VAT applies until March 2027. Ground source systems cost more (£18,000–£35,000 before grant) because of the ground works. Our cost pages break both down by house type.

Is a heat pump cheaper to run than a gas boiler?

At 2026 prices, a well-installed heat pump running at a seasonal efficiency of 3.5–4 costs about the same to run as a gas boiler on standard tariffs — and meaningfully less on a heat-pump-specific electricity tariff. Against oil, LPG, or direct electric heating, the heat pump usually wins comfortably. Our running-costs page shows the full arithmetic.

Related Grant & Energy Guides

North of the border the funding works differently — our Scottish guide covers Scotland heat pump grants.

Welsh households can find Nest scheme detail and BUS guidance under heat pump grants in Wales.

Many heat pump owners cut their running costs further with PV — start with government grants for solar panels.

Households on qualifying benefits may get a heat pump fully funded — see the ECO4 application guide.