hheatpumpcosts.co.uk

Grants & funding

The £7,500 heat pump grant, explained.

The Boiler Upgrade Scheme (BUS) gives English and Welsh homeowners £7,500 off an air-to-water, ground source or water source heat pump — rising to £9,000 for off-gas-grid properties applying between 21 July 2026 and 31 March 2027. Your installer applies and deducts it from your quote.

Source · Ofgem Boiler Upgrade Scheme

By the heatpumpcosts.co.uk editorial team

Boiler Upgrade Scheme

Open now

£7,500

off an air-to-water, ground or water source heat pump — £9,000 off the gas grid until 31 March 2027

England
Yes
Wales
Yes
Scotland
Separate

Across the UK

Grants by region.

What you can claim depends on where you live — and what you'd be replacing.

England & Wales

Boiler Upgrade Scheme (BUS)

£7,500 – £9,000

£7,500 off an air-to-water, ground source or water source heat pump — £9,000 if the property is off the gas grid, for applications made between 21 July 2026 and 31 March 2027. Air-to-air units get £2,500. Your installer applies and must deduct it from your quote.

Funded to 2028Official

Scotland

Home Energy Scotland Grant and Loan

Up to £9,000 grant + £7,500 loan

£7,500 grant, plus a £1,500 uplift for rural and island homes, and an optional interest-free loan of up to £7,500. Apply to Home Energy Scotland and wait for a written funding offer BEFORE work starts.

Offer needed before workOfficial

Northern Ireland

No nationwide scheme

Support schemes only

There is no NI equivalent of the Boiler Upgrade Scheme. Check NI Direct for the energy efficiency support that is available, and ask installers about manufacturer or supplier offers.

No heat pump grantOfficial

Eligibility

Who qualifies — and who doesn't.

You qualify if…

  • You own the property (homeowners + small landlords)
  • It's in England or Wales
  • You're replacing fossil fuel or electric heating (gas, oil, LPG, electric storage)
  • The property is existing — new builds are excluded apart from limited cases such as self-builds
  • The installer is MCS-certified (MCS is now the only accepted scheme)
  • The system meets the scheme efficiency standards and is within the capacity limits (45 kWth for a single system)

You don't qualify if…

  • New-build properties (with limited exceptions)
  • Hybrid systems that keep a gas or oil boiler
  • Replacing an existing low-carbon heating system
  • Social housing (covered by other schemes)
  • Systems above the capacity caps — 45 kWth single, 70 kWth combined, 300 kWth shared ground loop

Landlords: You can claim BUS for properties you let out, subject to a limit per applicant. The April 2026 amendment removed the blanket EPC and insulation condition, but your installer still has to show the property is suitable and that the system will perform — so poor insulation can still stop a job going ahead.

Grant values

How much each technology gets.

Boiler Upgrade Scheme amounts for England and Wales, current for 2026.

Air-to-water heat pump
£7,500
Ground or water source heat pump
£7,500
Either of the above, off-gas-grid property
£9,000
Air-to-air heat pump (homes only)
£2,500
Biomass boiler (rural, off-gas-grid)
£5,000

Source · Ofgem, Boiler Upgrade Scheme regulations as amended 2026

How it works

From quote to discounted invoice.

You never see the £7,500 — it's applied straight to your invoice by your MCS installer.

  1. 01

    Get an MCS quote

    Get a quote from an MCS-certified installer (we can match you with 3 for free).

  2. 02

    Installer applies

    They apply for the BUS grant on your behalf via the Ofgem portal — usually a 1–2 week decision.

  3. 03

    Discount on your invoice

    Once approved, the £7,500 is taken straight off your quote. You never handle the money.

  4. 04

    Pay the balance

    You pay the remaining balance to the installer. They claim the grant from Ofgem.

Get matched with a grant-ready installer

FAQs

Frequently asked

How much is the heat pump grant in the UK?
The Boiler Upgrade Scheme gives £7,500 toward an air-to-water, ground source or water source heat pump in England and Wales. Eligible off-gas-grid properties can claim £9,000 for applications made between 21 July 2026 and 31 March 2027. Air-to-air heat pumps get £2,500 and biomass boilers £5,000. In Scotland, Home Energy Scotland offers a grant of up to £7,500 (£9,000 in rural and island areas) plus an optional interest-free loan of up to £7,500.
Who is eligible for the £7,500 Boiler Upgrade Scheme grant?
Owners of existing property in England or Wales, including small landlords, replacing a fossil-fuel or electric heating system and using an MCS-certified installer. The requirement to hold a valid EPC with no outstanding loft or cavity wall insulation recommendations was relaxed in April 2026, so most homes no longer fail on that point — your installer will confirm what applies to your property.
Do I apply for the grant or does the installer?
The MCS-certified installer applies on your behalf. Since April 2026 the regulations require installers to deduct the grant from the upfront cost, so the £7,500 comes off your quote and you never handle the money.
What is the £9,000 off-gas-grid grant?
From 21 July 2026 until 31 March 2027, properties with no mains gas connection that are heated by oil or LPG can claim an uplifted £9,000 grant toward an air-to-water or ground source heat pump — £1,500 more than the standard amount.
Do I pay VAT on a heat pump installation?
No. Domestic heat pump installations are zero-rated for VAT until 31 March 2027, so a compliant quote should not add VAT to the installation.

Go deeper

The UK grant landscape, in detail

Grant-ready installers

Installers who'll claim it for you.

Every installer in our network is MCS-certified and processes the £7,500 grant on your behalf. No paperwork, no waiting on Ofgem.

Get 3 free quotesSee cost breakdown →