Switching from a gas boiler to a heat pump is one of the biggest steps a homeowner can take to cut carbon emissions and long-term energy bills — but the upfront cost puts many people off. Fortunately, the UK government currently offers a £7,500 grant through the Boiler Upgrade Scheme (BUS), and several additional programmes exist for low-income households and those living in Scotland or Wales. This guide explains every heat pump grant available in 2026, who qualifies, and exactly how to claim.
The Boiler Upgrade Scheme: £7,500 Heat Pump Grant
The Boiler Upgrade Scheme is the primary heat pump grant for homeowners in England and Wales. It offers a £7,500 voucher for the installation of an air source heat pump (ASHP) or ground source heat pump (GSHP). A lower grant of £2,500 applies to air-to-air heat pumps and heat batteries, and £5,000 for biomass boilers in eligible rural properties.
The grant is applied directly by your installer — you pay only the remaining balance, so you never receive or manage the money yourself. For an ASHP typically costing between £9,000 and £13,000 installed, the BUS grant can reduce your out-of-pocket cost to as little as £1,500–£5,500.
The scheme runs until at least 2029/30, backed by a £2.7 billion government allocation. Over 70,100 heat pump installations have been completed under BUS since it launched in 2022, with more than 28,400 grants paid in the year to November 2025 alone — a 37% year-on-year increase.
If you are researching which system to buy, see our round-up of the best heat pumps UK to compare models and brands before approaching an installer.
BUS Eligibility: Who Can Apply?
Most homeowners in England and Wales with an existing fossil-fuel heating system are eligible. The key requirements are:
- You own a residential property in England or Wales (owner-occupiers and landlords both qualify).
- You have a valid Energy Performance Certificate (EPC) for the property. Since March 2024, any EPC rating — including D, E, F, or G — is accepted; there is no longer a minimum energy-efficiency requirement.
- You are replacing a fossil-fuel heating system: gas boiler, oil boiler, or direct electric heating.
- Your property has, or will have, adequate insulation. Your MCS-certified installer will advise on any insulation work required before or alongside installation.
Landlords can apply, provided the grant covers a privately rented property. New-build homes are excluded — the BUS is intended for retrofit installations only.
How to Apply for the BUS Grant
You do not apply directly to the government — your installer handles the application on your behalf. Here is the step-by-step process:
- Find an MCS-certified installer. Only installers certified under the Microgeneration Certification Scheme (MCS) can submit BUS applications. Use the MCS installer finder at mcscertified.com to locate accredited companies in your area.
- Get quotes and confirm eligibility. Obtain at least two or three quotes. A good installer will confirm your property is eligible before any work begins.
- Installer submits a voucher application to Ofgem. Once you agree to proceed, your installer applies for a BUS voucher through the Ofgem portal. Vouchers are valid for three months from the date of issue.
- Installation is completed. The heat pump is installed by the MCS-certified company.
- Grant is redeemed. The installer redeems the voucher directly with Ofgem. The £7,500 is deducted from your final invoice.
To understand the full cost picture before applying, read our guide on heat pump installation cost in the UK — it covers labour, groundwork, radiator upgrades, and what a realistic total quote looks like.
Warm Homes Local Grant: Free Heat Pumps for Low-Income Households
If you are on a low income, you may qualify for a fully-funded heat pump installation through the Warm Homes Local Grant (WH:LG). This is a separate scheme delivered by local councils in England, targeting households with an EPC rating of D to G who fall within low-income thresholds.
Unlike the BUS — which requires you to cover the remaining cost after the grant — the Warm Homes Local Grant can fund 100% of the upgrade, including insulation, heat pumps, solar panels, and batteries. Eligible households pay nothing.
The scheme is part of the government's broader Warm Homes Plan, which commits £15 billion across this Parliament to cut energy bills and reduce fuel poverty. The plan was published in January 2026 and confirms the Warm Homes Local Grant will continue to operate, with delivery progressing through 2026 and beyond.
To find out whether your council is participating and whether you qualify, contact your local authority directly or visit the GOV.UK Warm Homes Local Grant guidance page.
ECO4 and the Transition to ECO5
The Energy Company Obligation (ECO4) scheme provided fully-funded heat pump installations to low-income households receiving qualifying benefits. ECO4 is now winding down, with applications processed through to December 2026. The qualifying benefits included Universal Credit, Pension Credit, Income Support, and several others.
ECO5 is expected to launch later in 2026. It is likely to follow a similar means-tested structure, though the precise eligibility rules and technology coverage are yet to be confirmed. If you believe you may qualify for ECO4/ECO5-style support, contact an energy company or check your energy supplier's website, as they are obligated to fund installations under these schemes.
Consumer Loans: The New Low-Interest Finance Option
For households who do not qualify for grants but still face difficulty with upfront costs, the government has introduced a low- and zero-interest loans scheme backed by £300 million in public funding. The scheme unlocks up to £1.7 billion in total financing for heat pumps, solar PV, and batteries. Details on lenders and application routes are being confirmed through 2026 — check the GOV.UK Warm Homes Plan page for the latest updates.
Heat Pump Grants in Scotland
Scotland has its own, more generous grant programme through Home Energy Scotland (HES). Scottish homeowners can apply for:
- A £7,500 non-repayable grant towards an air source, ground source, or water source heat pump.
- An interest-free loan of up to £7,500 to cover additional costs, repayable over up to 12 years.
- A £1,500 rural uplift on both the grant and loan for properties not connected to the mains gas grid — the most common situation for remote and island properties.
In practice, a rural Scottish homeowner could access up to £9,000 in grants and £9,000 in interest-free loans, significantly lowering the barrier to switching. Applications are handled through homeenergyscotland.org. The Scottish scheme runs independently of the BUS, so English and Welsh BUS rules do not apply north of the border.
Heat Pump Grants in Wales
Welsh homeowners can access the BUS (£7,500) in the same way as English homeowners. Additionally, the Welsh Government funds the Nest Energy Support Scheme, which provides free energy-efficiency improvements — including heat pumps — to low-income households and those living in homes with poor insulation. Nest is delivered by local energy advisors and means-tested on household income and benefit status. Qualifying Welsh households can combine Nest funding with the BUS grant to reduce or eliminate their upfront cost entirely.
Contact the Nest helpline on 0808 808 2244 or visit nestwales.org.uk to check eligibility.
Combining Grants: Can You Stack Multiple Schemes?
In some cases, it is possible to combine grants to reduce your total cost further. Examples:
- BUS (£7,500) + 0% VAT on heat pump installations (VAT dropped to 0% for energy-saving materials in 2022, still in force as of 2026).
- Scotland: HES grant + HES interest-free loan, or HES grant + ECO4/ECO5 if eligible by income.
- Wales: BUS + Nest scheme funding for insulation or other measures.
- Warm Homes Local Grant + any applicable council insulation support.
Your MCS-certified installer or an independent energy advisor can help identify which combinations apply to your situation. The MCS website lists all current consumer incentives and is updated regularly.
Is a Heat Pump Right for Your Home?
Grants significantly reduce the financial risk of switching, but a heat pump still needs to be the right technology for your property. Heat pumps work most efficiently in well-insulated homes — ideally with loft insulation, cavity or solid wall insulation, and preferably underfloor heating or oversized radiators. Before committing, read our detailed heat pump vs gas boiler comparison to understand running costs, efficiency differences, and which homes are best suited.
If you have already decided on an air source system, our guide to best air source heat pump brands covers the leading manufacturers available in the UK, including Vaillant, Daikin, Mitsubishi Electric, and Grant.
