Heat Pump Grants Wales 2026
Heat Pump Grants in Wales: More Options Than You Might Realise
Welsh homeowners actually have a stronger set of options than most people in England when it comes to heat pump funding. You've got access to the UK-wide Boiler Upgrade Scheme, plus Wales-specific schemes on top. Here's how it all fits together.
The Boiler Upgrade Scheme (BUS): £7,500 for Any Welsh Homeowner
The Boiler Upgrade Scheme applies across England and Wales, and it gives you a £7,500 grant towards an air source heat pump. This is paid directly to your installer, who deducts it from your bill — so you never see the money change hands, you just pay less.
To qualify for BUS:
- You own the property (or are a registered social landlord in some cases)
- Your property must have a valid EPC with no outstanding recommendations for loft or cavity wall insulation — or those recommendations must have been completed
- The installer must be MCS-certified
- You can only use BUS once per property
The EPC requirement trips some people up. If your EPC says you need loft or cavity wall insulation, you'll need to get that done first — but that might be free anyway through ECO4 or the Nest scheme (more on those below).
The Nest Scheme: Wales's Own Low-Income Route
This is where Wales really stands out. The Nest scheme is funded by the Welsh Government and can cover 100% of the cost of a heat pump for eligible households. That means no grants to top up, no loans — completely free.
Nest Eligibility Checklist
You might qualify for Nest if you tick any of these boxes:
- You receive Universal Credit, Pension Credit, or another means-tested benefit
- Your household income is low and your home has a poor EPC rating (E, F, or G)
- Someone in your household has a long-term health condition that's made worse by cold temperatures
- You live in a property with an EPC rating of D or below and are on a low income
Nest doesn't just cover heat pumps — it looks at your whole home and funds a package of measures to make it as energy-efficient as possible. A heat pump might be one part of that package.
To find out if you qualify, call 0808 808 2244. It's free, and the advisers are genuinely helpful — they won't try to push you towards a particular solution, just tell you what you're eligible for.
ECO4: The Energy Company Obligation
ECO4 is a UK-wide scheme where energy companies fund upgrades for low-income and vulnerable households. It can fund heat pumps as part of a broader package of measures. Your energy supplier or a registered ECO4 installer can check your eligibility — or you can use the government's ECO4 eligibility checker online.
ECO4 and Nest sometimes overlap. A Nest adviser will tell you which scheme is the right route for your situation.
Comparing Your Options as a Welsh Homeowner
| Scheme | Who it's for | Grant amount | How to apply |
|---|---|---|---|
| Boiler Upgrade Scheme | All homeowners in Wales | £7,500 | Through your MCS installer |
| Nest | Low income / benefits / vulnerable | Up to 100% of costs | Call 0808 808 2244 |
| ECO4 | Low income / benefits | Varies — can cover full cost | Via energy supplier or installer |
Can You Combine Schemes?
In some cases, yes. If you're a homeowner on a middle income who doesn't qualify for Nest, you'd use the Boiler Upgrade Scheme. If you do qualify for Nest or ECO4, those schemes may cover more of the cost than BUS does — so it's worth checking Nest first before you apply for BUS.
You can't typically stack BUS on top of a fully-funded Nest installation, but a Nest adviser will walk you through the best combination for your situation.
What Does a Heat Pump Actually Cost in Wales?
An air source heat pump installed in Wales typically costs £8,000–£14,000 depending on your home size and the complexity of installation. With £7,500 off through BUS, you're looking at £500–£6,500 out of pocket. If you qualify for Nest or ECO4, that could drop to zero.
Running costs depend heavily on your tariff and how well-insulated your home is, but most households switching from oil or electric storage heaters see meaningful savings on their annual bills.