The Short Answer
We'd ring Nest on 0808 808 2244 first. It's free advice, and Green Homes Wales points you to Nest for advice anyway.
Welsh homeowners get the same £7,500 Boiler Upgrade Scheme grant as England, or £9,000 if you heat with oil or LPG and have no mains gas connection (until March 2027). On top of that, Nest can fit a heat pump for free for lower-income households in less efficient homes. If you own the home and it's your main home, Green Homes Wales lends £1,000 to £25,000 interest-free with no means test: you register interest, and forms go out as funding allows.
The Boiler Upgrade Scheme
- You own the property and you're replacing fossil fuel heating, which gov.uk says includes oil, gas, electric or LPG.
- No EPC and no insulation requirement.
- Your MCS-certified installer applies and takes the grant off your bill.
- If the heat pump is commissioned before the application, Ofgem says the application must be made within 120 days of commissioning; once issued, an air source voucher expires after three months (six for ground source). Get the timing written into the contract.
Nest: Free for Lower Incomes
Nest is the Welsh Government's scheme. Gov.wales lists heat pumps among the free improvements it can fund, alongside insulation and solar panels. Gov.wales sets three tests:
- Tenure: you own or privately rent your home (not council or housing association).
- Income: you receive a means-tested benefit or live in a low-income household.
- EPC: a rating of 54 (E) or less, or 68 (D) or less if someone in the household has an eligible health condition. Otherwise you may go on a reserve list.
Nest looks at the whole home and funds a package, so a heat pump may be one part of it. It can also check your benefit entitlement and point you to other help.
Green Homes Wales: Interest-Free Loans for Everyone Else
Green Homes Wales, run by the Development Bank of Wales, offers interest-free loans of £1,000 to £25,000 over up to 10 years, with a six-month repayment holiday at the start. It isn't means tested, but every application has credit and affordability checks. The home must be in Wales and owned by you; listed buildings aren't currently supported and private landlords can't apply. Green Homes Wales takes registrations of interest now, first come first served, though it may put you on a waiting list.
ECO4
ECO4 covers England, Scotland and Wales, for households on qualifying benefits or in social housing, and can fund heat pumps as part of a package, until 31 December 2026. Nest can point you to other help, including ECO4; if you qualify for Nest, we'd start there.
Your Options Side by Side
| Scheme | Who it's for | What you get |
|---|---|---|
| Boiler Upgrade Scheme | Owners replacing oil, gas, electric or LPG heating | £7,500, or £9,000 off-grid on oil or LPG |
| Nest | Owners and private tenants, on a means-tested benefit or low income, in an E-rated home or worse (D with a health condition) | Free improvements, decided by survey |
| Green Homes Wales | Any homeowner who lives in the home, not means tested | Interest-free loan, £1,000 to £25,000, with grant funding for some measures alongside it |
| ECO4 | Qualifying benefits or social housing | Funded measures, until 31 December 2026 |
gov.uk says a property that has already had government funding for a heat pump can't get the Boiler Upgrade Scheme, so decide between Nest and the Boiler Upgrade Scheme before anything is fitted.
What It Costs
DESNZ's median for a 6 to 8kW air source install (our typical 3-bed size) in England and Wales is about £12,200; after the £7,500 grant, about £4,700. If you qualify for Nest or ECO4 it could be nothing, and if you don't, Green Homes Wales may lend the balance at 0% (register interest; funding isn't guaranteed). Our savings calculator works out the running costs.
Frequently Asked Questions
Free heat pumps for eligible Welsh homes
Nest Wales can fund a heat pump for free for qualifying households. Everyone else gets £7,500 off through BUS. Get free quotes from MCS-certified installers in Wales in 60 seconds.