Heat Pump Grants 2026: How to Get Up to £7,500

Heat Pump Grants UK 2026: Every Scheme Explained

The UK government and devolved administrations currently offer several grants that can dramatically reduce the cost of installing a heat pump. The flagship scheme — the Boiler Upgrade Scheme — provides £7,500 towards an air source or ground source heat pump in England and Wales. Combined with 0% VAT and devolved grants in Scotland and Wales, many homeowners can get a heat pump installed for a fraction of the headline price. Here is everything you need to know.

Boiler Upgrade Scheme (BUS) — England and Wales

The Boiler Upgrade Scheme (BUS) is the main government grant for heat pumps in England and Wales. It is administered by Ofgem and funded by the Department for Energy Security and Net Zero (DESNZ).

Grant Amounts

• Air source heat pump (ASHP): £7,500
• Ground source heat pump (GSHP): £7,500
• Biomass boiler (limited properties): £2,500

Eligibility Criteria

• Property must be in England or Wales
• Must have a valid Energy Performance Certificate (EPC) — issued within the last 10 years
• EPC must not have outstanding recommendations for loft insulation or cavity wall insulation (unless they are not technically feasible) — see our guide to insulating before a heat pump
• Property must not currently have a heat pump (you cannot claim twice for the same property)
• The heat pump must be installed by an MCS-certified installer
• The installer, not the homeowner, applies for the grant — it is deducted directly from your invoice

How to Apply — Step by Step

• Step 1: Get your EPC. Check if your property has a valid one at gov.uk/find-energy-certificate. If it has expired or does not exist, commission a new one from an accredited assessor (typically £60 – £120).
• Step 2: Resolve any outstanding EPC recommendations. If your EPC flags loft or cavity wall insulation as recommended, you must either have the insulation installed or obtain written evidence that it is not technically feasible (e.g., non-standard cavity construction).
• Step 3: Get quotes from MCS-certified installers. You can find them via the MCS installer database at mcscertified.com. Get at least three quotes.
• Step 4: Your chosen installer applies for the BUS voucher through the Ofgem portal before the installation takes place. The voucher covers the grant amount and is valid for three months.
• Step 5: The installation takes place. The installer redeems the voucher — the £7,500 is deducted from what you owe them. You pay the remaining balance.
• Step 6: The installer registers the installation with MCS and provides you with a certificate confirming the system meets the required standards.

Common Rejection Reasons

• EPC has expired or the property has never had one
• Outstanding loft or cavity wall insulation recommendations on the EPC that have not been addressed
• Installer not MCS-certified at the time of application
• Grant voucher not applied for before installation began
• Property already has a heat pump installed
• Property is new-build (new-builds are not eligible — the grant is for replacing fossil fuel heating)

ECO4 — England, Scotland, and Wales

The Energy Company Obligation (ECO4) scheme requires large energy suppliers to fund energy efficiency upgrades — including heat pumps — for low-income and vulnerable households. Unlike the BUS, ECO4 can cover up to 100% of the installation cost for eligible households.

Who Is Eligible?

• Households receiving means-tested benefits (Universal Credit, Pension Credit, Housing Benefit, Child Tax Credit, etc.)
• Households on low incomes with a property rated EPC D, E, F, or G
• Some local authorities can refer households that do not receive benefits but have low incomes or are otherwise vulnerable — ask your council

ECO4 upgrades must be installed as part of a whole-house retrofit plan, meaning you may receive insulation upgrades alongside a heat pump. Applications are made through participating energy suppliers or via the government's Simple Energy Advice service.

Home Energy Scotland Grant and Loan

Homeowners in Scotland have access to more generous support through the Home Energy Scotland scheme, administered by Energy Saving Trust on behalf of the Scottish Government.

• Grant: £7,500 for a heat pump (all types)
• Additional rural uplift: Up to £9,000 for properties in remote rural areas
• Interest-free loan: Up to £9,000 additional loan to cover costs above the grant level
• Scottish homeowners can receive the Home Energy Scotland grant in addition to the BUS grant, potentially accessing £15,000 in combined support

Applications are made directly through Home Energy Scotland (0808 808 2282 or homeenergyscotland.org).

Nest — Wales

The Nest scheme provides free energy efficiency improvements — including heat pumps in some cases — to low-income households in Wales living in a property with an EPC rating of E, F, or G. Eligibility is assessed on income and property condition. Apply via nestwales.org.uk or call 0808 808 2244.

0% VAT on Heat Pumps

Since April 2022, all heat pump installations in the UK are subject to 0% VAT, down from the previous rate of 20%. This applies to both the equipment and the labour costs. On a £12,000 installation, this represents a saving of £2,000 compared to pre-2022 pricing — an effective government subsidy that is often overlooked when comparing costs.

Stacking Grants: What Can Be Combined?

Scheme	Region	Amount	Can Be Combined With BUS?
Boiler Upgrade Scheme	England and Wales	£7,500	—
Home Energy Scotland	Scotland	£7,500 – £9,000	Yes — Scottish homeowners can stack both
ECO4	GB-wide	Up to 100%	Generally not — ECO4 covers eligible households separately
0% VAT	UK-wide	Effectively 20% off	Yes — applies automatically alongside all other schemes

Will the BUS Grant Continue?

The BUS was extended through to at least 2028 in the government's updated Heat Pump Investment Roadmap. Grant levels have been maintained at £7,500, but funding is allocated in annual tranches. There is no guarantee the current level will be maintained indefinitely, so if you are considering a heat pump, acting sooner rather than later reduces the risk of the grant level changing.

For a full breakdown of what a heat pump will cost after grants, see our heat pump costs guide. For a technical overview of how air source heat pumps work, see our air source heat pump guide. To check whether you qualify, try our grant eligibility checker.