Heat Pump Grants UK 2026: Every Scheme Explained

Check What You're Eligible For

Rather than reading every scheme and trying to work out which apply, use our eligibility checker. Answer six quick questions and it'll tell you which grants you could qualify for and roughly how much they could be worth.

Now let's go through each scheme in detail: what it covers, what you actually get, and the catches nobody mentions.

Boiler Upgrade Scheme (BUS): England and Wales

The Boiler Upgrade Scheme (BUS) is the main government grant for heat pumps in England and Wales. Administered by Ofgem, funded by DESNZ. Your installer claims it on your behalf and the money comes off your invoice, so you never see it.

Grant Amounts

• Air source heat pump (ASHP): £7,500
• Ground source heat pump (GSHP): £7,500
• Air-to-air heat pump: £2,500 (applications from 28 April 2026)
• Biomass boiler: £5,000 (rural, off-gas-grid properties only)

You get one grant per property. You can't claim the £7,500 air-to-water grant and the £2,500 air-to-air grant on the same home.

Eligibility Criteria (updated 28 April 2026)

The eligibility rules were significantly relaxed by the April 2026 amendment. The key one to know: you no longer need a valid EPC. The previous EPC requirement (and the related "no outstanding insulation recommendations" rule) was removed in full.

• Property must be in England or Wales
• Replacing a fossil-fuel heating system: oil, gas, LPG or direct electric (the air-to-air grant follows the same rule)
• Property must not already have a heat pump
• Heat pump must be installed by an MCS-certified installer who applies for the grant before installation begins
• New-build properties are not eligible (the grant is for replacing existing fossil-fuel heating)

What this means in practice: if you were quoted £60 – £120 for an EPC by an installer, you don't need it. If your EPC has flagged loft or cavity wall insulation as a recommendation, that's no longer a blocker. Insulating first is still a good idea (it lets you fit a smaller, cheaper heat pump), but it's not a requirement of the grant.

How to Apply: Step by Step

• Step 1: Get quotes from at least three MCS-certified installers. Use the MCS installer directory. Identical jobs get quoted with a £4,000 – £5,000 spread, so always shop around.
• Step 2: Choose an installer. Check they'll handle the BUS voucher application; reputable ones do this as standard.
• Step 3: Your installer applies for the BUS voucher through the Ofgem portal before installation begins. The voucher covers the grant amount and is valid for three months.
• Step 4: Installation takes place. The installer redeems the voucher; the grant comes off your invoice; you pay the remaining balance.
• Step 5: The installer registers the system with MCS and gives you a certificate confirming compliance.

Common Rejection Reasons

• Installer wasn't MCS-certified at the time of application
• Voucher wasn't applied for before installation began (this is the biggest one; once kit is on the wall, you can't claim retrospectively)
• Property already has a heat pump
• Property is new-build
• You're replacing a renewable system (e.g. swapping one heat pump for another). The grant is only for moving away from fossil fuel.

Air-to-Air Heat Pumps: When the £2,500 Grant Applies

From 28 April 2026, air-to-air heat pumps (the type that blow warm air directly into rooms, like air-conditioning units) qualify for £2,500. The eligibility is the same as the £7,500 grant: you must be replacing a fossil-fuel heating system or direct electric heating.

When air-to-air makes sense: small flats with electric storage heaters, single-room solutions, holiday lets, garden rooms. They don't heat hot water, so you'd still need a separate cylinder or immersion heater. For most homes with wet central heating (radiators), the £7,500 air-to-water grant is the better deal: more grant, more control, and warm water for free.

Note: you can't claim both grants on one property. One grant, one heat pump system.

ECO4: England, Scotland and Wales

The Energy Company Obligation (ECO4) requires large energy suppliers to fund energy efficiency upgrades for low-income and vulnerable households. Unlike BUS, ECO4 can cover up to 100% of the installation cost if you qualify. Solar PV, heat pumps and insulation can be packaged together as part of a whole-house retrofit.

Who qualifies

• Receiving means-tested benefits: Universal Credit, Pension Credit, Housing Benefit, Child Tax Credit, income-related ESA or JSA, etc.
• Living in a property with EPC D, E, F or G
• Owning your home, or renting from a landlord willing to participate

There's also the LA Flex route: if your income is under about £31,000 but you don't receive qualifying benefits, your local council can refer you under flexible eligibility criteria. Worth calling your council's energy team.

A warning about cold callers: if someone phones unsolicited offering "free heat pumps under a government scheme", be cautious. Legitimate ECO4 installers rarely cold-call. Check any company on the TrustMark register before agreeing to anything.

Home Energy Scotland Grant and Loan: Scotland

Scotland doesn't use BUS. Instead, the Home Energy Scotland (HES) Grant and Loan, administered by Energy Saving Trust on behalf of the Scottish Government, is the main route. In several respects it's more generous than BUS.

• Grant: £7,500 cashback towards a heat pump (all types)
• Rural uplift: an additional £1,500 for remote rural and island properties, taking the grant up to £9,000
• Interest-free loan: up to £7,500 on top of the grant, repayable over up to 12 years
• Warmer Homes Scotland: can fund the entire installation free for households with income of £36,000 or less, or on means-tested benefits

Apply through Home Energy Scotland on 0808 808 2282 or homeenergyscotland.org. You can't combine HES with BUS, since Scotland uses HES instead of BUS.

Warm Homes Nest: Wales

Wales runs the Warm Homes Nest scheme (renamed from "Nest" in April 2024, still commonly called Nest) which provides fully funded heat pumps, insulation and solar panels to qualifying low-income households. Eligibility depends on means-tested benefits, household income and property condition.

Welsh homeowners can also use BUS (Wales is in scope alongside England) and the new Green Homes Wales scheme: an interest-free loan from £1,000 to £25,000 plus up to a 30% grant on eligible costs, open to all Welsh homeowners regardless of income.

Apply via gov.wales/nest-warm-homes-programme or call 0808 808 2244 for Nest. Green Homes Wales applications go through the Development Bank of Wales.

Northern Ireland: Limited Routes for Heat Pumps

This is the gap most guides ignore. BUS does not apply in Northern Ireland, and there's currently no NI-wide equivalent for general homeowners.

What's actually available:

• Warm Homes Plan (NI): replaces the older Affordable Warmth Scheme and Warm Home Scheme. Funded by the Department for Communities, delivered by NIHE. Up to 100% of installation costs for eligible low-income households (gross income under ~£23,000 or means-tested benefits, EPC below Band C). Heat pumps are not in the standard measure set; the scheme funds A-rated condensing boilers, insulation, draught-proofing and solar PV. Call NIHE on 03448 920 900.
• Green Heat NI (managed by Refresh NI under NISEP): fully funded air source heat pumps plus cavity wall and loft insulation for low-income NI households. This is the closest NI gets to a heat pump grant.
• Toasty Homes (managed by McGaffin Mechanical under NISEP): support towards heat pumps, solar PV and battery storage. Eligibility criteria vary.
• NISEP Business Scheme (Power NI): 20% grant up to £30,000 for businesses installing heat pumps and other energy-saving tech.
• 0% VAT: applies UK-wide (including NI), saves £1,600 – £2,800 on a typical install.

If you're a higher-income NI homeowner with no benefits, you're stuck paying for the heat pump in full minus 0% VAT. That's a real policy gap. Lobbying your MLA on parity with BUS is the only meaningful lever, and the Northern Ireland Department for the Economy has indicated a successor scheme is being scoped, but nothing is funded as of May 2026.

Mortgage Lender Cashback (Often Overlooked)

Stacking lender cashback on top of BUS is one of the cheapest ways to add £2,000 to your support, and most installers won't mention it because it's between you and your lender. If your mortgage is with one of these, take it.

• Halifax Green Living Reward: £2,000 cashback for installing a heat pump. You have a year from your mortgage milestone to claim, and you submit a paid invoice afterwards.
• Lloyds Eco Home Reward: £2,000 cashback for installing a heat pump. Same scheme, sister bank.
• Barclays Greener Home Reward: currently focused on EPC-improvement cashback rather than fixed-amount heat pump cashback; check current terms.
• Octopus Energy Heat Pump Bonus: if your tariff switches to Octopus alongside the install, £100 credit applied to your bill within 14 days (Halifax Green Living plus Octopus combo).

These stack with BUS and 0% VAT. In theory you could get £7,500 (BUS) + £2,000 (lender) + £1,600 – £2,800 (VAT) = £11,100 – £12,300 in total support, bringing a £12,500 average install down to £200 – £1,400 net spend.

0% VAT on Heat Pumps

Since April 2022, all heat pump installations in the UK are subject to 0% VAT, down from 20%. This applies to both equipment and labour. On a £12,000 installation, the saving is £2,400 compared to pre-2022 pricing, an effective government subsidy that's often overlooked. It's already factored into every price on this page.

Stacking Grants: What Can Be Combined?

Worked Example: Stacking the Numbers

Concrete maths for two common scenarios. A typical 3-bed semi-detached, replacing a gas boiler with an air source heat pump, mid-of-range install cost £10,500.

Mid-income homeowner, mortgage with Halifax or Lloyds

£1,000 is less than half of what a new gas boiler costs (£2,000 – £4,500 installed). If your mortgage isn't with Halifax or Lloyds, drop the £2,000 row and net spend rises to £3,000, which is still in line with a new gas boiler. 0% VAT was already deducted from the £10,500 figure (saving you another £2,400 versus pre-2022 pricing).

Low-income household, ECO4 fully funded

If you receive means-tested benefits or your household income is under about £36,000 with an EPC of D or below, ECO4 (in England, Scotland and Wales) can fund the entire installation as part of a whole-house retrofit. In Scotland, Warmer Homes Scotland via HES does the same. In Wales, Nest. In NI, Green Heat NI. Check the eligibility checker above for your specific situation.

How to Maximise by Situation

The right route depends on where you live and your circumstances:

If your household income is under £36,000 (England)

1. Check ECO4 first; if you qualify, you could get a fully funded heat pump as part of a whole-house retrofit
2. If ECO4 doesn't fit (e.g. no qualifying benefits), check LA Flex via your council
3. Either way, you'll benefit from 0% VAT automatically

If you're on qualifying benefits (anywhere in UK)

1. Apply for ECO4 in England, Scotland or Wales: typically the most generous route
2. In Wales, also check Nest
3. In Scotland, also check Warmer Homes Scotland via HES
4. In Northern Ireland, ask NIHE about Warm Homes Plan (no heat pump, but A-rated boiler + insulation can come first) and check Green Heat NI via Refresh NI

If you're a higher-income homeowner in England or Wales

1. Take the £7,500 BUS grant. Your installer applies on your behalf and the money comes off the invoice.
2. If your mortgage is with Halifax or Lloyds, claim the £2,000 cashback separately
3. 0% VAT is automatic
4. In Wales, also consider Green Homes Wales for an interest-free loan covering the rest

If you're in Scotland

1. Apply for the HES Grant + Loan: £7,500 (or up to £9,000 with rural uplift) + £7,500 interest-free loan
2. Halifax / Lloyds £2,000 cashback if applicable
3. 0% VAT applies automatically

If you're in Northern Ireland

1. If low income or on benefits, check Green Heat NI (Refresh NI) and Toasty Homes (McGaffin Mechanical)
2. If higher income, your only saving is 0% VAT + Halifax / Lloyds cashback if applicable. Lobby your MLA for BUS parity.

Heat Pump Grant Myths

Myth: "You need an EPC to claim BUS"

Not since 28 April 2026. The EPC requirement was scrapped by the BUS (Amendment) Regulations 2026. Don't let an installer charge you for an EPC you don't need.

Myth: "You must insulate before installing a heat pump"

Not under the rules. The previous "outstanding insulation recommendations on EPC must be addressed" rule was removed alongside the EPC requirement in April 2026. Insulating first is still a smart move (smaller heat pump, lower running costs), but it's not a grant condition.

Myth: "Free heat pumps for everyone"

Free heat pumps exist (via ECO4, Nest in Wales, HES Warmer Homes Scotland and Green Heat NI), but only for low-income households on means-tested benefits or EPC D-G properties under specific conditions. Cold callers offering "free heat pumps" to anyone are typically lead-generation outfits or scams. If you're approached unsolicited, hang up and check the company on TrustMark.

Myth: "BUS is ending soon, act now or lose out"

BUS runs to March 2030, confirmed by the April 2026 amendment. Pressure-selling around grant urgency is usually misleading. The thing to act on sooner rather than later is the 0% VAT rate, which expires 31 March 2027.

Myth: "Grants automatically apply when you get a quote"

BUS is applied before installation by an MCS-certified installer through the Ofgem portal. If your quoted price hasn't already had the £7,500 deducted, ask explicitly: "Is this before or after BUS?" Some installers quote pre-grant figures to make the headline look more impressive.

Schemes That Have Ended (Don't Get Caught Out)

If you're researching heat pump grants, you'll find old guides referencing schemes that no longer exist. Here's what's closed:

If a website or company references these as current, their information is out of date.

Bottom line: If you're in England or Wales, take the £7,500 BUS grant. It's the easiest grant in UK home energy. Add £2,000 lender cashback if your mortgage is with Halifax or Lloyds, and 0% VAT applies automatically. If your income is under £36,000 or you're on benefits, check ECO4 first; you could get the whole installation funded. Scotland uses HES instead. Northern Ireland is the policy gap: low-income households should check Green Heat NI; everyone else pays full price minus 0% VAT.

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.