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. Added by SI 2026/390 on 28 April 2026, and not available for a non-residential building.
• Biomass boiler: £5,000 (rural, off-gas-grid properties only)
• Oil and LPG uplift: an extra £1,500 on top of the figures above, available until March 2027. You have to meet both conditions: the property is currently heated by oil or LPG, and it has no mains gas connection. An oil-heated house on a street with a gas main doesn't qualify, which catches people out.

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 SI 2026/390. The key one to know: you no longer need a valid EPC. Regulation 5 of the 2022 Regulations was amended, in the explanatory note's own words, "to remove the requirement for a property to have a valid energy performance certificate to be considered an eligible property", and the related "no outstanding insulation recommendations" rule went with it. gov.uk's eligibility page no longer mentions EPCs at all.

• 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 should apply for the grant before work starts. Ofgem will accept an application for a system commissioned up to 120 days earlier, but applying first is safer because the budget is finite.
• 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. Under regulation 15(2) of the BUS Regulations 2022, the voucher then expires three months after it's issued for an air source, air-to-air or biomass system, or six months for ground source. Since April 2026 the installer also has to have deducted the voucher value from the price they quoted you before they can apply.
• 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
• The system was commissioned more than 120 days before the application was properly made. This is the one most guides get backwards. You'll read that you can never claim once the kit is on the wall; in fact Ofgem's own installer guidance says the heat pump "must be commissioned no more than 120 days prior to the voucher application being properly made", so there is a retrospective window. It's still much safer to apply first, because the budget can run out in the meantime, but a recent install isn't automatically lost.
• 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

ECO4 is benefits-based, not income-based. There is no £36,000 income threshold on ECO4; that figure belongs to a different scheme (see below), and a lot of guides run the two together.

• 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 you don't receive qualifying benefits, your local council can still refer you under flexible eligibility criteria, which most councils set at a household income of roughly £31,000. Councils publish their own Statement of Intent, so the exact figure varies. Worth calling your council's energy team rather than assuming.

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.

Warm Homes: Local Grant (England only)

This is where the £36,000 figure actually comes from, and it's a different scheme from ECO4 with different rules. Your council runs it, surveys your home and pays for the work outright. You contribute nothing.

• England only. Scotland, Wales and Northern Ireland have their own routes.
• Household income must usually be £36,000 a year or less. Above that you can still qualify if you live in a targeted postcode area or someone in the household receives certain benefits.
• Home must be privately owned, by you or by your landlord.
• EPC must be D, E, F or G. If you don't know yours, the application looks it up.
• Measures can include wall, loft and underfloor insulation, air source heat pumps, smart controls and solar panels.

Apply at gov.uk/apply-warm-homes-local-grant, or call the assisted digital helpline on 0800 098 7950 if you'd rather not do it online. Your council usually gets back to you within 10 working days. It depends on your council having funding left, so apply early in the year rather than late.

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: a separate, fully funded route for households in fuel poverty, assessed on benefits and circumstances rather than a single published income cut-off. Home Energy Scotland screens you for it on the same call.

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, and they usually get the detail wrong on the way through. BUS does not apply in Northern Ireland, and there's no NI-wide heat pump grant for general homeowners.

The bit to correct first: the Affordable Warmth Scheme is open and taking applications. You'll see plenty of pages saying it closed in April 2024 and was folded into a Warm Homes Plan. It wasn't. NIHE is still running it, and the detail is on nihe.gov.uk.

Affordable Warmth Scheme (NIHE)

• Who: you live in Northern Ireland, own and occupy the property as your main home (or have a life interest, or rent privately), and your total annual gross household income is under £23,000. Housing Executive and housing association tenants are not eligible.
• How much: up to £7,500, or up to £10,000 where a solid-wall property needs insulation. You shouldn't have to contribute to the agreed work.
• How to apply: ring the NI Energy Advice Service on 0800 111 44 55 or email NIenergyadvice@nihe.gov.uk. They screen you, send the form, and you return it to your local Grant Office with proof of ownership, occupancy and income.
• The catch, and it's a big one for this guide: heat pumps are not on the measure list. Priority 1 is insulation, ventilation and draught-proofing. Priority 2 heating is natural gas or oil central heating, converting Economy 7 to high-efficiency storage heating, or a boiler replacement where the existing boiler is at least 15 years old and the household meets an age or disability condition. So it's a genuinely useful grant, just not a heat pump one.

Everything else in NI

• 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, and is already in every installer price you'll be quoted.

If you're a higher-income NI homeowner with no benefits, you pay for the heat pump in full. That's a real policy gap, and the honest answer is that there's no workaround: 0% VAT is in the price already, so it isn't a saving you can bank on top. Green Heat NI is worth a call even if you think you're over the line, and lobbying your MLA on BUS parity is the only structural lever.

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. Be careful how you add it up, because most articles on this subject double-count the VAT. On a £12,000 install, £7,500 (BUS) + £2,000 (lender) = £9,500, leaving £2,500 net. You don't get to subtract the VAT as well: the 0% rate is already inside the £12,000 your installer quoted you, which is exactly why the quote is £12,000 and not £14,400. Adding it again is how you end up with the "£200 net" claims you'll see elsewhere, and they're wrong.

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 £11,000.

Mid-income homeowner, mortgage with Halifax or Lloyds

£1,500 is less than a new gas boiler costs (around £2,750 installed). If your mortgage isn't with Halifax or Lloyds, drop the £2,000 row and net spend rises to £3,500, which is still roughly boiler money. 0% VAT was already deducted from the £11,000 figure (saving you another £2,200 versus pre-2022 pricing).

Low-income household, ECO4 fully funded

Two separate doors lead here and it's worth knowing which one you're knocking on. If you're on means-tested benefits with an EPC of D or below, ECO4 (England, Scotland and Wales, until 31 December 2026) can fund a whole-house retrofit. If you're not on benefits but your household income is £36,000 or less and you're in England, that's the Warm Homes: Local Grant instead. In Scotland it's Warmer Homes Scotland via HES, in Wales it's Nest, in NI it's Green Heat NI. Use the eligibility checker above rather than guessing.

How to Maximise by Situation

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

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

1. Apply for the Warm Homes: Local Grant through your council at gov.uk. That's the scheme the £36,000 threshold belongs to, it covers heat pumps, and the council pays.
2. If you're also on means-tested benefits, ECO4 is a second route worth checking before the scheme closes on 31 December 2026.
3. No qualifying benefits and no luck with the council? Ask about LA Flex, which most councils set around £31,000 but publish individually.

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, ring the NI Energy Advice Service on 0800 111 44 55 about the Affordable Warmth Scheme (insulation and conventional heating, not heat pumps) and check Green Heat NI via Refresh NI for the heat pump itself

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. On oil or LPG with no mains gas connection? Make sure the installer claims the extra £1,500 too, while it lasts (to March 2027)
3. If your mortgage is with Halifax or Lloyds, claim the £2,000 cashback separately
4. 0% VAT is automatic and already in the quote, so don't treat it as a further discount
5. 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) for the heat pump, and the Affordable Warmth Scheme on 0800 111 44 55 for insulation (up to £7,500, or £10,000 for solid walls, if your income is under £23,000)
2. If higher income, Halifax / Lloyds cashback is the only thing left. 0% VAT is in the price already, not a saving on top. 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 is funded to 2030, and by law Ofgem can go on issuing vouchers until 31 December 2029 (SI 2026/390). 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, plus the £1,500 oil and LPG uplift if you qualify on both conditions. It's the easiest grant in UK home energy. Add £2,000 lender cashback if your mortgage is with Halifax or Lloyds. On a £12,000 install that leaves about £4,500 to find, or £2,500 with the cashback. Don't subtract the VAT again on top: it's already in the price. If your income is £36,000 or less in England, go to your council for the Warm Homes: Local Grant; if you're on means-tested benefits, ECO4 until the end of 2026. Scotland uses HES instead. Northern Ireland is the policy gap: low-income households should check Green Heat NI for a heat pump and the Affordable Warmth Scheme (still open, up to £7,500) for insulation; everyone else pays full price.

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.