Heat Pump Grant UK: How to Claim Your £7,500 (Boiler Upgrade Scheme 2026)
The UK government will pay £7,500 towards your heat pump installation through the Boiler Upgrade Scheme. Here is everything you need to know: eligibility, how to apply, and what the grant covers.
Last updated: April 2026 - Verified against GOV.UK official guidance
What Is the Boiler Upgrade Scheme?
The Boiler Upgrade Scheme (BUS) is a UK government programme designed to help homeowners in England and Wales switch from fossil fuel heating to low-carbon alternatives. Launched in May 2022 and managed by OFGEM, the scheme provides upfront capital grants to reduce the cost of installing heat pumps.
The grant was originally £5,000 for air source and £6,000 for ground source heat pumps. In October 2023, both were increased to £7,500 to accelerate uptake. The scheme has been extended to run until April 2028, giving homeowners plenty of time to plan and apply.
Since launch, the BUS has funded over 60,000 heat pump installations across England and Wales. The government has committed to increasing the annual budget to support the UK's target of 600,000 heat pump installations per year by 2028.
How Much Is the Grant?
| Technology | Grant Amount | Typical Total Cost | You Pay |
|---|---|---|---|
| Air source heat pump | £7,500 | £8,000 - £15,000 | £500 - £7,500 |
| Ground source heat pump | £7,500 | £15,000 - £30,000 | £7,500 - £22,500 |
| Biomass boiler | £5,000 | £10,000 - £20,000 | £5,000 - £15,000 |
Source: GOV.UK Boiler Upgrade Scheme, April 2026.
Additional saving: Heat pumps are zero-rated for VAT until March 2027, saving you a further £1,500-£4,000 on top of the grant. This means a typical air source heat pump costing £10,000 before incentives could cost you as little as £2,500 out of pocket.
Am I Eligible? (Checklist)
To qualify for the Boiler Upgrade Scheme grant, you must meet all of the following criteria:
-
Property is in England or Wales
Scotland has its own funding via Home Energy Scotland. Northern Ireland is not currently covered.
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Valid EPC (Energy Performance Certificate)
Your EPC must not have outstanding recommendations for loft insulation (if you have a loft) or cavity wall insulation (if you have cavity walls). If it does, you must address those first. EPCs are valid for 10 years.
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Replacing a fossil fuel or electric heating system
The property must currently be heated by gas, oil, LPG, coal, or direct electric heating. You cannot claim for a second heat pump or to replace an existing heat pump.
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MCS-certified installer
The installation must be carried out by an MCS-certified installer. Only MCS installers can apply for the grant on your behalf.
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Not a new-build property
Properties built to current building regulations (which mandate low-carbon heating) are not eligible. Self-builds are also excluded if the building is less than 2 years old.
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No previous BUS grant on the property
Each property can only receive one BUS grant. If the previous owner claimed BUS, you cannot claim again.
Not sure if your home qualifies? Use our guide: Is Your Home Suitable for a Heat Pump?
How to Apply: 4 Simple Steps
You do not need to apply for the BUS grant yourself. Your MCS-certified installer handles the entire process. Here is what happens:
Get quotes from MCS-certified installers
Request quotes from at least 3 MCS-certified heat pump installers. Each will visit your property, conduct a heat loss survey, and provide a detailed quote showing the grant deducted. Use our installer finder to locate certified companies in your area.
Choose your installer and confirm
Once you have chosen an installer, they will confirm your eligibility and prepare the BUS application. You will need to provide consent for the installer to apply on your behalf, and confirm you understand the scheme terms.
Installer submits the grant application
Your installer submits the application to OFGEM through the BUS portal. OFGEM checks eligibility and issues a voucher, usually within 3-5 working days. The voucher is valid for 3 months (extendable to 6 months if needed).
Installation and payment
The heat pump is installed (typically 2-3 days for air source, 1-2 weeks for ground source). The £7,500 grant is deducted from your invoice, so you only pay the remaining balance. OFGEM pays the installer directly after the installation is complete and registered with MCS.
What Does the Grant Cover?
The £7,500 grant can be put towards the total cost of the heat pump installation, including:
Covered by the grant
- The heat pump unit
- Installation labour
- Hot water cylinder
- Pipework and ancillary components
- MCS certification and commissioning
- Ground loop (for ground source systems)
Not covered by the grant
- Radiator upgrades (paid separately if needed)
- Underfloor heating installation
- Insulation upgrades
- Solar panels or battery storage
- Electrical upgrades to your consumer unit
Deadline: April 2028
The Boiler Upgrade Scheme is confirmed to run until April 2028. However, there are good reasons to act sooner rather than later:
- 0% VAT ends March 2027 - After this date, 5% VAT will be added back, increasing costs by up to £750 on a typical installation.
- Annual budget caps - The scheme has a fixed annual budget. If demand exceeds the allocation in any year, there could be waiting lists.
- Installer availability - As the 2035 gas boiler ban approaches, demand for heat pump installers is increasing. Booking early secures better scheduling.
- Start saving sooner - Every month you delay is another month of higher energy bills on your fossil fuel system.
Common Situations: Can I Still Get the Grant?
I am a landlord. Can I apply?
Yes. Private landlords can apply for the BUS grant for properties they rent out, as long as the property meets all eligibility criteria. The grant is per property, not per person.
My EPC recommends loft insulation. Am I still eligible?
Not until the insulation is installed. You must address any outstanding loft or cavity wall insulation recommendations on your EPC before applying for BUS. The good news: loft insulation top-ups are often available free or subsidised under the ECO4 or Great British Insulation Scheme.
I have a listed building. Can I still get a heat pump?
Yes, listed buildings are eligible for the BUS grant. However, you may need listed building consent for the external unit (air source) or any visible external modifications. Many listed buildings successfully install heat pumps, especially ground source systems which have no visible external equipment. Check our suitability guide for more details.
I am in Scotland. Is there an equivalent scheme?
Scotland has its own funding through Home Energy Scotland, which offers interest-free loans up to £15,000 and cashback grants up to £7,500 for heat pump installations.
Frequently Asked Questions
How much is the heat pump grant in 2026?
Who is eligible for the Boiler Upgrade Scheme?
Do I apply for the grant myself?
When does the Boiler Upgrade Scheme end?
Can I combine the BUS grant with other funding?
Claim Your £7,500 Grant Today
Get free, no-obligation quotes from MCS-certified installers who will handle the entire BUS grant application for you. Most homeowners pay under £5,000 out of pocket for a full air source heat pump system.