Heat Pump Grants in the UK
The main heat pump grant is the Boiler Upgrade Scheme, which takes £7,500 off an air source or ground source heat pump in England and Wales. Scotland runs its own Home Energy Scotland grants and loans. On top of any grant, every residential heat pump install carries 0% VAT. Your MCS-certified installer applies the grant for you.
Quick Answer
The Boiler Upgrade Scheme gives £7,500 off an air source or ground source heat pump in England and Wales, applied as a discount by your MCS-certified installer. Scotland offers Home Energy Scotland grants of up to £7,500 plus interest-free loans. All residential heat pump installs also get 0% VAT.
Grant details current as of early 2026. Always check the official scheme pages.
Fact-checked by John Rooney, Solar Energy Editor. Editorial policy
Heat pump grants at a glance
| Scheme | Amount | Where | Covers |
|---|---|---|---|
| Boiler Upgrade Scheme (BUS) | £7,500 | England & Wales | Air source & ground source |
| Home Energy Scotland Grant | Up to £7,500 (£9,000 rural) | Scotland | Air source & ground source |
| Home Energy Scotland Loan | Interest-free, up to £7,500 | Scotland | On top of the grant |
| 0% VAT | ~20% saving | UK-wide | All residential installs |
| ECO4 | Varies | UK-wide | Low-income / qualifying homes |
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Get a Quote →Boiler Upgrade Scheme (BUS)
The Boiler Upgrade Scheme is the main UK heat pump grant. It gives a flat £7,500 off an air source or ground source heat pump in England and Wales. You do not apply yourself, your MCS-certified installer applies on your behalf and deducts the £7,500 from your quote, so you only ever pay the net figure.
How the £7,500 grant works
- £7,500 for an air source heat pump
- £7,500 for a ground source heat pump
- Applied as a discount at the point of install
- The installer handles the Ofgem application
Heat pump grants in Scotland
Scotland is not covered by the Boiler Upgrade Scheme. Instead, Home Energy Scotland offers a grant of up to £7,500 (up to £9,000 for eligible rural and island homes), and an interest-free loan on top to spread the remaining cost. The combination can cover most or all of a heat pump install for qualifying households.
Eligibility
- The property must be an existing building, not a new build
- You must use an MCS-certified installer and an MCS-certified heat pump
- A valid EPC is usually required (with no outstanding insulation recommendations for BUS)
- The system replaces a fossil fuel system (gas, oil, LPG or electric)
- One grant per property
Note: "Grant" is also a heat pump brand. If you searched for the manufacturer, see our heat pump brands comparison.
Heat Pump Grant FAQ
What heat pump grants are available in the UK?
The main grant is the Boiler Upgrade Scheme, worth £7,500 off an air source or ground source heat pump in England and Wales. Scotland offers Home Energy Scotland grants of up to £7,500 (£9,000 rural) plus interest-free loans. All residential installs also get 0% VAT.
How does the £7,500 heat pump grant work?
The Boiler Upgrade Scheme gives a flat £7,500 off an air source or ground source heat pump. You do not apply yourself: your MCS-certified installer applies to Ofgem and deducts the £7,500 from your quote, so you pay only the net amount.
Am I eligible for the heat pump grant?
You qualify if your property is an existing building (not new build), you use an MCS-certified installer and heat pump, you have a valid EPC, and the heat pump replaces a fossil fuel system. The grant is one per property.
Is there a heat pump grant in Scotland?
Yes. Scotland is not in the Boiler Upgrade Scheme but Home Energy Scotland offers a grant of up to £7,500 (up to £9,000 for rural and island homes) plus an interest-free loan on top to spread the rest of the cost.
Do heat pumps have 0% VAT?
Yes. Residential heat pump installations carry 0% VAT in the UK, saving around 20% on top of any grant. This applies UK-wide, including Scotland, and is already reflected in installer quotes.
Can I get a grant for a Grant heat pump?
Yes, if it is an MCS-certified model. Note that Grant is also a heat pump manufacturer, so the £7,500 Boiler Upgrade Scheme grant can apply to a Grant brand air source heat pump fitted by an MCS-certified installer, just as it does to other brands.
Related Guides
Heat Pump Cost
Full price breakdown by type and home size, plus running costs.
Air Source Heat Pumps
Cost, best brands, running costs, and pros and cons for UK homes.
Ground Source Heat Pumps
Cost, efficiency, ground loops vs boreholes, and the £7,500 grant.
Heat Pump Installation
The process, timeline, and cost of installing a heat pump.
Sources
- GOV.UK: Apply for the Boiler Upgrade Scheme
- Ofgem: Boiler Upgrade Scheme
- Home Energy Scotland: Grants & Loans
- GOV.UK: 0% VAT on Energy-Saving Materials
Last updated: June 2026
John Rooney is the founder of Solar Info and has been covering the UK solar energy market since 2023. He researches every battery and inverter brand against manufacturer datasheets, MCS and Ofgem data, and feedback from the MCS-certified installers in our directory before publishing.
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