Heat Pump Grants 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, rising to £9,000 for off-gas homes on oil or LPG until 31 March 2027. Air-to-air heat pumps get £2,500. 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.

The Boiler Upgrade Scheme gives a flat £7,500 off an air-to-water or ground source heat pump. You do not apply yourself: your MCS-certified installer applies to Ofgem and deducts the grant from your quote upfront, so you pay only the net amount. On small properties where the whole job costs £7,500 or less, that can mean paying nothing.

You qualify if you own the property, it is an existing building (not new build), you use an MCS-certified installer and heat pump, and the heat pump replaces a fossil fuel or electric system. There is no means test, and since April 2026 no EPC is required: a recent utility bill plus photos of your heating system count instead. The grant is one per property.

Homes heated by oil or LPG with no mains gas connection get £9,000 instead of £7,500 towards an air source or ground source heat pump, from 21 July 2026 until 31 March 2027. Your MCS-certified installer applies it the same way, as an upfront discount on the quote.

Yes, on small properties. The £7,500 is a flat amount per install, so a 1-2 bed flat or small home where the full job quotes at £7,500 or less pays nothing. Homes with electric storage heaters qualify. See our free heat pump guide for the eligibility checklist and the catches to watch for.

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 of up to £7,500 on top. Unlike BUS you apply yourself through Home Energy Scotland, and funding must be approved before installation starts.

Yes. The Boiler Upgrade Scheme fully covers Wales, so you get the same £7,500 grant (£9,000 for off-gas oil and LPG homes until 31 March 2027) applied upfront by your MCS-certified installer. Lower-income households in inefficient homes may also qualify for a free air source heat pump through the Welsh Government's Nest scheme.

Not on a developer new build: the Boiler Upgrade Scheme only covers existing homes. The exception is custom self-builds, which do qualify. If you bought a new home without a heat pump from a developer, you would need to wait until the property counts as an existing building being retrofitted.

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.

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.