Heat Pump Grant (£7,500 BUS)

The heat pump grant, officially called the Boiler Upgrade Scheme, gives homeowners in England and Wales £7,500 off an air source or ground source heat pump. There is no income test, and since 28 April 2026 you no longer need an EPC to apply. Your MCS certified installer claims the grant and takes it straight off your bill.

Please note: InstantGrant is an independent, private information and support service. We are not the government, Ofgem or an installer, and we cannot approve or pay the Boiler Upgrade Scheme grant. Ofgem makes every grant decision. Always confirm the latest rules with Ofgem or your installer before any work starts.

Last checked: 30 September 2026 against Ofgem and GOV.UK information.

Check If I Qualify for the £7,500 Heat Pump Grant

What Is the £7,500 Heat Pump Grant?

The £7,500 heat pump grant is the Boiler Upgrade Scheme, a government grant that helps property owners in England and Wales replace fossil fuel or electric heating with a heat pump or biomass boiler. Ofgem runs the scheme for the Department for Energy Security and Net Zero, and it is open until 2030.

Why It Is Called the Boiler Upgrade Scheme

The name confuses many people. The scheme upgrades your heating away from a boiler, so it never pays for a new gas or oil boiler. It only funds heat pumps and, in limited cases, biomass boilers. If someone offers you a free gas boiler through the Boiler Upgrade Scheme, treat it as a warning sign.

Who Runs the Scheme

The Department for Energy Security and Net Zero sets the rules and grant amounts. Ofgem checks each application and issues the grant vouchers. Your MCS certified installer handles the application for you, so you do not fill in any government forms yourself.

How Much Is the Boiler Upgrade Scheme Grant in 2026?

The Boiler Upgrade Scheme pays a fixed amount based on the heating system you install. Air source and ground source heat pumps get £7,500. Air to air heat pumps get £2,500 and biomass boilers get £5,000. Off gas homes replacing oil or LPG can get £9,000 until 31 March 2027.

Grant Amounts by Heating System

Heating system

Grant amount

Notes

Air source heat pump (air to water)

£7,500

Heats radiators or underfloor heating and hot water

Ground source heat pump

£7,500

Includes water source and shared ground loops

Air to air heat pump

£2,500

Residential properties only, from 28 April 2026

Biomass boiler

£5,000

Rural and off gas properties only

Air or ground source heat pump replacing oil or LPG in an off gas home

£9,000

Available from 21 July 2026 to 31 March 2027

The £9,000 Grant for Oil and LPG Homes

The government added a one year £1,500 uplift for homes off the gas grid that replace oil or LPG heating with an air source or ground source heat pump. This raises the grant to £9,000 for installations covered between 21 July 2026 and 31 March 2027. Homes on mains gas still receive £7,500.

Are Heat Batteries Covered?

Not yet. Some websites say heat batteries already qualify for a £2,500 grant, but they were not on the government's approved list of grant categories when we last checked. They are expected to become eligible only once the required product standards are in place. Ask your installer to confirm before relying on it.

Does 0% VAT Apply as Well?

Yes. Heat pumps and their installation are charged at 0% VAT until 31 March 2027. This is a separate tax relief, so it applies on top of the Boiler Upgrade Scheme grant. Your installer should show both on your quote.

Who Qualifies for the £7,500 Heat Pump Grant?

You qualify if you own a home or small business property in England or Wales, you are replacing fossil fuel or electric heating, and you use an MCS certified installer with an approved product. There is no income test, no age limit and no benefit requirement. Social housing and most new builds are excluded.

Property and Ownership Rules

  1. You must own the property. Homeowners, private landlords and small business owners can all apply.

  2. The property must be in England or Wales.

  3. Social housing is not eligible.

  4. New build homes are not eligible, but custom and self build homes are.

  5. Only one Boiler Upgrade Scheme grant is allowed per property.

Heating System Rules

The new system must replace fossil fuel heating, such as gas, oil or LPG, or an electric heating system. The heat pump or biomass boiler must be new, appear on the Boiler Upgrade Scheme product eligibility list, and have a capacity of no more than 45kWth. An MCS certified installer must fit it.

Do You Still Need an EPC?

No. From 28 April 2026, you no longer need a valid EPC or to have loft and cavity wall insulation done first. If your home has no EPC, your installer provides other evidence instead. Good insulation still helps a heat pump run efficiently, so your installer may recommend it, but it is no longer a grant condition.

Is There an Income Test?

No. The Boiler Upgrade Scheme is open to every eligible property owner, whatever their income or savings. That makes it different from the Warm Homes: Local Grant and ECO4, which are only for lower income households.

What Changed in the Boiler Upgrade Scheme in 2026?

The Boiler Upgrade Scheme had its biggest overhaul in 2026. New regulations from 28 April 2026 removed the EPC requirement, added air to air heat pumps and extended the scheme to 2030. A higher £9,000 grant for oil and LPG homes followed from 21 July 2026.

Changes From 28 April 2026

  1. EPC requirement removed. Retrofit homes can apply without an EPC.

  2. Air to air heat pumps added at £2,500, for residential properties only.

  3. MCS certification made a legal requirement for installers.

  4. Scheme extended to 2030, giving homeowners and installers longer term certainty.

  5. More flexibility to install a heat pump alongside other electric heating appliances.

Changes From 21 July 2026

Off gas homes replacing oil or LPG heating with an air source or ground source heat pump can now receive £9,000 instead of £7,500. This uplift is temporary and ends on 31 March 2027.

How Do You Apply for the Boiler Upgrade Scheme?

You do not apply directly. You choose an MCS certified installer, agree a quote that shows the grant as a deduction, and the installer applies to Ofgem for a voucher. Ofgem emails you to confirm you want to go ahead. Once the heat pump is fitted, the installer redeems the voucher.

Step by Step Application Process

  1. Find an MCS certified installer using the MCS website. Getting more than one quote is sensible.

  2. Book a home survey. The installer checks your home, sizes the system and confirms you meet the scheme rules.

  3. Agree a quote that clearly shows the grant deducted from the total.

  4. The installer applies to Ofgem for a voucher on your behalf.

  5. Confirm the application when Ofgem emails you. Reply promptly, as a missing confirmation can lead to rejection.

  6. Get the heat pump installed within the voucher's time limit.

  7. The installer redeems the voucher and Ofgem pays the grant to them, not to you.

Our step by step guide on how to apply for the Boiler Upgrade Scheme covers each stage in more detail. Official guidance is on the GOV.UK Boiler Upgrade Scheme page and Ofgem's Boiler Upgrade Scheme page.

How Long the Voucher Lasts

Once Ofgem issues a voucher, the installation must be finished within 3 months for an air source heat pump, air to air heat pump or biomass boiler. Ground source heat pumps get 6 months because the groundwork takes longer. If the deadline passes, the installer has to apply again.

Can You Claim the Grant After Installation?

Yes, within limits. The heat pump must have been commissioned no more than 120 days before the voucher application is made. If your installation is older than that, it cannot receive the grant. Make sure your installer applies before or soon after the work.

Start My Free Heat Pump Grant Check

Why Do Boiler Upgrade Scheme Applications Get Rejected?

Most rejections happen because the property or product does not meet the rules, not because of the homeowner. Common causes include social housing or new build properties, a product missing from the approved list, a non MCS installer, a previous grant on the same property, or an installation commissioned more than 120 days before applying.

Most Common Rejection Reasons

Reason

How to avoid it

The property is social housing or a new build

Check ownership and build status before booking a survey

The product is not on the BUS product eligibility list

Ask your installer to confirm the exact model is listed

The installer is not MCS certified for that technology

Check the installer on the MCS website

The property has already received a BUS grant

Ask the previous owner or check with Ofgem

The system was commissioned more than 120 days before applying

Make sure the installer applies before or soon after installation

The property owner did not confirm the application

Watch for Ofgem's email and reply promptly

If your application has already been refused, our guide to Boiler Upgrade Scheme rejection reasons explains how to fix each one.

Installer checking a new air source heat pump that replaced oil heating at a rural bungalow

How Your Deposit Is Protected

MCS certified installers must belong to a consumer code, such as RECC or HIES. These codes set rules on deposits, contracts and complaints, and they give you a route to resolve problems if something goes wrong. Ask which code your installer follows before paying anything.

Can You Combine the Heat Pump Grant With Other Grants?

You cannot use the Boiler Upgrade Scheme and another grant to pay for the same heat pump. You can, however, use other schemes for different improvements, such as insulation or solar panels. Lower income households should check the fully funded schemes first, because they may cover the whole cost.

Boiler Upgrade Scheme and the Warm Homes: Local Grant

In England, the Warm Homes: Local Grant can pay up to £15,000 towards low carbon heating for lower income households, often covering the full cost of a heat pump. If you qualify for it, it usually gives more help than the Boiler Upgrade Scheme. You cannot use both for one heat pump. See our Warm Homes: Local Grant guide to check the rules.

Boiler Upgrade Scheme and ECO4

ECO4 can also fund heat pumps for households on qualifying benefits, but it ends on 31 December 2026 and supplier funding is limited. One heat pump cannot be funded by both ECO4 and the Boiler Upgrade Scheme. If you are eligible for ECO4, an installer can tell you which route covers more.

Heat Pump Grants Outside England and Wales

The Boiler Upgrade Scheme only covers England and Wales. Scotland runs its own heat pump grant through Home Energy Scotland, and Northern Ireland has no direct equivalent. ECO4 applies in Scotland until 31 December 2026 but does not apply in Northern Ireland.

Scotland: Home Energy Scotland Grant and Loan

Homeowners in Scotland can get a grant of up to £7,500 towards a heat pump, or £9,000 in eligible rural and island areas, plus an optional interest free loan of up to £7,500. The heat pump must provide all heating and hot water. Apply through Home Energy Scotland. Our guide to the Boiler Upgrade Scheme in Scotland explains the differences.

Northern Ireland

Northern Ireland has no Boiler Upgrade Scheme. Low income homeowners and private renters with a household income below £23,000 can apply to the Affordable Warmth Scheme, run by the Northern Ireland Housing Executive, for heating and insulation measures.

Heat Pump Grants by UK Nation

Scheme

England

Wales

Scotland

Northern Ireland

Boiler Upgrade Scheme

Yes

Yes

No

No

Warm Homes: Local Grant

Yes

No

No

No

ECO4, until 31 December 2026

Yes

Yes

Yes

No

Home Energy Scotland Grant and Loan

No

No

Yes

No

Nest

No

Yes

No

No

Affordable Warmth Scheme

No

No

No

Yes

For a full comparison across all four nations, read our guide to heat pump grants in the UK.

Is a Heat Pump Right for Your Home?

Most UK homes can use a heat pump, but your installer's survey decides what works for yours. They check your heat loss, radiator sizes, outdoor space and hot water needs. Choosing between an air to water and an air to air system also changes the grant amount and what the system can do.

What Your Installer Will Check

  1. Heat loss: how quickly your home loses warmth, which sets the size of heat pump you need.

  2. Radiators: some may need replacing with larger ones, because heat pumps run at lower temperatures than boilers.

  3. Outdoor space: air source units need a suitable spot outside with good airflow.

  4. Hot water: air to water systems usually need a hot water cylinder, so homes with a combi boiler need space for one.

  5. Ground space: ground source systems need room for trenches or boreholes.

Air to Water or Air to Air?

Feature

Air to water heat pump

Air to air heat pump

Grant amount

£7,500

£2,500

How it heats your home

Through radiators or underfloor heating

Through indoor wall or ceiling units that blow warm air

Hot water

Yes

No, you need a separate hot water system

Cooling in summer

Usually no

Yes

Eligible property types

Homes and small non domestic buildings

Residential properties only

Our guide to air conditioning heat pump grants covers air to air systems in more depth.

Questions to Ask Your Installer

  1. Are you MCS certified for this exact technology?

  2. Is the model you are quoting on the BUS product eligibility list?

  3. Does the quote show the grant and 0% VAT clearly?

  4. Which consumer code do you belong to, and how is my deposit protected?

  5. Will any radiators or pipework need changing?

How to Avoid Heat Pump Grant Scams

The Boiler Upgrade Scheme never asks homeowners to pay a fee to receive the grant. Scammers often call or knock claiming to be from Ofgem or the government. Ofgem does not sell grants or send people to your door. Only deal with installers you have checked on the MCS website.

Warning Signs to Watch For

  1. Someone asks for an upfront fee to "secure" or "release" your grant.

  2. A caller says the Boiler Upgrade Scheme will pay for a free gas boiler.

  3. The quote does not show the £7,500 grant as a deduction.

  4. You are pushed to sign or pay a large deposit on the day of a visit.

  5. The installer cannot give an MCS certificate number you can check.

How to Check an MCS Installer

Search the installer's company name on the MCS website and confirm they are certified for the technology you want. Check that their consumer code membership is current. If anything does not match, do not sign.

Frequently Asked Questions

How Much Is the Heat Pump Grant in 2026?

The Boiler Upgrade Scheme gives £7,500 off an air source or ground source heat pump in England and Wales. Air to air heat pumps get £2,500 and biomass boilers get £5,000. Off gas homes replacing oil or LPG heating can get £9,000 until 31 March 2027.

Do I Need an EPC for the Boiler Upgrade Scheme?

No. Since 28 April 2026, you no longer need a valid EPC or completed loft and cavity wall insulation to apply. If your home has no EPC, your installer provides other evidence to Ofgem instead. Insulation is still worth considering because it helps a heat pump run efficiently.

Is There an Income Limit for the Heat Pump Grant?

No. The Boiler Upgrade Scheme has no income limit, no savings test and no benefit requirement. Any eligible property owner in England or Wales can apply through an MCS certified installer. Lower income households in England may get more help from the Warm Homes: Local Grant.

Can I Claim the Grant After My Heat Pump Is Fitted?

Only if the heat pump was commissioned no more than 120 days before your installer applies for the voucher. Installations older than that cannot receive the grant. To be safe, make sure your installer applies to Ofgem before the work starts or straight after it finishes.

Can Landlords Get the Boiler Upgrade Scheme Grant?

Yes. Private landlords can claim the grant for rented homes in England and Wales, as long as the property is not social housing and meets the other scheme rules. Only one grant is allowed per property, so check whether a previous owner has already claimed it.

Can I Use the Boiler Upgrade Scheme in Scotland?

No. The Boiler Upgrade Scheme only covers England and Wales. In Scotland, Home Energy Scotland offers a heat pump grant of up to £7,500, or £9,000 in eligible rural and island areas, plus an optional interest free loan of up to £7,500.

Does the Boiler Upgrade Scheme Cover Air Conditioning?

It covers air to air heat pumps, which heat and cool rooms like air conditioning, with a £2,500 grant. This applies to residential properties only, from 28 April 2026. Air to air systems do not provide hot water, so you still need a separate hot water supply.

When Does the Boiler Upgrade Scheme End?

The Boiler Upgrade Scheme has been extended to 2030. The higher £9,000 grant for oil and LPG homes is temporary and ends on 31 March 2027. Grant amounts and rules can change, so always check the latest position with Ofgem or your installer.

About This Guide

This guide was written by InstantGrant using current information from Ofgem, GOV.UK and the Department for Energy Security and Net Zero, with Scottish and Northern Irish details from Home Energy Scotland and the Northern Ireland Housing Executive. It was last checked on 30 September 2026. Scheme rules change often, so confirm the latest position with Ofgem or your installer before work begins.

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