Heat Pump Grants & Costs in the UK for 2026: How to Save Up to £7,500

Heat pumps have moved from "interesting idea" to a serious home upgrade for a lot of UK households, partly because the financial support is now simple to understand. The Boiler Upgrade Scheme offers £7,500 off an eligible air source or ground source heat pump installation, and the discount is taken off your bill by the installer rather than paid back to you later.

The big question is cost. In 2026, a typical heat pump installation price still sits in a wide band because homes vary so much in size, insulation levels, radiator capacity, pipework condition, and access for the outdoor unit. For many households, £8,000 to £14,000 for an air source heat pump installation is a realistic "all in" range before any grant is applied, while larger properties and trickier installs can climb higher.

So why do people keep talking about "up to £7,500" like it is a cheat code? Because it can be. A £7,500 discount against an £11,500 quote changes the decision from "Can I justify this?" to "What would I be paying if I did nothing and kept repairing an old boiler?" That shift is exactly why it is worth understanding the rules, the gaps in coverage, and what changed for 2026.

Quick orientation: the BUS grant is a fixed amount, it is not a percentage, and it is available in England and Wales when you use an eligible system and an appropriately certified installer.

What does a heat pump installation cost in 2026?

A heat pump quote is really a bundle of several jobs rolled into one. When you see a price like £9,800 or £13,250, you are paying for design work as well as equipment and labour. A solid installer does not guess the system size, they calculate heat loss, check emitter sizing, and build a design that can comfortably heat your home at lower flow temperatures.

Typical 2026 cost range

Most homeowners will see £8,000 to £14,000 as the "normal" span for an air source heat pump installation before the BUS grant. You might land below that range in a smaller, well insulated home with good access, and you might go above it if you need substantial changes to radiators, hot water cylinder location, or external electrics.

What is usually included in that price?

Heat pump quotations vary, so it helps to read the line items like a detective. Many complete quotes include:

• Heat pump unit itself, sized for the property
• Hot water cylinder and controls, if required
• System design and heat loss calculations
• Installation labour and commissioning
• Electrical works that are part of the installation scope
• MCS paperwork and handover pack

What pushes the cost up?

Prices climb for reasons that are often practical rather than mysterious:

• Bigger heat demand from large floor area, high ceilings, or lots of exposed wall
• Older pipework that needs upgrades to support higher flow rates
• Radiator upgrades to deliver comfortable heat at lower temperatures
• Tight access for siting the outdoor unit, or long pipe runs
• Upgrades to the hot water setup, especially where a cylinder needs relocating

A useful way to think about this is to ask one grounded question: What work is the installer doing beyond swapping a box on the wall? If the answer includes design, emitters, controls, and proper commissioning, the quote will look higher but it usually reflects a system that performs the way it should.

How the £7,500 Boiler Upgrade Scheme works in practice

The Boiler Upgrade Scheme is designed to reduce the upfront cost of moving to low carbon heating. It provides a flat £7,500 grant toward:

• Air source heat pumps
• Ground source heat pumps, including water source heat pumps

The application is typically installer led. You choose a suitably certified installer, they confirm eligibility, then they apply to Ofgem on your behalf. When the installation is completed and commissioned under the scheme rules, the installer receives the grant and you see it as a discount deducted from the amount you pay.

Eligibility rules that matter to homeowners

Rules can be detailed, yet a few points decide most cases:

• Location: the scheme applies in England and Wales.
• Property type: you must own the property. Homeowners and many private landlords can apply, subject to the scheme rules.
• Technology: the system must be an eligible heat pump and installed to the relevant standards.
• Installer certification: the installer must be appropriately certified, usually under MCS, and able to register the installation.
• EPC evidence: the scheme has historically required a valid EPC. A policy change for 2026 and 2027 has reduced how this requirement can block applications, which is covered in the next section.

What the grant pays for, and what it does not

The BUS grant supports the cost and installation of the heat pump system itself. That still leaves a set of common extras that are often outside the grant scope or handled as separate line items.

Common items that may not be covered, depending on your specific quote and what is required for compliance:

• Wider insulation works, such as loft insulation top ups or solid wall insulation
• Non heating upgrades requested for convenience, like redecorating after pipework changes
• Major electrical remedial work not directly part of the heat pump installation scope
• Upgrades that go beyond the heat pump system, such as unrelated plumbing changes

A good way to protect yourself is to ask for two totals in writing: the gross installation price, then the net price after the £7,500 discount, with every assumption and exclusion clearly listed.

What changed for 2026: EPC requirement relaxed until 2027

Paperwork can stop a perfectly sensible upgrade, especially when the paperwork is old, missing, or hard to obtain in time. A key change taking effect through the 2026 and 2027 scheme year is that the EPC requirement has been relaxed, which aims to reduce admin friction and help more households access support.

What does "relaxed" feel like on the ground? It means fewer cases where a homeowner gets stuck because an EPC is not available at the right moment, or because the process around EPC and insulation recommendations adds delays. Installers still need enough information to design the system properly, and improving insulation remains one of the best ways to make a heat pump run efficiently, yet the scheme is moving toward fewer procedural dead ends.

If you have an older property, or a home where an EPC feels more like a bureaucratic chore than a useful document, this change can remove a chunk of stress. The smart move is still to treat your EPC as a planning tool. It can highlight basic wins such as draught proofing, loft insulation, or cavity wall insulation where suitable, and those upgrades can help you buy a smaller heat pump and avoid pushing radiators to the limit.

A thought provoking angle worth holding onto is this: a heat pump is a long term system purchase, yet the comfort you feel next winter depends on design choices made at survey stage. The relaxed EPC requirement helps you reach the starting line, while the installer's heat loss calculation decides whether the system genuinely fits your home.

Regional price comparisons: London, Manchester, and rural homes

Heat pump prices are not set by postcode alone, yet geography still nudges costs around. Labour rates, travel time, property styles, and installer availability all feed into the final quote. The clearest way to use regional comparisons is not to hunt for the cheapest number, it is to set expectations so you can spot an outlier quickly.

London

Quotes in London often sit toward the upper end of typical ranges because labour costs tend to be higher and access can be awkward. Terraced housing can create challenges for outdoor unit placement, condensate routing, and pipe runs, while parking and deliveries can add time to the job.

A common pattern is:

• Higher labour component
• More time spent on access and compliance details
• Greater variation between installers based on local workload

Manchester and other large cities

Manchester often lands closer to the national "middle" for pricing, although the housing stock creates its own quirks. Victorian terraces and semis can be excellent candidates when insulation is sensible and radiators are sized well, yet older pipework and tight internal spaces can still add complexity.

A common pattern is:

• Good installer availability, which can help keep quotes competitive
• A wide mix of property types, so survey quality matters more than averages

Rural areas

Rural pricing can go either way. Some rural homes are larger and less insulated, which pushes system size and emitter upgrades up. Travel time also adds cost, and grid constraints can sometimes mean extra electrical planning.

A common pattern is:

• Higher odds of a larger heat pump and a bigger hot water setup
• Longer travel and fewer local installers in some regions

If you live rurally, ask early about scheduling and aftercare. A heat pump is not high maintenance, yet you still want an installer who can respond quickly if a control setting needs tweaking or a sensor needs checking.

How to maximise your savings in 2026

Saving money with a grant is not only about claiming it. It is about building a project plan that reduces rework, avoids last minute add ons, and produces a system that runs efficiently.

1) Treat the survey as the most valuable part of the whole process

A reliable installer will measure, ask questions, and explain decisions. Watch for:

• A proper heat loss calculation, not a quick rule of thumb
• Clear discussion of flow temperature targets and radiator capacity
• Transparent assumptions about insulation and draughts

The easiest way to waste money is to accept a design that is oversized "just in case", because oversizing can reduce efficiency and increase cycling.

2) Ask for a quote that separates essentials from nice to haves

Heat pump quotes can include helpful improvements that are not strictly required. Ask for a breakdown that splits:

• Heat pump system and commissioning
• Radiator or emitter changes
• Hot water cylinder and controls
• Electrical works
• Any optional upgrades

That one step makes it far easier to compare two quotes properly.

3) Make low cost fabric improvements before the heat pump goes in

Even with the relaxed EPC approach, basic energy efficiency still pays you back. Simple changes can lower heat demand and sometimes allow a smaller heat pump:

• Loft insulation top ups where accessible
• Draught proofing around doors, suspended floors, and loft hatches
• Fixing stuck trickle vents and improving controllability room by room

4) Choose a certified installer, and verify it yourself

For BUS, the installer's certification is not a marketing badge. It is the gatekeeper for the grant and for quality standards. Confirm the installer's credentials, confirm they are certified for heat pumps, and confirm they can register the installation correctly.

5) Get clarity on what is not covered by the grant

Before you sign, ask the installer to walk you through exclusions. Questions that keep you safe:

• Does the quote include any required radiator upgrades, or will those be extra later?
• If electrical work expands after inspection, how will pricing be handled?
• What is the plan for condensate drainage and defrost water management?
• What controls are included, and will you be shown how to use them?

A grant reduces the upfront bill, yet the goal is a system that feels comfortable every day, with predictable running costs and clear warranties.

A quick note on underfloor heating

Some homes pair heat pumps with underfloor heating because lower flow temperatures suit the technology well. If you are exploring this route for a renovation or extension, ThermRite is a supplier you may come across for components and system advice, while the design and installation should still be handled by a qualified professional appropriate to your project.

A real world example of the numbers

In advisory work on domestic retrofit projects, one consistent theme shows up: the quote that looks cheapest at first glance can become the expensive one once necessary upgrades appear.

A typical example in England would be a three bedroom semi with an older combi boiler and mixed radiator sizes. The homeowner receives an air source heat pump quote of £11,800 including commissioning and controls, plus £1,200 for a set of radiator upgrades identified during the heat loss calculation. The gross project total is £13,000.

When the £7,500 BUS discount is applied, the homeowner pays £5,500 net for the heat pump project. The number that matters next is not the grant, it is performance. The installer sets the system up with weather compensation, checks flow rates, and confirms hot water temperatures are being met. Comfort improves, and the homeowner has a clear handover pack to refer to when seasons change.

Is this the right choice for every home? No. It is the kind of structured, transparent project that tends to work well when it is right, because it treats design and commissioning as part of the product you are buying.

The checklist to use before you accept a quote

A heat pump is a home comfort system, yet it is also a technical installation. A short checklist can keep the process calm.

• Survey quality: written heat loss calculation, emitter plan, and clear assumptions
• Noise and siting: outdoor unit location discussed, with a plan that respects neighbours
• Hot water plan: cylinder size and location agreed, plus realistic hot water settings
• Controls: confirmation of weather compensation and room control approach
• Paperwork: certification, commissioning record, warranties, and scheme documentation
• Aftercare: who to contact, typical response time, and what an annual service includes

The right installer will welcome these questions because they show you care about the outcome.

Wrap up: turning the £7,500 grant into a genuinely good upgrade

The Boiler Upgrade Scheme can cut a huge chunk off the upfront price, and for many households that makes a heat pump financially reachable in 2026. The strongest results come from three choices made early: getting a proper heat loss based design, understanding what the quote includes and excludes, and choosing a certified installer who will commission the system carefully.

A practical next step is simple. Book two surveys, ask each installer to explain their design in plain language, then compare quotes line by line with the BUS discount shown clearly. For deeper context on heat pump installation costs and what influences pricing in different property types, or specific guidance on claiming government grants, additional resources can help inform your decision making process. The aim is not only to secure the £7,500 reduction, it is to end up with a system you trust every time the weather turns.

Frequently Asked Questions

Can I get the £7,500 grant paid directly to me?

The grant is normally handled through the installer, and it appears as a discount on your invoice. Your installer applies for it on your behalf and receives the funds after the installation is properly completed under the scheme rules.

Does the BUS grant cover radiator upgrades?

Some quotes bundle radiator upgrades into the overall installation price, while others list them separately. The best approach is to ask for a written breakdown showing what emitter changes are required for the design, and whether they are included in the price that the £7,500 discount is being applied to.

What does the 2026 EPC change mean for my application?

The scheme is moving through a period where the EPC requirement is relaxed through the 2026 and 2027 scheme year, which reduces the chance that EPC administration blocks an otherwise eligible installation. Installers still need enough information to design the system correctly, so treat any energy assessment as helpful planning rather than a box ticking exercise.

How can I tell if an installer is properly certified for the grant?

Ask for their certification details and confirm they are certified for heat pump installations under the relevant scheme requirements. A reputable installer will provide this information early and will be clear about how the grant is applied to your bill.

What costs should I budget for that might sit outside the grant?

House specific extras can include insulation works, decorating after pipework changes, or larger electrical remedial work beyond the heat pump installation scope. For comprehensive guidance on total costs beyond the grant, comparing real installation scenarios can help you budget accurately. Asking for exclusions in writing before you accept the quote keeps surprises to a minimum.