UK Heat Pump Grants in 2026: Eligibility, Costs and How to Claim the Boiler Upgrade Scheme
Planning a heat pump grant in 2026
A heat pump quote can look daunting before support is taken into account. The Boiler Upgrade Scheme (BUS) is designed to reduce that upfront cost, with the installer applying for the grant and deducting it from the price you pay. The details matter: the grant amount depends on the system and, for a temporary uplift, the fuel your home currently uses and whether it is connected to the gas grid.
The scheme applies in England and Wales. Scotland and Northern Ireland have separate support arrangements, so homeowners there should check their nation's current programme. BUS rules and funding can change, and Ofgem's latest property owner guidance is the final word before you commit.
What the Boiler Upgrade Scheme offers
As of November 2026, the standard BUS grant is £7,500 for an eligible air-to-water or ground source heat pump. A higher £9,000 grant is available for qualifying off-gas-grid properties replacing an oil or LPG heating system, for eligible applications made from 21 July 2026 through 31 March 2027. That uplift is time limited. It does not apply simply because you live in a rural area; the home must meet the scheme's conditions, including the existing heating fuel and off-grid status.
The grant is not means tested. It can support eligible owner occupied or rented properties, subject to scheme rules. The installer checks whether the property and proposed system qualify. The system generally needs to replace a fossil fuel heating system, and a BUS-funded installation cannot be a fossil fuel hybrid that keeps a boiler operating alongside the heat pump.
The April 2026 rules removed the requirement for a valid Energy Performance Certificate as a mandatory eligibility condition. That does not make a building assessment unnecessary. Your installer still needs enough reliable information to design and size the system properly, and Ofgem may request supporting evidence. Insulation recommendations on an EPC are not a blanket grant blocker under the newer rules, although improving insulation can make a heat pump more comfortable and economical to run.
The BUS covers eligible air-to-water and ground source systems, including water source variants. Air-to-air systems have a separate, lower grant category, so check Ofgem's current list if considering one. The familiar central heating replacement option is usually air-to-water, which supplies hot water to radiators or underfloor heating.
Estimating what you may pay
Start with the complete installed price, then subtract the BUS grant. Do not compare the grant against the heat pump unit alone: a proper quote should describe the full project, including design, installation, hot water provision, controls and any changes to emitters or pipework.
Official BUS statistics for April to June 2026 report a median installation cost of about £12,908 for an air source system and £27,232 for a ground source system, before subtracting the grant. Using those figures as a broad illustration:
| System | Example installed cost | Standard £7,500 grant | Approximate amount after grant |
|---|---|---|---|
| Air-to-water heat pump | £12,908 | £7,500 | £5,408 |
| Ground source heat pump | £27,232 | £7,500 | £19,732 |
For an eligible off-gas-grid oil or LPG home, the temporary £9,000 uplift would bring those illustrative balances to £3,908 and £18,232 respectively. These are arithmetic examples, not quotations or promised prices. Understanding current heat pump running cost trends helps put these installation figures into a fuller financial picture, since actual costs vary with property heat loss, system capacity, access, hot water requirements, radiator upgrades, electrical work and groundworks.
For example, a homeowner in Leeds receives a £13,600 quote for an air-to-water installation. With the standard £7,500 grant, the estimated payment to the installer is £6,100, provided the final scope and grant approval match the quote. An eligible off-grid Bristol-area property replacing LPG might instead deduct £9,000 from an equivalent quote, leaving £4,600 during the uplift window. The quoted price and grant should appear clearly on the paperwork.
Ask at least two or three eligible installers for itemised quotes. Compare the design and included work, not only the headline net figure. A lower quote that excludes essential radiator changes or electrical upgrades may cost more once the project is underway.
Air source or ground source: which fits your home?
Air source heat pumps
An air source heat pump takes heat from outdoor air and transfers it into the home's wet heating system. Its outdoor unit needs a suitable location with airflow, safe access for maintenance and attention to noise and planning considerations. The equipment and installation are usually less disruptive than groundworks, which makes air source a practical choice for many existing homes, including homes with modest gardens. When comparing specific models, reviewing current heat pump manufacturer ranges can help you understand how different units perform across varying conditions.
Its efficiency varies with the temperature difference between the outside air and the heat delivered indoors. Correct sizing, good controls, well insulated pipework and suitably sized radiators or underfloor heating all help the system operate at lower flow temperatures. A colder spell can reduce efficiency, but a properly designed unit is intended to work in UK winter conditions.
Ground source heat pumps
Ground source systems draw heat from pipes buried in trenches or from a borehole. The ground temperature is more stable than outdoor air, so an equivalent ground source system can be more efficient over the year. That can support lower running costs, though your household's actual result depends on heat demand, electricity tariffs, system design and how the heating is used.
Ground loops need land or a drilling location, and boreholes typically require specialist surveying and equipment. Groundworks, access and reinstatement add complexity and cost. This option can suit a property with adequate land, a suitable site and a long-term plan for the home, especially where the higher initial outlay is affordable.
A detailed survey should settle the practical question. Ask the designer to explain the estimated seasonal performance, proposed flow temperature, heat loss calculation and any assumptions about future insulation. The most efficient technology on paper is useful only when it matches the property and budget.
How to claim the BUS grant
The process is installer led. You do not apply directly to Ofgem for the standard BUS voucher, and the grant is paid to the installer rather than into your bank account.
- Check the broad fit. Confirm the property is in England or Wales, identify the existing heating fuel and gather details about the building and current heating system. Tell the installer if you are off the gas grid and currently heat with oil or LPG, because that may affect the grant rate.
- Arrange a property assessment. The installer should assess heat loss, hot water demand, emitters, electrical capacity, outdoor or ground loop locations and any required building work. A site visit and a room-by-room heat loss assessment help prevent poor sizing.
- Choose an eligible installer and request a written quote. The installation must meet BUS requirements and be carried out by an appropriately certified installer, including Microgeneration Certification Scheme (MCS) certification where required. Confirm the installer is participating in BUS and ask who will manage the application.
- Review the grant and net price. The quote should state the gross installation cost, grant amount and balance payable. Read the scope carefully so you know what is included and what could be an extra.
- Give consent when Ofgem contacts you. Your installer submits the voucher application. Ofgem may email you to verify details and confirm consent; respond within the stated deadline. The installer then completes the installation within the voucher period and submits the evidence needed to redeem it.
- Check handover documents. Keep the final invoice, system design information, commissioning documents, warranty details and MCS certificate. Ask for a practical demonstration of controls and maintenance needs.
The grant discount should be visible in the quote and invoice. Do not pay a price that assumes a grant until the installer has confirmed eligibility and explained what happens if Ofgem does not approve the application. For a deeper breakdown of how the £9,000 off-grid grant uplift interacts with eligibility rules, it's worth reviewing the scheme conditions before accepting any quote.
What to do before choosing a system
A good heat pump project begins with the building, not a particular model. Collect recent energy bills, note how each room is heated, and share any plans for extensions or insulation work. Ask the installer to specify which radiators need changing, what hot water cylinder is proposed, where the outdoor unit or ground loop will go, and whether planning or electrical work may be required.
Insulation is not a BUS eligibility prerequisite under the rules effective from 28 April 2026, but it remains a sensible part of the conversation. Loft and wall insulation, draught control and insulated pipework can reduce the amount of heat the system needs to provide. An installer may still recommend improvements after assessing the home. Get that advice in writing, including whether improvements are essential for the design or optional measures that could be staged later.
Check the complete annual cost picture too. Compare your current fuel, expected electricity use, tariff options and maintenance needs. A heat pump uses electricity, so the relationship between electricity and gas prices, plus system efficiency and household use, influences running costs. No single saving figure applies to every home.
Other support and scheme boundaries
BUS cannot generally be combined with another source of public funding for the same heat pump installation. Earlier publicly funded work such as insulation may be treated differently, but disclose all grants or support to the installer and confirm compatibility with the relevant programme before accepting a quote.
Households on lower incomes may have access to separate schemes, such as the Warm Homes: Local Grant in England or support delivered through programmes in Wales, Scotland or Northern Ireland. Eligibility, local availability and what measures are funded vary. Ask your council or the relevant national energy advice service whether a route applies to your home. Do not assume that support can be stacked with BUS for the same equipment or installation costs.
Frequently Asked Questions
Can I replace a gas boiler and get the £7,500 grant?
Potentially, yes. Eligible air-to-water and ground source systems can receive the standard £7,500 BUS grant when replacing qualifying fossil fuel heating in England or Wales. Being connected to mains gas does not itself prevent the standard grant, though it means the temporary £9,000 off-grid uplift will not apply.
Does an oil or LPG home automatically qualify for £9,000?
No. The home must meet the off-gas-grid and other BUS conditions, and the uplift applies to eligible applications in the stated period, from 21 July 2026 to 31 March 2027. Ask the participating installer to confirm the current Ofgem rules before agreeing to the project.
Do I need to insulate my home before applying?
There is no mandatory insulation prerequisite under the BUS rules that took effect on 28 April 2026. Insulation can still reduce heat demand and improve comfort, and an installer may recommend specific upgrades as part of a sound system design.
Can a tenant apply for the grant?
The property owner is normally the applicant, so a tenant should speak with the landlord before arranging a heat pump installation. Landlords may be able to use BUS for eligible rented property, subject to the current scheme requirements.
Can I combine BUS with another grant?
Public funding generally cannot pay twice for the same heat pump purchase or installation. Other support may help with separate measures, but eligibility and combination rules differ. Get confirmation from the relevant scheme administrator and your installer before committing.
Make your next step a well informed one
The BUS can make a heat pump project substantially more affordable, with a standard £7,500 contribution and a temporary £9,000 uplift for qualifying off-grid oil and LPG homes. The remaining cost still depends on the building, system choice and installation work, so treat example prices as a starting point rather than a promise.
Before choosing equipment, arrange a proper assessment, compare itemised quotes and verify the current Ofgem guidance for your property and application date. That simple due diligence gives you a clearer view of the grant, the net cost and the heating system that will serve your home well for years.