Are Heat Pump Grants Worth It in 2026? What UK Homeowners Need to Know

The Boiler Upgrade Scheme (BUS) has become a focal point for those seeking to upgrade their home heating in England and Wales. Grants have increased substantially for 2025, with the headline figure now sitting at £7,500 for new air source or ground source heat pump installations. As demand soars and government support expands, there's never been more attention on the practicalities, savings, and eligibility around making the switch.

What Has Changed in 2025?

This year's updates to the BUS mark a significant leap, designed to accelerate the UK's transition to greener heating. Homeowners can access up to £7,500 towards both air and ground source heat pumps, up from earlier values.

Money isn't the only change. The expanded scheme now covers air-to-air heat pumps and heat batteries too. Insulation requirements have been relaxed, meaning you no longer need to carry out all recommended insulation upgrades before applying; you can fit these improvements at your own pace. The application process, while robust, is also under regular scrutiny and has been refined to reduce unnecessary rejections. However, the surge in popularity means competition for grant allocations is intense, so timing and accuracy are crucial.

What's Available: Funding Amounts & Options

• £7,500 for air source heat pumps
• £7,500 for ground source heat pumps
• Expansion to include support for air-to-air heat pumps and heat batteries
• Grants apply only for homes in England and Wales (Scotland operates different incentives via Home Energy Scotland)
• A budget of £295 million has been mentioned for the 2025/26 cycle, showcasing the commitment to decarbonising housing

With record-breaking numbers of applications reported this year, the availability of these grants is helping more households future-proof their energy systems without bearing the full financial weight.

Regional Differences: England, Wales & Scotland

While the BUS is a major opportunity for residents of England and Wales, Scotland runs its own system. Scottish homeowners can look to Home Energy Scotland for a mix of grants and loans, and the requirements, as well as maximum funding, can differ. The BUS is not currently available in Northern Ireland. Every region maintains consistent goals but may adopt different eligibility checklists and processes, making it vital to review the correct rules for your location.

How Much Could You Really Save?

Heat pump installation doesn't come cheap, but government support can make the switch much less daunting. As of late 2025, understanding actual heat pump costs in a typical UK home ranges between £8,000 and £13,500 for air source systems, with some homes seeing costs slightly outside this band depending on size and complexity. Ground source heat pump installations fall into a higher bracket, regularly quoted between £18,000 and £30,000 (sometimes even more for very large or technically challenging sites).

With the BUS grant, the effective outlay changes dramatically:

• For an average air source installation (e.g., £12,000), once the £7,500 grant is deducted, your final cost drops to £4,500
• Typical ground source system at £20,000 falls to £12,500 after grant application
• These figures are examples. Quotes always vary, so get multiple from certified installers

Running costs are also part of the equation. Heat pumps can be highly efficient, offering long-term savings when compared to old, inefficient gas or oil boilers. Many households report lower annual heating bills, especially in well-insulated homes, and there's the additional appeal of cutting carbon emissions significantly.

Understanding Eligibility Criteria

Grants through the BUS are not just for anyone who fancies a new system; there are key requirements to qualify. To be eligible, your property must be in England or Wales and must have a valid Energy Performance Certificate (EPC) with no outstanding insulation recommendations (unless exempt). You also need to own the property. Private landlords can apply too, provided all other requirements are met.

Applications must be managed by a certified installer, specifically one approved under the Microgeneration Certification Scheme (MCS) or TrustMark. The installer should guide you through the process, submit the application on your behalf, and ensure the installation meets all technical standards.

How to Apply and Secure Funding

Once you decide to move forward, selecting the right installer is essential. Reputable installers will walk you through the grant process, from evaluating your property to explaining which improvements (if any) are necessary. Beware of any business offering shortcuts around the paperwork. Accuracy is key, and incomplete applications are a leading reason grants are rejected or delayed.

Step-by-step summary:

1. Check your EPC and eligibility. Ensure your home's certificate is up-to-date and review any insulation recommendations.
2. Find a certified installer under the MCS or TrustMark. They will handle the application to Ofgem (the scheme administrator) on your behalf.
3. Get detailed quotes. Prices can vary. Always ask for a breakdown and make sure the system matches your needs.
4. Complete the application. Your installer leads on this, but be responsive if additional documents or clarifications are needed. Delays can quickly add up.
5. Schedule installation. Only once your application is approved should the installation proceed. Work must be completed on time for your grant to remain valid.

ThermRite, a leading supplier in this sector, underscores the value of working with recognised industry partners for both product supply and technical support. When sourcing equipment, reputable suppliers can ensure your installer fits only certified and scheme-compatible systems.

Common Pitfalls and How to Avoid Them

Many applicants face unnecessary setbacks due to easily-avoided mistakes. Here's what to keep an eye on:

• Incomplete paperwork is the main cause of delays and rejections. Double-check every bit of documentation before submission and keep lines of communication open with your installer.
• If your home has poor insulation or your EPC highlights outstanding recommendations, address these wherever possible, unless you fall under an exemption.
• Only use MCS or TrustMark certified installers. Non-accredited tradespeople cannot access the BUS on your behalf and may jeopardise your eligibility.
• Don't start installation before your grant is approved. Work carried out prior to verification isn't covered by the scheme. A detail that catches out some homeowners each season.
• Respond quickly to any follow-up requests from Ofgem or your installer. Time limits apply, generally 120 days from installation commissioning to grant application completion.

Taking these precautions will dramatically improve your chances of a smooth application.

Expert Advice for a Smooth Switch

Homeowners who get the most from the BUS understand the process before diving in. Research trusted installers well before you plan to apply. Ask lots of questions, from timelines and technical specs to aftercare and servicing. With demand at record highs in 2025, installer schedules are filling up rapidly, and materials sourcing can delay projects, so acting with preparation and patience increases your likelihood of a well-timed upgrade.

Consider pairing grant support with broader home improvements. Many combine heat pump grants with insulation upgrades, smart thermostats, or solar PV for the highest efficiency gains. Forward-thinking planning not only maximises grant impact but also positions your household to benefit from lower energy bills long term.

Key Takeaways for Homeowners in 2026

Rising uptake and a larger government pot for the Boiler Upgrade Scheme are delivering more opportunity than ever to switch to a heat pump in England or Wales. With grants rising to £7,500 and streamlined application rules, support is now within reach for a broader range of households. The main hurdles. Eligibility checks, paperwork, and certified installers. Are all navigable with careful planning and reliable partners.

This year presents a real window to cut heating costs, reduce your carbon footprint, and future-proof your home for the rapidly changing energy landscape. The decision to act promptly, ensure compliance at every stage, and work only with qualified professionals can turn ambitious green goals into practical reality.

Frequently Asked Questions

What is the maximum grant available through the Boiler Upgrade Scheme in 2025?

Homeowners in England and Wales can access up to £7,500 towards the cost and installation of either an air source or ground source heat pump. This is a substantial increase from previous years, aimed at encouraging more households to switch to low-carbon heating.

Are heat pump grants available in Scotland?

The Boiler Upgrade Scheme does not operate in Scotland. Homeowners there can apply for separate support through Home Energy Scotland, which offers its own mix of grants and loans for heat pumps and other measures.

Who is eligible for the BUS grant?

To be eligible, you must own the property in England or Wales. You'll also need a valid EPC with no unresolved insulation recommendations (unless exempt) and must use an MCS or TrustMark certified installer.

Can landlords apply for the scheme?

Private landlords can apply for the BUS grant, provided all other eligibility requirements are met, similar to owner-occupiers.

What is the most common reason for grant applications being rejected?

The main cause is incomplete paperwork or missing documentation. Using a certified installer who is familiar with the scheme's requirements can help you avoid this pitfall.

How long does the application process usually take?

While demand is high and schedules are busy in 2026, a well-prepared application typically moves from submission to approval within several weeks. Delays are more common where additional information or corrections are needed.

Ready to join the thousands future-proofing their home heating? Take the first step by checking your EPC, gathering quotes from certified installers, and connecting with trusted suppliers like ThermRite for high-quality system components. For detailed guidance on securing your £7,500 heat pump grant, navigating the BUS process takes some preparation, but the rewards for your wallet and the planet are well worth the effort.