Heat Pump Grants & Costs in the UK (2026): What You Need to Know Before Installing

Heat pump grants and costs in the UK for 2026

Switching your home to a heat pump can feel like a big leap, because you are weighing upfront cost, disruption, and a set of grants that can sound simple on paper but fiddly in real life. The good news is that UK funding for low carbon heating is still very much alive in 2026, and the market has matured enough that you can get clearer pricing, better installer availability, and more predictable performance than a few years ago.

This guide walks through the grants that matter in 2026, what you might pay for air source and ground source systems, what savings can look like on real energy bills, and how all of that plays into your EPC and resale value.

Quick note on how grants work in practice: most schemes are designed so the installer applies, then the discount comes off your invoice. Your job is choosing a suitable system, confirming eligibility, and keeping the paperwork tidy.

The 2026 UK heat pump grants that can change your budget

Boiler Upgrade Scheme in England and Wales: up to £7,500 off an air to water or ground source heat pump

For many households in England and Wales, the Boiler Upgrade Scheme is the main lever that brings an upgrade into reach. In 2026 the headline support remains up to £7,500 for eligible installations, covering:

• Air source heat pumps that heat water for radiators or underfloor systems and supply hot water via a cylinder
• Ground source heat pumps

The application is not something you submit yourself. The process is installer led, and your installer must be MCS certified to apply the voucher and meet the scheme rules.

Eligibility tends to hinge on a few recurring themes:

• The property is in England or Wales and meets the scheme conditions
• The existing heating is typically a fossil fuel system or certain electric systems, depending on the exact rules at time of application
• The heat pump is an eligible model and is installed to the required standard by an MCS certified installer

People often ask a practical question here. How quickly does the voucher come through? In day to day installs, the smoothest route is picking an installer who deals with BUS applications routinely and can show you the process, the timing expectations, and what they need from you before they book the job.

The £2,500 incentive for air to air heat pumps in England and Wales

A newer headline in the grant landscape is the £2,500 incentive for air to air heat pumps, the kind of system many homeowners recognise as air conditioning that can run in reverse to provide heat.

Air to air systems can make sense when you want:

• Space heating with fast response
• Cooling in summer as well as heating in winter
• Less disruption than a full wet heating overhaul

There is a catch worth understanding early. Air to air systems do not heat your domestic hot water, so you still need a separate plan for hot water, such as an existing cylinder arrangement, an immersion, or another compliant solution. That does not make air to air a poor choice. It simply changes the cost picture, and it changes the way you estimate savings.

Scotland: Warmer Homes and the Home Energy Scotland support stack

Scotland has its own ecosystem of support, and it is often stronger on financing. One of the standout offers referenced widely is an interest free loan up to £10,000 available through Scotland's warmer homes support routes, subject to eligibility and checks.

Scotland also runs the Home Energy Scotland Grant and Loan, where homeowners can sometimes combine grant funding with an optional interest free loan, which can be helpful when the right system choice costs more upfront.

If you are in Scotland, the most useful first step is usually a Home Energy Scotland conversation before you sign anything, because eligibility can depend on household circumstances, property type, and what measures make sense as a package.

Northern Ireland: check local programmes carefully

Northern Ireland support can differ from Great Britain schemes, and availability can change. If you are based in Belfast, Derry, or anywhere else in Northern Ireland, the safest approach is to check current regional programmes first and price your upgrade as if no support is available until you have confirmation in writing.

Heat pump installation costs in 2026: what people are really paying

Pricing is still property specific, yet 2026 quotes are easier to benchmark. A sensible way to think about cost is to separate the hardware from the work around it, because the extras often decide whether you end up at the low end or the high end.

Air source heat pump costs in 2026

For a typical air source heat pump that connects to a wet heating system, many UK homeowners see installed quotes landing broadly around:

• £7,000 to £13,500 for purchase and installation, before any grants

What pushes the price up?

• Upgrading radiators for lower temperature heating
• Pipework changes and controls, including zoning
• A new hot water cylinder if you do not already have a suitable one
• Electrical work, including consumer unit upgrades in some homes
• Access constraints, such as tight side passages or long pipe runs

After a £7,500 BUS voucher in England or Wales, some households can find their net cost falling into a range that starts to look comparable with a premium boiler replacement plus remedial work, especially when you factor in the value of better comfort and future proofing.

Air to air heat pump costs in 2026

Air to air pricing depends heavily on how many indoor units you need and whether you are doing a single room, a whole flat, or a multi room house.

Many households looking at air to air are trying to solve a specific problem, such as electric resistance heating that is expensive to run, or a top floor room that gets uncomfortably hot in summer. The £2,500 incentive can make a noticeable dent, but you still need to budget for electrical work and a hot water strategy.

Ground source heat pump costs in 2026

Ground source is usually the premium option upfront, largely because of groundworks. Typical installed costs frequently sit in a wide band such as:

• £18,000 to £50,000, before grants, depending on land, loop design, drilling needs, and system size

Ground source can shine in the right property, especially where you have sufficient outdoor space and you plan to stay put long enough to enjoy the comfort and efficiency benefits.

What do heat pumps save on UK energy bills?

The honest answer is that savings depend on your starting point. A heat pump is a system. It is not a magic box.

A few factors drive the outcome:

• Insulation and draught proofing, because heat losses decide how hard the system must work
• Flow temperature, where lower temperatures generally support higher efficiency
• Your electricity tariff and whether you can shift some usage to cheaper periods
• The condition of your old system, because replacing an old, inefficient boiler can yield bigger gains

A commonly quoted ballpark for households switching from an older, less efficient setup is around £300 to £350 per year in bill savings in favourable situations, though it can be less, and it can also be more when the home is well insulated and the old heating was costly.

A useful thought experiment helps keep expectations realistic. If your home is leaky and your radiators are sized for very hot water, a heat pump can still work, yet it may need higher flow temperatures which pull efficiency down. That is why good installers talk about heat loss calculations and emitter sizing before they talk about headline savings.

Regional incentives and stacking support: what to look for

National schemes grab attention, but regional support can sometimes be the make or break.

A quick checklist can help:

• England and Wales: focus on BUS for air to water and ground source, plus the £2,500 air to air incentive where it fits the property's needs
• Scotland: look at Warmer Homes style support and the Home Energy Scotland grant and interest free loan options, including financing up to £10,000 in some cases
• Local authority schemes: keep an eye on time limited offers tied to retrofit programmes, because they can appear and disappear quickly

People often ask whether you can mix and match. The safe rule is to assume grants have restrictions on stacking until an installer or programme advisor confirms compatibility for your address.

EPC ratings, SAP quirks, and property value: what changes after a heat pump?

Heat pumps can improve a home's energy performance, yet EPC scoring does not always reward low carbon heating cleanly because the methodology weighs fuel costs and carbon factors in ways that have been criticised by industry bodies and consumer organisations.

That leaves homeowners with a fair question. Will a heat pump raise your EPC or could it even lower it?

The realistic answer is that either outcome is possible depending on your starting point and the assumptions inside the EPC assessment. A heat pump paired with insulation upgrades and sensible controls is more likely to push the score in the right direction. A heat pump installed into a poorly insulated home with high running cost assumptions can produce an EPC result that feels counter intuitive.

Even with that wrinkle, heat pumps can still support property value in 2026 because buyers are paying closer attention to:

• Predicted running costs and comfort
• The availability of gas and the long term direction of policy
• Whether the home looks future ready, with modern heating controls and a credible energy efficiency story

If you care about resale, it is worth booking an EPC assessor after the work and keeping documentation of what was installed, including MCS certificates and any commissioning records.

What to check before you commit to an installation

A good heat pump decision is mostly about preparation, not persuasion.

Here are the checks that tend to prevent regrets:

1. Heat loss survey: your installer should calculate room by room heat loss, not guess based on floor area
2. Emitter plan: radiators and underfloor heating need to be sized for lower temperatures, and that should be clear in writing
3. Hot water approach: air to water usually means a cylinder, air to air means a separate hot water solution
4. Noise and placement: outdoor units must be positioned thoughtfully, especially in terraces and flats
5. Controls: the best outcomes come from stable setpoints and weather compensation rather than constant manual tweaking

Some homeowners also upgrade floors during a retrofit. If you are sourcing materials such as underfloor heating components, The Floor Heating Warehouse is one example of a UK supplier you might come across, and your installer can advise what specifications match your design temperatures.

Frequently Asked Questions

Is the £7,500 Boiler Upgrade Scheme grant still available in 2026?

For eligible properties in England and Wales, the scheme continues to offer up to £7,500 towards an air source heat pump or a ground source heat pump, with the application handled by an MCS certified installer.

Does the £2,500 air to air incentive cover the whole system cost?

No. It is a contribution toward installation, and you still need to budget for the rest of the system, electrical work, and a separate hot water solution because air to air systems do not heat domestic hot water.

How much does a heat pump cost after grants in 2026?

Understanding the true heat pump costs and savings potential depends on the property and the work required. Many air source heat pump installations land in the £7,000 to £13,500 band before support, then eligible households in England and Wales can reduce that with the £7,500 voucher.

Can a heat pump improve my EPC rating?

It can, especially when paired with insulation, good controls, and correctly sized emitters. EPC scoring can sometimes behave oddly with heat pumps, so it is worth checking expected impacts with an assessor if the EPC band is important for a sale or rental plan.

What support is available in Scotland?

Scotland offers routes that can include grant funding and financing, including an interest free loan up to £10,000 in certain warmer homes support pathways, subject to eligibility and checks.

A final word before you book an installer

Heat pumps in 2026 sit in a practical middle ground. Grants can take a serious bite out of the upfront cost, installer standards are clearer thanks to MCS requirements, and more households now have neighbours or friends who can share real feedback about comfort and running costs. The upgrade still deserves careful planning, because the biggest wins come from matching the system to your home's heat loss, your hot water needs, and your budget for any radiator or insulation improvements.

A simple next step helps. Gather two or three detailed quotes that include a room by room heat loss calculation, ask each installer how they handle grant applications, then compare like for like, because the most reassuring price is the one that is backed by clear design numbers and a commissioning plan.

If you want to move forward, book a home survey with an MCS certified installer and ask for a written breakdown of net cost after grants, expected running costs, and any optional upgrades that could lift comfort and EPC performance. Before committing to a specific installer, it is worth researching whether heat pump grants remain worthwhile for your particular circumstances and exploring the practical aspects of claiming your £7,500 support.