Heat pump grants: what you need to know

The UK government offers grants to encourage homeowners to switch to low-carbon heating systems like heat pumps, making energy-efficient upgrades more accessible. These grants are a key step towards decarbonising home heating and reducing reliance on fossil fuels. In England and Wales, the Boiler Upgrade Scheme (BUS) provides a standard grant of £7,500 towards the cost of an air source or ground source heat pump. For households currently using heating oil or LPG, this grant increases to £9,000 from 21 July 2026. Scotland offers its own dedicated support through the Home Energy Scotland Grant and Loan scheme.

Understanding UK heat pump grants

What is a heat pump grant?

A heat pump grant is financial support provided by the government to help property owners cover part of the cost of installing a heat pump. This support aims to reduce the upfront expense of transitioning from traditional fossil fuel heating systems to more energy-efficient, low-carbon alternatives.

Why are grants available?

Grants are available to incentivise the adoption of heat pumps, which are crucial for meeting the UK's climate targets and reducing carbon emissions. By making these systems more affordable, the government encourages homeowners to move away from fossil fuels, contributing to a greener future and offering protection from volatile fossil fuel prices. The UK government aims to see 600,000 heat pumps installed per year by 2028 as part of its decarbonisation strategy.

Key schemes at a glance

In England and Wales, the primary grant mechanism is the BUS. Scotland has its own dedicated support through the Home Energy Scotland Grant and Loan scheme. These schemes are designed to reduce the upfront cost of installation, encouraging homeowners to switch to low-carbon heating systems.

The Boiler Upgrade Scheme (BUS) in England and Wales

The BUS is a government initiative administered by Ofgem, designed to help homeowners in England and Wales transition to low-carbon heating systems. The scheme is scheduled to run until 30 December 2029.

Grant amounts and what's covered

The BUS offers a standard grant of £7,500 for the installation of air source heat pumps and ground source heat pumps in England and Wales. From 21 July 2026, this grant increases to £9,000 for households replacing heating oil or liquefied petroleum gas (LPG) systems. This grant helps to offset the significant upfront cost of these systems, making them a more viable option for many households. The scheme also covers grants for biomass boilers, though the focus is primarily on heat pumps.

Eligibility criteria for BUS

To be eligible for the BUS, your property must meet specific requirements. Crucially, it needs a valid Energy Performance Certificate (EPC) with no outstanding recommendations for loft or cavity wall insulation. If your EPC recommends these insulation measures, you'll need to complete them before you can qualify for the grant. The property must also be in England or Wales and be an existing home or a custom-built new property.

The BUS application process: your installer applies

For the BUS, you do not apply directly as a homeowner. Instead, your Microgeneration Certification Scheme (MCS)-certified installer applies for the grant on your behalf. Once you've chosen an installer and agreed on a quote, they will handle the application process, and the grant value is then deducted directly from your installation quote. This means you only pay the reduced amount, simplifying the financial aspect of the upgrade. All heat pump installations under BUS must be carried out by an MCS-certified installer to ensure quality and compliance.

Home Energy Scotland grants and loans

Homeowners in Scotland have access to different support for heat pump installations through Home Energy Scotland.

Available funding for Scottish homeowners

Home Energy Scotland offers grants and interest-free loans for heat pumps, with specific amounts varying based on the system and household income. Standard grant funding of up to £7,500 is available for clean heating systems, with an additional £7,500 available as an optional interest-free loan. For rural and island homes not on the mains gas network, a non-repayable grant of £9,000 is available, along with an interest-free loan of up to £9,000. This support aims to make heat pumps more affordable for residents across Scotland.

Eligibility for Home Energy Scotland support

Eligibility for Home Energy Scotland grants and loans depends on various factors, including your property type, location, and household income. It's advisable to contact Home Energy Scotland directly to discuss your specific circumstances and understand what funding you might qualify for.

How to apply in Scotland

Unlike the BUS, homeowners in Scotland typically apply directly to Home Energy Scotland for grants and loans. Their advisors can guide you through the application process, help you understand the available options, and ensure you meet all necessary criteria.

General eligibility for heat pump grants

While specific criteria vary between schemes, some general requirements apply to most heat pump grants in the UK.

Property requirements

Most grant schemes target existing domestic properties. New builds may have different eligibility rules, and some grants might exclude them. The property's energy efficiency, often assessed via an EPC, is a common factor.

Installer certification (MCS)

A universal requirement for government-backed heat pump grants, particularly the BUS, is that the installation must be carried out by an MCS-certified installer. This certification ensures that the installer meets industry standards for competence and quality, providing assurance that your heat pump system will be installed correctly and efficiently.

EPC recommendations and insulation

For the BUS, a valid EPC is essential. Your property's EPC must not have any outstanding recommendations for loft or cavity wall insulation to be eligible. Addressing these basic insulation needs first ensures that your home retains heat effectively, maximising the efficiency of your new heat pump system.

Navigating the heat pump grant process

Understanding the steps involved can make the process of securing a heat pump grant much smoother.

Finding an MCS-certified installer

The first crucial step is to find an MCS-certified installer. You can search for accredited installers in your area through the MCS website. These professionals are qualified to install heat pumps and, for the BUS, are the ones who will apply for the grant on your behalf.

Getting quotes and understanding grant deduction

Once you have identified MCS-certified installers, obtain several quotes for your heat pump installation. Ensure that the quotes clearly state that the grant amount will be deducted from the total cost. This confirms that the installer will handle the grant application and pass the savings directly to you.

What happens after grant approval

After your installer applies for the BUS grant and it's approved, the installation can proceed. The grant amount is subtracted from your bill, and you pay the remaining balance. For Home Energy Scotland, once your grant or loan is approved, you'll receive the funds according to their specific terms, which you then use towards your installation costs.

Benefits of a heat pump with grant support

Installing a heat pump with grant support offers multiple advantages for homeowners.

Reduced upfront costs

The most immediate benefit is the significant reduction in upfront installation costs. Grants like the £7,500, or £9,000 for oil and LPG homes, from the BUS make advanced, low-carbon heating technology more accessible, removing a major financial barrier for many homeowners.

Lower carbon emissions and energy bills

Heat pumps are highly efficient, producing more heat energy than the electricity they consume. This efficiency translates to lower carbon emissions compared to traditional fossil fuel boilers, helping you reduce your environmental footprint. Over time, the operational efficiency of heat pumps can also lead to lower energy bills, especially as the cost of fossil fuels continues to fluctuate.

Increased home energy independence

By switching to a heat pump, you reduce your reliance on volatile fossil fuel markets. This move towards low-carbon heating systems, often powered by electricity that can be generated from renewable sources, gives you greater control over your home's energy future. It's a power play that empowers homeowners to take control of their energy future, aligning with a vision of abundant home energy and less dependence on external factors.