UK heat pump grants

UK heat pump grants
Published on 2 May 2026

Switching to a heat pump is a significant step towards a greener, more energy-efficient home, but the initial cost can feel like a barrier. Thankfully, the UK government offers various heat pump grants to help homeowners make this transition more affordable. These financial incentives are designed to encourage the adoption of low-carbon heating technologies, playing a crucial role in the nation's net-zero ambitions. Understanding what UK heat pump grants are available, how they work, and if you are eligible is key to unlocking these savings.

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What UK heat pump grants are available?

The primary financial support for heat pump installations in England and Wales comes from a flagship government initiative. This scheme aims to reduce the upfront cost of installing a new, efficient heating system.

The boiler upgrade scheme (BUS) explained

The Boiler Upgrade Scheme (BUS) is the main government heat pump grant for properties in England and Wales. It offers a substantial contribution towards the cost of installing a new, efficient heating system1. Under the BUS, homeowners can receive £7,500 off the cost of either an air source heat pump or a ground source heat pump. From July 2026 onwards, the BUS grant is being increased to £9,000 for homes using LPG. This grant scheme is designed to make renewable heating more accessible and is a significant incentive for those considering an upgrade. It is an excellent opportunity to reduce your carbon footprint while benefiting from a more efficient heating system.

Heat pump grants in Scotland

For homeowners in Scotland, there are specific heat pump grants available through the Home Energy Scotland Grant and Loan scheme. This scheme offers a grant of up to £7,500 for clean heating systems, including heat pumps, with an additional £7,500 available as an interest-free loan. Rural and island homes may be eligible for an extra £1,500 grant, increasing the total grant to £9,000. Unlike the BUS, the Home Energy Scotland scheme is homeowner-led, meaning you apply directly to Home Energy Scotland.

Heat pump grant eligibility and application process

To qualify for a government heat pump grant, there are a few key criteria your property and chosen installer must meet. Understanding these requirements is crucial before you begin your journey.

BUS eligibility criteria

For the Boiler Upgrade Scheme (BUS), your property must be in England or Wales. You must own the property, which can include homes or small business properties, and even self-builds (though new builds are generally not eligible). The grant is intended for replacing existing fossil fuel heating systems, such as gas or oil boilers, or electric heating systems without a heat pump; it does not cover replacements for existing low-carbon heating systems or hybrid systems. Your property also needs a valid Energy Performance Certificate (EPC) issued within the last 10 years. While there are no minimum insulation requirements for applications made after May 8, 2024, heat pumps perform best in well-insulated properties.

How to apply: your installer's role

The application process for the Boiler Upgrade Scheme is designed to be straightforward, as your chosen installer handles most of the paperwork. Once you have found an MCS (Microgeneration Certification Scheme) certified installer and agreed on a quote for your air source heat pump, they will apply for the grant on your behalf. The grant amount is then deducted directly from your total installation cost, meaning you only pay the reduced price. This simplifies the process, ensuring you benefit from the government grant for heat pumps without navigating complex forms yourself. Always ensure your installer is MCS certified, as this is a non-negotiable requirement for the grant.

Beyond the grant: managing your heat pump's running costs

While a heat pump grant significantly reduces the upfront investment, understanding and managing your heat pump's running costs is essential for long-term savings. Heat pumps are highly efficient, but their electricity consumption patterns can differ from traditional boilers. Optimising usage and monitoring your energy consumption can help you maximise the financial benefits.

Fuse Energy: your partner for heat pump financial clarity

Fuse Energy offers Vaillant aroTHERM plus air source heat pump installation and is certified to provide the Boiler Upgrade Scheme (BUS) grant. You can also pair your heat pump with the vaillant uniSTOR pure hot water cylinder. We handle the entire process, including planning approvals, Distribution Network Operator (DNO) applications, paperwork, installation, and final checks. Once your heat pump is installed and you are enjoying its benefits, Fuse Energy can help you gain unparalleled clarity over your energy usage and costs. With Fuse, you can:

Fuse Energy helps you move beyond the initial heat pump grant, providing the tools to truly understand and optimise your heat pump's running costs, ensuring you realise the long-term financial benefits of your investment.

Finding a certified heat pump installer

Finding the right installer is paramount for securing your heat pump grant and ensuring a high-quality installation. Always choose an MCS-certified installer. This certification guarantees that your installer meets high industry standards for competence and consumer protection, making them eligible to work with government grants for heat pumps like the BUS. You can find certified installers through the MCS website.

Take the stress out of managing your energy. With Fuse Energy, you get clear pricing, real-time usage data, and a modern energy experience designed around you. Switching takes as little as 3 minutes, so you can take control of your bills from day one. Click here to switch to Fuse Energy today and start saving. Find out about our mission by clicking here.

References

  1. Ofgem. Boiler Upgrade Scheme (BUS).

Disclaimer

For the avoidance of doubt, this article is provided for informational purposes only and is not intended to constitute legal or financial advice. The author and/or Fuse Energy shall not be responsible for any losses arising out of any reliance on the information contained herein.

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