--- title: "UK heat pump grants: funding and savings" description: "Heat pump grant: Get £7,500 for air or ground source heat pumps, or £9,000 from 21 July 2026 if converting from oil/LPG. Learn how to claim yours." url: "https://www.fuseenergy.com/blog/heat-pump-grant" updated: "2026-10-07" --- # UK heat pump grants: funding and savings Securing a heat pump grant can significantly reduce the upfront cost of installing an energy-efficient heating system in your home. This guide breaks down the primary government support available, particularly the Boiler Upgrade Scheme, and explains how you can maximise your investment for long-term savings. ## Understanding UK heat pump grants Heat pump grants are government-backed initiatives designed to encourage homeowners to switch from fossil fuel heating systems to more sustainable, low-carbon alternatives. These grants aim to make heat pumps more affordable, helping the UK move towards its net-zero targets. ### The Boiler Upgrade Scheme explained The Boiler Upgrade Scheme (BUS) is the main government grant for heat pump installations in England and Wales. It's a key part of the UK's strategy to encourage the adoption of low-carbon heating systems, helping homeowners reduce their carbon footprint and energy bills. The scheme supports the installation of air source heat pumps and ground source heat pumps.^[1] ### How much can you get? Under the BUS, homeowners in England and Wales can receive a substantial grant towards the cost of a new heat pump. The standard grant offers £7,500 for both air source and ground source heat pumps. For households converting from oil or LPG heating, an uplifted grant of £9,000 has been available since 21 July 2026, providing even greater financial support for those making the switch from high-carbon fuels. This government grant for heat pump installations directly reduces the overall cost of upgrading your home heating system. ## Eligibility for heat pump grants To qualify for a heat pump grant, specific criteria must be met regarding your property, the heating system being installed, and the installer carrying out the work. Understanding these requirements is crucial for any homeowner considering a heat pump. ### Property and system requirements The BUS is available for properties in England and Wales. Your property must have an eligible heating system, typically replacing a fossil fuel boiler (gas, oil, or LPG). New build properties are generally not eligible, nor are properties that have already received government funding for a heat pump or biomass boiler. The grant heat pump must be capable of meeting the property's full heating and hot water demand. ### Installer Certification (MCS) A critical requirement for all BUS applications is that your heat pump must be installed by an MCS-certified installer. The Microgeneration Certification Scheme (MCS) is an industry-led quality assurance scheme that certifies low-carbon products and installers. This ensures that your heat pump installation meets high standards of quality and performance, and without an MCS-certified installer, your application for a heat pump grant will not be successful. ## Applying for the Boiler Upgrade Scheme The application process for the BUS is designed to be straightforward for homeowners, as the responsibility primarily lies with the installer. ### The installer's role You do not apply directly for the BUS yourself. Instead, your chosen MCS-certified installer handles the entire application process on your behalf. They will submit the application for the heat pump grant and deduct the grant amount directly from your installation quote. This means you only pay the reduced cost, simplifying the financial aspect of your heat pump installation. ### What happens next? Once your installer has applied for the BUS grant, Ofgem, the energy regulator overseeing the scheme, will contact you directly. They will ask for your consent to the installer's grant application. This step is a crucial safeguard to ensure you are aware of and agree to the grant being claimed for your installation. After your consent is confirmed, the process continues, leading to the installation of your new heat pump. > **Who applies for the BUS grant?** > > The MCS-certified installer applies for the BUS grant on behalf of the homeowner. Homeowners do not apply directly themselves. Ofgem then contacts the homeowner to confirm their consent to the application, ensuring transparency and agreement before the grant is processed and deducted from the installation cost. ## Regional heat pump grants and other support While the BUS is the primary heat pump grant UK-wide for England and Wales, other regional and local initiatives may offer additional support. ### Grants in Scotland For homeowners in Scotland, specific schemes are available to support the installation of heat pumps. Home Energy Scotland, backed by the Scottish Government, offers grants and interest-free loans for various energy-efficient home improvements, including air source heat pump grants and ground source heat pump grants. Homeowners can receive up to £7,500 as a grant for clean heating systems, with an additional £7,500 available as an optional interest-free loan. Increased grant funding is also available for rural and island homes. You can apply by contacting Home Energy Scotland directly. ### Local authority and other schemes Beyond national and devolved government schemes, some local authorities or energy companies may offer their own grants or support programmes for heat pump installations. It's always worth checking with your local council or current energy supplier for any additional heat pump government grant opportunities that might be available in your area. These can sometimes complement the larger schemes, providing further reductions in installation costs. ## Maximising your heat pump's efficiency and savings Once your heat pump is installed, the journey to energy efficiency and cost savings continues. Optimising its operation is key to fully realising the benefits of your investment. ### Smart tariffs and energy management Heat pumps, particularly air source heat pumps, are incredibly efficient. They can achieve efficiencies of 300% or more, meaning they produce at least 3 kWh of heat for every 1 kWh of electricity consumed. To make the most of this efficiency, smart energy tariffs are invaluable. These tariffs offer cheaper electricity during off-peak hours, allowing you to run your heat pump when energy is less expensive. By programming your heat pump to operate during these times, you can significantly reduce your running costs. Fuse Energy's smart tariffs are designed to empower homeowners with heat pumps, enabling them to use more energy for heating without the fear of high bills. With an average UK home using around 2,500 kWh of electricity per year, optimising heat pump usage with smart tariffs can lead to substantial savings. Our energy management tools allow you to control your energy consumption, ensuring you get the most out of your heat pump and your tariff. ### Long-term benefits of a heat pump home Beyond the initial heat pump grant, the long-term benefits of installing a heat pump are considerable. You'll enjoy a more comfortable home with consistent heating, reduced carbon emissions, and potentially lower energy bills, especially when paired with smart tariffs. A heat pump home is a future-proof home, aligning with modern energy efficiency standards and contributing to a greener environment. Switch to Fuse Energy and discover how our smart tariffs can help you make the most of your heat pump. We provide the tools and tariffs to optimise your running costs, giving you greater control over your energy usage and maximising your investment in a sustainable home. Find out more about our mission to make energy abundant and affordable [here](https://www.fuseenergy.com/mission). ## Conclusion and next steps UK heat pump grants, particularly the BUS, offer a fantastic opportunity for homeowners in England and Wales to reduce the cost of installing a low-carbon heating system. Remember that an MCS-certified installer will handle the application for the government heat pump grant on your behalf, and Ofgem will contact you for consent. For those in Scotland, Home Energy Scotland provides grants and interest-free loans to support heat pump installations. Once your heat pump is installed, optimising its running costs through smart tariffs and energy management will ensure you reap the full financial and environmental benefits. By taking advantage of these grants and smart energy solutions, you can make a significant step towards a more sustainable and cost-effective home. ### References 1. UK Government. [Boiler Upgrade Scheme (BUS): apply for a grant](https://www.gov.uk/apply-boiler-upgrade-scheme) --- Rates, availability, and regional off-peak windows change. Check the source page for current terms. **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.