Air Source Heat Pump Grants 2026: What You Can and Cannot Claim

What to know first

This summary covers the 2026 Boiler Upgrade Scheme (BUS) amounts, main exclusions and installer-led process.

“Air source heat pump grant” now covers two technologies. Air-to-water systems heat water for radiators or underfloor heating. Air-to-air systems warm rooms through indoor units and normally need separate hot-water provision.

As at 24 July 2026, eligibility also depends on the property, old heating, proposed design, earlier public funding, equipment ownership and application timing. Ofgem, the scheme administrator, confirms the outcome after assessing the evidence submitted by the installer.

Which air source heat pump grants are available in 2026?

The Boiler Upgrade Scheme is open in England and Wales. It makes a fixed contribution rather than paying the whole installation bill.

The table is a starting point. The installer must check the detailed technical rules and Ofgem makes the scheme decision.

The grant amounts, residential restriction and whole-system requirements come from Ofgem’s July 2026 guidance.

The £9,000 uplift does not cover air-to-air systems. It is limited to eligible air-to-water or ground-source systems at qualifying off-gas properties. Self-builds cannot receive the uplift, although some may qualify for £7,500.

The quote must show the price before funding, the grant and the remaining balance. The installer applies and redeems the voucher; the owner provides consent and completes any identity checks.

For the temporary uplift, “properly made” means Ofgem has all required information and the owner has completed consent and identity verification. Merely starting an application before 31 March 2027 is not enough.

Who may qualify for BUS?

The scheme is for property owners. This can include owner-occupiers, private landlords, second-home owners and organisations. Air-to-air support is residential only, and landlords must inform tenants.

The old heating must normally be fossil fuel, such as gas, oil or LPG, or an electric system that does not include a heat pump. An existing heat pump cannot normally be replaced using BUS.

Fossil-fuel heating must be fully replaced. Some non-fossil supplementary heating is allowed under rules applying from 28 April 2026, but the BUS-funded heat pump must meet the full space-heating demand. The combined system must also cover domestic hot water.

This is important for air-to-air installations, which usually do not heat tap water. A single-room air-conditioning quote should not be assumed eligible: the scheme requires a whole-property design.

Expert insight

“BUS eligibility has three linked tests: the owner and property, the heating being removed and the complete system being installed. Passing one test does not guarantee the others.”

Giles Crosse

Energy Editor

Experienced editor, journalist and communications consultant specialising in consumer energy and low carbon technologies.

• Editor and campaign author for Shell, EDF Energy and Good Energy.
• Consultant to the United Nations and contributor to the World Economic Forum.
• Journalist for Reuters, the BBC, The Economist and The Guardian.

More about Giles Crosse

Ofgem confirms eligibility only after assessing the full installer submission. It does not provide pre-approval from a general enquiry or an initial reading of the rules.

What is excluded from an air source heat pump grant?

Common exclusions include:

• a previous BUS grant redeemed at the same address;

• an existing heat pump being replaced;

• retaining gas, oil or another fossil-fuel system as backup;

• a fossil-fuel hybrid heat pump;

• social housing, including shared ownership;

• most developer-built new homes;

• air-to-air systems in non-residential property;

• public funding towards the same heat-pump purchase or installation; and

• finance where a third party remains the legal owner of the heat pump.

These exclusions are set out across Ofgem’s current property, technology, public-funding and ownership rules.

Previous support for a different measure is not automatically a problem. GOV.UK says funding for work such as insulation can be compatible with BUS.

Good to know

Tell the installer about every funded measure at the address. An insulation grant and public funding for the proposed heat pump are treated differently.

New-build status needs care. Ofgem says certain self-builds can qualify. GOV.UK also says a finished new build with a fossil-fuel boiler may be able to receive support. The installer should confirm the property’s classification before a contract relies on the grant.

The owner must become the legal owner of the installed equipment. Hire purchase, conditional sale and consumer hire are ineligible where ownership stays with a third party. Some payment plans or unsecured loans may be compatible if ownership passes to the property owner.

How does the installer-led application work?

1. Choose an installer. The installer must be certified under the Microgeneration Certification Scheme (MCS) for the relevant technology.

2. Have the property assessed. The installer should complete heat-loss and bill-impact assessments, then explain the system and any upgrades. A valid Energy Performance Certificate is no longer mandatory for applications properly made from 28 April 2026; alternative evidence may be needed without one.

3. Agree an itemised quote. It must show the full price, BUS deduction and balance. The installer must not ask for the discounted grant amount upfront.

4. The installer applies. Ofgem contacts the owner for consent and identity checks. The normal online consent period is 14 days.

5. The installer completes the work. Air-to-water and air-to-air vouchers normally last three months. A delay may require a fresh application and consent.

6. The installer redeems the voucher. After the system has been installed, tested and signed off, Ofgem assesses the evidence and, if successful, pays the installer.

Retrospective applications can be possible within 120 days of commissioning, but Ofgem says installers proceed at their own risk because funding is not guaranteed.

Good to know

Ofgem consent does not create or change the installation contract. Check what the contract says about rejection, revocation or voucher expiry, including who could owe the deducted amount.

How much might you still have to pay?

Energy Saving Trust’s February 2026 benchmark is about £11,000 for an air source heat pump in a semi-detached home before funding. It is an average, not a fixed market price.

The quote may include radiator or pipework changes, a hot-water cylinder, controls, electrical work or useful insulation. Ask the installer to separate essential design work from optional improvements.

Energy Saving Trust gives air-to-air examples of about £1,900 for one room and £3,700 for a three-bedroom semi-detached home. These prices do not prove BUS eligibility, because the funded design must heat the whole property and deal with hot water.

Qualifying heat-pump installations in residential accommodation are zero-rated for value added tax (VAT) until 31 March 2027. That is tax treatment, not another cash grant.

A grant does not guarantee lower bills. Running costs depend on the old heating, tariffs, heat loss, system design, controls and household use.

How can you reduce risk?

Check the installer’s MCS status and approved consumer-code membership. Keep the quote, contract, design, invoice, payment records, warranty and MCS certificate. Installation or conduct complaints should start with the installer, then MCS or the relevant consumer code where appropriate.

A property-specific assessment is more useful than a generic online check. An independent energy assessor can help compare designs, while a freeholder, managing agent or relevant authority may need to be consulted where separate property consent is uncertain.

What support applies elsewhere in the UK?

BUS applies only in England and Wales. Scotland’s Home Energy Scotland Grant and Loan offers eligible owner-occupiers up to £7,500 grant support for qualifying water-based heat pumps, with a £1,500 rural uplift and optional loan funding, subject to separate rules and available funds.

BUS does not apply in Northern Ireland. NI Energy Advice provides free, impartial grant signposting and renewable-heating information; current schemes should be checked directly.

Key takeaways

• Air-to-water and air-to-air systems have different grant amounts and conditions.

• The installer receives the grant; the owner gets an upfront discount.

• The temporary £9,000 rate is limited to qualifying off-gas oil or LPG replacements.

• Existing heat-pump replacements, fossil hybrids and double-funded installations are excluded.

• Property and equipment ownership both matter.

• BUS does not guarantee suitability, approval, lower bills or full funding.

Frequently asked questions