Can oil and LPG homes qualify for the new £9,000 heat pump grant?

What to know first

These points explain who the temporary £9,000 grant is aimed at and the main exceptions.

Yes, some homes heated by oil or LPG can qualify for the new £9,000 Boiler Upgrade Scheme grant. The higher rate applies only when the property, old heating, new technology and application meet all the rules.

“Rural” is not a formal test for this uplift. What matters is Ofgem’s definition of off the gas grid and whether the heat pump replaces oil or LPG heating. This article reflects rules checked on 24 July 2026.

What changed on 21 July 2026?

The usual grant for an air-to-water or ground-source heat pump is £7,500. From 21 July 2026, it rose to £9,000 for eligible off-gas-grid properties replacing oil or LPG. The uplift is due to remain until 31 March 2027.

An air-to-water heat pump transfers heat from outside air into water for radiators, underfloor heating and usually hot-water storage. Air-to-air systems warm rooms by moving heated air and receive £2,500, not £9,000.

Could your oil or LPG property qualify?

Use this flowchart as a starting point. The installer submits the application, but Ofgem decides the grant.

Self-builds may qualify for the standard heat-pump grant, but current Ofgem guidance excludes them from the £9,000 uplift. A property failing only the uplift test may still qualify for £7,500.

Good to know

A disconnected-looking gas supply may still fail the test. Ofgem counts capped or clamped meter points, and a current meter-point record, as mains-gas connections.

What evidence may Ofgem ask for?

A valid Energy Performance Certificate may help show that the property and old heating meet the rules. Without one, evidence can include a recent utility bill or fuel receipt and photographs of the existing system. Ofgem may request other documents.

Ofgem’s July 2026 guidance says:

The installer cannot simply select £9,000.

Keep recent oil or LPG receipts, clear heating-equipment photographs and information about any old gas connection. These records can support an application but do not guarantee approval.

What does the 31 March 2027 deadline mean?

The £9,000 uplift formally runs from 21 July 2026 to 31 March 2027. Grant changes are applied according to the date an application is “properly made”.

That means Ofgem has the information it needs, any requested evidence has been supplied and the owner has confirmed consent. The installer’s first online submission may not be the decisive date.

Expert insight

“The cautious practical reading is to allow time for consent and evidence checks before 31 March 2027. This is editorial interpretation, not a separate official cut-off.”

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

After issue, an air-to-water voucher normally lasts three months and a ground-source voucher six months. For a project close to the deadline, confirm the dates with the installer and Ofgem.

How does the application work?

1. Get quotations. Compare Microgeneration Certification Scheme-certified installers, designs, included work, warranties and total price. Energy Saving Trust recommends at least three quotations.

2. Have the property assessed. The installer should examine heat loss, system size, radiators, hot-water storage, electrical supply and outdoor siting. A proper heat-load calculation helps determine the heating requirement of each room.

3. Agree the quotation. The full grant must be shown as an upfront deduction on the quotation and invoice.

4. The installer applies. You do not claim the money directly.

5. Confirm consent. Ofgem contacts you and may reject the application if you do not respond within 14 calendar days. Grant consent is separate from your contract with the installer.

6. Wait for the voucher. Ofgem recommends that installers do not commission the system before issue because eligibility is not yet confirmed.

7. Complete and certify the work. The installer finishes within the voucher period, creates the Microgeneration Certification Scheme certificate and asks Ofgem to redeem the voucher.

A quotation, deposit or consent email is not proof of approval. Check in writing what happens to a deposit if the voucher is refused or expires. Retain the contract, system design, warranties and complaints route. Government guidance also advises consumers not to accept pressure to sign immediately.

How much might you still have to pay?

Energy Saving Trust states:

The actual quotation depends on the home, heat-pump size and any radiator upgrades.

As a simple illustration, £12,000 less a £9,000 grant leaves £3,000. This is not an individual estimate. Radiators, pipework, a hot-water cylinder, electrical work, controls or planning-related work can change the total.

Check that the quotation covers a complete working system. Ofgem requires submitted quote figures to include equipment, labour and associated costs, although a provisional quotation can still change.

Good to know

Qualifying heat-pump installations in residential accommodation are subject to 0% VAT until 31 March 2027. Ask how VAT is treated if the contract includes work outside the qualifying installation.

Will a heat pump lower an oil or LPG household’s bills?

Not necessarily. Running costs depend on heat loss, system design, radiator size, controls, electricity tariff, heat-pump performance and the cost and efficiency of the old heating system.

Energy Saving Trust says a heat pump on a standard electricity tariff can cost slightly more than a new oil boiler in some circumstances. A time-of-use tariff may improve the comparison, but results vary. Ask for a property-specific estimate and the assumptions behind it.

A room-by-room heat-loss calculation helps size the heat pump and radiators. The installer should also explain the proposed flow temperature — the temperature of water moving through the heating system — and the controls.

Many domestic installations fall under permitted development, but exceptions apply. England and Wales have different rules. Check with the local planning authority, especially for listed buildings, conservation areas or constrained sites, and obtain any property consent needed.

What if the property does not qualify for £9,000?

It may still qualify for £7,500 for an air-to-water or ground-source heat pump. Air-to-air receives £2,500. Grants cannot fund a fossil-fuel hybrid or replace an existing low-carbon heating system.

The Boiler Upgrade Scheme covers England and Wales. Scotland uses the Home Energy Scotland Grant and Loan, while Northern Ireland households should check current support with NI Energy Advice.

Key takeaways

• Eligible off-gas-grid oil and LPG properties can receive £9,000 for air-to-water or ground-source heat pumps.

• The temporary rate runs from 21 July 2026 to 31 March 2027.

• A capped gas connection or meter-point record can fail the off-gas test.

• Ofgem decides the rate from the evidence supplied.

• The installer applies and deducts the grant from the quotation and invoice.

• The grant does not guarantee approval, suitability, lower bills or a particular final price.

Frequently asked questions