Heat Pump Grants Explained: Who Qualifies and How to Apply in 2026

What to know first

Here are some of the most important things to understand before deciding whether you could benefit from a heat pump grant.

Introduction

Changes to the Boiler Upgrade Scheme from 21 July 2026 created three headline grant levels. Most eligible air-to-water and ground source installations remain at £7,500. A temporary £9,000 grant applies only to certain off-gas properties replacing oil or LPG, while the £2,500 air-to-air grant is approved but not yet practically available.

Which amount applies depends on the system being installed, the heating it will replace, whether the property meets Ofgem’s off-gas definition and when the application is properly made. The scheme is installer-led, so an MCS-certified installer applies to Ofgem on the owner’s behalf.

Which 2026 heat pump grant applies?

Use this table as a starting point. The final amount depends on the full scheme rules, and Ofgem decides eligibility after an MCS-certified installer submits the application.

A separate £5,000 biomass boiler grant remains available in restricted circumstances, generally involving certain rural properties not connected to the gas grid.

Who qualifies for the temporary £9,000 grant?

The £9,000 grant is not a general increase for every heat pump. It applies where all the central conditions are met:

• the property is in England or Wales;

• it is not fuelled by mains gas and has no record of an existing gas meter point;

• it is not connected to a heat network;

• it is not a new-build property;

• the existing heating system uses oil or LPG;

• the proposed installation is an eligible air-to-water or ground source heat pump; and

• the application is properly made between 21 July 2026 and 31 March 2027.

Good to know

A capped or clamped mains-gas supply can still prevent a property from qualifying for the uplift. Ask the installer to check the property’s gas meter-point record before relying on the £9,000 amount.

Ofgem considers a voucher application “properly made” only when it has all the information needed to assess eligibility and the owner has completed consent and identity verification. If Ofgem asks for further evidence, the application is not properly made until that information is supplied. A quotation, deposit, installer appointment or partly completed application does not secure the temporary grant.

Expert insight

“Treat 31 March 2027 as the deadline for a complete, properly made application—not the date to start seeking quotations. Delays with consent, identity checks or supporting evidence could affect eligibility for the temporary uplift.”

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

Is the £2,500 air-to-air grant available?

Ofgem lists a £2,500 Boiler Upgrade Scheme grant for eligible residential air-to-air heat pumps. However, practical access was not yet available when this article was reviewed.

MCS also stated that no installers were currently certified for air-to-air heat pumps. The grant should therefore be described as approved but not yet practically claimable. Check the live Ofgem and MCS position before signing a contract that assumes the grant will be available.

Air-to-air eligibility is also narrower than simply buying a wall-mounted unit. The funded heat pump must be sized to meet the property’s full space-heating requirement, while the overall installation must address hot-water demand through an eligible low-carbon arrangement. A single-room heating and cooling unit will not automatically meet those whole-property requirements.

Who is eligible for the Boiler Upgrade Scheme?

The scheme is open to owners of eligible residential and non-residential properties in England and Wales. This includes businesses, second homes and properties rented to tenants. Air-to-air funding is residential only. Social housing, shared-ownership properties, most new builds and properties that have already received public funding for the same heat pump or biomass installation are excluded.

The new system must replace fossil-fuel or electric heating. It cannot replace an existing low-carbon heating system. A hybrid installation that keeps a fossil-fuel boiler as part of the new heating system is not eligible, although permitted non-fossil supplementary heating may be used where the rules are met.

How does the application process work?

The scheme is installer-led:

1. Get several itemised quotations from MCS-certified installers who are certified for the exact technology being proposed.

2. Choose an installer and agree a quotation. The full grant should appear as an upfront discount.

3. The installer submits the voucher application to Ofgem on the property owner’s behalf.

4. Complete Ofgem’s consent, eligibility and identity-verification steps promptly. Ofgem may reject the application if the required confirmation is not received within 14 calendar days.

5. If the application is approved, the installer completes the work, obtains the required certification and redeems the voucher.

Ofgem states:

Once the application is approved, the installer generally has three months to complete an air-to-water, air-to-air or biomass installation, and six months for a ground source installation. If the voucher expires, the installer must submit a new application and the property owner must confirm consent again.

Confirming consent to Ofgem does not itself commit the owner to that installer. The separate contract should explain cancellation terms, deposits, warranties and what happens if the grant is rejected, revoked or expires.

Costs, performance and risks

Energy Saving Trust gives indicative installation costs of around £12,000 for an air-to-water heat pump and around £15,000 for a ground source system, potentially rising much further where boreholes are required. Its air-to-air research gives estimates of approximately £1,900 for a single-room system and £3,700 for a three-bedroom semi-detached home, although these examples may not represent a complete BUS-eligible whole-home installation.

Actual quotations may also include a hot-water cylinder, larger radiators, pipework, electrical work, controls, groundworks or insulation measures. Ask installers to identify each item and show the grant separately.

Heat pumps use electricity to move heat rather than generate it directly, but lower bills are not guaranteed. Running costs depend on the property’s heat loss, system design, flow temperature, controls, electricity tariff and the heating being replaced. Ask each installer for a property-specific performance estimate rather than relying on a generic saving figure.

Obtain at least three MCS quotations where practicable. Ask for the room-by-room heat-loss calculation, expected seasonal performance, proposed flow temperature, noise and siting assessment, and details of the installer’s consumer protection code.

Also ask whether the installation needs planning permission, listed-building or freeholder consent, or notification to the distribution network operator, known as the DNO. Confirm in writing which checks, notifications and applications the installer will handle.

Good to know

Ofgem says 0% VAT applies to the installation of qualifying energy-saving materials, including heat pumps, until 31 March 2027. This is separate from the £9,000 grant deadline.

Alternatives and support elsewhere in the UK

The Boiler Upgrade Scheme applies only in England and Wales. In Scotland, the Home Energy Scotland Grant and Loan currently offers eligible homeowners grant funding for heat pumps, with an additional rural and island uplift and optional interest-free lending. In Northern Ireland, the Housing Executive’s NI Energy Advice service can explain current grants and energy-efficiency support.

Some households may qualify for other support instead of, or alongside consideration of, BUS. Examples include the Warm Homes: Local Grant in England and the Welsh Government’s Nest scheme. These programmes have separate household, property and funding rules, so eligibility should be checked directly with the relevant scheme.

Depending on the property, alternatives may include a ground source system, qualifying biomass heating, fabric improvements before replacing the heating system, or retaining a safe and serviceable existing system until a planned replacement. A qualified assessor should consider the building, heat loss, hot-water use, available space and electrical supply.

Key takeaways

• £7,500 is the standard grant for eligible air-to-water and ground or water source heat pumps.

• £9,000 is temporary and applies only to qualifying off-gas properties replacing oil or LPG with an air-to-water or ground source heat pump.

• The £9,000 application must be properly made between 21 July 2026 and 31 March 2027.

• Air-to-air systems do not receive the off-gas uplift.

• The £2,500 air-to-air grant is approved, but it was not yet practically available on 22 July 2026.

• Compare the complete installation cost, expected performance and contract terms rather than considering the grant alone.

Frequently asked questions