Heat pump grant: schemes explained

Switching to a heat pump is a smart move for your home's energy future, but the initial cost can be a barrier. Fortunately, government grants are available across the UK to make this transition more affordable, turning a significant investment into a strategic 'power play' for homeowners. These schemes reduce financial anxiety and empower you to take control of your energy usage, especially when combined with smart energy tariffs.

Understanding heat pump grants in the UK

Heat pump grants are financial incentives provided by the government to encourage homeowners to replace traditional fossil fuel heating systems with more energy-efficient, low-carbon alternatives like heat pumps.

What is a heat pump grant?

A heat pump grant is a non-repayable sum of money offered by the government to help cover part of the cost of installing a heat pump system in your home. These grants are designed to reduce the initial expense, making clean heating technology more accessible. They are contributions towards the total cost of installation, not a full subsidy.

Why are heat pump grants available?

Heat pump grants are available as part of the UK's broader strategy to reduce carbon emissions and achieve Net-Zero targets. By encouraging the adoption of low-carbon heating systems, the government aims to decrease reliance on fossil fuels, improve energy efficiency in homes, and lower long-term heating costs for residents. Heat pumps can significantly reduce a home's carbon emissions compared to traditional fossil fuel boilers.

The Boiler Upgrade Scheme (BUS)

The Boiler Upgrade Scheme (BUS) is the primary government initiative in England and Wales designed to help homeowners install low-carbon heating systems. It aims to make the switch to cleaner heating more affordable.

What is the BUS grant?

The BUS provides a grant of £7,500 towards the cost of installing an air source or ground source heat pump in eligible properties in England and Wales.1 This grant helps to offset the initial investment, making renewable heating a more viable option for many households. From 21 July 2026, an enhanced grant of £9,000 is available for qualifying off-gas-grid homes currently heated by oil or LPG, representing a 20% increase from the standard grant amount. The scheme is administered by Ofgem on behalf of the Department for Energy Security and Net Zero (DESNZ).

Eligibility criteria for BUS

To be eligible for the BUS, properties must have a valid Energy Performance Certificate (EPC) with no outstanding recommendations for loft or cavity wall insulation. The property must also be in England or Wales and be either an existing home or a custom-built property. The grant is primarily for replacing fossil fuel heating systems (such as oil, gas, or electric boilers) with a heat pump.

How to apply for the BUS grant

The BUS is installer-led, meaning your chosen MCS-certified installer applies for the grant on your behalf. The process typically involves these steps:

1. Check eligibility: Ensure your property meets the BUS criteria, including having a valid EPC with no outstanding insulation recommendations.
2. Find an MCS-certified installer: Obtain quotes from installers who are certified by the Microgeneration Certification Scheme (MCS). Installers must be MCS-certified to apply for the grant.
3. Installer applies for grant: Your chosen installer will apply for the grant on your behalf, deducting the grant amount from your quote.
4. Installation and registration: The installer completes the heat pump installation and registers it with MCS.
5. Grant payment: Ofgem processes the grant payment directly to the installer.

Regional heat pump grants

While the BUS covers England and Wales, separate grant schemes operate in Scotland and Northern Ireland to support the adoption of heat pumps.

Grants in Scotland

In Scotland, homeowners can access support through the Home Energy Scotland Grant and Loan. This scheme provides financial assistance to make homes warmer, more energy-efficient, and to reduce carbon emissions. It offers grants and optional interest-free loans for various home improvements, including heat pump installations. Grant funding of up to £7,500 is available for heat pumps, with an additional £7,500 available as an optional interest-free loan. Rural and island homes may receive an uplift of £1,500, potentially reaching up to £18,000 in grant funding. Homeowners should check the Home Energy Scotland website for the most current eligibility criteria and available funding.

Grants in Northern Ireland

Northern Ireland also has programmes aimed at encouraging energy efficiency and renewable heating. The Northern Ireland Sustainable Energy Programme (NISEP) provides funding for energy efficiency schemes for homes and businesses. NISEP can fund heat pump installations for some households, primarily focusing on lower-income households and prioritising insulation and heating controls. Northern Ireland does not currently have a dedicated heat pump grant like the BUS. The NISEP scheme runs from 1 April 2026 to 31 March 2027, or until funds are exhausted. A new Warm Healthy Homes Strategy, with a £150 million fund, is expected to provide funding from March 2027.

The benefits of a heat pump with grant support

Installing a heat pump with grant support offers multiple advantages, transforming your home's energy consumption and financial outlay.

Reducing upfront costs

The most immediate benefit of a heat pump grant is the significant reduction in the initial installation cost. Grants like the BUS provide a substantial contribution, making the transition to a low-carbon heating system more financially accessible. This eases the burden of a major home improvement, allowing more homeowners to invest in sustainable technology.

Long-term energy savings

Heat pumps are highly efficient, converting energy from the air or ground into heat for your home. This efficiency can lead to lower running costs compared to traditional fossil fuel boilers, especially when combined with smart energy tariffs. Over the lifespan of the system, these savings can be considerable, contributing to greater energy independence and control over your household budget. Accessing a heat pump grant is a strategic move that shifts control over home heating and long-term energy costs into the homeowner's hands.

Lowering your carbon footprint

By replacing a fossil fuel boiler with a heat pump, you significantly reduce your home's carbon emissions. This contributes to the UK's overall climate goals and helps combat climate change. Choosing a heat pump is an active step towards a more sustainable future, aligning your home with broader environmental efforts.

Choosing the right heat pump and installer

Making an informed decision about your heat pump system and installer is crucial for a successful installation and grant application.

Types of heat pumps

There are two main types of heat pumps eligible for grants:

• Air source heat pumps (ASHPs): These extract heat from the outside air, even in cold temperatures, and use it to heat your home and hot water. They are generally easier and less expensive to install than ground source systems.
• Ground source heat pumps (GSHPs): These draw heat from the ground through a network of buried pipes. While more complex to install, they can be highly efficient and offer stable performance throughout the year.

Finding an MCS-certified installer

To be eligible for schemes like the BUS, your heat pump must be installed by an MCS-certified installer. MCS certification ensures that installers meet high standards of quality and competence. It is essential to obtain quotes from several MCS-certified installers to compare costs and ensure you find a reputable professional for your project. Your chosen installer will play a key role in the grant application process.

Frequently asked questions about heat pump grants

Can I get a grant for an air-to-air heat pump?

The BUS currently provides grants for air source and ground source heat pumps, which typically heat water for radiators or underfloor heating. Eligibility for grants for air-to-air heat pumps (which primarily provide warm air directly) may vary, and homeowners should check the latest scheme guidelines from official sources.

Do I need an EPC for a heat pump grant?

Yes, to be eligible for the BUS, your property must have a valid EPC. Furthermore, your EPC must not have any outstanding recommendations for loft or cavity wall insulation. Addressing these insulation recommendations beforehand is often a prerequisite for grant approval.

How long does the grant application take?

The duration of the grant application process can vary. Since the application for the BUS is led by your installer, the timeline depends on their efficiency and how quickly they can submit the necessary documentation. Once the installation is complete and registered, Ofgem processes the payment to the installer. It is advisable to discuss expected timelines with your chosen MCS-certified installer.