Heat Pump Grants & Funding
Government heat pump grants can substantially reduce the cost of changing the way your home is heated. In England and Wales, the main Boiler Upgrade Scheme currently provides £7,500 towards qualifying air-to-water and ground source heat pumps, £2,500 towards air-to-air heat pumps, and up to £9,000 for certain eligible off-gas-grid homes.
Heat pumps are one of the most significant technologies available to homeowners who want to reduce their reliance on conventional fossil-fuel heating.
They can also involve substantial upfront expenditure.
That makes grants and funding particularly important.
But before starting with the question:
“How much heat pump grant can I get?”
there is an even more important question:
“Is a heat pump the right next improvement for my home?”
A £7,500 government grant can make a good heat-pump project considerably more attractive.
It does not automatically make every house suitable for a heat pump.
That is why APN Green Homes considers funding as one part of the wider Green Home Blueprint.
Every home is different. Your green home plan should be too.
Are there government grants for heat pumps?
Yes.
For homeowners in England and Wales, the main government heat pump grant is the Boiler Upgrade Scheme, usually abbreviated to BUS.
Current grant levels are:
£7,500 towards an air-to-water air source heat pump
£7,500 towards a ground source or water source heat pump
£2,500 towards an air-to-air heat pump
and, temporarily:
£9,000 towards qualifying air-to-water or ground source heat pumps in certain off-gas-grid properties.
The £9,000 level is currently available until 31 March 2027 where the qualifying property has no mains gas connection and is replacing oil or LPG heating.
What is the Boiler Upgrade Scheme?
The Boiler Upgrade Scheme is a government programme designed to reduce the upfront cost of installing low-carbon heating.
Unlike some household energy grants, the standard BUS grant is primarily based on the property and heating-system eligibility rather than a low-income test. The property owner must meet the scheme requirements, and the existing system being replaced must qualify under the rules.
The scheme is administered by Ofgem and is installer-led, meaning the homeowner does not normally apply directly for the grant themselves.
How much is the air source heat pump grant?
The current air source heat pump grant is £7,500 for a qualifying air-to-water system in England or Wales.
This is the type of heat pump most people mean when they talk about a conventional domestic air source heat pump.
An external unit extracts heat from the outside air and transfers it into a wet central-heating system, typically supplying radiators or underfloor heating and usually domestic hot water.
The £7,500 grant can have a major effect on the homeowner's actual investment.
For illustration, if a qualifying installation cost £12,000 before the BUS contribution, a £7,500 grant would leave £4,500 of that headline installation cost to be funded by the homeowner.
Actual project costs vary considerably and can also include associated heating-system alterations, so individual quotations still matter.
Can you now get a grant for an air-to-air heat pump?
Yes.
This is one of the most important recent changes.
Residential air-to-air heat pumps became eligible under the Boiler Upgrade Scheme in 2026, with a current grant of £2,500.
This opens the scheme to a different type of technology.
An air-to-air heat pump transfers heat directly into the rooms through indoor units rather than heating water for conventional radiators.
Importantly, many systems can also operate in reverse and provide cooling during hot weather.
That makes them particularly interesting for homes where both winter heating and summer overheating need to be considered.
Why the £2,500 air-to-air grant is significant
Air-to-air technology can suit different homes from conventional air-to-water heat pumps.
It may be worth investigating for properties such as:
flats,
smaller homes,
highly insulated properties,
loft rooms,
home offices,
homes experiencing summer overheating,
or properties where conventional wet central heating is not necessarily the preferred solution.
The grant does not mean air-to-air is automatically preferable.
It means homeowners now have another subsidised technology that can form part of an individual Green Home Blueprint.
How much is the ground source heat pump grant?
The standard ground source heat pump grant is currently £7,500 in England and Wales. Water source heat pumps and qualifying systems using shared ground loops are included within the current grant category.
Ground source systems collect heat through pipes installed in the ground rather than extracting it from outside air.
They can offer excellent performance but usually involve considerably more installation work than a conventional air source system.
That means the grant is only one part of the financial assessment.
The property needs:
sufficient land or appropriate borehole opportunities,
suitable installation access,
an appropriate heating system,
and a project budget capable of supporting the remaining installation cost.
Can you get a £9,000 heat pump grant?
Some homeowners can.
Until March 2027, an additional £1,500 is available for qualifying air-to-water or ground source heat pumps where both of the following apply:
the property has no mains gas connection, and
the existing heating uses oil or LPG.
This increases the normal £7,500 grant to £9,000.
The increased grant became available from 21 July 2026 and is particularly aimed at helping suitable rural and off-gas-grid homes move away from oil and LPG heating.
Why the £9,000 grant could be particularly valuable
Off-gas properties are often among the most interesting candidates for heating electrification.
A rural household may currently rely on:
oil,
LPG,
or another relatively expensive delivered fuel.
If that heating system is approaching replacement anyway, the homeowner is not deciding between:
spend nothing
and
buy a heat pump.
They are choosing between competing ways of replacing an existing heating system.
A £9,000 government contribution can therefore fundamentally alter the financial comparison.
Is there a £9,000 air-to-air heat pump grant?
No.
The enhanced £9,000 grant applies to qualifying air-to-water or ground source heat pumps in eligible off-gas-grid properties.
The current Boiler Upgrade Scheme grant for an eligible residential air-to-air heat pump remains £2,500.
That distinction is worth making clear because the different forms of “air source heat pump” can easily cause confusion.
Who qualifies for the Boiler Upgrade Scheme?
Current eligibility includes property owners who are replacing a qualifying existing heating system. Owners can include people applying for their home, a second home, a rental property or certain business properties.
There are exclusions.
Most developer-built new-build properties and social housing are not eligible, and a property cannot normally receive BUS support where government funding has already been provided for a heat pump or biomass boiler.
The precise installation and product must also satisfy the scheme standards.
Do landlords qualify for a heat pump government grant?
Potentially, yes.
The Boiler Upgrade Scheme eligibility rules expressly allow an owner to apply in respect of a property they rent to tenants, provided the property and installation meet the scheme requirements.
That could become increasingly relevant to landlords considering the long-term energy performance of rental property.
But the same principle applies:
funding should support a technically appropriate improvement rather than determine the improvement.
Do you need to be on benefits to get the £7,500 heat pump grant?
The standard Boiler Upgrade Scheme eligibility rules do not impose the low-income or benefits criteria used by some other home-energy programmes. Instead, the key requirements concern ownership, the property and the heating system being replaced.
That makes BUS very different from programmes specifically targeting low-income households.
There may, however, be additional funding schemes available to households that do meet income, benefit or property-efficiency criteria.
How do you apply for the heat pump grant?
The Boiler Upgrade Scheme is deliberately designed so that the installer deals with most of the administration.
The process normally involves finding a suitable MCS-certified installer, obtaining quotations, confirming eligibility and agreeing the installation.
The chosen installer then applies for the grant through Ofgem on your behalf.
The value of the grant is deducted from the amount you pay and should appear on the quotation and invoice.
This means the homeowner should not normally be expected to pay the whole installation price and then wait for the government to reimburse £7,500 later.
Use an MCS-certified installer
The government directs homeowners using the Boiler Upgrade Scheme towards MCS-certified installers, and the installation needs to comply with the relevant BUS and MCS requirements.
This is important when comparing quotations.
A cheaper installation that cannot access the grant could ultimately cost considerably more than an eligible installation.
Can you get more than one Boiler Upgrade Scheme grant?
The current government guidance states that you can receive one grant per property under the scheme.
That makes technology selection important.
For example, the existence of a £2,500 air-to-air grant should not automatically cause a homeowner to choose that option if their longer-term plan suggests a £7,500 air-to-water system would provide a better whole-home heating solution.
The grant should be considered as part of the strategy, rather than in isolation.
Can you get a grant for a hybrid heat pump?
Not through the current Boiler Upgrade Scheme.
Government guidance specifically excludes hybrid heat-pump systems, such as a heat pump combined with a gas boiler, from the current BUS grant.
That does not mean hybrid heating can never be technically useful.
It simply means homeowners should not assume the £7,500 government heat pump grant applies to it.
Can you replace an existing heat pump using the grant?
Generally not.
Current BUS guidance says the scheme cannot be used to replace an existing low-carbon heating system.
The programme is primarily intended to support the transition away from existing qualifying heating systems towards low-carbon heating.
Warm Homes: Local Grant
The Boiler Upgrade Scheme is not the only route to heat-pump funding.
In England, qualifying lower-income households may also be able to receive heat-pump improvements through the Warm Homes: Local Grant.
The scheme applies to qualifying privately owned homes with EPC ratings of D, E, F or G. Household income normally needs to be £36,000 per year or less, although certain postcode and benefits routes can provide alternative eligibility.
Where the household qualifies and local funding is available, the council arranges a home survey and may recommend measures including:
air source heat pumps,
insulation,
smart controls,
and solar panels.
For agreed owner-occupier improvements, the local authority organises and pays for the work.
Could some homeowners therefore get a heat pump fully funded?
Potentially, yes.
That is very different from the standard £7,500 Boiler Upgrade Scheme.
Warm Homes: Local Grant is targeted funding based on household and property eligibility. For an eligible owner-occupier, approved improvements can be organised and paid for through the local programme.
For somebody who potentially qualifies, this should be investigated before committing personal money to a heat-pump installation.
Heat pump grants in Scotland
Scotland has a separate funding system.
The Home Energy Scotland Grant and Loan currently provides homeowners with up to £7,500 grant funding for eligible heat pumps, together with the possibility of an additional £7,500 interest-free loan.
Qualifying rural and island properties can receive an enhanced grant, with current Home Energy Scotland terms allowing heat-pump grant funding of up to £9,000 for households that qualify for the rural uplift.
Home Energy Scotland states that applicants do not have to be receiving benefits to qualify for its mainstream Grant and Loan programme, although the property must meet the scheme requirements.
Additional Scottish support
Scotland also operates Warmer Homes Scotland, aimed at eligible households struggling with energy costs.
The programme can provide energy-saving home improvements worth £10,000 or more, with the measures selected following assessment of the individual property.
This is another example of why a generic search for “heat pump subsidy” may not reveal the full support available to an individual household.
Location and household circumstances matter.
Heat pump grants in Wales
Homeowners in Wales can use the Boiler Upgrade Scheme, including the current £7,500 standard heat-pump grant and the enhanced £9,000 level for qualifying off-gas-grid oil or LPG properties.
Wales also operates the Nest Warm Homes Programme, which can provide a tailored package of free home-energy improvements to eligible households; that package can include a heat pump where appropriate.
For homeowners financing wider retrofit themselves, Green Homes Wales also currently offers interest-free finance for eligible energy improvements, including air source and ground source heat pumps, subject to its application, affordability and technical requirements.
Heat pump funding in Northern Ireland
Northern Ireland does not use the Boiler Upgrade Scheme that applies in England and Wales.
Its energy-efficiency support is delivered through separate Northern Ireland programmes, including the Affordable Warmth Scheme for qualifying households, so homeowners should check the current NI-specific funding position before assuming an English, Welsh or Scottish grant applies.
This is why APN Green Homes treats location as part of the funding assessment.
Heat pumps currently benefit from 0% VAT
Government support is not limited to grants.
Installed qualifying energy-saving materials currently receive a 0% VAT rate until 31 March 2027, including:
air source heat pumps,
ground source heat pumps,
and water source heat pumps.
Under the current legislation, the temporary zero rate is scheduled to revert to a reduced 5% VAT rate from 1 April 2027.
This can represent a meaningful additional saving on the installed cost.
A heat pump grant does not tell you whether a heat pump will save money
This distinction is important.
The grant helps reduce the capital cost of installing the system.
Running costs depend on an entirely different set of factors, including:
heat-pump efficiency,
building heat loss,
flow temperatures,
heating-system design,
electricity tariffs,
and how the household operates the system.
A heavily subsidised but badly designed heat pump can still perform poorly.
The design of the system matters just as much as the funding.
Should you insulate before applying for a heat pump grant?
The answer depends on the home.
Major obvious heat-loss problems should certainly be understood before the heating system is designed.
Improving the building fabric can potentially:
reduce heating demand,
allow lower flow temperatures,
reduce the required heat-pump capacity,
and improve comfort.
But that does not mean every house needs every possible insulation improvement before a heat pump can be considered.
The sensible approach is to understand the building and then decide which improvements are worthwhile.
Grants can change the best order to upgrade your home
Imagine a homeowner has £10,000 available.
Without funding, they may plan:
insulation first → solar later → heat pump several years from now.
But suppose the boiler is already failing and the homeowner qualifies for a £7,500 heat-pump grant.
The better sequence might become:
targeted insulation → grant-supported heat pump → solar later.
For an eligible off-gas home receiving £9,000, the financial argument could change even more.
This is why funding should be assessed before the Green Home Blueprint is finalised.
Do not replace a good heating system simply because a grant exists
A government subsidy should never become the sole reason for carrying out work.
Suppose a homeowner has:
a relatively new boiler,
poor loft insulation,
excellent solar potential,
and plans to purchase an EV.
The fact that a heat-pump grant exists does not necessarily mean the heat pump should come first.
The stronger immediate investment could still be:
insulation,
solar,
or other improvements.
When the existing heating system eventually requires replacement, the heat pump can then be reconsidered.
Funding should improve a good decision. It should not create the decision.
On the other hand, do not automatically replace an old boiler with another boiler
The reverse also applies.
If an ageing heating system needs replacing anyway, this is exactly the point at which the homeowner should investigate:
air-to-water heat pumps,
ground source heat pumps,
air-to-air heat pumps,
available government funding,
and future electricity requirements.
Once another conventional heating system has been installed, the opportunity may not arise again for many years.
Consider the homeowner's actual additional cost
This is one of the most useful ways to think about a heat-pump grant.
Suppose a conventional replacement heating system would cost several thousand pounds anyway.
The relevant comparison is not necessarily:
£0 versus £12,000 heat pump.
It may be closer to:
cost of replacing the existing system
versus
cost of the heat pump after the government grant.
That can make the additional investment involved in moving to low-carbon heating much smaller than the headline heat-pump price suggests.
Consider solar alongside a heat pump
A heat pump increases household electricity consumption.
That makes solar increasingly interesting because some of the electricity used by the heating system can potentially be generated at home.
The generation pattern does not perfectly match winter heating demand, so solar will not simply make a heat pump “free to run”.
But when planning the whole home, it makes sense to consider:
heat pump + solar
rather than viewing each technology completely independently.
Battery storage may also become relevant
A home with:
solar,
heat pump,
time-of-use electricity tariff,
and significant evening demand
may eventually have a much stronger case for battery storage than the same property had before electrifying its heating.
This is another reason the Green Home Blueprint needs to look ahead.
Today's heat-pump decision can influence tomorrow's:
solar system,
battery,
tariff,
and electrical infrastructure.
Air-to-air heat pumps have introduced another possibility
The £2,500 air-to-air heat pump grant is particularly interesting because it brings heating and cooling into the same conversation.
For some homes, especially those experiencing increasing summer overheating, the homeowner may now compare:
a traditional heating replacement,
air-to-water heating,
conventional air conditioning,
or an air-to-air heat pump capable of both heating and cooling.
That is a much more sophisticated decision than simply replacing one boiler with another.
Check planning before ordering the system
Heat pumps can benefit from permitted-development rights in many circumstances, but planning requirements still depend on factors such as the type of system, property, installation position and whether the building is protected.
The grant does not override planning law.
Likewise, listed buildings, conservation areas and unusual installations may require additional consideration.
Funding approval and planning approval are separate issues.
Get several quotations
The existence of a £7,500 grant can sometimes make it tempting to concentrate only on the amount left to pay.
Instead, compare:
the full installation price,
grant deducted,
equipment specification,
heat-loss assessment,
radiator changes,
hot-water provision,
controls,
warranty,
commissioning,
and expected system performance.
A grant is valuable.
It should not make homeowners less careful about what they are buying.
Beware of “free heat pump” advertising
Some households can genuinely receive fully funded improvements through targeted schemes such as Warm Homes: Local Grant.
But that does not mean every homeowner qualifies for a free heat pump.
A commercial advert using phrases such as:
government heat pump grant
or
free government heat pump
should always be checked against the actual scheme being offered.
The safest approach is to establish:
which government scheme applies,
how much it pays,
what the eligibility criteria are,
and who administers it.
What if you do not qualify for a heat pump grant?
That does not automatically mean a heat pump is financially unattractive.
It means the economics need to be considered without that particular subsidy.
Other possibilities may include:
local funding,
green finance,
mortgage-linked products,
interest-free programmes in particular parts of the UK,
or simply timing the installation to coincide with the point when the existing heating system needs replacing.
Sometimes the strongest financial decision is to prepare now and install later.
The grant is only one part of the Green Home Blueprint
A good heating decision should consider the entire property.
That includes:
building fabric,
insulation,
windows,
ventilation,
existing heating,
hot water,
solar potential,
battery storage,
EV charging,
future electricity tariffs,
available budget,
and the homeowner's future plans.
A heat pump is not an isolated appliance.
It becomes part of the home's future energy system.
Desktop Green Home Assessment
The APN Desktop Green Home Assessment can consider heat-pump grants and funding as part of a wider whole-home assessment.
We can look at questions such as:
Is a heat pump worth investigating for this home?
Does the existing heating need replacing?
What type of heat pump might deserve further consideration?
Are there obvious fabric improvements to address?
Could the property potentially qualify for funding?
Would solar complement the future heating strategy?
Should the project happen now, next or later?
The objective is to create a practical Green Home Blueprint, rather than starting with whichever technology happens to have the largest grant.
Desktop Green Home Assessment — £495 + VAT
Available nationwide.
Comprehensive Green Home Survey
Where the property would benefit from physical inspection, the Comprehensive Green Home Survey provides our more detailed on-site service.
This allows us to consider the building, heating system, potential equipment positions and wider improvement opportunities before developing the Green Home Blueprint.
Comprehensive Green Home Survey — from £895 + VAT.
So, how much heat pump grant can you get?
As of August 2026, the main position is:
£7,500 towards a qualifying air-to-water air source heat pump in England and Wales.
£7,500 towards a qualifying ground or water source heat pump.
£2,500 towards a qualifying residential air-to-air heat pump.
£9,000 towards qualifying air-to-water or ground source heat pumps in certain off-gas-grid homes replacing oil or LPG heating, currently available until March 2027.
Eligible lower-income households may also have access to additional fully funded improvements through programmes such as England's Warm Homes: Local Grant.
Scotland has its own grant and interest-free loan programme, while Wales combines BUS with additional Welsh schemes such as Nest and Green Homes Wales.
And qualifying installed heat pumps currently benefit from 0% VAT until 31 March 2027.
The government funding can be substantial.
But the biggest question remains:
Is a heat pump the right investment for your particular home, and is now the right time to install it?
Every home is different. Your green home plan should be too.
APN Green Homes creates a practical blueprint for improving your home using today's energy-saving and low-carbon technologies — prioritised around your property, your budget, available funding and your future plans.
Understand the home. Check the funding. Create the blueprint. Then invest.
NEXT STEPS
Every home is different, so the right next step depends on your property, your budget and what you want to achieve. APN Green Homes can help you turn the information you have just read into a practical plan for your own home. Whether you are considering one improvement or looking at a complete whole-home energy upgrade, we can help you understand what is suitable, what should be prioritised and where your money is likely to make the greatest difference.
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Your greener, more efficient home starts with understanding the right improvements for your property — and putting them in the right order.