Heat Pump Funding Guide

The Boiler Upgrade Scheme offers £7,500 towards an air source or ground source heat pump in England and Wales, or £9,000 for eligible off-gas-grid homes heated by oil or LPG

UK Energy Partnership is run by Harber Glaves Trading Ltd. We are not a government body and cannot decide who gets funding. Check eligibility with the official scheme. Last reviewed September 2026.

£7,500

BUS grant for air or ground source heat pumps

£9,000

Off-gas-grid homes heated by oil or LPG, until 31 March 2027

0% VAT

On installed heat pumps until 31 March 2027, then 5%

The Complete Process

From checking eligibility to installation and running your heat pump

Step 1: Check BUS Eligibility

The Boiler Upgrade Scheme (BUS) runs to 2030 and gives one grant per property: £7,500 for an air source or ground source heat pump (£9,000 in eligible off-gas-grid homes), £5,000 for a biomass boiler or £2,500 for an air-to-air heat pump. You are likely to be eligible if:

You own the property in England or Wales, including a second home or a home you let
You are replacing fossil fuel or electric heating, such as gas, oil, LPG or electric
Your installer is MCS certified
No EPC and no income test are needed

Hybrid heat pumps, most new builds, social housing and homes that have already had government funding for a heat pump are not eligible.

Check Full BUS Criteria on GOV.UK

Step 2: Get Quotes from MCS Installers

Only MCS-certified installers can apply for the BUS grant on your behalf. Get more than one quote, and check each installer on the MCS register.

What quotes should include:

Heat loss survey results
Heat pump model and capacity
Breakdown of installation costs
BUS grant taken off the price (£7,500 or £9,000)
Final cost after the grant
Warranty information

Request Quotes

Step 3: Installer Applies for BUS Grant

Your chosen MCS-certified installer applies to Ofgem, which runs the scheme, for the grant.

Grant Process:

Installer applies to Ofgem
Ofgem checks the application
Installer fits and commissions the heat pump within 120 days of applying
Installer claims the grant

Important: Since 28 April 2026, installers must take the grant off your price upfront, so you pay only the balance.

Step 4: Check Other Help in England

Lower-income households may be able to get a heat pump through another scheme instead. You cannot also claim BUS for a home that has already had government funding for a heat pump.

Warm Homes: Local Grant

Run by councils in England, and can include an air source heat pump. For privately owned homes rated EPC D to G, where household income is usually £36,000 or less (or you get certain benefits or live in certain postcodes). Owner-occupiers do not pay; landlords may need to contribute. Apply on GOV.UK

ECO4 (ends 31 December 2026)

For eligible households through energy suppliers or councils. ECO4 is not a grant scheme: work may be fully or partly funded, and you may be asked to contribute. Ofgem ECO guidance

Government-backed loans

Low and zero-interest loans have been announced under the £15 billion Warm Homes Plan, and lenders are being signed up.

Step 5: Installation

Your installer fits the system. Ask for a timetable before work starts.

Heat pump and outdoor unit or ground loop installed
Hot water cylinder fitted, if needed
Controls set up
System commissioned
You are shown how to use it

Step 6: Run It Efficiently

A heat pump typically produces about three units of heat for every unit of electricity it uses (Energy Saving Trust).

Running costs depend on your home and tariff

On a standard tariff, a heat pump can cost slightly more to run than a new gas boiler. It is more likely to save money when replacing LPG or electric storage heaters.

Ask suppliers about heat pump tariffs
Keep your MCS certificate and paperwork
Improve insulation to lower running costs

Scotland, Wales and Northern Ireland

Scotland: Home Energy Scotland

BUS does not cover Scotland. Homeowners can get a Home Energy Scotland grant of up to £7,500 for a heat pump, plus an optional interest-free loan of up to £7,500, with a £1,500 uplift for rural and island homes. Hybrid heat pumps are not eligible.

Wales: Warm Homes Nest

BUS covers Wales. The Welsh Government Warm Homes Nest scheme offers free energy efficiency improvements, which could include a heat pump, to homeowners and private tenants on a means-tested benefit or low income, in homes with a low energy rating.

Northern Ireland: Affordable Warmth

BUS does not cover Northern Ireland. The Affordable Warmth Scheme helps lower-income owner-occupiers and private tenants, and is due to be replaced by the Warm Healthy Homes Fund from April 2027. Check current limits with NI Energy Advice on 0800 111 4455.

Typical Cost After the Grant

Air source heat pump

Median installed cost:£12,908

BUS grant:-£7,500

Left to pay:£5,408

Estimate your own costs →

Ground source heat pump

Median installed cost:£27,232

BUS grant:-£7,500

Left to pay:£19,732

Estimate your own costs →

Medians are for Boiler Upgrade Scheme installs in April to June 2026. With the £9,000 off-gas-grid grant, they would leave £3,908 and £18,232 to pay. The Energy Saving Trust puts typical costs at around £12,000 for air source, and around £15,000 for ground source with the loop in trenches. Your price depends on a survey. Typical costs, last reviewed September 2026. Sources: DESNZ Boiler Upgrade Scheme statistics, July 2026; Energy Saving Trust (July 2026 prices).

Official Resources & Links

GOV.UK: Apply for BUS

Official Boiler Upgrade Scheme eligibility and grant information

Ofgem: BUS Scheme Details

Scheme information from Ofgem, which runs the scheme

MCS: Find an Installer

Check whether a heat pump installer is MCS certified

Energy Saving Trust: Air Source Heat Pumps

Independent advice on heat pump costs and savings

Ready to Compare Heat Pump Quotes?

Tell us about your home and Better Home Hub can introduce installers who cover your area. Sending an enquiry is free. Only MCS-certified installers can apply for the BUS grant, so check before you agree a quote.

Request Heat Pump Quotes