Heat pump grants UK 2026 — Boiler Upgrade Scheme and alternatives

Heat Pump Grants UK 2026: Boiler Upgrade Scheme and Alternatives

Heat pump installations remain expensive, but government grants can reduce costs significantly. Several UK schemes support homeowners switching from gas boilers to electric heat pumps in 2026, with the Boiler Upgrade Scheme (BUS) providing the largest grants. Regional programmes in Scotland, Wales, and Northern Ireland offer additional support.

All grant schemes require installations by MCS-certified heat pump installers. Prices vary by location and installer, but grants can reduce upfront costs by thousands of pounds.

The Boiler Upgrade Scheme (BUS)

The Boiler Upgrade Scheme remains the UK's primary heat pump grant programme for England and Wales. Administered by Ofgem and funded by the Department for Energy Security and Net Zero, BUS provides fixed grants toward air source and ground source heat pump installations.

Current Grant Amounts

Based on the available data showing approximately 55,000 grants issued between April 2022 and mid-2025, the scheme continues to support heat pump adoption. However, specific grant amounts for 2026 are not detailed in the provided context, so homeowners should check current rates with MCS-certified installers.

Eligibility Requirements

To qualify for BUS grants, homeowners must meet several criteria:

  • Property must be in England or Wales
  • Installing heat pump to replace existing fossil fuel heating system
  • Heat pump must be installed by MCS-certified installer
  • Property must have adequate insulation standards
  • Heat pump system must meet minimum efficiency requirements
  • Installation must comply with permitted development rights or have planning permission

The scheme covers both air source heat pumps (which represent approximately 90% of installations) and ground source heat pumps (8-10% of installations).

How BUS Works

Unlike previous grant schemes, BUS operates through installers rather than direct homeowner applications. The installer applies for the grant on behalf of the homeowner and deducts the grant amount from the installation cost.

ECO4 Scheme for Heat Pumps

The Energy Company Obligation 4 (ECO4) scheme, running until March 2026, includes heat pump installations among its eligible measures. ECO4 targets low-income households and those in poorly insulated homes.

ECO4 Eligibility

ECO4 heat pump support is available to households that meet income or property criteria:

  • Recipients of qualifying benefits (Universal Credit, Pension Credit, Child Tax Credit, and others)
  • Households with combined annual income under specified thresholds
  • Properties with Energy Performance Certificate rating of D, E, F, or G
  • Social housing tenants may qualify through local authority referrals

Unlike BUS, ECO4 can fully fund heat pump installations for qualifying households, though funding is limited and allocated through energy suppliers.

Home Upgrade Grant (HUG2) for Off-Gas-Grid Homes

The Home Upgrade Grant supports homes not connected to the gas grid, making heat pumps particularly attractive as alternatives to oil, LPG, or electric heating systems.

HUG2 is administered by local authorities and typically combines heat pump installations with insulation upgrades. Eligibility focuses on low-income households in rural areas without gas connections.

Funding levels and availability vary by local authority. Homeowners should contact their council directly to check current HUG2 availability and eligibility criteria.

Scotland: Home Energy Scotland Grants and Loans

Scotland operates separate support schemes through Home Energy Scotland, offering both grants and interest-free loans for heat pump installations.

Scottish Heat Pump Support

Home Energy Scotland provides:

  • Cashback grants for air source heat pumps
  • Higher grants for ground source and water source heat pumps
  • Interest-free loans to cover remaining installation costs
  • Additional support for rural and island communities

The programme requires installations by MCS-certified contractors and may include energy efficiency assessments. Rural properties and those replacing oil or LPG heating typically receive higher grant levels.

Wales: Nest and Warm Homes Programmes

Wales operates the Nest scheme alongside the UK-wide Boiler Upgrade Scheme, providing additional support for Welsh households.

Nest Scheme

Nest supports low-income households with:

  • Free energy efficiency improvements including heat pumps
  • Advice and support throughout the installation process
  • Combination measures including insulation and heating upgrades

Eligibility depends on household income, benefit status, or referral from health or social services. The scheme operates through approved contractors and requires no upfront payment from qualifying households.

Warm Homes Programme

This demand-led scheme offers grants toward heating improvements, including heat pumps, for households not eligible for Nest but still requiring support with energy efficiency measures.

Northern Ireland: Grants Available

Northern Ireland offers renewable heat incentives and energy efficiency grants through various programmes administered by the Northern Ireland Housing Executive and other bodies.

The specific programmes and grant levels change regularly. Homeowners in Northern Ireland should check current schemes through the NI Direct website and consult local MCS-certified installers for the latest support options.

How to Apply for a Heat pump Grant: Step by Step

The application process varies by scheme, but most follow this general approach:

Step 1: Check Eligibility

Review the requirements for relevant schemes based on your location and circumstances. Consider income thresholds, property energy ratings, and existing heating systems.

Step 2: Find MCS-Certified Installers

All UK heat pump grant schemes require installation by MCS-certified contractors. Search our directory of certified heat pump installers to find qualified professionals in your area.

With 30 MCS-certified installers in our database covering locations across England, Scotland, and Wales, you can compare local options and request multiple quotes.

Step 3: Get Property Assessment

Most installers will conduct a heat loss assessment to determine the appropriate heat pump size and type. This assessment may identify required insulation upgrades before heat pump installation.

Step 4: Installer Handles Grant Application

For BUS and most other schemes, the installer submits the grant application on your behalf. They will need property details, EPC information, and confirmation of existing heating system.

Step 5: Installation and Certification

Once approved, the installer completes the work and provides MCS certification. The grant amount is typically deducted from your final bill.

MCS Certification Requirement

Microgeneration Certification Scheme (MCS) certification is mandatory for virtually all UK heat pump grants. This ensures installations meet quality and safety standards.

Why MCS Matters

MCS certification provides:

  • Quality assurance for equipment and installation
  • Consumer protection through insurance-backed warranties
  • Compliance with building regulations and planning requirements
  • Eligibility for government grants and incentives

Only MCS-certified heat pump installers can access grant schemes and issue the certificates required for Smart Export Guarantee payments if you later add solar panels.

Finding MCS Installers

Our installer database includes 30 MCS-certified professionals across the UK. Popular heat pump brands among certified installers include Daikin (15 installers), Vaillant (14 installers), and Saunier Duval (14 installers), ensuring access to quality equipment with manufacturer warranties.

Major cities with strong installer coverage include London (97 renewable energy installers), Bristol (6), Manchester (6), and Glasgow (5), though certified heat pump specialists operate throughout the UK.

Frequently Asked Questions

Can I combine different grant schemes?

Generally, you cannot stack grants from different schemes for the same heat pump installation. However, some schemes like ECO4 may combine heat pumps with other energy efficiency measures funded through the same programme.

Do I need planning permission for a heat pump?

Most air source heat pumps qualify as permitted development, but installations must meet specific requirements regarding noise levels, positioning, and property type. Ground source heat pumps typically require planning permission. Your MCS installer will advise on requirements.

What happens if my application is rejected?

If your grant application is declined, the installer should explain the reasons. Common issues include insufficient insulation, property type restrictions, or incomplete documentation. You may be able to reapply after addressing the issues.

How long do grants take to process?

Processing times vary by scheme and current demand. BUS applications typically take several weeks, while ECO4 and local authority schemes may take longer due to additional eligibility checks.

Are there grants for hybrid heat pump systems?

Some schemes support hybrid systems that combine heat pumps with gas boilers for peak demand periods. Check scheme rules carefully, as eligibility varies between programmes.

Can landlords apply for heat pump grants?

Most grants target owner-occupiers, but some schemes include rental properties. Social housing may qualify for ECO4 funding, while private landlords should check scheme-specific rules.

Given the complexity and frequent changes to grant schemes, we recommend consulting multiple MCS-certified installers to understand all available options. Search our directory of heat pump installers to find qualified professionals who can guide you through the grant application process and ensure your installation meets all requirements for maximum financial support.

Remember that grants and schemes change frequently, so always verify the latest information with installers and scheme administrators before making decisions.