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! £7,500 heat pump grants now available — check your eligibility
Updated March 20267 min read

Heat Pump Grants UK 2026: The £7,500 BUS Grant Explained

Everything you need to know about the Boiler Upgrade Scheme, ECO4, Warm Homes Plan, and other funding that can cut the cost of your heat pump by thousands.

Key Takeaways

£7,500 BUS grant for ASHP or GSHP
Your installer applies for you - no paperwork
Extended to March 2028
Combinable with 0% VAT and local grants

The Boiler Upgrade Scheme (BUS)

The BUS grant is the UK government's primary incentive for heat pump adoption. It provides a straightforward £7,500 discount on your heat pump installation, making the technology affordable for most homeowners.

Eligibility

  • England or Wales property
  • Currently on fossil fuel heating
  • Valid EPC (no loft/cavity recs)
  • MCS-certified installer

How it works

  1. Get quotes from MCS-certified installers
  2. Choose your installer and confirm
  3. Installer applies to Ofgem on your behalf
  4. Grant approved (typically 2-4 weeks)
  5. Installation completed
  6. You pay the balance (total minus £7,500)

Example: 3-bed semi-detached home

£10,000
ASHP installed
- £7,500
BUS grant
+ £0 VAT
0% VAT
= £2,500
You pay

ECO4 Scheme

Low-income households may qualify for fully funded heat pump installations under ECO4. Eligibility is based on receiving qualifying benefits (Universal Credit, Pension Credit, etc.) and having a property with an EPC rating of D or below. Contact your energy supplier to check.

Warm Homes Plan & Local Grants

Warm Homes Plan (England)

The government's Warm Homes Plan aims to upgrade 5 million homes by 2030. Grants of up to £15,000 are available for low-income households to install heat pumps and improve insulation. Check GOV.UK for the latest eligibility criteria.

Home Energy Scotland Loan

Scottish homeowners can get an interest-free loan of up to £7,500 for a heat pump, repayable over up to 10 years. This can be combined with the BUS grant equivalent in Scotland.

Nest Scheme (Wales)

Welsh households on qualifying benefits can receive free heat pump installations through the Nest scheme, in addition to the BUS grant.

Frequently Asked Questions

The Boiler Upgrade Scheme provides £7,500 towards the cost of an air source or ground source heat pump installation in England and Wales. The grant is deducted from your installer's invoice - you never pay the full amount.
You're eligible if your property is in England or Wales, currently heated by fossil fuel (gas, oil, LPG, or electric), has a valid EPC with no outstanding loft or cavity wall insulation recommendations, and the installation is carried out by an MCS-certified installer.
You don't apply directly. Your MCS-certified installer applies on your behalf through the Ofgem portal after completing a site survey. The grant is confirmed before installation begins and deducted from your final invoice.
Yes. You can combine the BUS grant with 0% VAT savings, the Home Upgrade Grant (HUG2) in some cases, local authority schemes, and the Warm Homes Plan. You cannot combine it with ECO4 for the same measure.
The Boiler Upgrade Scheme has been extended to at least March 2028. Budget has been increased to accommodate growing demand, but we recommend applying early as funding is allocated on a first-come, first-served basis.

Claim Your £7,500 Heat Pump Grant

Our MCS-certified installers handle the BUS grant application for you. Get up to 3 free quotes.

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