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If you’re thinking about installing a heat pump and making the switch to greener heating, you could be eligible for significant financial help towards the upfront cost. The UK government's Boiler Upgrade Scheme has recently been expanded — and from 21 July 2026, some households can now access a grant of up to £9,000.
Here's everything you need to know about what's available, who's eligible, and how to apply.
What grants are available for heat pump installation in the UK?
There are two main government grant schemes available depending on where you live.
Homeowners in England and Wales can apply for the Boiler Upgrade Scheme (BUS), administered by Ofgem on behalf of the UK government. Homeowners in Scotland can apply for the Home Energy Scotland Grant and Loan Scheme, funded by the Scottish Government.
What is the Boiler Upgrade Scheme?
The Boiler Upgrade Scheme was launched by the UK government to make it more affordable to switch from fossil fuel heating to low carbon alternatives. It offers a one-off grant paid directly to your installer, reducing what you pay upfront.
The scheme covers air source heat pumps, ground source heat pumps, and biomass boilers for some off-grid properties. It replaced the Renewable Heat Incentive, which ended in 2022, and is currently funded until 2028.
How much is the Boiler Upgrade Scheme grant?
The standard grant is £7,500 for an air to water heat pump — the type that heats your home through radiators or underfloor heating and provides hot water. This applies to homes replacing a gas boiler or other fossil fuel heating system.
From 21 July 2026, homes currently heated by oil or LPG are eligible for an increased grant of £9,000. This uplift is a temporary measure running until 31 March 2027, designed to accelerate the switch away from the most carbon-intensive heating fuels.
A separate grant of £2,500 is available for air to air heat pumps, which heat and cool your home but do not provide hot water. This was added to the scheme in January 2026.
Who is eligible for the Boiler Upgrade Scheme?
You may be eligible if:
- You are replacing a fossil fuel heating system with a heat pump
- You own the property you are applying for — this includes second homes and some rental properties
- The property is in England or Wales
From April 2026, the EPC insulation condition was removed entirely. You no longer need to have no outstanding insulation recommendations on your EPC before applying. This opens the scheme to a significantly wider group of homeowners than before.
Homes that are not eligible
Some properties cannot receive BUS funding, including:
- Homes that have already received government funding for a heat pump or biomass boiler
- Social housing
- Most new build properties, unless you have moved into a finished new build that already has a fossil fuel heating system
For full eligibility criteria, check the government website.
Is the Boiler Upgrade Scheme still available in 2026?
Yes. The Boiler Upgrade Scheme is fully open and available until 2028. From 21 July 2026, the increased £9,000 grant for oil and LPG homes is also available, running until 31 March 2027.
How do I apply for the Boiler Upgrade Scheme?
You do not need to apply directly. If you get a heat pump installed through OVO, your installer handles the entire BUS application on your behalf. Once your heat pump is up and running and the application is approved, the grant is issued as a voucher to your installer and deducted from your total cost. You never need to handle the grant yourself.
If you're based in Northern Ireland, the BUS does not apply. Check the Energy Saving Trust for information on what funding is available to you.
What is the Home Energy Scotland Grant and Loan Scheme?
The Home Energy Scotland Grant and Loan Scheme is funded by the Scottish Government and provides financial support for homeowners in Scotland to install low carbon heating systems.
How much is the Home Energy Scotland grant?
The scheme offers a grant of up to £7,500 to cover the cost of installing an air source, ground source, or water source heat pump. An additional £7,500 is available as an optional interest free loan. Homeowners in rural or island locations can receive an additional £1,500 on top of the standard grant.
Who is eligible for the Home Energy Scotland grant?
You may be eligible if:
- You own the property and it is your primary private residence
- The property is an existing home in Scotland
- Your home has a valid Energy Performance Certificate
If your home does not have an EPC, you may be able to get one through an Energy Expert visit. For full terms and eligibility criteria, check the Home Energy Scotland website.
How do I apply for the Home Energy Scotland grant?
To apply, contact Home Energy Scotland directly and complete an online application form. Unlike the BUS, this scheme requires you to apply before your installation begins. Find out more and check eligibility on the Home Energy Scotland website.
Is the Home Energy Scotland scheme still available in 2026?
Yes. The scheme is still open and you can apply for funding in 2026.
Heat pump grants: at a glance
- England and Wales, replacing gas boiler: £7,500 BUS grant
- England and Wales, replacing oil or LPG (from 21 July 2026 to 31 March 2027): £9,000 BUS grant
- England and Wales, air to air heat pump: £2,500 BUS grant
- Scotland: up to £7,500 grant plus optional £7,500 interest free loan through Home Energy Scotland
- Scotland, rural or island homes: additional £1,500 available
Frequently asked questions
Can I get a heat pump grant if my EPC has insulation recommendations?
Yes. From April 2026 the EPC insulation condition was removed from the Boiler Upgrade Scheme. You can now apply even if your EPC recommends insulation improvements.
Do I need to apply for the BUS grant myself?
No. OVO handles the entire BUS application as part of your installation. The grant is applied as a discount to your total cost — you do not need to do anything separately.
Can I get both the BUS grant and the Home Energy Scotland grant?
No. The BUS applies to properties in England and Wales only. The Home Energy Scotland scheme applies to properties in Scotland only. You can only apply for the scheme relevant to where your property is located.
Will the Boiler Upgrade Scheme end?
The scheme is currently funded until 2028. The £9,000 uplift for oil and LPG homes is a temporary measure available until 31 March 2027. We recommend not waiting if you are considering a heat pump — grants are subject to funding availability and scheme terms can change.
Ready to find out if you're eligible?
Get your heat pump through OVO and we'll handle your BUS application from start to finish. You'll also unlock our free Heat Pump Plus add-on, which gives you a better electricity rate to power your heat pump for less.
Grant amounts correct at 1 July 2026. Eligibility criteria apply. For full terms check the government website for BUS or the Home Energy Scotland website for HES.