Interest in renewable heating systems, such as air source heat pumps, across the UK is significantly growing. But many homeowners begin by asking the same question: what financial help can I receive to lower the cost of a new heat pump installation?
There are a few different ways in which the up-front cost of an air source heat pump in the South West, including Government grants such as the £7,500 Boiler Upgrade Scheme – which increases to £9,000 for properties solely reliant on oil or LPG -, 0% VAT and installer specific finance schemes, such as Sustain’s Easy Pay Scheme.
What Heat Pump Grants Are Available in the UK in 2026?
As part of the Government’s Warm Homes Plan, you could take advantage of the UK’s £7,500 BUS voucher scheme to reduce the cost of your air source heat pump install. It’s important to understand your eligibility for the scheme, including your property type and the most efficient system design.
£7,500 Boiler Upgrade Scheme Grant for Air Source Heat Pumps
The Boiler Upgrade Scheme is part of the Government’s Warm Homes Plan to provide financial support to homeowners across the UK, including the South West, when looking to reduce their reliance on fossil fuels when heating their home. The grant is installer-led, meaning you don’t need to apply or receive the money directly. Instead, as your MCS accredited (Microgeneration Certification Scheme) installer, we will handle the paperwork for you, so the grant is deducted directly from your installation bill, saving you time and administrative hassle.
For a standard air source or ground source heat pump, you can receive a grant of £7,500 to help make the switch to renewable heating more affordable from the beginning. The scheme is only available for homeowners who are replacing an existing fossil fuel boiler or traditional electric heating system and cannot be claimed for replacing an older heat pump. Heat pumps are a popular choice for many homeowners when switching to renewable heating systems, due to their efficiency and suitability for a wide range of properties.
£9,000 Heat Pump Grant for Homes Replacing Oil or LPG Heating
In July 2026, the Government announced an uplift to the existing BUS Voucher scheme, topping up the originally amount of £7,500 up to £9,000 for properties that are currently reliant on heating oil or LPG.
The £9,000 grant works under similar conditions to its original predecessor, available for homeowners who are swapping their boilers for a new heat pump system, except this grant is specifically for eligible off-gird properties. It’s expected for this temporary uplift to run until 31st March 2027.
Future £2,500 Grant for Air-to-Air Heat Pumps
If your home isn’t suitable for wet central heating systems – radiators and pipes – you can still benefit from switching to a renewable heating system such as an air-to-air heat pump. The government has approved a £2,500 grant for air-to-air heat pumps under the Boiler Upgrade Scheme but it isn’t yet possible to claim it – MCS certification for installers hasn’t gone live, so no installations currently qualify. We’ll update this once that changes.
Air-to-air heat pumps work similarly to a fixed air conditioning unit, taking warmth from the outside air and blowing it directly in your home via wall mounted units. Air-to-air systems are significantly more affordable to install as they do not require the same number of plumbing overhauls as a standard air source heat pump.
Who Is Eligible for the Boiler Upgrade Scheme?
Does Your Property Qualify?
- You may be wondering if your home is eligible for the Boiler Upgrade scheme. To be able to receive any of the Government’s financial grants for a heat pump system, your property must meet the following criteria:
- Your home must be in England or Wales
- Your home must be privately owned. (If you are renting, your landlord will be responsible for the install of a heat pump, and any subsequent financial grants. If you are a small / medium-sized business, you may also be eligible for the grants, subject to your business size, if the install is a retro-fit, and subsequent identity verification checks.)
- The thermal capacity of your heating system cannot exceed 45 kilowatt thermal, unless your installer determines you require a cascade set up, capped to 70kWth. (For clarity, this limit is extremely generous, with most 3 to 4 bedroom family homes only requiring up to a 12kW heat pump.)
There has also been an update in 2026 to Energy Performance Certificate (EPC) requirements. You no longer need to have a valid EPC to apply for the scheme, but we must provide alternative evidence such as a recent utility bill and photos of your old heating system on your behalf to Ofgem. If you do already have an active EPC, you also no longer have to clear any outstanding recommendations for cavity wall or loft insulation before you apply.
Why You Need an MCS-Certified Heat Pump Installer
If you’d like to benefit from the Boiler Upgrader Scheme funding to reduce the cost of your heat pump install, you must choose an installer who is officially certificated by the MCS. Your installer must also be registered with an approved trade consumer group, such as the Renewable Energy Consumer Code or the HIES Consumer Code. This is to ensure you have the reassurance of consumer protection, and confidence that your installer is committed to formal quality measures. We are proud members of the HIES consumer code, and are MCS accredited.
What Isn’t Covered by the Boiler Upgrade Scheme?
To ensure funding is allocated correctly, the Boiler Upgrade Scheme does include several exclusions across system designs and property characteristics. These are:
- Technologies and systems such as hybrid systems linked with a fossil fuel boiler, solar thermal to heat domestic hot water and hydrogen systems.
- Properties that are owned by local authorities or housing associations
- Traditional commercial or domestic new-build properties, unless they are self-builds
- Properties that already have an existing heat pump system
- Properties that in Scotland or Northern Ireland
If you are a low-income household, you could benefit from the Warm Homes Local Grant instead. This is a relief scheme that fully funds low-carbon heating installs up to £30,000 if you meet the criteria. Whilst there is no income limit to the Boiler Upgrade Scheme, the Warm Homes Local Grant is only available to households earning £36,000 a year or less, and in properties that have a poor EPC rating of D, E F or G. The Warm Homes Grant is managed entirely by local authorities and not the installers.
How Do You Apply for a Heat Pump Grant?
Step 1: Get a Quote From an MCS-Certified Installer
You can search for local approved professionals registered with MCS by using their official MCS Installer Finder. If choosing Sustain, we will visit your home to survey and confirm the most efficient system design for you. We ensure your design is tailored specifically to your property and household needs by undertaken an independent heat loss survey. We can then provide you with a quote to review, which will include the grant deduction of either £9,000, £7,500 or £2,500 depending on your system.
Step 2: Your Installer Applies for the Grant
Once the quote is approved and the design system confirmed, our admin team will log into the Ofgem BUS Portal and apply for the grant on your behalf.
Step 3: Complete the Ofgem Consent Process
To be able to receive approval for the grant, you must confirm to Ofgem that you are the property owner and you consent to the installation. Ofgem will reach out to you by email or letter to do so, you do not need to contact them first.
Step 4: Grant Approval and Installation
After Ofgem has issued the voucher, we will proceed with your installation. We then claim the funding directly from the Government.
How Does 0% VAT on Heat Pumps Work?
You may wonder if the benefit of 0% VAT on heat pumps is part of the BUS voucher. This isn’t the case – it’s separate. The 0% VAT rate on heat pumps is an incentive by the Government to help lower the upfront cost of renewable energy systems. There’s no additional application or paperwork. We simply apply the 0% tax rate directly to your invoice.
To qualify, we must both supply the equipment and install it – you cannot purchase the system separately and claim the 0% rate. Currently, the 0% VAT relief on heat pumps is only temporary and scheduled to run until 31st March 2027.
Can You Combine a Heat Pump Grant With 0% Finance?
We understand that the Boiler Upgrade Scheme doesn’t always fully cover the cost of your installation. That’s why, as an MCS-certified installer, we have partnered with reliable credit brokers to be able to offer our Easy Pay scheme – a finance option to pay off your balance for your new heat pump. So yes, you can benefit from the Government’s Boiler Upgrade Scheme grant of up to £9,000 – dependent on your property criteria – and finance the remaining install costs.
How Sustain’s Easy Pay Scheme Works
Easy Pay can be used for a range of our installations, including:
Once you have agreed upon your installation, you can complete a simple application for finance and often receive your decision within 24 hours. Approval is subject to credit assessment.
Once approved, you can pay your deposit and then finance your remaining cost of your heat pump across more manageable monthly payments.
Why It’s Important to Check the Latest Heat Pump Grant Figures
Heat pump grant amounts and eligibility have already changed during 2026, including the introduction of the £9,000 uplift for eligible oil and LPG properties and the new £2,500 air-to-air heat pump category. That means information you found even a few months ago may already be out of date.
Before making any decisions, it’s worth checking the latest scheme guidance and speaking to an MCS-certified installer who can confirm what support may be available for your property.
If you’re trying to work out what a heat pump could realistically cost after grants and finance, our team can help you understand the options available for your property. You can also read more about our Easy Pay Scheme and how it can work alongside the Boiler Upgrade Scheme.
Frequently Asked Questions About Heat Pump Grants and Finance
Can You Get More Than One Heat Pump Grant?
No, the Government’s Boiler Upgrade Scheme operates under a one-and-done rule, meaning you can only claim one voucher per property. This is to ensure public money isn’t double-funding projects.
Does the Boiler Upgrade Scheme Reduce the Cost Upfront?
Yes the scheme reduces the cost of your install upfront. The BUS Voucher is deducted from your quote immediately by your installer – you do not have to apply to be reimbursed.
Can You Get the Grant if Your Installer Isn’t MCS Certified?
No, to receive the BUS voucher, your installer must be MCS certified. To be able to use Ofgem’s online portal to apply for the voucher, installers must have a valid and active MCS registration number. Before signing any contracts or paying a deposit, always verify the company yourself. Do not just take their word for it. You can check their name directly on the official MCS Certified Installer Register.
Can You Get Finance as Well as the Boiler Upgrade Scheme?
Yes, you can combine finance with the Boiler Upgrade Scheme. The BUS voucher will be deducted from your quote immediately, and you can use finance schemes such as our Easy Pay scheme to break down the remaining balance into more manageable monthly payments.
Thinking About a Heat Pump? Find Out What Support You Could Receive
Not sure what support you might be eligible for? We can talk you through the options and help you understand the likely cost before you make any decisions. Simply get in touch via our contact form here.