Heat Pump Grants UK 2026.
BUS, explained.

If you've been quoted £12–£15k for an air source heat pump and assumed it was out of reach, stop. The UK Boiler Upgrade Scheme (BUS) is still running in 2026 and still pays up to £7,500 off an eligible install — deducted at the point of quote, not refunded months later. The catch isn't the money. It's the small print: MCS-certified installers only, EPC requirements, removal of the existing fossil-fuel boiler, and a few property-specific gotchas that catch people out. Below is the plain-English version, written by engineers who design and fit these systems every week across Kent and South East London.

What the Boiler Upgrade Scheme actually is

BUS is a UK government grant administered by Ofgem. It launched in 2022, was increased to £7,500 in late 2023, and has been extended through to 2028. It's designed to nudge households off gas, oil and LPG and onto low-carbon heating — specifically air source heat pumps, ground source heat pumps and (rarely) biomass boilers in qualifying off-gas-grid properties.

The structure is simple. Your MCS-certified installer prices the job, deducts the grant from the total, and claims it back from Ofgem on your behalf. You see a smaller invoice. You don't front the full amount and wait for a refund.

How much you actually get in 2026

Current grant levels under BUS, unchanged from late 2023:

• Air source heat pump (ASHP): £7,500
• Ground source heat pump (GSHP): £7,500
• Biomass boiler (off-grid rural properties only): £5,000

This is a flat contribution, not a percentage. A £14,000 ASHP install becomes a £6,500 install from your perspective. A £25,000 ground source install becomes £17,500. The grant doesn't scale with house size.

Who qualifies — and who doesn't

The headline eligibility rules in 2026:

• Property must be in England or Wales (Scotland has a separate scheme).
• You must own the property — or have permission from the freeholder for leasehold.
• The property must have a valid Energy Performance Certificate (EPC), generally less than 10 years old.
• The EPC must not list outstanding recommendations for loft or cavity wall insulation (unless exempt).
• The heat pump must replace a fossil-fuel system — gas, oil, LPG or electric, but not an existing heat pump.
• The installer must be MCS certified and the equipment listed on the MCS register.

The insulation trap

The biggest reason applications stall is the EPC insulation flag. If your EPC says "install loft insulation" or "install cavity wall insulation", you'll need to either do that work first or have it formally marked as not applicable (for example, the loft already has 270mm, just not at EPC assessment time). A new EPC is usually the quickest fix and costs around £60–£100.

How the application works

You don't apply yourself. The MCS installer creates a voucher application on the Ofgem portal, Ofgem issues a voucher tied to your property and quote, and the installer redeems it after the job is commissioned. The flow looks like this:

1. Site survey and heat loss calculation by an MCS-certified installer.
2. Fixed quote issued, with the £7,500 grant already deducted.
3. Installer applies for voucher via Ofgem — usually approved within 1–3 weeks.
4. Installation, commissioning and MCS certificate.
5. Installer claims the grant back from Ofgem; you've already received the discount.

What an air source heat pump install actually costs

Real-world UK pricing in 2026, after the grant is applied, sits roughly in the following ranges for a typical three- or four-bedroom property:

• Simple swap, well-insulated home, existing radiators sized correctly: £4,000–£7,000 net.
• Average retrofit, some radiator upgrades, hot water cylinder fitted: £6,000–£10,000 net.
• Larger property, full system redesign, multi-zone controls: £10,000–£14,000 net.

Ground source is significantly more (typical net price £15,000–£25,000) because of borehole or slinky-loop ground works, but it tends to deliver higher seasonal efficiency in well-insulated homes.

The bits installers don't always volunteer

Radiator and pipework sizing

Heat pumps run cooler than gas boilers (typically 35–50°C flow temperature versus 70°C+ for gas). Existing radiators that worked fine on gas can be undersized for a heat pump. A proper room-by-room heat loss calculation will flag this. If your quote doesn't reference one, ask why.

Noise and siting

Modern units are quiet (around 40–50 dB at 1m), but planning constraints under permitted development require the unit to be more than 1m from a boundary in most cases and below certain sound thresholds at neighbouring windows. A bad install can be a noise nuisance complaint waiting to happen.

Hot water

A heat pump pairs with a vented or unvented hot water cylinder, not a combi. If you currently have a combi boiler, the install will include a cylinder — that needs space, usually in an airing cupboard or loft.

Is it worth it once you account for running costs?

Heat pump economics in 2026 depend heavily on the gap between the electricity unit rate and the gas unit rate. Under Ofgem's current price cap, electricity is roughly 3–4× the unit price of gas. A well-designed heat pump returns 3–4 units of heat per unit of electricity (SCOP of 3.0–4.0). That means running costs are usually roughly comparable with a modern condensing gas boiler — sometimes a bit cheaper, sometimes a bit more — provided the system is sized and commissioned properly.

The savings story improves significantly with a heat-pump-friendly electricity tariff (Octopus Cosy, Intelligent Go, or similar) that gives discounted off-peak rates. With those, a heat pump can run 20–40% cheaper than gas, especially in well-insulated homes.

Common reasons applications get rejected

• EPC out of date or missing.
• Insulation recommendations still on the EPC.
• Property type not eligible (new builds completed under the planning grant of permission since 2019 are sometimes ineligible).
• Installer not MCS certified at the time of application.
• Equipment not listed on the MCS register.
• Quote includes the boiler being retained as a hybrid backup.