How to Apply for a Heat Pump Grant

The upfront cost of a heat pump installation puts some homeowners off — but with government grants available that cover a significant portion of that cost, the financial barrier is lower than many people realise. This guide explains what's available, who qualifies, and how the application process works in practice.

What Is the Boiler Upgrade Scheme?

The Boiler Upgrade Scheme (BUS) is the UK government's main financial incentive for homeowners switching from fossil fuel heating to a low carbon alternative. The grant is deducted directly from your installation invoice — you never see the money, and there's nothing to claim back after the fact. It's straightforward, non-means-tested, and available to homeowners across England and Wales.

Current grant levels:

• £7,500 for air-to-water heat pump installations
• £9,000 for eligible properties currently on oil or LPG heating, available from 21 July 2026 to March 2027
• £2,500 for air-to-air heat pump installations (eligible from April 2026)

Who Is Eligible?

To qualify for the Boiler Upgrade Scheme you need to meet the following criteria:

 ✅ You must own the property — homeowners and landlords both qualify
✅ Your home must currently have a fossil fuel heating system (gas, oil or LPG)
✅ The existing heating system must be fully replaced and decommissioned — hybrid setups retaining a gas boiler are not eligible
✅ The installation must be carried out by an MCS-accredited installer
✅ New-build properties are not eligible, though self-build homes may qualify

Insulation requirements were relaxed in April 2026, removing a previous barrier that had slowed some applications.

Why apply?

 ✅ Reduce your upfront costs — the grant takes £7,500 or more off your installation invoice before you pay
✅ Lower your running costs — heat pumps operate at 300–400% efficiency compared to a gas boiler's 95%
✅ Reduce your carbon footprint — replace fossil fuel heating with a system powered by electricity from an increasingly renewable grid
✅ Future-proof your home — gas boilers are being phased out by 2035; switching now means you're ahead of the curve rather than reacting to it

How the Application Process Works

Step 1: Get a Heat Pump Quote and Assessment

We visit your property, assess your heating requirements and recommend the most suitable system. We'll give you a clear, itemised quote including the grant deduction so you can see exactly what you'd pay. Contact us today to arrange your quote and assessment.

Step 2: We Apply for the Grant on your Behalf

Once you're happy to proceed, we submit the Boiler Upgrade Scheme application to Ofgem on your behalf. We confirm your eligibility, complete the paperwork and apply for the grant — you don't need to deal with any of it directly.

Step 3: Approve the Grant Offer

Ofgem reviews the application and issues confirmation. Under the updated 2026 process, approvals are typically issued within 10 working days.

Step 4: Install the Heat Pump

With approval in place, we carry out the installation. The system is commissioned and registered with MCS, meeting all the requirements for grant redemption.

Step 5: Receive Your Grant Funding

The grant amount is taken off your final invoice. There are no direct payments to manage, no reimbursement process and nothing to submit after the fact.

Frequently Asked Questions (FAQs)

1. How much does a heat pump cost after the grant?

The typical cost of air source heat pump installation is £10,000 - £12,000, so after the £7,500 grant, you may only need to pay £2,500 - £4,500. Ground source heat pumps are more expensive but also qualify for the grant.

2. Can I get a heat pump grant if I live in a new-build home?

New-build homes do not qualify, but self-build homes are eligible.

3. Do I need planning permission for a heat pump?

Most air source heat pump installations do not require planning permission. However, ground source heat pumps may need approval, depending on local regulations.

4. What happens if I move house after installing a heat pump?

If you move, the heat pump remains with the property, and the new homeowner benefits from the lower energy costs.

5. Is a heat pump worth it without a grant?

Yes! Even without a heat pump grant, the long-term savings on energy bills make heat pumps a great investment. However, applying for the grant makes the switch even more affordable.

Final Thoughts: Should You Apply for a Heat Pump Grant?

With the UK’s push towards renewable energy and the phase-out of gas boilers, heat pumps are the future of home heating. By applying for a Boiler Upgrade Scheme grant, you can save thousands on installation costs while enjoying lower energy bills and increased efficiency.

📢 Don’t miss out on your £7,500 heat pump grant! Call or message Fell Heat Pumps today.