Boiler Upgrade Scheme 2026: how much grant can you get for a heat pump?
The Boiler Upgrade Scheme (BUS) is the main government grant available in England and Wales towards the cost of an air source or ground source heat pump, and understanding what it actually pays — and to whom — is the first step in budgeting for an installation.
As of 2026, the standard grant remains £7,500 towards either an air source or a ground source heat pump. From 21 July 2026, an enhanced rate of £9,000 became available, but only for air source heat pumps installed at a property that's heated by oil or LPG and has no mains gas connection — reflecting that these households typically face the highest running costs on their existing heating and the biggest bill savings from switching. That enhanced rate is scheduled to expire on 31 March 2027, so it's worth checking current terms if you're reading this closer to that date. A new grant of £2,500 towards air-to-air heat pumps (a different, simpler type of system similar to reverse-cycle air conditioning) was also added from April 2026, alongside a continuing £5,000 grant for biomass boilers in eligible rural, off-grid properties.
Eligibility isn't automatic. The property needs a valid Energy Performance Certificate (EPC) with no outstanding recommendations for loft or cavity wall insulation — the logic being that the government wants a property reasonably insulated before subsidising a heat pump, since a poorly insulated home will struggle to run one efficiently. If your EPC flags either of those two insulation measures as outstanding, they typically need addressing (or a valid exemption obtained) before a BUS claim can proceed. Crucially, the installation itself must be carried out and the claim submitted by an MCS-certified installer — this isn't optional, and using a non-certified installer, however competent, rules out the grant entirely.
The application process has been streamlined for 2026: MCS-certified installers can now submit claims digitally, and turnaround for approval has reportedly dropped to as little as five working days in many cases, down from what could previously take several weeks. In practice, the grant is normally applied as a discount at the point of installation by the installer, rather than something you claim back yourself after paying the full price — so when comparing quotes, check that the price you're being shown already has the grant deducted, or ask explicitly how the grant will be handled.
The scheme's funding window has also been extended, with eligibility now running to at least March 2028 at the time of writing, which gives more breathing room for planning an installation than the shorter windows seen in earlier years of the scheme. That said, government schemes are periodically reviewed and rates or eligibility criteria can change with little notice, so it's sensible to get written confirmation of the grant amount and eligibility from your chosen MCS-certified installer as part of your quote, rather than relying purely on a figure read online, however current it was when written.
A few practical points are worth checking before committing to a quote. First, confirm the installer is currently MCS-certified for the specific type of heat pump you're having fitted — certification can be checked directly via the MCS installer database rather than just taking a company's word for it. Second, ask whether your specific property and heating setup (oil, LPG, mains gas, or off-grid) affects which grant tier applies, since the enhanced £9,000 rate only applies in specific circumstances rather than universally. Third, ask what happens to the price if the grant application is for any reason rejected or delayed — a reputable installer should be able to explain this clearly rather than leaving it vague.
Finally, remember that the Boiler Upgrade Scheme grant reduces the upfront cost but doesn't cover the whole installation for most homes — it's worth reading a proper cost guide (or asking installers directly) for a realistic sense of the net price after the grant is applied, since this varies a great deal by property size, existing heating system and site conditions. Treat the grant as a meaningful discount on a genuine investment, not as making a heat pump free, and get more than one MCS-certified installer's quote before deciding.
Frequently asked questions
The standard grant is £7,500 towards an air source or ground source heat pump. From 21 July 2026, an enhanced £9,000 rate applies to air source heat pumps at oil or LPG-heated properties with no mains gas connection, due to run until 31 March 2027. A new £2,500 grant for air-to-air heat pumps and a continuing £5,000 grant for biomass boilers are also available.
Yes — the grant can only be claimed where the heat pump is installed and the claim submitted by an MCS-certified installer; using a non-certified installer rules out the grant regardless of the quality of the work.
Your property needs a valid EPC with no outstanding recommendations for loft or cavity wall insulation before a claim can generally proceed, unless a valid exemption applies — the aim is to ensure the property can run a heat pump reasonably efficiently.
In practice it's normally deducted as a discount by the installer at the point of installation, rather than claimed back afterwards by the homeowner, so it's worth confirming your quote already reflects the grant before comparing prices between installers.