England and Wales: the Boiler Upgrade Scheme
| Technology | Grant |
|---|---|
| Air source heat pump | £7,500 |
| Ground source heat pump (including water source) | £7,500 |
| Biomass boiler | £5,000 |
| Air-to-air heat pump | £2,500 |
Source: GOV.UK: Boiler Upgrade Scheme – what you can get. You can only get one grant per property.
Extra for oil and LPG homes: GOV.UK says that until March 2027 you may get an additional £1,500 towards an air source or ground source heat pump if your home is currently heated by oil or LPG and has no mains gas connection (GOV.UK: what you can get).
Biomass grants are only available for properties that are off the gas grid and in a rural area, and the boiler must have an emissions certificate (GOV.UK: BUS eligibility).
GOV.UK suggests speaking to an MCS certified installer if you're not sure whether your property suits a low carbon heating system, and says the installer must commission and install the heat pump within 120 days of the grant application (GOV.UK; MCS).
Scotland: Home Energy Scotland
The Boiler Upgrade Scheme doesn't apply in Scotland. Instead, Home Energy Scotland offers grants and loans, including a £1,500 rural and island uplift on heating and energy efficiency grants. Rural households can claim up to £18,000 (Home Energy Scotland).
VAT: 0% until March 2027
Installing heat pumps, solar panels, wind and water turbines and (since 1 February 2024) batteries in homes is zero-rated for VAT from 1 May 2023 to 31 March 2027. From 1 April 2027 these installations go back to the reduced rate of 5% (HMRC VAT Notice 708/6).
What we don't publish
Heat pump installation prices vary a lot with the size of the house, the radiators and the ground. We only publish prices from suppliers, manufacturers, installers or official bodies, so the best way to know your net cost is to get quotes. Ask each installer to show the grant and VAT treatment clearly.
Frequently asked questions
How much is the heat pump grant in 2026?
In England and Wales the Boiler Upgrade Scheme gives £7,500 towards an air source or ground source heat pump. Until March 2027, homes heated by oil or LPG with no mains gas connection may get an additional £1,500.
Is there a heat pump grant in Scotland?
Yes, through Home Energy Scotland grants and loans, with a £1,500 rural and island uplift. Rural households can claim up to £18,000.
Can I get a grant for a biomass boiler?
In England and Wales, the Boiler Upgrade Scheme offers £5,000 for biomass boilers in rural properties off the gas grid, where the boiler has an emissions certificate.