Boiler Upgrade Scheme Explained: Heat Pump Grants 2026

The Boiler Upgrade Scheme pays £7,500 towards an air source or ground source heat pump in England and Wales, and £9,000 for homes heated by oil or LPG with no mains gas connection until 31 March 2027. You do not apply for the money yourself: your installer applies on your behalf and takes the grant off your quote. The scheme is run by Ofgem for the Department for Energy Security and Net Zero, and it has been extended to 2030. This guide explains how much you can get, who qualifies, how to apply, and what changed in 2026.
How much can you get?
The grant is a fixed amount that depends on the type of system you install. It is not a percentage of your bill, and you can only get one grant per property.
| System | Grant | Notes |
|---|---|---|
| Air source heat pump (air-to-water) | £7,500 | The most common route |
| Ground source heat pump (including water source) | £7,500 | Suits homes with land for a ground array |
| Air source or ground source, off-gas-grid oil or LPG home | £9,000 | 21 July 2026 to 31 March 2027 only |
| Air-to-air heat pump | £2,500 | Homes only; heats air, not water |
| Biomass boiler | £5,000 | Rural homes off the gas grid only |
The £9,000 rate is the standard £7,500 plus a £1,500 uplift. It applies only where both conditions are met: the property is heated by oil or LPG, and it has no mains gas connection. It runs from 21 July 2026 to 31 March 2027. After that date the rate returns to £7,500 unless the government extends it.
A typical three-bedroom home might cost £8,000 to £15,000 for a heat pump installation before the grant, so after the £7,500 grant the householder pays roughly £500 to £7,500. Heat pump installations in homes are also zero-rated for VAT until 31 March 2027, after which the rate rises to 5 per cent.
Who can get the grant?
GOV.UK says you are eligible if both of these are true. You must own the property you are applying for, which can be your home, a second home, a business premises or a property you rent out to tenants. And you must be replacing a fossil fuel heating system, such as oil, gas, LPG or direct electric heating. The new system must fully replace the old one.
There are also exclusions. You cannot get a grant to replace a heating system that is already low carbon, such as an existing heat pump. Hybrid systems, where a heat pump works alongside a gas or oil boiler, do not qualify. Most new-build homes and social housing are excluded, as are properties that have already had government funding for a heat pump or biomass boiler. Individual systems are limited to a capacity of 45 kWth.
The scheme covers England and Wales only. Scotland and Northern Ireland run their own separate schemes with different rules, including grant funding through Home Energy Scotland.
How do you apply?
The scheme is installer-led, which means there is no form for you to fill in and the money never passes through your hands. The steps are:
First, contact suitable MCS-certified installers and get quotes for the work. MCS, the Microgeneration Certification Scheme, is the quality mark for small-scale renewable systems, and only an MCS-certified installer can apply for the grant. It is worth getting at least three quotes and checking that the installer belongs to an approved consumer code such as RECC or HIES.
Second, confirm you are eligible. Your installer will tell you whether your property and the system you have chosen qualify. Third, agree a quote. The installer then applies for a voucher on the Ofgem website on your behalf. Ofgem emails you to ask for your consent, which you must give within 14 days or the application may be rejected.
The grant is shown as a discount on your quotation and invoice, so you pay the lower price. Your installer must commission and install the heat pump within 120 days of applying for the grant, or it will not be eligible. For ground source systems the installer has six months to complete and redeem the voucher, and three months for air source systems.
What changed in 2026?
The scheme changed twice in 2026. On 28 April 2026, version 5 of Ofgem's property owner guidance came into force. It removed the requirement to hold a valid Energy Performance Certificate before applying: where a property has an EPC, the installer supplies its number, and where it has none, other evidence is used instead. The same update added the £2,500 grant for air-to-air heat pumps in residential properties, a category that had not been funded before.
Then, on 21 July 2026, the higher £9,000 rate for off-gas-grid homes heated by oil or LPG became available, running until 31 March 2027. The scheme as a whole has been extended to 2030, with the government's Find a Grant service listing a closing date of 30 December 2029.
What does the scheme not cover?
Despite its name, the Boiler Upgrade Scheme does not pay for a new gas or oil boiler. It only funds the switch to a low-carbon system, usually a heat pump or, in limited rural circumstances, a biomass boiler. It does not cover insulation, radiators or other home improvements on their own, although your installer may recommend insulation work so the heat pump runs efficiently.
It also does not cover a heat pump that only partly replaces your heating. A hybrid system that keeps a fossil-fuel boiler as a back-up is not eligible, and neither is replacing one low-carbon system with another. If your home is a new build, in social housing, or has already received government funding for a heat pump, you will not qualify.
Frequently asked questions
How much is the Boiler Upgrade Scheme grant in 2026? £7,500 towards an air source or ground source heat pump, £2,500 towards an air-to-air heat pump, and £5,000 towards a biomass boiler in limited rural circumstances. Homes heated by oil or LPG with no mains gas get £9,000 until 31 March 2027.
Do I apply for the Boiler Upgrade Scheme myself? No. Your MCS-certified installer applies on your behalf through Ofgem, and the grant is deducted from your quote. You only need to give your consent when Ofgem emails you, within 14 days.
Do I need an EPC to apply? No. Since 28 April 2026, a valid Energy Performance Certificate is no longer a mandatory requirement. Your installer supplies the EPC number if you have one, or other evidence if you do not.
Is the Boiler Upgrade Scheme available in Scotland? No. The scheme covers England and Wales only. Scotland runs its own support through Home Energy Scotland, and Northern Ireland has separate arrangements.
Scheme rules and amounts can change, so confirm the details on GOV.UK and Ofgem before you sign a contract. Sources: GOV.UK: Apply for the Boiler Upgrade Scheme and Ofgem: Boiler Upgrade Scheme.