Heat Pump Estimate

Boiler Upgrade Scheme

The £7,500 heat pump grant, explained plainly

The Boiler Upgrade Scheme is the main government grant for heat pumps in England and Wales. Here's exactly what you get, who qualifies, and how it reaches your invoice — plus a calculator that applies it to your home.

Estimate your heat pump cost

Figures verified June 2026 · re-checked at each update

Used to match you with a local installer.

Heat pumps sometimes need larger radiators.

Free, instant, no contact details needed to see your estimate.

What you actually get

The Boiler Upgrade Scheme pays a fixed grant toward installing a heat pump. There are two amounts:

  • £7,500 for an air source or ground source heat pump — the standard grant most homes receive.
  • £9,000 for off-gas-grid homes currently on oil or LPG. This is a temporary uplift running from 21 July 2026 to 31 March 2027, recognising that off-grid homes have the most to gain.
It comes off your invoice before you pay. This is the part people get wrong. Your installer applies for the grant and deducts it from your bill — you don't pay the full amount upfront, and you don't claim anything back later. You simply pay the reduced balance.

Who is eligible

The scheme is straightforward but specific. You generally qualify if all of these are true:

  • You own the property — owner-occupiers and private landlords both qualify.
  • You're replacing a fossil-fuel or standard electric system (gas, oil, LPG or electric heating), not adding to a working gas boiler.
  • You have a valid EPC issued within the last 10 years, with no outstanding recommendations for loft or cavity wall insulation.
  • The home is in England or Wales. Scotland runs a separate scheme through Home Energy Scotland.
  • The work is done by an MCS-certified installer who is a member of RECC or HIES.

If you're not sure whether you qualify — for example if you rent, or want to keep a gas boiler running alongside — it's still worth getting an estimate. A local installer can tell you where you stand.

Plus 0% VAT

On top of the grant, heat pump installations currently carry zero VAT. That saving is already built into the prices installers quote, so it's working in your favour even though you won't see it as a separate line.

Figures change. Grant amounts and dates are set by government and updated from time to time. We check ours regularly — verified June 2026 — but always confirm the current position on the official Ofgem or GOV.UK Boiler Upgrade Scheme pages before you commit.

Boiler Upgrade Scheme questions

How much is the Boiler Upgrade Scheme grant?

The grant is £7,500 toward an air source or ground source heat pump. Off-gas-grid homes currently heated by oil or LPG can get £9,000 under a temporary uplift running from 21 July 2026 to 31 March 2027.

Do I have to pay the grant back?

No — it isn't a loan. Your MCS-certified installer applies for the grant on your behalf and deducts it directly from your invoice, so you only pay the remaining balance. You never receive or repay the money yourself.

Am I eligible for the Boiler Upgrade Scheme?

You generally qualify if you own the property, are replacing a fossil-fuel or standard electric heating system, have an EPC issued within the last ten years with no outstanding insulation recommendations, and use an MCS-certified installer. The scheme covers England and Wales; Scotland has a separate scheme.

Does the grant cover the whole cost?

Usually not the whole cost, but a large part of it. After the £7,500 grant most homeowners pay a net amount in the low thousands to around £12,000, depending on system size and any radiator upgrades. Use the calculator above to see your range.

Can landlords claim the grant?

Yes. Both owner-occupiers and private landlords can apply, as long as the property and installation meet the scheme's conditions.