Heat pump grants UK 2026: up to £7,500 off
Last updated: 11 November 2026 · Reviewed by Steve Smith, HeatFunding
A heat pump takes heat from the air or ground outside and uses it to warm your home and hot water. It runs on electricity, works in cold weather, and can replace gas, oil or LPG heating. Right now, a government grant can cut thousands off the upfront cost.
HeatFunding is an independent eligibility-enquiry service. We are not the government, an official grant administrator, or an installer. We help you check whether you may qualify — no grant is promised before an eligibility check.
Check your heat pump grant
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The government heat pump grant, in plain English
The government heat pump grant is the main grant for heat pumps in England and Wales. Your installer claims it for you — you do not apply to the government yourself, and the grant comes off the price you are quoted.
| System | Grant |
|---|---|
| Air source heat pump | £7,500 |
| Ground source heat pump | £7,500 |
| Air-to-air heat pump | £2,500 |
| Eligible off-gas-grid homes replacing oil or LPG — higher uplift | £9,000 |
- £9,000 uplift: for eligible off-gas-grid homes replacing an oil or LPG system, available until 31 March 2027.
- 0% VAT: domestic energy-saving installations, including heat pumps, are charged at 0% VAT until March 2027.
- No EPC requirement: you no longer need an Energy Performance Certificate recommendation for a heat pump — that requirement was scrapped in April 2026.
- One claim per property: the grant can only be claimed once for a property.
- MCS-certified installer: the work must be done by an MCS-certified installer, who applies for the grant on your behalf.
Check the official guidance: Government heat pump grant — GOV.UK · See what you may qualify for: Eligibility checker
What a heat pump actually costs
Median cost of an air source heat pump installation, before any grant.
Approximate cost after the £7,500 grant is taken off that median price (£12,826 − £7,500).
Approximate running cost for an air source heat pump at SCOP 3.0, compared with about £1,065 a year for gas heating — figures are estimates and depend on your home, tariff and how you use heating.
SCOP is a measure of efficiency over a whole heating season. A SCOP of 3.0 means the heat pump delivers about three units of heat for every unit of electricity it uses. Well-designed systems in well-insulated homes tend to run more cheaply; a survey is what confirms the numbers for your property.
Ground source heat pumps
Ground source systems draw heat from the ground through buried pipework. They usually cost more upfront than air source because of the ground work involved, and they need outdoor space. The two main layouts are:
- Horizontal loops — pipes buried in trenches across a garden or plot; needs a larger area of land.
- Vertical boreholes — pipes drilled deep into the ground; needs less surface space but drilling adds cost.
Ground source heat pumps qualify for the same £7,500 grant as air source, and the £9,000 off-gas-grid uplift where eligible.
Savings and timescales
- Running costs: about £895 a year at SCOP 3.0 versus about £1,065 a year for gas — roughly £170 a year lower on those estimates, before any difference in standing charges or tariffs.
- Survey to quote: a home survey comes first, so the system is sized for your property rather than guessed.
- Grant approval: your MCS-certified installer submits the grant application; installation normally follows once the voucher is in place.
- Installation: an air source installation is typically a matter of days once booked in; ground source takes longer because of trenches or boreholes.
Exact savings and dates cannot be promised in advance — they depend on your current fuel, radiators or underfloor heating, and the design your installer proposes.
Funding your heat pump
For most households, funding starts with the grant:
- £7,500 off an air or ground source heat pump through the government heat pump grant.
- £9,000 for eligible off-gas-grid homes replacing oil or LPG, until 31 March 2027.
- £2,500 for an air-to-air heat pump under the same scheme.
- 0% VAT on the installation until March 2027, which lowers the total you pay.
Any remaining balance is paid by you — in cash, or on finance or other payment terms if your installer offers them, subject to their check. We do not invent finance rates or providers: ask your installer what they offer before you agree to anything.
How the quote process works
- Check your eligibility — answer a few questions about your home and heating in our eligibility checker.
- Home survey — an installer assesses your property, heat loss and existing system.
- Written quote with the grant deducted — the grant amount should be shown clearly in the price.
- Installer claims the grant — your MCS-certified installer applies on your behalf; there is one claim per property.
- Installation and handover — the system is fitted, set up and explained to you.
Quick quiz: is a heat pump right for you?
Ask yourself these three questions:
- Is your current heating old, broken, or oil, LPG or electric? If yes, the case for switching is usually strongest — and off-gas-grid oil or LPG homes may qualify for the £9,000 uplift.
- Do you own your home? The grant is for property owners, and it is one claim per property.
- Do you have space outside for a unit about the size of an air-conditioning box (air source), or land for loops or boreholes (ground source)?
Answered yes to most of them? Run the full eligibility check to see what you may qualify for.
Frequently asked questions
1. How much is the heat pump grant?
£7,500 for an air source or ground source heat pump through the government heat pump grant, and £2,500 for air-to-air. Eligible off-gas-grid homes replacing oil or LPG can get £9,000 until 31 March 2027.
2. Do I apply for the grant myself?
No. An MCS-certified installer applies on your behalf, and the grant is deducted from your quote. HeatFunding only helps you check whether you may qualify first.
3. Do I need an EPC to get a heat pump grant?
No. The EPC requirement was scrapped in April 2026, so you no longer need an EPC recommendation before applying.
4. Can I claim the grant twice, or on a second property I own?
The rule is one claim per property. A property that has already had a BUS claim cannot claim again under the scheme.
5. How much will a heat pump cost me after the grant?
The median air source installation is £12,826. After the £7,500 grant, that is approximately £5,326. Your own quote will depend on the size of system your home needs and any changes to radiators or pipework.
6. Are heat pumps cheaper to run than gas heating?
On the estimates used on this page, about £895 a year at SCOP 3.0 compared with about £1,065 a year for gas. Your actual bills depend on your electricity tariff and heating habits.
Sources & data
- Grant amounts, one claim per property, MCS installer application, and the off-gas-grid uplift: Government heat pump grant guidance, GOV.UK / Ofgem.
- 0% VAT on domestic energy-saving installations until March 2027: GOV.UK VAT relief guidance.
- EPC requirement removed from April 2026: GOV.UK government heat pump grant changes.
- Median installation cost (£12,826) and running-cost estimates (£895/yr at SCOP 3.0 vs £1,065 gas): published UK heat pump cost data — treat as estimates, not quotes.
Figures checked against public GOV.UK / Ofgem information. Grant rules and amounts can change — your installer confirms the amount that applies at the time of your application.
Related guides
Check your eligibility
Free 2-minute check — the heat pump grant you may qualify for.
About HeatFunding
Who we are, and how we check grant figures against official sources.