Grants for a heat pump
In England and Wales you can get £7,500 off an air source heat pump through the Boiler Upgrade Scheme. Scotland has its own grant and interest-free loan, and heat pumps carry 0% VAT across the UK.
Overview of schemes
- £7,500 off an air source heat pump
- Extra £1,500 when replacing oil or LPG heating until March 2027
- Your MCS installer applies and deducts the grant
- Grant up to £7,500 for a heat pump
- Optional interest-free loan of another £7,500
- £1,500 extra in rural and island areas
- No VAT on supply and installation
- Applies across the whole UK
- Can be combined with grants
Schemes side by side
| Boiler Upgrade Scheme | Home Energy Scotland Grant and Loan | 0% VAT on heat pumps | |
|---|---|---|---|
| Who it is for | Property owners in England and Wales, incl. landlords and small businesses | Owner-occupiers of existing homes in Scotland | Homes in England, Wales, Scotland and Northern Ireland |
| Heat pump | £7,500 (air or ground source) | Grant up to £7,500 (+£7,500 optional loan) | 0% VAT on the heat pump and installation |
| Cap | £9,000 for off-gas homes heated by oil or LPG (until March 2027) | £9,000 grant in eligible rural areas | No cap |
| When you get the money | Taken straight off your installer's invoice | After installation, once you send the paperwork | Straight away — the price is lower |
| Extra condition | Replaces fossil fuel or electric heating; MCS certified installer | Your only or main home; apply before work starts | Supplied and installed together by the installer |
| Status | open | open | open |
What you ask us
Which grant can I get?
It depends where you live. England and Wales: Boiler Upgrade Scheme. Scotland: Home Energy Scotland Grant and Loan. Northern Ireland currently has no dedicated heat pump grant, but 0% VAT still applies.
Do I have to apply myself?
For the Boiler Upgrade Scheme, no — your MCS certified installer applies and takes the grant off your invoice. In Scotland you apply to Home Energy Scotland before work starts.
Can I combine the grants?
You can't get both the Boiler Upgrade Scheme and the Scottish grant for the same home, since they cover different nations. 0% VAT applies on top of either grant.
Does my house need to be insulated?
There is no strict insulation requirement for the Boiler Upgrade Scheme any more, but your installer must design the system for your home's real heat loss. In Scotland the grant follows the recommendations in your EPC or home report.
We will calculate it for you
Tell us about your home. We design the heat pump and calculate the price after the grant — free and with no obligation.
FREE QUOTEStatus as of October 2026 based on GOV.UK, Ofgem and Home Energy Scotland. Conditions are set by the scheme administrators and may change.
Sources: GOV.UK — Apply for the Boiler Upgrade Scheme · GOV.UK — What you can get · Ofgem — Boiler Upgrade Scheme · Home Energy Scotland — Grants and loans · MCS — Home Energy Scotland Grant and Loan · GOV.UK — VAT on energy-saving materials (Notice 708/6)