The Boiler Upgrade Scheme will increase its grant to £7,500 in April 2026, a 50% rise on the current £5,000 cap for air source heat pumps. That is £2,500 more than the previous maximum, and it applies to all heat pump types, not just ground source systems.
As reported by The Eco Experts, the Department for Energy Security and Net Zero confirmed the uplift last month. The change means a typical 3-bed semi, currently facing installation costs of £9,000 to £15,000, could see its upfront price drop by more than half after the grant.
Who qualifies, and who doesn’t
Eligibility hinges on three things. The property must be in England or Wales. It must have a valid Energy Performance Certificate (EPC) with no outstanding recommendations for loft or cavity wall insulation. And the applicant must own the property, landlords and social housing providers are excluded.
The catch is the EPC condition. Ofgem data shows that roughly 40% of UK homes still have uninsulated cavity walls or lofts with less than 100mm of insulation. Those homeowners will need to address that first, at their own cost, before they can access the grant. The Energy Saving Trust puts cavity wall insulation at £500-£1,500, loft insulation at £300-£600, sums that eat into the headline grant figure.
Homes on the gas grid are eligible, but the scheme prioritises those off-grid. The government’s heat pump target of 600,000 installations per year by 2028 remains ambitious against current rates of roughly 60,000 annually.
What it costs a typical 3-bed semi
The £7,500 grant brings the net cost of an air source heat pump down to roughly £2,000-£7,500, depending on the property size and installer. A ground source system, typically £14,000-£19,000, drops to £6,500-£11,500 after the same grant.
But the running costs matter more than the installation price. Heat pumps typically deliver 3-4 units of heat for every unit of electricity, compared to a gas boiler’s 0.85-0.95 efficiency. On current price caps, 24.5p/kWh for electricity, 6.0p/kWh for gas, that translates to roughly 6-8p per kWh of heat from a heat pump versus 6.5p from gas. The gap narrows further for homes with solar panels or time-of-use tariffs.
Ofgem’s typical household consumption figures suggest a 3-bed semi using 12,000 kWh of gas annually would save roughly £100-£200 per year on heating bills with a heat pump, assuming current price differentials. That saving rises to £300-£400 if the home also has solar panels.
Yet the upfront cost remains the biggest barrier. The grant covers installation only, not associated electrical work, new radiators, or hot water cylinder upgrades, which can add £1,000-£3,000 to the total bill.
How to apply, and when
Applications open on 1 April 2026. The process runs through MCS-certified installers, homeowners cannot apply directly. The installer submits the application to Ofgem, which aims to process it within 6-8 weeks. The grant is deducted from the installer’s invoice, not paid to the homeowner.
Demand is expected to be high. The previous £5,000 grant saw applications exceed available funding in the first two months of the 2024-2025 financial year. The government has allocated £450 million for the scheme through to March 2027, enough for roughly 60,000 installations at the new rate.
Households on standard variable tariffs can check their EPC via the government’s online portal now. Those with outstanding insulation recommendations should book a survey and install works before January 2026 to qualify for the April launch.
Applications close on 31 March 2027. The scheme will not be extended, according to current DESNZ guidance.
Frequently Asked Questions
Yes, you can apply regardless of your current heating system. The scheme is designed to replace fossil fuel boilers with heat pumps. You must own the property and have a valid EPC with no outstanding insulation recommendations.
No. The grant covers the heat pump unit and standard installation. Additional costs for electrical upgrades, new radiators, or hot water cylinders are not included. Typical total costs after the grant range from £2,000 to £7,500 for air source systems, depending on your property.
