The Boiler Upgrade Scheme offers £7,500 off an air source heat pump in 2026
The main government incentive for heat pumps in England and Wales is the Boiler Upgrade Scheme. It provides a flat £7,500 discount on the installation of an air source heat pump.
Heat pump grants in 2026 include the Boiler Upgrade Scheme offering £7,500 off air source heat pumps, and ECO4 providing free installations for low-income households. Check your eligibility to compare options.
- Boiler Upgrade Scheme offers £7,500 off air source heat pumps in 2026.
- ECO4 provides free or subsidised heat pumps for low-income households until March 2026.
- Home Energy Scotland offers up to £7,500 with no means test.
- You must own the property or have landlord permission for the Boiler Upgrade Scheme.
- ECO4 requires an MCS-certified installer assigned by your energy supplier.
- The Boiler Upgrade Scheme offers £7,500 off an air source heat pump in 2026
- ECO4 provides free or heavily subsidised heat pumps for low-income households
- The Home Energy Scotland grant offers up to £7,500 with no means test
- Quick numbers, what the main heat pump grants pay in 2026
- Heat pump running costs are typically 30–50% lower than a gas boiler
- The payback period for a heat pump after grants is 5–10 years
- You must use an MCS-certified installer to qualify for any heat pump grant
- The Boiler Upgrade Scheme is the simplest grant to claim in 2026
The grant was increased from £5,000 to £7,500 in October 2023 and remains at that level for 2026 (GOV.UK Boiler Upgrade Scheme, 2026). The scheme also covers ground source heat pumps and biomass boilers, though biomass is limited to rural properties without mains gas.
You must own the property or have written permission from your landlord to apply. New-build homes are excluded. The grant is applied as a discount by the installer, not a cash payment to you. Ofgem administers the scheme and confirms that the installer deducts the £7,500 directly from your final invoice (Ofgem Boiler Upgrade Scheme guidance, 2026).
ECO4 provides free or heavily subsidised heat pumps for low-income households
The Energy Company Obligation (ECO4) scheme runs until March 2026 and targets low-income, fuel-poor, and vulnerable households. It can cover the full or partial cost of a heat pump, depending on your property’s energy efficiency rating.
Eligibility is based on receiving means-tested benefits such as Pension Credit, Universal Credit, or Child Tax Credit. You may also qualify if your local authority refers you through the LA Flex scheme (DESNZ ECO4 guidance, 2026).
You cannot choose your own installer under ECO4. The energy supplier assigns one through the scheme. Ofgem sets the delivery rules, which require that the installer holds MCS certification and TrustMark registration (Ofgem ECO4 delivery rules, 2026).
The Home Energy Scotland grant offers up to £7,500 with no means test
Homeowners in Scotland can apply for up to £7,500 toward an air source or ground source heat pump through Home Energy Scotland. No income or benefits test applies, it is a universal grant.
An additional £1,500 is available if you also install insulation or other energy-efficiency measures at the same time (Home Energy Scotland website, 2026). The scheme is administered by Home Energy Scotland, not Ofgem, and covers existing homes only.
You must use an MCS-certified installer to qualify. The grant is paid directly to the installer, who deducts it from your invoice, similar to the Boiler Upgrade Scheme in England and Wales (Scottish Government energy efficiency page, 2026).
Quick numbers, what the main heat pump grants pay in 2026
| Grant name | Maximum grant amount | Eligibility type | Property type | Installer requirement |
|---|---|---|---|---|
| Boiler Upgrade Scheme | £7,500 | Owner-occupier | Existing homes only | MCS-certified |
| ECO4 | Varies (full or partial cost) | Low-income | Any | Energy supplier-assigned |
| Home Energy Scotland | £7,500 | Universal | Any | MCS-certified |
Source data from Ofgem, DESNZ, and Home Energy Scotland (Ofgem, 2026; DESNZ, 2026; Home Energy Scotland, 2026).
Heat pump running costs are typically 30–50% lower than a gas boiler
Based on DESNZ cost analysis for 2026, a typical 3-bedroom home with a gas boiler costs between £900 and £1,200 per year to heat and provide hot water (DESNZ heat pump cost analysis, 2026). A heat pump with a Seasonal Coefficient of Performance (SCOP) of 3.0 uses about one-third the electricity of a direct electric system.
The SCOP is a measure of how efficiently a heat pump converts electricity into heat over a full year. A SCOP of 3.0 means it produces three units of heat for every unit of electricity used.
Actual savings depend on your current heating system, electricity tariff, and heat pump efficiency. The average heat pump owner saves between £200 and £400 per year compared to a gas boiler (Energy Saving Trust heat pump savings calculator, 2026).
The payback period for a heat pump after grants is 5–10 years
After the £7,500 Boiler Upgrade Scheme grant, the installed cost of a typical air source heat pump is roughly £5,000 to £8,000 (Energy Saving Trust heat pump cost guide, 2026). With annual savings of £200 to £400, the payback period ranges from 5 to 10 years, depending on your home’s heat demand.
Ground source heat pumps cost more upfront, typically £15,000 to £25,000 after the grant, but offer a longer lifespan and higher efficiency (MCS installation cost data, 2026). Payback shortens if you also qualify for ECO4 or Home Energy Scotland funding.
For more detail on the numbers behind these savings, see heat pump running costs vs gas boiler comparison.
You must use an MCS-certified installer to qualify for any heat pump grant
All major grants, the Boiler Upgrade Scheme, ECO4, and Home Energy Scotland, require Microgeneration Certification Scheme (MCS) certification. MCS ensures the installer meets technical competence and product quality standards (MCS website, 2026).
You can check the MCS Installer Directory at mcscertified.com for approved installers in your area. TrustMark registration is also required for ECO4 and some grant applications (TrustMark website, 2026).
Using a non-certified installer means you will not qualify for any government funding. The GOV.UK heat pump installation guidance recommends always checking certification before agreeing to any work.
The Boiler Upgrade Scheme is the simplest grant to claim in 2026
You apply through an MCS-certified installer who handles the paperwork and deducts the £7,500 from your invoice. No income check, no property energy-efficiency requirement, and no means test are needed (Ofgem Boiler Upgrade Scheme application process, 2026).
The scheme is capped at 90,000 applications per year, so check current availability before committing. You must have a valid Energy Performance Certificate (EPC) with no outstanding recommendations for loft or cavity wall insulation (GOV.UK Boiler Upgrade Scheme page, 2026).
If you live in Scotland, the Home Energy Scotland grant is similarly straightforward. For a full guide to the application steps, see how to claim the Boiler Upgrade Scheme step by step.
Frequently Asked Questions
The Boiler Upgrade Scheme offers £7,500 off an air source heat pump in 2026. ECO4 can cover the full cost for eligible low-income households, as per Ofgem guidance.
You must own the property or have written permission from your landlord. New-build homes are excluded, as confirmed by GOV.UK Boiler Upgrade Scheme guidance.
Yes, ECO4 runs until March 2026. It provides free or heavily subsidised heat pumps for low-income households receiving means-tested benefits, according to DESNZ guidance.
Yes, Home Energy Scotland offers up to £7,500 for air source or ground source heat pumps with no income test. An extra £1,500 is available if you also install insulation, per Home Energy Scotland rules.
No, the £7,500 Boiler Upgrade Scheme grant is deducted directly by your installer from the final invoice. You do not pay upfront and then claim back, as confirmed by Ofgem.
