A £7,500 heat pump grant is available to UK homeowners, but low-income households may also qualify for additional funding that can cover the full cost of installation.
The Boiler Upgrade Scheme (BUS) offers a flat £7,500 grant to any homeowner replacing a fossil-fuel heating system with an air-source or ground-source heat pump, regardless of income. For low-income households in England, the Energy Company Obligation (ECO4) scheme can cover the entire cost of a heat pump installation, including any top-up beyond the BUS grant. The key difference: BUS is a fixed, upfront discount, while ECO4 is a means-tested, whole-cost subsidy delivered through energy suppliers (GOV.UK, 2026; DESNZ, 2026).
How the £7,500 BUS grant works for any homeowner
The BUS provides a flat £7,500 grant for air-source heat pumps and £7,500 for ground-source heat pumps, deducted from the installer’s quote before you pay. You must own your home (or have landlord permission) and have a valid Energy Performance Certificate (EPC) with no outstanding loft or cavity wall insulation recommendations (GOV.UK, 2026). The grant is not means-tested; it is available to all eligible households, including those on low incomes, but low-income households should check ECO4 first as it can be more generous. The installer must be registered with the Microgeneration Certification Scheme (MCS), and they handle the grant application on your behalf (MCS, 2026).
The ECO4 scheme the primary heat pump grant for low-income households
ECO4 is the main government scheme for low-income and vulnerable households, funded by energy suppliers, and covers the full cost of a heat pump installation (including any necessary insulation) (DESNZ, 2026). Eligibility is based on income (e.g., receiving certain benefits like Pension Credit, Income Support, or Universal Credit) and the property’s energy efficiency rating (EPC band D, E, F, or G). The grant can cover an air-source or ground-source heat pump, plus any required insulation improvements, with no cap on the total value (Ofgem, 2026). This makes ECO4 significantly more generous than the BUS for qualifying households, as it eliminates the need for any homeowner contribution.
Quick numbers what low-income households can expect to pay
| Scheme | Typical grant value | Homeowner contribution | Eligibility basis |
|---|---|---|---|
| Boiler Upgrade Scheme (BUS) | £7,500 | £0 – £2,500 (average top-up) | Not means-tested |
| ECO4 (full cost) | £10,000 – £15,000 (average) | £0 | Means-tested (benefits + EPC) |
| ECO4 + BUS combined (rare) | £7,500 BUS + ECO4 top-up | £0 | Means-tested |
Source: DESNZ ECO4 scheme guidance, 2026; Ofgem ECO4 delivery data, 2026; MCS installer survey averages.
Which grant is best for a low-income household the direct answer
For a low-income household, the best heat pump grant is ECO4, because it covers the full installation cost (including insulation) and does not require you to pay any top-up (DESNZ, 2026). If you do not qualify for ECO4 but are on a low income, the £7,500 BUS grant is still available and can reduce your costs significantly, but you will still need to pay the remaining balance (typically £1,000–£3,000). Always apply for ECO4 first via your energy supplier; if declined, then apply for the BUS via an MCS-certified installer (GOV.UK, 2026). How to apply for the Boiler Upgrade Scheme step by step
Eligibility and how to verify an installer for heat pump grants
For ECO4, eligibility is checked by your energy supplier based on income benefits and your property’s EPC band (D–G). You must use an installer registered with TrustMark and MCS (Ofgem, 2026). For the BUS, you must use an MCS-certified installer, and the installer will handle the grant application on your behalf. To verify an installer, check the MCS register at mcscertified.com and TrustMark at trustmark.org.uk. For ECO4, also confirm your supplier is signed up to the scheme via Ofgem’s supplier list (Ofgem, 2026). How to choose an MCS-certified heat pump installer
What the grant covers and does not cover
Both BUS and ECO4 cover the heat pump unit itself, the installation labour, and any necessary pipework or electrical work within the property boundary (GOV.UK, 2026; DESNZ, 2026). ECO4 also covers any required insulation (loft, cavity wall, or solid wall) as part of the same installation. Neither grant covers the cost of a new hot water cylinder (if needed), upgrades to your existing radiators (which may be required for heat pumps), or any work outside your property (e.g., ground loops for ground-source heat pumps). These additional costs can range from £500 to £3,000 depending on your existing heating system and property type, and must be paid separately by the homeowner.
Frequently Asked Questions
The main grant is ECO4, which covers the full cost of a heat pump installation for low-income households. It is funded by energy suppliers and based on benefits or income (Ofgem, 2026).
No, you cannot combine both grants for the same installation. ECO4 is more generous for low-income households, so check eligibility first (GOV.UK, 2026).
The BUS grant is £7,500 for both air-source and ground-source heat pumps. It is deducted from the installer's quote before you pay (GOV.UK, 2026).
You qualify if you receive benefits like Pension Credit, Income Support, or Universal Credit and have an EPC rating of D, E, F, or G. The scheme covers full installation costs (Ofgem, 2026).
Yes, for both BUS and ECO4 you need a valid EPC. For BUS, there must be no outstanding loft or cavity wall insulation recommendations (GOV.UK, 2026).
