Heat pump grants Wales 2026

Heat pump grants Wales 2026 What you need to know

Homeowners in Wales considering replacing their fossil fuel heating system are increasingly looking at heat pumps. The main financial support available is the Boiler Upgrade Scheme (BUS), which offers a fixed grant towards the cost of installation. This article explains the grant amount, eligibility rules, and the practical steps to apply.

In 2026, homeowners in Wales can receive up to £7,500 off the cost of an air source or ground source heat pump through the Boiler Upgrade Scheme, with the total installation cost typically ranging from £7,000 to £14,000 after the grant is applied (DESNZ, Boiler Upgrade Scheme guidance, 2026).

How the £7,500 heat pump grant works

The Boiler Upgrade Scheme is a UK government initiative delivered by Ofgem. For installations in Wales in 2026, the grant amount is fixed at £7,500 for air source heat pumps and the same amount for ground source heat pumps and water source heat pumps (GOV.UK, Boiler Upgrade Scheme page, 2026). The scheme is confirmed to run until March 2028, with funding allocated for 2026.

The grant is not paid directly to the homeowner. Instead, the MCS-certified installer deducts the £7,500 from the final invoice. You pay the installer only the remaining balance. This avoids the need for upfront cash flow, though you must still cover any costs above the grant amount.

Eligibility criteria for the Wales heat pump grant

To qualify for the BUS grant in Wales, your property must have a valid Energy Performance Certificate (EPC) with no outstanding recommendations for loft or cavity wall insulation (Ofgem, BUS eligibility guidance, 2026). This rule ensures the home is sufficiently insulated before installing a heat pump, which operates most efficiently in a well-insulated building.

Eligible properties include houses, bungalows, and small flats up to four bedrooms. Second homes, newly built properties, and social housing are generally excluded from the scheme. The installation must be carried out by an MCS-certified installer, and the property must be located in Wales.

Quick numbers Cost, savings, and payback

Source: Energy Saving Trust, heat pump cost guide, 2026

What the grant covers and what it does not

The BUS grant covers the heat pump unit itself, its installation, and associated pipework within the property boundary. It does not cover the cost of new radiators, underfloor heating systems, a replacement hot water cylinder (unless it is essential for the heat pump to function), or any electrical upgrades to your consumer unit or wiring (DESNZ, BUS terms and conditions, 2026).

The homeowner is responsible for paying any costs that exceed the £7,500 grant. The grant cannot be combined with other government heating grants, such as the Home Heating Support Scheme, for the same property. If you have already received a BUS grant for a previous property, you may still apply for a new property.

How to verify an MCS-certified installer in Wales

All BUS grant applications require the installer to be certified by the Microgeneration Certification Scheme (MCS). You can check the MCS Installer Database online to find certified installers in your postcode area (MCS website, 2026). Installers must also be registered with TrustMark, the government-endorsed quality scheme for home improvements, which provides consumer protection and a route for complaint resolution (TrustMark website, 2026).

Before signing any contract, verify the installer’s MCS certificate number directly on the MCS database. Do not rely solely on the installer’s word. A legitimate MCS number will appear on the public register.

Running costs and efficiency What to expect in a Welsh home

The efficiency of a heat pump is measured by its Seasonal Coefficient of Performance (SCOP). This is the ratio of heat output to electricity input over a whole heating season. A typical air source heat pump achieves a SCOP of 3.0 to 4.0, meaning it produces three to four units of heat for every unit of electricity used (Energy Saving Trust, heat pump performance data, 2026). Ground source heat pumps generally achieve a higher SCOP of 3.5 to 4.5.

Running costs depend heavily on your property’s insulation level, size, and heating patterns. In a well-insulated three-bedroom semi-detached home, the annual heating cost with an air source heat pump is typically between £500 and £800 when used with a standard electricity tariff (Ofgem, typical domestic consumption values, 2026). This compares favourably to a gas boiler in the same property, which would cost roughly £700 to £1,000 annually at 2026 prices.

Compare heat pump running costs vs gas boiler in Wales

Steps to apply for the heat pump grant in Wales

The application process is straightforward but requires careful preparation. Follow these five steps to secure the £7,500 grant.

1. Get quotes from at least two MCS-certified installers. This allows you to compare prices and scope of work. Ensure each quote itemises the cost and the grant deduction.
2. Check your EPC meets eligibility requirements. Your EPC must have no outstanding recommendations for loft or cavity wall insulation. If it does, you must complete those works before applying.
3. Your chosen installer applies for the grant on your behalf through Ofgem. You will need to sign a consent form authorising the installer to submit the application.
4. The grant is deducted from the final invoice. You pay the installer the remaining balance after the £7,500 is applied.
5. Installation must be completed within six months of grant approval. If the work is not finished in time, the grant may be withdrawn (Ofgem, BUS application process, 2026).

Find MCS-certified heat pump installers in Wales