The government green grant fund pays homeowners up to £7,500 toward heat pumps, but it is not a single grant you apply for once.
If you have heard about a “government green grant fund” and wondered whether you can apply for a lump sum to make your home more energy efficient, the answer is not straightforward. There is no single pot of money you can tap into. Instead, the term covers several separate schemes, each with its own rules, eligibility criteria, and application process.
The government green grant fund pays up to £7,500 for heat pumps through the Boiler Upgrade Scheme, but it is not a single grant. Separate schemes cover insulation and low-income upgrades. Check your EPC band before applying.
- Apply for £7,500 heat pump grant via Boiler Upgrade Scheme with no income test.
- Great British Insulation Scheme offers £1,000–£1,500 for cavity wall or loft insulation.
- ECO4 provides whole-home upgrades up to £10,000+ for low-income households.
- Home Upgrade Grant offers up to £10,000 for off-gas-grid homes on low income.
- Check your EPC rating before applying; most schemes require EPC D or below.
- The government green grant fund pays homeowners up to £7,500 toward heat pumps, but it is not a single grant you apply for once.
- Quick numbers, what the main green grants pay in 2026
- The Boiler Upgrade Scheme is the most direct government green grant fund for replacing a fossil-fuel boiler
- The Great British Insulation Scheme pays for cavity wall and loft insulation, but only for certain homes
- Energy Company Obligation (ECO4) is the main grant for low-income households needing full home upgrades
- The government green grant fund is not a single application, you must choose the scheme that matches your income and property
- Eligibility and certification, you need an MCS-accredited installer to claim the Boiler Upgrade Scheme grant
- How long the government green grant fund lasts, and what happens when the budget runs out
The largest and most direct of these is the Boiler Upgrade Scheme (BUS), which offers a flat £7,500 grant for an air source or ground source heat pump, with no income test (GOV.UK, 2026). The BUS replaced the old Green Homes Grant in 2021 and is funded by the Department for Energy Security and Net Zero (DESNZ). Other major schemes include the Great British Insulation Scheme (GBIS) for low-cost insulation and the Energy Company Obligation (ECO4) for low-income households needing whole-home upgrades.
Quick numbers, what the main green grants pay in 2026
| Scheme name | Maximum grant amount | Typical annual energy saving (kWh) | Eligibility type | Application channel |
|---|---|---|---|---|
| Boiler Upgrade Scheme (BUS) | £7,500 (heat pump) | 2,500–4,000 kWh (vs gas boiler) | All homeowners, no income test, valid EPC required | Installer submits claim; you pay the reduced quote |
| Great British Insulation Scheme (GBIS) | £1,000–£1,500 (cavity wall or loft insulation) | 200–500 kWh per measure | Council tax band A–D (England), EPC D or below | Energy supplier or certified installer |
| Energy Company Obligation (ECO4) | Varies; whole-house upgrades up to £10,000+ | 1,000–3,000 kWh depending on measures | Low-income households on means-tested benefits | Energy supplier or referral partner |
| Home Upgrade Grant (HUG) | Up to £10,000 (off-gas-grid homes) | 2,000–4,000 kWh (heat pump or insulation) | Off-gas-grid, low income, EPC D or below | Local authority in participating areas |
Sources: DESNZ “Green grants and schemes” overview page (GOV.UK, 2026); Ofgem “ECO4” guidance (Ofgem, 2026); Energy Saving Trust “Home Upgrade Grant” factsheet (Energy Saving Trust, 2026).
The Boiler Upgrade Scheme is the most direct government green grant fund for replacing a fossil-fuel boiler
If you want to swap your gas or oil boiler for a heat pump, the Boiler Upgrade Scheme is the simplest route. It offers a flat £7,500 grant for both air source and ground source heat pumps, with no means-testing or income cap (GOV.UK, 2026). That means a household earning £100,000 qualifies for the same amount as one on benefits, as long as they own the property and have a valid Energy Performance Certificate (EPC).
The grant is deducted from the installer’s quote before you pay, so you do not receive cash directly. Your installer submits the claim to Ofgem on your behalf, and the grant is paid to them, reducing your final bill. To be eligible, your EPC must have no outstanding recommendations for loft or cavity wall insulation, meaning you must have those measures in place or show they are not feasible. The installer must be registered with the Microgeneration Certification Scheme (MCS) to submit the claim (MCS, 2026).
The Great British Insulation Scheme pays for cavity wall and loft insulation, but only for certain homes
The Great British Insulation Scheme (GBIS) is designed for homes that need basic insulation measures like cavity wall or loft insulation. It covers 100% of the cost for eligible households, up to a cap of £1,000–£1,500 depending on the measure (Ofgem, 2026). Eligibility is based on your property’s council tax band, A to D in England, A to E in Scotland and Wales, and an EPC rating of D or below.
You can apply through your energy supplier or a certified installer who handles the paperwork. The scheme is not means-tested in the same way as ECO4, but it is limited to homes that are relatively inefficient and in lower council tax bands. If your home already has good insulation or a higher EPC rating, you are unlikely to qualify. The scheme runs until March 2027, with annual budgets allocated per supplier (GOV.UK, 2026).
Energy Company Obligation (ECO4) is the main grant for low-income households needing full home upgrades
ECO4 is the government’s flagship scheme for low-income households, covering whole-house improvements such as insulation, heating controls, and in some cases a new heat pump or boiler (if a heat pump is not feasible). Eligibility is linked to means-tested benefits like Pension Credit, Universal Credit, or a low-income referral from your local authority (Ofgem, 2026).
The scheme is administered by energy suppliers, not directly by government. You apply through your supplier or a referral partner, and the installer carries out an assessment of your home to decide which measures are suitable. ECO4 can cover costs well above £10,000 for a full retrofit, but it is limited to those who meet the benefit criteria. The scheme runs until March 2026, with a possible extension under ECO5 currently under consultation (GOV.UK, 2026).
The government green grant fund is not a single application, you must choose the scheme that matches your income and property
For most homeowners, the Boiler Upgrade Scheme is the simplest option: no income test, just a heat pump and a valid EPC with insulation in place. If you are on a low income or receive means-tested benefits, ECO4 or the Great British Insulation Scheme may cover more measures at no cost. The Home Upgrade Grant (HUG) is another option for off-gas-grid homes in England, funded by DESNZ and delivered through local authorities (GOV.UK, 2026).
You cannot stack multiple grants for the same measure in most cases. For example, you cannot claim both the BUS and ECO4 for the same heat pump installation. However, you can use one scheme for insulation and another for heating, provided the installer coordinates the work. The key is to check your eligibility first, then find an installer registered with the appropriate certification body for the scheme you choose. how to check your EPC rating before applying for a green grant
Eligibility and certification, you need an MCS-accredited installer to claim the Boiler Upgrade Scheme grant
For the Boiler Upgrade Scheme, the installer must be registered with the Microgeneration Certification Scheme (MCS) to install the heat pump and submit the grant claim on your behalf (MCS, 2026). Without an MCS-certified installer, you cannot claim the £7,500 grant. For ECO4 and the Great British Insulation Scheme, installers must be TrustMark-registered and certified under PAS 2030/2035 standards (TrustMark, 2026).
For gas boiler replacements under ECO4, the installer must be Gas Safe registered (Gas Safe Register, 2026). Always check the installer’s credentials before agreeing to any work. Using an unregistered installer can invalidate the grant and leave you liable for the full cost. what to check before hiring an MCS installer
How long the government green grant fund lasts, and what happens when the budget runs out
The Boiler Upgrade Scheme has a fixed annual budget of around £450 million in 2026 and operates on a first-come, first-served basis until funds are exhausted (DESNZ, 2026). Once the budget for the year is gone, new applications are paused until the next allocation. The Great British Insulation Scheme runs until March 2027, but its budget is allocated per financial year, so it can also run out early.
ECO4 runs until March 2026, with a possible extension under ECO5 (consultation ongoing in 2026). If the budget for any scheme is exhausted before you apply, you may need to wait for the next round or explore alternative schemes. The best approach is to apply as soon as you are ready, because these grants are popular and funding is limited. what to do if a green grant runs out before you apply
Frequently Asked Questions
It is not a single pot of money. The term covers several schemes, with the largest being the Boiler Upgrade Scheme offering £7,500 for heat pumps, as confirmed by GOV.UK.
Up to £7,500 for a heat pump under the Boiler Upgrade Scheme, or £1,000–£1,500 for insulation via the Great British Insulation Scheme, according to Ofgem.
Eligibility varies: the Boiler Upgrade Scheme has no income test, while ECO4 requires low-income benefits, and the Great British Insulation Scheme targets council tax bands A–D, per Energy Saving Trust.
You do not apply directly for most schemes. For the Boiler Upgrade Scheme, an MCS-certified installer submits the claim after quoting you a reduced price, as per GOV.UK guidance.
Yes, the Boiler Upgrade Scheme, Great British Insulation Scheme, and ECO4 are all running in 2026, with funding confirmed by the Department for Energy Security and Net Zero.
