How to apply for a UK heat pump grant in 2026

The UK Government offers a £7,500 heat pump grant to help households switch to low-carbon heating. Find out how the subsidy works, who qualifies, and what to expect from the application process

The Boiler Upgrade Scheme in England and Wales can provide £7,500 towards the cost of a new air source heat pump. (Octopus Energy)

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With energy bills still a concern for many households, and the country pushing towards lower-carbon heating, heat pumps are becoming an increasingly popular alternative to gas boilers. To help with the upfront cost, the UK Government offers a heat pump subsidy that can significantly reduce installation costs.

If you’re interested in upgrading to a heat pump but unsure where to begin, here’s a straightforward guide to how the UK heat pump subsidy works, who’s eligible, and how to apply.

What heat pump grants are available in the UK?

The main support scheme is the Boiler Upgrade Scheme. It provides a £7,500 grant towards the cost of installing an air source or ground source heat pump in England and Wales.

Rather than being paid to you directly, the grant is applied by your installer and deducted from the final installation cost.

Who is eligible for the heat pump grant in the UK?

Most homeowners can apply, provided they meet a few basic requirements:

• You own your home in England or Wales (including landlords)
• Your property has a valid Energy Performance Certificate (EPC)
• You’re replacing a fossil fuel heating system, such as a gas or oil boiler
• Your home has suitable insulation, such as loft or cavity wall insulation

New-build properties are generally excluded, except in some self-build cases. Homes that already use a heat pump or another low-carbon system won’t qualify.

What types of heat pumps are covered under the Boiler Upgrade Scheme?

The scheme supports two types of systems:

1. Air source heat pumps, which are the most common and easiest to install
2. Ground source heat pumps, which are more complex but can be highly efficient

Hybrid systems that combine a heat pump with a gas boiler are not currently eligible.

How the application process works

One of the simpler aspects of the scheme is that homeowners don’t apply directly. Instead, your installer manages the process. In practice, it works like this:

1. Choose an MCS-certified installer

Only installers certified under the Microgeneration Certification Scheme can access the grant.

2. Have your home assessed

The installer checks your EPC, insulation levels and overall suitability.

3. Receive a quote with the grant included

The £7,500 grant should be shown as a deduction.

4. Installer submits the application

Once you agree to proceed, they apply on your behalf.

5. Installation and payment

After installation, the installer claims the grant and reduces your final bill.

For homeowners, the process is largely hands-off.

How much does a heat pump cost after the grant?

Costs vary depending on the size and layout of your home, but as a rough guide:

• Air source heat pumps typically cost £8,000-£14,000
• Ground source systems often cost £18,000 or more

The grant can make a significant difference to the upfront cost, particularly when combined with potential long-term savings on energy bills.

Some suppliers, including Octopus Energy, offer heat pump installation services or work with approved partners, which can help streamline the process for households exploring a more efficient heating system.

Do heat pumps save money?

Heat pumps work best in well-insulated homes with modern heating systems. When properly installed and matched to the property, they can be cheaper to run than gas boilers, particularly as gas prices fluctuate.

Using a smart meter and a time-of-use electricity tariff can also help households better understand and manage their energy use.

Read more: Are heat pumps worth it?

Are there other grants available?

Support differs across the UK. In Scotland, funding is available through Home Energy Scotland, while households on lower incomes may qualify for additional help through schemes such as the Energy Company Obligation (ECO). Eligibility and availability vary by location.

Is it worth getting a heat pump in the UK under the subsidy?

If your boiler is nearing the end of its lifespan, the UK heat pump subsidy could make switching to low-carbon, energy-efficient heating more affordable. A reputable, MCS-certified installer will be able to advise whether a heat pump is suitable for your home before you commit.