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Industry NewsUpdated May 2026By TradeMatch Editorial Team·7 February 2026·Updated 12 April 2026·5 min read
Heat Pump Grants in the UK: What Funding Is Available in 2026?
The UK government is incentivising the switch from gas boilers to heat pumps as part of its Net Zero strategy. Here is what funding is available and how to apply.
The Boiler Upgrade Scheme (BUS)
The Boiler Upgrade Scheme offers grants for homeowners in England and Wales to replace fossil fuel heating with low-carbon alternatives:
- Air source heat pump: Up to £7,500 grant
- Ground source heat pump: Up to £7,500 grant
- Biomass boiler (in rural areas only): Up to £5,000 grant
The grant is applied as a discount at the point of installation — you do not receive cash directly. Your installer must be MCS certified to apply.
How to Apply
1. Find an MCS certified installer — Only MCS certified installers can apply for BUS funding on your behalf
2. Get a quote — The installer will assess your property and provide a quote
3. Installer applies — They apply for the voucher through Ofgem
4. Installation — Once the voucher is issued, installation can proceed
5. Payment — The grant is deducted from your final bill
On TradeMatch, you can find MCS certified heat pump installers and compare quotes. We verify MCS certification as part of our vetting process.
Is a Heat Pump Right for Your Home?
Heat pumps work best in well-insulated homes. Before installing one, consider:
- Insulation — Your home should have good loft, wall and floor insulation
- Radiators — You may need larger radiators or underfloor heating
- Space — Air source heat pumps need outdoor space for the unit
- Running costs — Heat pumps are cheaper to run than gas boilers for well-insulated homes, but electricity is more expensive per unit than gas
Frequently Asked Questions
How much does a heat pump cost after the grant?
A typical air source heat pump installation costs £8,000–£14,000. After the £7,500 BUS grant, your out-of-pocket cost would be approximately £500–£6,500 depending on the system and property.
Can I get a heat pump grant if I have a combi boiler?
Yes. The BUS grant is available to replace any fossil fuel heating system, including combi boilers, system boilers and oil boilers. Your property must be in England or Wales and the installer must be MCS certified.
How long does a heat pump last?
A well-maintained air source heat pump should last 15–20 years, which is longer than the average boiler lifespan of 10–15 years. Ground source heat pumps can last even longer — up to 25 years for the heat pump unit and 50+ years for the ground loop.
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