The £7,500 heat pump grant — who qualifies and how to apply

What is the £7,500 heat pump grant?

The Boiler Upgrade Scheme is a government grant programme administered by Ofgem on behalf of the UK Government. It was introduced to help homeowners in England and Wales replace fossil fuel heating systems with low-carbon alternatives — primarily heat pumps.

The scheme offers a grant of up to £7,500 towards the cost of installing an air source heat pump or ground source heat pump. The grant is not paid directly to the homeowner. Instead, your MCS-certified installer applies to Ofgem on your behalf after the installation is complete, and the grant amount is deducted from your installation bill. You simply pay less upfront.

The scheme runs until March 2028 under current government policy, though this may be extended or modified. Grant amounts and eligibility rules have changed since the scheme launched and may change again — this guide reflects the position as of early 2026.

Who qualifies for the heat pump grant?

The Boiler Upgrade Scheme has a clear set of eligibility requirements. All of the following must apply:

• You own the property. The scheme is for homeowners, not renters.
• The property is in England or Wales. Scotland has a separate scheme. Northern Ireland is not currently covered.
• You are replacing a fossil fuel heating system — gas boiler, oil boiler, LPG boiler, or electric storage heating.
• The property has a valid EPC — issued within the last ten years.
• The EPC has no outstanding recommendations for loft insulation or cavity wall insulation that have not been carried out.
• The installation is carried out by an MCS-certified installer who applies for the grant on your behalf.

Which homes usually qualify — and which do not

Situation	Likely position	Notes
Detached house, gas or oil boiler, insulation in place	✓ Strong candidate	Good outdoor space, no shared walls, EPC condition likely clear
Semi-detached or terraced house, cavity walls insulated	✓ Good candidate	Check EPC for outstanding recommendations
Rural property on oil heating	✓ Strong candidate	Oil-to-heat-pump conversions are commonly viable
1930s–1970s property with improvements made	✓ Often viable	Depends on insulation levels and EPC status
Property with EPC rating D, no outstanding recommendations	✓ Not blocked	Letter grade is not a barrier — recommendations are what matter
Property with outstanding cavity wall insulation on EPC	~ Resolvable	Insulation work needed first, or evidence of unsuitability obtained
Flat or apartment	✗ Difficult	Outdoor unit placement, leasehold consent, and planning are significant barriers
Rented property	✗ Not eligible	Scheme is for owners only
Property in Scotland or Northern Ireland	✗ Not eligible	Different schemes apply in Scotland
Property that already has a working heat pump	✗ Not eligible	Scheme is for replacement of fossil fuel systems

How the grant application process works

One of the most common misconceptions about the Boiler Upgrade Scheme is that the homeowner applies for the grant. You do not. The process works like this:

What does a heat pump installation cost after the grant?

Typical air source heat pump installations cost between £10,000 and £15,000 before the grant, depending on the property size, system complexity, and whether radiator upgrades or a new hot water cylinder are needed. After the £7,500 Boiler Upgrade Scheme grant, the net cost is typically in the range of £2,500 to £7,500.

Additional work — such as upgrading undersized radiators or installing a new hot water cylinder — may add to the total cost. Your installer will detail all of this in their quotation so you have a clear picture of the total investment before agreeing to proceed.

What about running costs?

Whether a heat pump costs more or less to run than your current boiler depends on your property's insulation, the efficiency of the installation, and the relative price of electricity versus your current fuel. In a well-insulated property with a well-designed system, heat pump running costs are broadly comparable to a gas boiler and typically lower than oil heating. The electricity-to-gas price ratio is the key variable — as this gap narrows over time, heat pumps become increasingly cost-competitive.

For a detailed comparison, see our guide to heat pump vs gas boiler running costs in the UK.

Detailed guides by property type and situation

The articles below go into more detail on specific questions. Each one is relevant to a different type of homeowner situation.