How much you could receive in heat pump grants in 2026: A simple guide for UK homeowners
Heat pumps are an efficient HVAC device that provides warmth and comfort to homes via seamless heat transfer. Various cleaner heat pump solutions are available nowadays, such as those that extract heat from outside air and from stable underground temperatures, which promote lower carbon emissions.
In this article, we talk about heat pump grants in the UK that you can take advantage of to install an eco-friendly and cost-efficient heat pump in your property.
Boiler Upgrade Scheme (BUS): The Main Heat Pump Subsidy UK
With the BUS subsidy, you can install a heat pump or boiler at a lower cost. This subsidy covers part of the cost of shifting from fossil fuel heating systems (e.g., electric, oil, gas, or liquefied petroleum gas) to heat pump boilers.
The BUS is available to residents of England and Wales. Current grants provided by the BUS are as follows:
£7500 for an air-source heat pump (ASHP)
£7500 for a ground source heat pump (GSHP), such as water source heat pumps and those on shared ground loops.
£5000 towards a boiler.
Note that hybrid setups, such as gas and air source heat pumps, are ineligible for the BUS grant. Moreover, the maximum capacity supported is 45kWth for individual systems and 300kWth for shared ground loops.
You are eligible for the BUS grant if and only if you meet the following:
You are the owner of the property (e.g. business, a second home, or a property you rent out to tenants) you are applying for.
You are replacing your fossil fuel system with a heat pump or boiler.
Your installer will commission and install the heat pump within 120 days of application for the grant.
Your property must have a valid Energy Performance Certificate (EPC). Note that an EPC has a validity of one decade.
For boilers:
- Your property must be off-grid.
-Your property is in a rural area.
-The boiler has an emissions certificate showing that polluting emissions are kept to a minimum.
To apply for the BUS grant, you may contact a MCS certified installer to get quotes for the work. Then, let your installer review if you meet the qualifications set by the UK government. Upon review, you may agree to the quote made by your installer.
The installer will then process the application on your behalf via the Ofgem (Office of Gas and Electricity Markets) website. The grant will be taken off the amount you pay for installation.
UK’s energy support scheme: Zero VAT until March 2027
The UK government, through various legislations, has implemented a 0% VAT on the installation of several energy-saving materials from May 2023 to March 2027. Then, from April 2027 onwards, the VAT rate will be increased to 5%.
Included in this policy is the installation of water and ground source heat pumps. For instance, if you install a central heating system but with ASHP or GSHP instead of a conventional boiler, you will enjoy a 0% VAT for the installation since the principal material involved is zero-rated.
Note as well that the relief also includes preparatory work that is necessary for the installation of a ground source heat pump. Moreover, only air source heat pumps that are permanently fixed and are not portable or movable qualify as energy-saving and zero-rated materials.
The zero VAT policy is a huge relief to the expense of installing a heat pump and turns the upfront investment of this device hugely attractive. For instance, if the labor and equipment for GSHP installation amounts to £10,000, the zero VAT relief means you will not incur additional VAT charges on that total.
Europe Grant Heat Pump in 2026: How UK Support Compares?
As per the recent data from the European Heat Pump Association (EHPA), the subsidy levels for heat pump installation vary across European countries. Their data also indicate that some countries offer generous upfront grants, while others rely on tax credits or low-interest loans. In several markets, governments have begun to tighten support. Funding caps apply more often, and eligibility rules have grown stricter as uptake rises.
Meanwhile, the UK follows a clearer and more stable path relative to other European countries. Current grant and subsidy policies provide a clear and multi-year framework that supports long-term household planning. The Boiler Upgrade Scheme (BUS) offers fixed grants, and zero-rate VAT on heat pump installations extends through 2027. This structure reduces uncertainty and allows homeowners to plan upgrades with confidence.
Planning your heat pump installation in 2026
In this section, we provide a quick guide to help you plan a successful, cost-effective heat pump installation.
Step 1: Check the availability of the grant. Refer to the guidelines and requirements stipulated above regarding the eligibility for the BUS grant and zero VAT. Note as well the deadlines for the application to these grants.
Step 2: Confirm installer certification. Choose an installer that is certified by the Microgeneration Certification Scheme (MCS), which is the primary authorized body for providing quality marks for installers of renewable technologies.
Step 3: Check your property’s EPC rating. Most grant schemes require a minimum level of insulation, such as loft or cavity wall coverage, to ensure efficient performance. A higher EPC score also improves comfort and reduces running costs. An accredited assessor can confirm whether a property upgrade is needed before installation.
Step 4: Compare ASHP and GSHP for your property structure. GSHPs deliver strong efficiency but require land for ground loops and higher installation costs. ASHPs suit most homes, need less space, install faster, and perform well in the UK climate.
Air source heat pumps like EcoFlow PowerHeat are a practical and efficient solution for low-carbon heating because they fit most UK homes and work well within most building layouts and structures. The systems extract heat from outdoor air, even in cold weather, and convert it into steady indoor warmth with high efficiency.
For instance, PowerHeat can bring ambient air heat energy into your house for significantly enhanced home heating efficiency. It works seamlessly with the EcoFlow app, where you can gain complete visibility of your whole-home energy data, analyze heating power, adjust the temperature for rooms and hot water, and schedule heating and cooling.
You can pair EcoFlow PowerHeat with EcoFlow PowerOcean, a home solar battery solution that provides an advanced safety system, LFP battery tech, and a fire prevention module. PowerOcean comes with batteries expandable up to 45 kWh while offering over 6,000 charge cycles.
Final takeaways for 2026
When people think about “cleaner” and “alternative” heating sources, it is usually thought that they are costly to install. This might have been true several years ago, but grants and VAT relief will make 2026 and 2027 the best windows for a more affordable and sustainable installation.
In the UK, various government reliefs are available that promote a seamless, easy, and cheaper heat pump installation. The Boiler Upgrade Scheme (BUS) can cover a significant portion of the installation cost, and the Zero VAT policy on energy-saving materials can reduce your overall installation cost.
What kind of product or solution are you interested in?
FAQ
Can you get a grant for a heat pump in the UK?
Yes, various grants from the UK government are available for a cheaper heat pump installation. For instance, the Boiler Upgrade Scheme is a heat pump government grant designed to provide a £7,500 grant for ASHP or GSHP, or £5,000 for a boiler.
How to get money for a heat pump?
You do not get money from a heat pump subsidy. The grant will simply cover a portion of the installation cost as quoted by your chosen installer. Once approved, the grant applies directly to the installation invoice.
Is a heat pump a good investment?
Yes, a heat pump is a great, long-term investment for home comfort and energy conservation. They can cut energy bills and carbon emissions. Upfront costs may be higher than conventional heating, but there are grants that can help.
How much to get a heat pump in the UK?
The average installation cost for a residential home is £12,500. While the initial costs may be high, the UK government has grants. Government grants can cut costs to about £7,500, making the initial investment more affordable.
How much do heat pumps cost?
Heat pumps typically have an average cost of between £8,000 and £14,000, depending on the size, model, and features. Grants can help cover part of the cost, and long-term savings on energy bills can offset the upfront investment over time.
