£7,500
Air-to-water heat pumps
The standard grant for an eligible air source (air-to-water) heat pump.
Heat pump grants
Heat pump grants
If you are looking at a heat pump for a property in England or Wales, the Boiler Upgrade Scheme is the main source of grant support. What it is worth depends on the technology and the property — here is the whole picture in one place.
Grant values are set by the scheme and applied as a reduction in your installation cost. They are not a payment to you, and no value is guaranteed until an application is approved.
Current values
What is available, and for what
Each value belongs to a technology and a set of conditions. Reading the figure without the condition is how people end up disappointed.
£7,500
Ground source heat pumps
The standard grant for an eligible ground source heat pump installation.
£2,500
Air-to-air heat pumps
Residential properties only. Air-to-air systems are not eligible in non-residential buildings.
£5,000
Biomass boilers
Available in limited circumstances only, with additional location and air-quality requirements.
£9,000
Air-to-water or ground source heat pumps in eligible off-gas-grid properties
For properties off the mains gas grid that are replacing oil or LPG heating. Time-limited.
Available until 31 March 2027
Read more about Air-to-water or ground source heat pumps in eligible off-gas-grid properties
Grant availability and eligibility are subject to the current scheme rules. The value that applies to a particular property is confirmed by an MCS-certified installer when they make the application — these figures are what the scheme currently offers, not a quotation. The £9,000 value is £1,500 above the standard £7,500 and applies only to qualifying off-gas-grid properties replacing oil or LPG heating.
The grants side by side
The same information as a table, for anyone who would rather read across a row.
| Technology | Grant value | What it heats | Property types |
|---|---|---|---|
| Air-to-water heat pump | £7,500 | Radiators, underfloor heating and hot water | Residential and non-residential |
| Ground source heat pump | £7,500 | Radiators, underfloor heating and hot water | Residential and non-residential |
| Air-to-air heat pump | £2,500 | Warm air to rooms — no radiators, no cylinder | Residential only |
| Air-to-water or ground source, off-gas-grid | £9,000 | As above, replacing oil or LPG heating | Time-limited — until 31 March 2027 |
The £9,000 figure is £1,500 above the standard £7,500, and applies only where the property meets the off-gas-grid definition and is replacing oil or LPG heating.
Which value would apply to your property
Work down these in order — the first one that describes your situation is the one to read about.
You are off the mains gas grid and heat with oil or LPG
This is the strongest position under the current rules. Provided the property meets the off-gas-grid definition and you are installing an air-to-water or ground source heat pump, the uplifted value of £9,000 may apply — but it is time-limited and the conditions are specific. Read the off-gas-grid heat pump grant page before you assume it applies.
You have mains gas, or electric heating, and want a heat pump for radiators
The standard value of £7,500 applies to an eligible air-to-water heat pump, and the same value to a ground source system. The grant does not differ between the two, so choose on the site and the building rather than on the funding.
You want warm air rather than radiators
Air-to-air heat pumps attract £2,500 and are eligible in residential properties only. They do not heat water, so they neither serve radiators nor replace a hot water cylinder — which is a bigger practical difference than the grant gap suggests.
You are in Scotland or Northern Ireland
The Boiler Upgrade Scheme covers England and Wales only. Other heating support may be available where you live, and it is worth checking what your own nation offers before making a decision.
What you would still pay
The grant is a fixed contribution, not a proportion of the bill. The rest is the part that varies.
Two heat pump quotations for identical houses can differ substantially, and almost all of that difference sits outside the heat pump itself. The things that move the number are:
- how many radiators need upsizing to run at a lower flow temperature;
- whether a hot water cylinder already exists, or space has to be found for one;
- the condition of the existing pipework and whether the system needs cleaning;
- controls, and how the system is set up to run;
- electrical work, and occasionally involvement from the network operator;
- where the outdoor unit goes, and the reinstatement that follows.
We do not publish price ranges for heat pump installations, because a range wide enough to be true would be too wide to be useful. A survey gives you a real figure for your property, and that is the number worth comparing.
VAT
Current guidance applies 0% VAT to qualifying energy-saving materials installed in residential property, including heat pumps and biomass boilers, until 31 March 2027.
How a grant reaches your installation
This surprises people, so it is worth being blunt about it.
You do not apply, and you do not receive the money. An MCS-certified installer applies for the voucher on your behalf, and if it is approved the value is taken off the price of your installation and shown on the quotation and the invoice.
That means two things in practice. First, choosing the installer effectively chooses your route to the grant, so the certification question matters. Second, nobody should be asking you for a fee to secure, reserve or release a grant — that is not part of how the scheme operates.
The full process, step by step, is on the Boiler Upgrade Scheme page.
Read next
Boiler Upgrade Scheme
The scheme in full: what it covers, who administers it and how the application works.
Eligibility criteria
Who can apply, the common reasons applications fail, and a short check for your property.
Off-gas-grid grant
The higher value for oil and LPG properties, and the conditions attached to it.
Heat pumps explained
How the technology works and what a property needs for it to work well.
Air source vs ground source
Efficiency, installation, disruption and cost — where the two genuinely differ.
Heat pump vs gas boiler
A fair comparison, including when a boiler is still the sensible answer.
Frequently asked questions
Is there one heat pump grant, or several?
In England and Wales the main route is the Boiler Upgrade Scheme, which sets different values for different technologies rather than being several separate grants. The higher off-gas-grid value is an uplift within the same scheme, not a different one.
Does everyone installing a heat pump get a grant?
No. The property, the owner, the existing heating system and the technology all have to meet the scheme criteria, and eligibility is assessed when the installer applies. Plenty of installations do not qualify.
What would I still have to pay?
The grant is a fixed contribution, not a percentage, so what you pay is the installed cost of the system minus the grant. That balance varies widely with the property — the number of radiators being changed, whether a cylinder is needed, electrical work and reinstatement all move it.
Can I get a grant for a hybrid system that keeps my boiler?
No. The existing fossil fuel heating system has to be fully replaced. Keeping a gas or oil boiler alongside the new system is not permitted under the scheme.
Does the grant cover radiator upgrades and a hot water cylinder?
The grant is a contribution towards the installation as a whole rather than towards specific items. Your installer’s quotation should show the full scope of work and the grant deducted from the total.
Is VAT charged on a heat pump installation?
Current guidance applies 0% VAT to qualifying energy-saving materials installed in residential property, including heat pumps and biomass boilers, until 31 March 2027.
Information sources
The scheme details on this page are taken from the official guidance below. Where our summary and the official guidance differ, the official guidance is correct.
- Apply for the Boiler Upgrade Scheme — GOV.UK. Scheme overview, geography and the heating systems it covers.
- Boiler Upgrade Scheme: what you can get — GOV.UK. Current grant values and the off-gas-grid uplift.
- Boiler Upgrade Scheme: guidance for property owners — Ofgem. Eligibility, the application process and the evidence required.
- Boiler Upgrade Scheme (BUS): installers — Ofgem. The installer-led application process and MCS requirements.
- VAT rates on different goods and services — GOV.UK. The 0% VAT position on qualifying energy-saving materials.
Scheme information last checked: . Based on Ofgem property owner guidance V5.1. Scheme rules can change — always confirm the current position with your installer or the official guidance before committing to anything.
Find out whether a grant could apply to your property
A few questions about the property and the heating in it. You will get a plain-English summary rather than a promise.