Air Source Heat Pump Grants 2026: Who Can Get One and How to Apply
Quick Answer: The main air source heat pump grant available in 2026 is the Boiler Upgrade Scheme, which provides £7,500 towards the cost of an air source heat pump for eligible homeowners in England and Wales. This grant has increased from the original £5,000 to £7,500 and is available on a first-come, first-served basis to owners of properties with a valid EPC. In Scotland, Warmer Homes Scotland provides free heating upgrades including heat pumps for low-income and vulnerable households. In Wales, the Nest Wales scheme offers free energy efficiency packages including heat pumps to qualifying households. All grants are designed to reduce the significant upfront installation cost that remains the primary barrier to heat pump adoption.
Air source heat pumps cost between £7,000 and £13,000 installed — a significant upfront investment that the operational savings alone take years to recoup. Government grants exist specifically to bridge this gap, making heat pump adoption financially accessible to a broader range of homeowners and bringing the UK closer to its legally binding net zero targets. This guide explains every grant currently available in 2026, who qualifies for each, what the application process involves, and whether an air source heat pump represents the right choice for the specific property and circumstances.
Why Does the Government Offer Heat Pump Grants?
The UK government has committed to reaching net zero carbon emissions by 2050 and has set interim targets requiring significant decarbonisation of domestic heating — which currently accounts for approximately 14% of total UK carbon emissions, predominantly from gas boilers. Heat pumps produce significantly lower carbon emissions than gas boilers per unit of heat delivered and become progressively cleaner as the electricity grid continues to shift towards renewable generation.
The grants are financial incentives designed to overcome the upfront cost barrier — the single most cited reason why homeowners do not switch from gas heating to heat pumps despite the lower long-term running costs. Without grants, the payback period for a heat pump installation is long enough to deter many homeowners from making the switch, even when the lifetime economics are favourable.
Boiler Upgrade Scheme — England and Wales
The Boiler Upgrade Scheme (BUS) is the primary heat pump grant for homeowners in England and Wales. Originally launched in spring 2022 as the successor to the Renewable Heat Incentive (RHI), the scheme has been extended and the grant amount increased to reflect the government’s continued commitment to heat pump deployment. As homeowners explore options for energy-efficient heating solutions, understanding the various boiler types for central heating systems becomes increasingly important. Each type offers distinct advantages that can significantly impact energy consumption and comfort levels. This awareness empowers users to make informed decisions and maximize the benefits of government initiatives like the Boiler Upgrade Scheme.
The current grant amount for an air source heat pump through the Boiler Upgrade Scheme is £7,500 — an increase from the original £5,000 that significantly improves the financial case for heat pump installation. Ground source heat pumps are also eligible, attracting the same £7,500 grant value.
The grant is paid directly to the MCS-certified installer rather than to the homeowner. The installer deducts the grant amount from the invoice, so the homeowner pays the net amount only — there is no waiting period for a rebate. This simplifies the process considerably and ensures the financial benefit is realised at the point of purchase rather than retrospectively.
Who is Eligible for the Boiler Upgrade Scheme?
Eligibility for the Boiler Upgrade Scheme is assessed against the property rather than the household’s income — it is not a means-tested scheme. The key eligibility criteria are as follows.
The property must be located in England or Wales. The property must have a valid Energy Performance Certificate (EPC) issued within the last ten years. The EPC must not include any outstanding recommendations for loft insulation or cavity wall insulation — these must be completed before or alongside the heat pump installation if recommended. The property must currently use a fossil fuel heating system — gas, oil, or LPG — which will be replaced by the heat pump. The installation must be carried out by an MCS-certified installer.
Owner-occupied properties, second homes, and small commercial properties are eligible. Social housing and properties owned by local authorities or housing associations are excluded from this scheme, though alternative funding routes may be available through those organisations.
How to Apply for the Boiler Upgrade Scheme
Homeowners do not apply directly to the Boiler Upgrade Scheme themselves. The application is made by the MCS-certified installer on behalf of the homeowner. The process begins by obtaining a quote from a registered installer who will confirm eligibility, design the appropriate system, and apply for the voucher. Once the voucher is issued and the installation is complete, the installer redeems the voucher and the homeowner pays the net invoice amount with the grant already deducted.
The most important practical step for homeowners is to check the current EPC and address any outstanding insulation recommendations before beginning the heat pump installation process. An outstanding EPC recommendation for loft or cavity wall insulation will make the property ineligible until the recommended measure is installed — completing this work first removes the barrier and typically improves the building’s suitability for heat pump heating in any case.
Nest Wales
Nest Wales is a Welsh Government-funded scheme administered by Energy Saving Trust Wales. Unlike the Boiler Upgrade Scheme, Nest Wales is means-tested and targeted specifically at households on lower incomes or with health conditions that make inadequate heating a welfare risk.
Eligible households can receive a free energy efficiency package that may include an air source or ground source heat pump, alongside insulation measures, heating controls, and other improvements determined by an assessment of the property’s specific needs and energy inefficiency profile.
What Does Nest Wales Provide?
The package awarded depends on the property assessment and may include any combination of: an air source heat pump, a ground source heat pump, a green boiler or central heating system, internal or external wall insulation, cavity wall insulation, loft insulation, water tank and pipe insulation, draught proofing, and room thermostats and heating controls. The package is determined by Nest Wales following a property survey and is designed to address the specific heat loss and efficiency issues of the individual property. Homeowners may also explore various options for additional support, such as central heating cover benefits for homeowners, which can provide peace of mind in case of unexpected system failures. These benefits often extend to include coverage for repairs and routine maintenance, ensuring that heating systems remain efficient and reliable throughout the colder months. Understanding the full range of options available helps homeowners make informed decisions about their heating needs and overall property comfort.
Who is Eligible for Nest Wales?
Three conditions must all be met simultaneously. The applicant must own or rent the property as their main residence — local authority and housing association tenants are excluded. The property must be energy inefficient and difficult to heat as evidenced by the property survey. The applicant or another household occupant must either suffer from a qualifying health condition — circulatory, chronic respiratory, or mental health — or receive a qualifying means-tested benefit.
Qualifying means-tested benefits include Universal Credit, Pension Credit, Income Support, Housing Benefit, income-based Jobseeker’s Allowance, income-related Employment and Support Allowance, Child Tax Credit with household income below £16,105 per year, and Working Tax Credit with household income below £16,105 per year.
Applications are made through the Nest Wales helpline, where an advisor assesses eligibility based on information provided about the property and the household.
Warmer Homes Scotland
Warmer Homes Scotland is a Scottish Government-funded scheme providing free central heating upgrades — including heat pumps — to low-income and vulnerable households in Scotland. The scheme is delivered through Home Energy Scotland and installation work is coordinated through Warmworks Scotland.
What Does Warmer Homes Scotland Provide?
Approved applicants receive heating upgrades which may include a heat pump system, eco-friendly boiler alternatives, loft insulation, wall insulation, and draught-proofing. The specific measures installed are determined by a survey of the property conducted by Warmworks Scotland following an approved application.
Who is Eligible for Warmer Homes Scotland?
The property must meet the House (Scotland) Act 2006, have an energy rating of SAP 67 or below, be below 230 square metres in size, be the applicant’s main residence, and have been occupied by the applicant for more than one year. The applicant must be either the homeowner or a private sector tenant.
The applicant must also fall into one of the following household categories: aged over 75 and in receipt of a passport benefit; an older person receiving a passport benefit with a non-functional heating system; a person with a disability receiving Personal Independence Payment (PIP) or high-rate Disability Living Allowance (DLA); a disabled person receiving both low or medium-rate DLA and an income-related benefit; a carer receiving Carer’s Allowance; a person with a disability or injury from employment receiving Industrial Injuries Disablement Benefit; or a person with a service-related disability or injury receiving War Disablement Pension or Armed Forces Independence Payment.
Contact Home Energy Scotland to begin the eligibility assessment process — they survey the property and determine which measures the household qualifies for.
Air Source Heat Pump Grant Summary
| Scheme | Location | Grant Value | Income-Tested? | Key Requirement |
|---|---|---|---|---|
| Boiler Upgrade Scheme | England and Wales | £7,500 | No | Valid EPC, MCS-certified installer |
| Nest Wales | Wales | Free package | Yes | Qualifying benefit or health condition |
| Warmer Homes Scotland | Scotland | Free package | Yes | SAP 67 or below, qualifying household |
Benefits of an Air Source Heat Pump Grant
The most immediate benefit is the reduction in upfront installation cost. An air source heat pump installation typically costs £7,000 to £13,000. After the £7,500 Boiler Upgrade Scheme grant, the net cost to the homeowner ranges from zero to approximately £5,500 depending on the system specification — a fundamental change in the financial accessibility of heat pump installation. Once installed, homeowners should consider the average heat pump servicing costs to maintain system efficiency and longevity. Regular maintenance can help prevent costly repairs down the line and ensure optimal performance year-round. By investing in servicing, homeowners not only protect their initial investment but also enhance the overall energy savings that heat pumps can provide.
Long-term running costs are significantly lower than fossil fuel systems. Households replacing oil or LPG heating with an air source heat pump typically save £700 to £1,300 per year on energy bills depending on the property’s size, insulation, and occupancy. The savings against mains gas are more modest but still meaningful, particularly as electricity costs relative to gas improve with continued grid decarbonisation.
Carbon emissions from domestic heating are substantially reduced. An air source heat pump in a well-insulated property produces approximately 60 to 70% fewer carbon emissions than an equivalent gas boiler system when accounting for the carbon intensity of the electricity used to power it. As grid electricity continues to decarbonise, this advantage grows further over the system’s operational life.
Air source heat pumps require minimal maintenance compared to gas boilers. An annual service by a qualified engineer is recommended, and the external fan unit should be kept clear of debris, but there are no annual Gas Safe certification requirements and no combustion components to inspect. The expected operational lifespan of 20 years is roughly twice that of a gas boiler.
Is an Air Source Heat Pump Better than a Gas Boiler?
The honest answer depends on the property’s circumstances. Air source heat pumps have lower operating costs and significantly lower carbon emissions but higher upfront costs even after the grant, lower peak heat output than a high-output gas boiler, and a requirement for good insulation to perform at their best. Properties with poor insulation, very high heat loss, or multiple simultaneous high-demand hot water uses may find a gas boiler more practical for the short to medium term.
For new builds, properties with good insulation, homes replacing oil or LPG, and properties with underfloor heating, an air source heat pump is an excellent choice that makes strong economic and environmental sense. Hydrogen-ready gas boilers are an alternative for homeowners who want to remain on the gas network with the option to transition to lower-carbon hydrogen if grid blending progresses as planned — though the timeline and cost of full hydrogen grid conversion remains uncertain.
FAQ
How much is the Boiler Upgrade Scheme grant for an air source heat pump in 2026?
The current Boiler Upgrade Scheme grant for an air source heat pump is £7,500. This is paid directly to the MCS-certified installer and deducted from the installation invoice — homeowners pay the net amount after the grant has been applied. The grant is available to eligible homeowners in England and Wales and is not means-tested.
Can renters apply for a heat pump grant?
The Boiler Upgrade Scheme is available to property owners only, not renters. In Wales, Nest Wales is available to both homeowners and renters of privately rented properties who meet the means-tested eligibility criteria. Warmer Homes Scotland is available to both homeowners and private sector tenants in Scotland who meet the scheme’s eligibility criteria.
Do I need to meet insulation standards to qualify for the Boiler Upgrade Scheme?
Yes. If the property’s current EPC includes recommendations for loft insulation or cavity wall insulation, these must be addressed before or simultaneously with the heat pump installation — the scheme will not approve installations in properties with outstanding insulation recommendations of this type. Other EPC recommendations do not affect eligibility. Completing the recommended insulation also improves the heat pump’s operational efficiency, so this prerequisite is both a scheme requirement and a practical benefit.
Can businesses apply for the Boiler Upgrade Scheme?
Small business owners in England and Wales may apply for the Boiler Upgrade Scheme through an MCS-certified installer, subject to the same property eligibility criteria as residential applicants. Larger commercial properties are not eligible for this particular scheme.
Is an air source heat pump suitable for all properties?
No. Air source heat pumps perform best in well-insulated properties where heat loss is low enough for the system to maintain comfortable temperatures at the lower flow temperatures heat pumps produce. Properties with poor insulation, solid walls without insulation, or very high heat demand may require significant insulation upgrades alongside the heat pump to achieve the expected performance and running cost savings. An MCS-certified installer will survey the property and advise on whether a heat pump is suitable and what preparatory measures may be needed.
Conclusion
The air source heat pump grants available in 2026 have made heat pump installation more financially accessible than at any previous point — the Boiler Upgrade Scheme’s £7,500 grant brings net installation costs down to levels that make the long-term economics compelling for a significant proportion of UK homeowners. The Nest Wales and Warmer Homes Scotland schemes extend this support to lower-income and vulnerable households in their respective nations through means-tested free installation packages.
For homeowners in England and Wales considering whether to replace an aging gas, oil, or LPG heating system, obtaining a quote from an MCS-certified installer is the most practical first step — the installer will confirm eligibility, assess the property’s suitability, and manage the grant application process. The combination of a £7,500 grant, lower long-term running costs, substantially reduced carbon emissions, and a 20-year operational lifespan makes the financial and environmental case for an air source heat pump stronger than it has ever been for eligible UK homeowners.
