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 an air-to-water heat pump for eligible homeowners in England and Wales.
Rule changes on 28 April 2026 removed the requirement for a valid Energy Performance Certificate, added a new £2,500 tier for air-to-air heat pumps, and extended the scheme’s funding out to 2030.
A separate, temporary uplift takes the grant to £9,000 for households currently heated by oil or LPG, running from 21 July 2026 until 31 March 2027.
In Scotland, Home Energy Scotland provides grants and loans for heat pumps, including Warmer Homes Scotland for low-income and vulnerable households. In Wales, Nest Wales offers free energy efficiency packages including heat pumps to qualifying households.
All of these schemes exist to bridge the same gap: the significant upfront installation cost that remains the main barrier to heat pump adoption.
Why Does the Government Offer Heat Pump Grants?
The UK government has committed to reaching net zero carbon emissions by 2050, with interim targets requiring significant decarbonisation of domestic heating. Heating currently accounts for roughly 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 exist to overcome the upfront cost barrier, the single most cited reason homeowners don’t switch from gas heating to heat pumps despite lower long-term running costs. Without grants, the payback period is long enough to put many homeowners off, 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. Launched in spring 2022 as the successor to the Renewable Heat Incentive, the scheme had its biggest overhaul yet on 28 April 2026, under new regulations that reworked eligibility, funding and the technologies covered.
If you’re weighing up a heat pump against sticking with gas, it’s worth first understanding the boiler types for central heating systems you might be replacing, since that affects both the cost of the switch and how much of a difference the grant actually makes to your decision.
The standard grant for an air-to-water heat pump remains £7,500. Ground source heat pumps attract the same £7,500 value. A new tier, introduced in the April 2026 changes, offers £2,500 towards an air-to-air heat pump in residential properties, though it’s worth noting air-to-air systems heat rooms only and don’t provide domestic hot water, so they suit homes that already have a separate hot water source.
A temporary enhanced rate of £9,000 applies to households currently heated by oil or LPG that switch to an air-to-water or ground source heat pump, available from 21 July 2026 through to 31 March 2027. Mains gas and electric-heated homes remain on the standard £7,500 rate.
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, with no waiting period for a rebate.
Who is Eligible for the Boiler Upgrade Scheme?
Eligibility is assessed against the property rather than the household’s income. It isn’t a means-tested scheme. The key criteria are as follows.
- The property must be in England or Wales.
- The property must currently use a fossil fuel or electric heating system that will be replaced by the heat pump.
- The installation must be carried out by an MCS-certified installer.
- A valid EPC is no longer required to apply. Where one exists, the installer includes it with the application; where it doesn’t, the installer provides alternative evidence, typically a recent utility bill showing the current fuel type plus photographs of the existing heating system.
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 don’t apply to the Boiler Upgrade Scheme directly. The application is made by the MCS-certified installer on the homeowner’s behalf.
The process starts with a quote from a registered installer, who confirms eligibility, designs the appropriate system, and applies 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.
Removing the EPC requirement in April 2026 cut out what used to be one of the most common reasons applications stalled. For the current, official eligibility checklist, GOV.UK and Energy Saving Trust both keep their guidance updated as the scheme evolves.
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 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 based on an assessment of the property’s specific needs.
What Does Nest Wales Provide?
The package 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.
Homeowners weighing up whether a Nest Wales package is enough on its own might also want to look at central heating cover benefits for homeowners, since a free efficiency package doesn’t include ongoing servicing or breakdown cover once the work is done.
Who is Eligible for Nest Wales?
Three conditions must all be met at once. 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 have 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 a year, and Working Tax Credit with household income below £16,105 a year.
Applications are made through the Nest Wales helpline, where an advisor assesses eligibility based on the property and 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. It’s delivered through Home Energy Scotland, with installation work 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 are determined by a property survey conducted by Warmworks Scotland after 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, 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 several household categories: aged over 75 and receiving 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 or high-rate Disability Living Allowance; 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. 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 (standard) | England and Wales | £7,500 | No | MCS-certified installer; EPC no longer required |
| Boiler Upgrade Scheme (oil/LPG uplift, to 31 Mar 2027) | England and Wales | £9,000 | No | Current oil or LPG heating |
| Boiler Upgrade Scheme (air-to-air) | England and Wales | £2,500 | No | Residential only; no hot water provided |
| 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 standard £7,500 Boiler Upgrade Scheme grant, the net cost ranges from around zero to roughly £5,500 depending on the system specification, a fundamental change in how accessible heat pumps are financially.
Once installed, it’s worth budgeting for the average heat pump servicing costs to keep the system running efficiently. Regular maintenance helps prevent costly repairs later and protects the overall energy savings a heat pump is meant to deliver.
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 a year on energy bills, depending on the property’s size, insulation, and occupancy. 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 roughly 60 to 70% fewer carbon emissions than an equivalent gas boiler system, accounting for the carbon intensity of the electricity used to power it. As the grid continues to decarbonise, that advantage grows further over the system’s life.
Air source heat pumps also need 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’s no annual Gas Safe certification requirement and no combustion components to inspect. The expected operational lifespan of around 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. 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 need for decent 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, well-insulated properties, 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.
FAQ
How much is the Boiler Upgrade Scheme grant for an air source heat pump in 2026?
The standard Boiler Upgrade Scheme grant for an air-to-water heat pump is £7,500, paid directly to the MCS-certified installer and deducted from the installation invoice.
Households currently heated by oil or LPG can get an enhanced £9,000 grant between 21 July 2026 and 31 March 2027. A separate £2,500 tier covers air-to-air heat pumps in residential properties. None of these are means-tested.
Do I still need a valid EPC to apply for the Boiler Upgrade Scheme?
No, not any more. Rule changes that came into force on 28 April 2026 removed the requirement for a valid Energy Performance Certificate.
If your property has a current EPC, your installer includes it with the application. If it doesn’t, the installer provides alternative evidence instead, typically a recent utility bill and photographs of the existing heating system. This removed one of the most common reasons applications used to stall.
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.
Are air-to-air heat pumps covered by the Boiler Upgrade Scheme?
Yes, since 28 April 2026, in residential properties only, attracting a £2,500 grant. It’s worth knowing that air-to-air heat pumps heat rooms directly and don’t produce domestic hot water, so they suit homes that already have a separate hot water source rather than replacing a combi boiler outright.
Can businesses apply for the Boiler Upgrade Scheme?
Small business owners in England and Wales may apply through an MCS-certified installer, subject to the same property eligibility criteria as residential applicants. Larger commercial properties aren’t 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 need 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 suitability and any preparatory work needed.
How long will the Boiler Upgrade Scheme run for?
The scheme’s funding has been extended out to 2030 under the same April 2026 rule changes that removed the EPC requirement. That’s a meaningfully longer runway than the scheme has had at any previous point, so there’s less pressure to rush a decision purely because the grant might disappear.
Grant values and eligibility can still change within that window, as they have several times since the scheme launched in 2022, so it’s worth checking current terms with your installer before committing.
Conclusion
The air source heat pump grants available in 2026 have made installation more financially accessible than at any previous point. The Boiler Upgrade Scheme’s £7,500 standard grant, rising to £9,000 for oil and LPG homes and extending to a new £2,500 tier for air-to-air systems, brings net installation costs down to levels that make the long-term economics compelling for a significant proportion of UK homeowners.
Removing the EPC requirement in April 2026 also cleared away one of the most common practical obstacles, and the funding extension to 2030 gives homeowners more room to plan rather than rush.
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 ageing gas, oil, or LPG heating system, getting a quote from an MCS-certified installer is the most practical first step. The installer confirms eligibility, assesses the property’s suitability, and manages the grant application process from there.
