What the scheme pays
The Boiler Upgrade Scheme offers a fixed grant towards the installation cost of a low-carbon heating system. At the time of writing, the grant amounts are:
| System | Grant |
|---|---|
| Air source heat pump | £7,500 |
| Ground source heat pump (including water source) | £7,500 |
| Biomass boiler (rural, off-gas homes only) | £5,000 |
Boiler Upgrade Scheme grants (check current figures before you commit)
Who is eligible
Scotland and Northern Ireland have their own schemes. In Scotland, Home Energy Scotland offers grants and interest-free loans for heat pumps.
- You own the property – homeowners, landlords and small businesses can apply
- The property is in England or Wales
- You're replacing a fossil fuel system such as gas, oil, LPG or direct electric heating
- The property has a valid Energy Performance Certificate (EPC)
- The new system is installed by an MCS-certified installer
- New-build homes are generally excluded (except custom builds)
How the application works
You don't apply directly. Your chosen MCS-certified installer applies for a voucher once you've agreed a quote. Ofgem, which runs the scheme, then contacts you to confirm you want the installer to apply on your behalf. Once the voucher is issued, the installer fits the system and claims the grant, which is deducted from your bill.
Vouchers are valid for a fixed period – typically three months for air source and six months for ground source – so installation needs to be planned soon after approval.
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Insulation and EPC requirements
The property needs a valid EPC. Earlier versions of the scheme required loft and cavity wall insulation recommendations to be addressed first; these conditions have since been relaxed, but installers still need to design the system around the home's heat loss. A thorough heat loss survey is essential to size the heat pump correctly and to decide which radiators need upgrading. See radiators for heat pumps.
What a heat pump costs after the grant
Costs vary with radiator upgrades, hot water cylinder replacement and pipework changes.
| Home | Typical installed cost | After £7,500 grant |
|---|---|---|
| Two-bed flat or small house | £8,000 – £11,000 | £500 – £3,500 |
| Three-bed semi | £10,000 – £14,000 | £2,500 – £6,500 |
| Four-bed detached | £12,000 – £18,000 | £4,500 – £10,500 |
Indicative air source heat pump prices (2026)
Common pitfalls
For more on the technology, see heat pumps vs gas boilers and hybrid heat pumps, which usually don't qualify. When you're ready, compare quotes from heating engineers and ask each one to confirm the grant is included.
- Choosing an installer who isn't MCS-certified – you won't get the grant
- Signing up before the voucher is approved without understanding cancellation terms
- Accepting a quote without a proper room-by-room heat loss calculation
- Ignoring the cost of a new cylinder or radiator upgrades
- Not checking the expected running costs on your tariff
