Government Heat Pump Incentives: Past, Present, Future
The UK government has been incentivising heat pumps since 2014 — and the funding has only got better. From the Renewable Heat Incentive (RHI) to the current Boiler Upgrade Scheme, each generation has been more generous and simpler. Here is the full timeline and what to expect next.
Take advantage of current incentives before they change
Calculate Your Costs NowThe BUS grant is confirmed until March 2028 — but budgets are annual.
Incentive Timeline
| Period | Scheme | Type | Amount |
|---|---|---|---|
| 2014-2022 | RHI | Quarterly payments | ~£3,000-£5,000 over 7 years |
| Sept 2020-Mar 2021 | Green Homes Grant | Voucher | Up to £5,000 |
| Apr 2022-Oct 2023 | BUS (Phase 1) | Upfront grant | £5,000 ASHP / £6,000 GSHP |
| Oct 2023-Present | BUS (Phase 2) | Upfront grant | £7,500 both |
Current Schemes (2026)
- BUS grant: £7,500 (England/Wales, until March 2028)
- Home Energy Scotland: Up to £15,000 (Scotland)
- ECO4: Full cost for eligible households
- Nest: Free installations in Wales
- Local authority schemes: Various top-ups
What's Coming Next
The UK government has committed to phasing out new gas boiler installations by 2035. This means heat pump incentives will likely continue or increase. The BUS grant is confirmed until March 2028, with successor schemes expected. Solar incentives are also evolving alongside heat pump policy.
Do not wait for future schemes — the BUS grant is available now
Get Free QuotesLock in the £7,500 grant while it is available.
See what the current incentives mean for your installation
Calculate Your CostsPersonalised estimate with the £7,500 BUS grant included.
Frequently Asked Questions
What is the current incentive?
BUS grant (£7,500 in England/Wales) and HES (up to £15,000 in Scotland).
Will BUS continue after 2028?
Successor schemes are expected but not yet confirmed. Apply now to secure current funding.
About UK Heat Pump Policy
UK government heat pump incentives have evolved significantly since the Renewable Heat Incentive launched in 2014. The current Boiler Upgrade Scheme represents the simplest and most generous support yet. Combined with ECO4, Home Energy Scotland, and the lessons learned from the Green Homes Grant, the current policy framework is driving rapid heat pump adoption. Solar panel incentives are evolving in parallel, creating opportunities for whole-home renewable energy systems.