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 running, with no published end date — 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; funding confirmed to 2029/30), £9,000 for off-gas homes replacing oil or LPG (21 July 2026 to 31 March 2027), £2,500 for air-to-air heat pumps
- Home Energy Scotland: grant of up to £7,500 (£9,000 rural/island) plus an optional interest-free loan of up to £7,500 (Scotland)
- ECO4: Full cost for eligible households
- Nest: free improvements, which can include a heat pump, for eligible Welsh households on a low income or means-tested benefits (check eligibility with Nest)
- 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 has no published end date and government funding is confirmed to 2029/30. Solar incentives are also evolving alongside heat pump policy.
Do not wait for future schemes — the BUS grant is available now
Request a heat pump quoteNo obligation. Your installer applies for the grant and deducts it from the price.
See what the current incentives mean for your installation
Calculate Your CostsPersonalised estimate with the BUS grant included.
Frequently Asked Questions
What is the current incentive?
BUS grant (£7,500 in England/Wales, or £9,000 for off-gas oil and LPG homes until 31 March 2027) and HES in Scotland (grant of up to £7,500, or £9,000 rural/island, plus an optional loan of up to £7,500).
How long will BUS continue?
There is no published end date, and government funding is confirmed up to 2029/30. The higher off-gas oil/LPG rate ends on 31 March 2027.
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.