Ground Source Heat Pump Grants UK 2026
The UK government offers the largest heat pump grant — £7,500 — specifically for ground source installations. Combined with Scotland's additional funding and zero-rate VAT, homeowners can reduce the upfront cost of a ground source heat pump by £10,000 or more. Here is every funding option available and exactly how to claim.
Ground source heat pumps are expensive to install — but the good news is that the UK government provides the largest grant available for any domestic heat pump towards ground source systems. This guide covers every grant and funding option available in 2026, including who qualifies, how to apply, and how to make sure you do not miss out.
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The Boiler Upgrade Scheme (BUS)
The Boiler Upgrade Scheme is the main government grant for heat pump installations in England and Wales. It has been running since 2022 and was extended to March 2028.
£7,500
Ground source heat pump grant
£7,000
Air source heat pump grant
£500 more
Extra for ground source systems
Eligibility Requirements
To qualify for the BUS grant towards a ground source heat pump, you need:
- Existing property — previously occupied homes only. New builds are excluded
- Valid EPC — dated within the last 10 years (getting one costs around £60-£120)
- No loft insulation recommendation — if your EPC recommends loft insulation, you must install it first
- MCS-certified installer — the installation must be carried out by an MCS-certified company
- Property in England or Wales — Scotland has its own scheme
How to Apply
You do not apply yourself. Your MCS-certified installer applies for the grant voucher through the Ofgem portal on your behalf. The £7,500 is deducted directly from your bill, so you never handle the grant money yourself.
Scotland: Home Energy Scotland
Scotland operates its own funding scheme through Home Energy Scotland, which can be more generous than the BUS for eligible homeowners.
- Interest-free loans of up to £7,500 repayable over up to 12 years
- Cashback grants of up to £7,500 depending on household circumstances
- Combined support potentially worth up to £15,000
Contact Home Energy Scotland on 0808 808 2282 for a free, impartial assessment.
ECO4 Scheme
The Energy Company Obligation (ECO4) scheme requires major energy suppliers to fund energy efficiency improvements in low-income and vulnerable households. Ground source heat pumps can be funded under ECO4 for households receiving certain means-tested benefits with properties rated EPC D or below.
Local Authority Grants
Some local councils offer additional grants or loans for renewable heating installations. These vary widely and change regularly — check with your local authority directly.
Why Ground Source Gets a Higher Grant
The BUS grant for ground source (£7,500) is £500 more than for air source (£7,000). This reflects higher installation costs, the government's desire to encourage the most efficient technology, and the greater long-term carbon savings GSHP systems deliver.
Find MCS-certified ground source installers near you
Get free quotesAll installers are BUS-registered and can handle the grant application for you.
Combining Grants with Other Savings
- 0% VAT — heat pump installations currently benefit from zero-rate VAT
- Reduced electricity tariffs — some suppliers offer special heat pump tariffs
- Smart export guarantee — if you have solar panels, excess electricity can offset your heat pump running costs
- Green finance — specialist lenders offer competitive rates for renewable heating
What If I Am Not Eligible for the BUS Grant?
The most common reasons for ineligibility — new build, no valid EPC, loft insulation needed, or non-MCS installer — are all fixable. Even without the BUS grant, ground source heat pumps can still make financial sense for properties currently on oil or LPG. Use our heat pump calculator to model the numbers.
Frequently Asked Questions
How long does the BUS grant take to process?
Once your installer submits the application, a voucher is typically issued within 2-4 weeks. The voucher is valid for 3 months, with a possible extension to 6 months — important for ground source installations that may need longer lead times.
Can I get the BUS grant and ECO4?
No — you cannot receive both for the same installation. Your installer can advise on which route offers better value.
Is the BUS grant available for second homes?
Yes, as long as the property meets the eligibility criteria. The grant is per property, not per person.
Can landlords apply for the BUS grant?
Yes. Landlords of domestic rental properties can apply provided the property has a valid EPC and the work is done by an MCS-certified installer.
Will the BUS grant amount increase?
The current grant levels are confirmed until March 2028. There is no indication of an increase.
Does the grant cover the full cost?
The £7,500 covers a portion — around 40% of a horizontal system or 21% of a borehole system. The remaining cost is yours, though finance options are available.
For a detailed look at what ground source heat pumps cost before and after grants, read our full cost breakdown.
Ready to claim your £7,500 ground source heat pump grant?
Get quotes from BUS-registered installersFree, no obligation. Your installer handles the entire grant application.
Heat Pump Grants in the Broader Energy Landscape
The Boiler Upgrade Scheme is part of the UK government's strategy to decarbonise home heating alongside solar energy incentives, insulation programmes, and electricity tariff reforms. For ground source heat pumps, the £7,500 grant combines with air source alternatives, broader grant schemes, and improving technology to make renewable heating increasingly accessible. As the gas boiler phase-out progresses, these financial incentives are expected to continue evolving to support the transition.