Heat Pump Finance and Payment Plans UK 2026
Even with the £7,500 BUS grant, a heat pump might still require £2,000-£8,000 out of pocket. The good news: 0% interest deals can spread this over 24 months at no extra cost, green loans offer rates from 5.5%, and Scottish homeowners can access interest-free loans up to £7,500 over 10 years.
This guide covers every realistic financing option available to UK homeowners in 2026. For the installation costs themselves, see our heat pump cost guide.
See your net cost after the grant -- then explore finance options
Calculate your costInstant estimate. Shows what you would need to finance after the £7,500 grant.
Step One: Reduce the Amount You Need to Finance
The BUS grant provides £7,500 -- not a loan, a grant that does not need repaying. For a £10,000 installation, you finance just £2,500. Scotland, Wales, and some local authorities offer additional support.
Finance Option 1: Installer Finance (0% Interest Deals)
| Term | Monthly Payment (£4,500) | Total Cost |
|---|---|---|
| 0% over 24 months | £187.50 | £4,500 |
| 5 years at 6.9% APR | £89 | £5,340 |
| 10 years at 7.9% APR | £55 | £6,600 |
Finance Option 2: Green Personal Loans
Several UK banks offer dedicated green loans with preferential rates: Co-operative Bank from 5.9% APR, Triodos from 5.5%, Nationwide green mortgage additions at mortgage rate. These are independent of your installer, letting you shop around freely.
Finance Option 3: Home Energy Scotland Interest-Free Loan
Scottish homeowners can access interest-free loans of up to £7,500 repayable over up to 10 years. Combined with grants, this can make a heat pump cost nothing upfront -- and the monthly repayment is often less than the energy savings.
Finance Option 4: Adding to Your Mortgage
Lowest monthly payments but highest total interest. Over 20 years at 4.5%, £4,500 costs just £28/month but totals £6,720.
Finance Option 5: Credit Cards (Short-Term Only)
For smaller remaining balances under £2,000-£3,000, a 0% purchase credit card works well if paid off within the promotional period. Section 75 protection is an added benefit.
Get quotes from installers who offer finance packages
Get free quotesMany MCS-certified installers offer 0% finance as part of the quote.
How to Choose the Right Finance Option
The Numbers That Matter: Monthly Cost After Finance
For a 3-bed semi replacing gas, £3,000 net cost after grant, with current gas bill of £73/month:
| Scenario | Monthly Total (during finance) | After Finance Paid Off |
|---|---|---|
| 0% finance, 24 months | £183-£203 | £58-£78 |
| Green loan, 5 years | £116-£136 | £58-£78 |
| Cash purchase | £58-£78 from day one | £58-£78 |
If you also have solar panels generating free electricity, running costs drop even further, improving the monthly picture.
Frequently Asked Questions
Can I get a heat pump with no money down?
In some cases, yes. If the BUS grant covers the full cost, or with 0% finance, you start with zero upfront cost.
Is heat pump finance regulated?
Yes. Consumer credit is regulated by the FCA with full consumer protections.
Can I combine the BUS grant with finance?
Absolutely. The grant reduces the cost and you finance only the remainder.
Is it better to pay cash or use 0% finance?
If 0% is available, it is mathematically better to use it and keep your cash earning interest.
What if I cannot get approved for finance?
Check eligibility for ECO4 or local authority schemes. The BUS grant is confirmed until 2028, giving you time to save.
Find out your net cost and explore finance options
Calculate your cost nowFree, instant. Then get quotes from installers offering 0% finance.
About this guide: This article covers finance options for heat pump installations in the UK. The Boiler Upgrade Scheme reduces the amount you need to finance, and multiple options exist from 0% installer deals to green loans. For homeowners also considering solar panels, some providers offer combined finance packages covering both technologies.