When does the grant payment happen?

Ofgem pays your installer after the installation is completed and the installer confirms this through the Ofgem portal. This typically takes 1-2 weeks after completion.

How the Heat Pump Grant Is Deducted from Your Quote

Q: How is the BUS grant deducted from my quote?

Your installer shows the full cost, then deducts the grant on the quote: £7,500 for most air source and ground source heat pumps, or £9,000 for an off-gas home replacing oil or LPG (until 31 March 2027). You pay the balance. Ofgem pays the grant directly to the installer after installation — you never handle the grant money.

Q: Do I receive the grant money myself?

No. The grant is paid directly from Ofgem to your installer. It is deducted from your invoice, so you only pay the balance.

Q: What if the installation costs less than £7,500?

This is very unlikely for a heat pump installation, but the grant cannot exceed the total installation cost. You would receive the grant up to the full cost of the installation.

By Home Heat Pump Guide Published 18 March 2026

Homeowner and installer reviewing a heat pump quote showing the £7,500 BUS grant deduction — Your quote shows the full cost, then the £7,500 BUS grant deducted — you only pay the balance.

You never handle the grant money — it goes straight from Ofgem to your installer. Your installer shows the full installation cost on your quote, deducts the £7,500 BUS grant, and you pay only the balance. Here is exactly how the money flows at each stage.

See what you would actually pay on your quote

Calculate Your Net Cost

Shows the balance after the £7,500 grant deduction.

How the Deduction Works

The process is straightforward:

Your installer surveys your home and provides a quote showing the total cost
The quote shows the BUS grant (£7,500, or £9,000 for off-gas oil and LPG homes until 31 March 2027) deducted as a separate line
You see the balance — the amount you actually pay
Your installer applies to Ofgem for the grant
After installation, Ofgem pays the grant directly to your installer
You pay the balance to your installer

Example Quote Breakdown

Item	Amount
8kW air source heat pump unit	£4,500
200L hot water cylinder	£1,200
Pipework and connections	£2,500
Electrical work	£800
Commissioning and MCS registration	£500
Labour	£2,500
Total installation cost	£12,000
BUS grant deduction	-£7,500
You pay	£4,500

Illustrative quote. For a home without mains gas replacing oil or LPG heating, the deduction would be £9,000 (until 31 March 2027), leaving £3,000 to pay.

Engineer completing heat pump installation that will trigger BUS grant payment from Ofgem — After installation, your installer confirms completion to Ofgem — the grant is then paid directly to them.

The Payment Flow

Step 1You pay deposit (10-20%)

Step 2Installation completed

Step 3Ofgem pays installer the grant

Step 4You pay remaining balance

What to Check on Your Quote

The full cost is clearly itemised
The BUS grant is shown as a separate deduction
The balance you pay is clearly stated
There are no hidden charges or extras
The deposit amount is reasonable (10-20%, not more)
Payment of the balance is due after installation, not before

Heat pump internal pipework detail showing the quality of a BUS-funded installation — A clear quote with the grant shown separately protects you — always check the breakdown before signing.

Request a quote with the grant already deducted

Request a heat pump quote

No obligation. MCS-certified installers must deduct the BUS grant from the price.

See what you would pay for your specific property

Calculate Your Costs

Personalised estimate showing your net cost after the BUS grant.

Frequently Asked Questions

How is the BUS grant deducted from my quote?

Your installer shows the full cost then deducts the grant (£7,500, or £9,000 for off-gas oil and LPG homes). You pay the balance. Ofgem pays the installer directly.

Do I receive the grant money myself?

No. It goes directly from Ofgem to your installer.

When does the payment happen?

Ofgem pays your installer 1-2 weeks after the installer confirms completion.

What if the installation costs less than £7,500?

Very unlikely for a heat pump, but the grant cannot exceed the total cost.

About the BUS Grant Payment Process

The Boiler Upgrade Scheme payment process is designed to be simple for homeowners. Ofgem handles the grant payment directly with your MCS-certified installer, so you never need to manage the grant money. The application process and timeline are straightforward. For full details on all available UK heat pump grants, see our complete guide. Homeowners also considering solar panels should note that solar funding works through a separate process and can be arranged alongside the BUS grant.