When is the grant not worth it?

In rare cases — for example, if your home is very poorly insulated and you are unable or unwilling to improve insulation, or if you plan to move within 2-3 years.

How much do homeowners typically save over the lifetime of a heat pump?

It depends on what you replace. Against a new gas boiler, savings at October 2026 price-cap rates are modest (about £180 a year at SCOP 3.2 once the gas standing charge is dropped), so recovering the extra upfront cost takes around 10 years. Replacing oil heating usually pays back faster.

Is the Heat Pump Grant Worth It? Honest Assessment

Q: Is the heat pump grant worth it?

For most homeowners, yes. The £7,500 grant brings the median air source installation down to about £5,400, within a couple of thousand pounds of a new gas boiler, and a well-installed heat pump costs slightly less to run than gas at current price-cap rates. For off-gas homes replacing oil or LPG the grant is £9,000 until 31 March 2027.

By Home Heat Pump Guide Published 18 March 2026

UK homeowner reviewing heat pump grant value calculation showing positive return on investment — For many homeowners, the BUS grant makes a heat pump cheaper than a new gas boiler over its lifetime.

For the vast majority of UK homeowners: yes, the heat pump grant is absolutely worth it. The £7,500 BUS grant (£9,000 for homes without mains gas replacing oil or LPG, until 31 March 2027) brings the net cost of a heat pump much closer to a new gas boiler, and a well-installed heat pump costs slightly less to run than gas at current price-cap rates. We have done the maths honestly, including the scenarios where it might not make sense.

See what a heat pump would actually cost you

Calculate Your Real Costs

Personalised estimate including the BUS grant deduction.

The Numbers

Net Cost After BUS Grant (Typical Installation)

Lower quartile (£11,128 install)

£3,600

Median (£12,908)

£5,400

Upper quartile (£15,627)

£8,100

Installed air source heat pump costs in England and Wales, DESNZ Boiler Upgrade Scheme statistics (2026 Q2), less the £7,500 grant. The grant covers roughly half to two-thirds of a typical installation. See our cost guide for detailed breakdowns.

When It Is Clearly Worth It

Oil or LPG heating: Switching usually saves the most. With heating oil at around 11.4p/kWh (October 2026, indicative), a heat pump at SCOP 3.2 costs about a third less to run than an oil boiler (see running costs), and off-gas oil and LPG homes get a £9,000 grant until 31 March 2027
Well-insulated homes: Heat pumps perform best, lowest running costs
Planning to stay 5+ years: Running cost savings accumulate over time
Combined with solar panels: Free solar electricity powers the heat pump
Replacing an old boiler anyway: The incremental cost vs a new gas boiler is small after the grant

Side by side comparison of heat pump and gas boiler costs showing heat pump value with grant — After the grant, the cost gap between a heat pump and a new gas boiler is surprisingly small — and running costs tip the balance further.

When It Might Not Be Worth It

Very poorly insulated home with no plans to insulate
Planning to move within 2-3 years (though it adds property value)
Very new, efficient gas boiler that does not need replacing

Even in these cases, the grant makes the economics more attractive. Check whether a heat pump is worth it for your specific situation.

Lifetime Cost Comparison

Metric	Gas Boiler	Heat Pump (after grant)
Upfront cost	£3,000-£4,000	£3,600-£8,100
Annual running cost	£1,126 (incl. gas standing charge)	£946
Lifespan	12-15 years	20-25 years
Lifetime cost (20 years)	£25,500-£26,500	£22,500-£27,000

Indicative figures for 11,500 kWh of heat a year at the October 2026 price cap (7.97p/kWh gas plus 29.68p/day, 26.32p/kWh electricity): gas boiler 90% efficient, heat pump SCOP 3.2, prices held flat. Heat pump upfront cost uses DESNZ quartiles less the £7,500 grant. Gas boiler lifetime excludes a replacement boiler within 20 years. Actual costs depend on property, insulation, tariff, and usage.

Family enjoying warm comfortable home heated by a grant-funded heat pump — Beyond the finances, heat pumps deliver consistent, comfortable warmth and eliminate gas safety risks.

Run the numbers for your specific home

Calculate Your Costs

Personalised comparison including grant, running costs, and payback period.

Ready to go? Request a quote with the BUS grant deducted

Request a heat pump quote

Your MCS-certified installer must deduct the BUS grant from the price.

Frequently Asked Questions

Is the heat pump grant worth it?

For most homeowners, yes. The median net cost is about £5,400, and a heat pump at SCOP 3.2 costs slightly less to run than gas at current price-cap rates.

When is it not worth it?

Rare cases: very poor insulation, moving soon, or a brand new gas boiler.

How long to break even?

Against a new gas boiler, around 10 years on current price-cap rates (savings of about £180 a year at SCOP 3.2, including the gas standing charge). Faster when replacing oil.

About Heat Pump Grant Value

The Boiler Upgrade Scheme grant fundamentally changes the economics of heat pumps for UK homeowners. At £7,500 (£9,000 for off-gas oil and LPG homes), it narrows the gap between heat pump installation costs and gas boiler prices. Combined with lower running costs, the lifetime cost comparison favours heat pumps in most scenarios. Adding solar panels tips the balance further. The complete grants guide shows how to maximise your funding from all available sources.