Heat Pump Grants UK 2026: BUS Grant & Other Funding

The BUS grant is the UK government's flagship scheme to encourage heat pump adoption. Originally launched in 2022 at £5,000 for air source and £6,000 for ground source, it was increased to £7,500 for both types in October 2023. The scheme is currently funded until March 2028.

How much is the grant?

• Air source heat pump: £7,500
• Ground source heat pump: £7,500
• Biomass boiler: £5,000 (in eligible rural areas only)

Eligibility criteria

To qualify for the BUS grant, you must:

• Own your property (homeowners and private landlords are eligible; social housing tenants are not)
• Have a valid EPC (Energy Performance Certificate) for your property — an EPC is valid for 10 years
• Be replacing an existing heating system — the property must currently have a functioning fossil fuel or electric heating system
• Use an MCS-certified installer — only MCS-certified installations qualify for the grant
• Be in England or Wales — Scotland and Northern Ireland have separate schemes

You cannot claim the BUS grant if:

• The property is a new build (defined as less than 2 years old at the time of application)
• You've already received a BUS grant for the same property
• The property is social housing

There is no means testing. The grant is available regardless of your income, savings, or property value. There is also no upper property value limit.

You don't apply for the BUS grant yourself — your installer does it for you. Here's how the process works:

1. Get quotes from MCS-certified installers. You can use our free quote service to connect with installers in your area. Make sure they are MCS-certified.
2. Choose an installer and agree a quote. The quote should show the full installation cost, with the £7,500 BUS grant deducted. You only pay the net amount.
3. Your installer applies to Ofgem. They submit the application through the BUS portal, providing your property details, EPC reference, and the proposed system specifications.
4. Ofgem issues a voucher. This is typically processed within 3–5 working days. The voucher is valid for 3 months (extendable in some cases).
5. Installation takes place. Your installer fits the heat pump and commissions the system, usually over 2–4 days.
6. Installer claims the grant from Ofgem. After installation and commissioning, the installer submits the MCS certificate and claims the £7,500 directly from Ofgem. You never handle the grant money.

Timeline: From your first enquiry to a working heat pump, the typical timeline is 4–8 weeks. This includes getting quotes (1–2 weeks), choosing an installer and processing the grant voucher (1–2 weeks), and the installation itself (2–4 days). Busier periods (autumn/winter) may take longer.

Scotland runs its own heat pump funding scheme through Home Energy Scotland (HES), funded by the Scottish Government. It's at least as generous as the BUS grant and includes an additional interest-free loan option.

What's available?

• Grant: Up to £7,500 towards a heat pump (no repayment needed)
• Interest-free loan: Up to £7,500 additional funding, repaid over up to 10 years with no interest
• Total support: Up to £15,000 combined (£7,500 grant + £7,500 loan)
• Rural uplift: Properties in rural areas may qualify for additional support

How to apply in Scotland

The process is slightly different from England and Wales. You start by contacting Home Energy Scotland (a free, impartial advice service funded by the Scottish Government) who will assess your eligibility and guide you through the application. They can also help with energy efficiency advice and identify any insulation improvements you should make first.

1. Contact Home Energy Scotland (freephone 0808 808 2282 or online)
2. Complete a home assessment
3. Receive your eligibility confirmation and funding offer
4. Get quotes from MCS-certified installers
5. Accept the funding and proceed with installation

Wales is covered by the BUS grant (the same £7,500 as England). In addition, Welsh homeowners may be eligible for:

• Nest scheme: A Welsh Government scheme that provides free home energy improvements (including heating systems) to eligible homeowners on certain benefits or with specific health conditions. Heat pumps may be installed free of charge for qualifying households.
• ECO4 (Energy Company Obligation): A UK-wide scheme where energy companies fund improvements for low-income and vulnerable households. Heat pumps can be installed under ECO4, though availability varies by supplier and area.

Most Welsh homeowners will use the BUS grant, following the same process as in England.

Northern Ireland has its own energy efficiency schemes, though heat pump-specific grants have been more limited than in the rest of the UK. The Northern Ireland Sustainable Energy Programme (NISEP) and various fuel poverty schemes offer some support. Contact the NI Energy Advice Service for the latest information on available funding.

Note: The BUS grant does not apply in Northern Ireland.

ECO4 (Energy Company Obligation)

ECO4 requires large energy suppliers to fund energy efficiency improvements for low-income, fuel-poor, and vulnerable households. Heat pumps can be installed under ECO4, potentially covering the full cost for eligible households. Contact your energy supplier to check eligibility.

Local authority grants

Some local councils offer additional grants or interest-free loans for energy improvements, including heat pumps. These vary by area and change frequently. Check your local council's website or contact them directly.

Green finance and 0% loans

Several lenders now offer green home improvement loans specifically for heat pumps and other low-carbon technologies. These may offer preferential rates compared to standard personal loans. Some heat pump manufacturers also offer finance packages through their installer networks.

Can I combine funding?

In most cases, you can only claim one grant per installation. You cannot combine the BUS grant with ECO4 funding for the same heat pump. However, you can combine a heat pump grant with separate funding for insulation improvements (for example, using ECO4 for insulation and BUS for the heat pump).

• Get your EPC first. You need a valid EPC to apply for the BUS grant. If yours has expired (they last 10 years), book a new one. This costs £60–£120.
• Use MCS-certified installers only. The grant is only available through MCS-certified installers. Using a non-MCS installer means you lose the £7,500.
• Don't wait too long. The BUS grant is funded until March 2028, but the government has a budget for a limited number of installations per year. If demand exceeds the budget, the scheme could close early or be modified.
• Get multiple quotes. The grant amount is fixed at £7,500, but installation costs vary. Getting 2–3 quotes ensures you get a fair price and maximises the benefit of the grant.
• Consider insulation first. If your insulation is poor, improving it before installing a heat pump means you can get a smaller, cheaper heat pump — stretching your grant further.