The £7,500 heat pump grant: how the Boiler Upgrade Scheme works

The Boiler Upgrade Scheme is the reason a heat pump can cost less than people expect: £7,500 off an air source, ground source or water source installation in England and Wales. You never fill in a form and you never handle the money. Here is how it works from the homeowner's side, and the eligibility small print worth knowing before the survey.

What the grant pays, and how it reaches you

The scheme pays £7,500 towards an air source, ground source or water source heat pump, £2,500 towards an air-to-air system, and £5,000 towards a biomass boiler in eligible properties. Homes heated by oil or LPG with no mains gas connection get an extra £1,500 until March 2027, taking the main grant to £9,000. On top of that, installation is zero-rated for VAT until 31 March 2027.

The mechanics are simpler than most grants: your MCS-certified installer applies on your behalf, the voucher is paid to them, and the amount comes straight off your quote. So the figure to compare between installers is the net one, what you actually pay after the grant, which for a typical air source installation lands just under £6,000.

Who qualifies

The property needs to be in England or Wales, the heat pump has to replace a fossil fuel system such as gas, oil or LPG, or direct electric heating, and the work must be done by an MCS-certified installer. There is no means test and no requirement to scrap a working boiler early: a system at the end of its life is exactly the moment the scheme is designed for.

The exclusions are just as specific. Hybrid systems, where a boiler and heat pump share the load, do not qualify. Neither does replacing a low-carbon system you already have, so swapping an old heat pump for a new one is outside the scheme. New-build homes are generally excluded too, because the developer is expected to fit low-carbon heating in the first place.

Compare heat pump quotes

Up to three trusted, MCS-certified installers quote for the work, grant applied where you qualify. Free, no obligation.

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What to check on your quotes

A proper quote names the grant, shows it as a deduction, and states the net figure. If the property is off the gas grid, check the extra £1,500 appears as well: an installer quoting properly applies it without being asked. And because the voucher is tied to the installer, the grant only exists if the firm holds MCS certification, which is worth confirming rather than assuming.

The grant is fixed, so the way to pay less is to compare the rest of the quote: the unit, the emitters, the cylinder and the labour. Compare quotes from MCS-certified installers with the grant already applied, and weigh them against what the system costs to run, covered in air source running costs.

Compare heat pump quotes

Up to three trusted, MCS-certified installers quote for the work, grant applied where you qualify. Free, no obligation.

Compare heat pump quotes