The Boiler Upgrade Scheme explained: the £7,500 heat pump grant
The Boiler Upgrade Scheme is the main government grant for swapping a fossil-fuel boiler for a heat pump in England and Wales. It pays a flat £7,500 towards an air or ground source heat pump, and the money is handled by your installer rather than claimed back by you. It has turned the heat pump question from "can I afford the jump?" into "is my home ready for it?" This guide covers what you get, who qualifies, and the exact steps to use it.
What you get
The scheme, run by Ofgem on behalf of the Department for Energy Security and Net Zero (DESNZ), pays a fixed grant straight off the cost of a qualifying install:
| Technology | Grant |
|---|---|
| Air source heat pump | £7,500 |
| Ground source heat pump (including water source) | £7,500 |
| Biomass boiler (rural, off gas grid only) | £5,000 |
It's a grant, not a loan, so there's nothing to repay. Set against a typical £8,000 to £14,000 air source install, it often brings the net cost within a few thousand pounds of a new gas boiler, the maths laid out in are heat pumps worth it.
Who's eligible
The core conditions are straightforward:
- The property is in England or Wales (Scotland has its own scheme, below).
- You own the property, or it's a small non-domestic or private rented property you're responsible for.
- You're replacing a fossil-fuel system: mains gas, oil, LPG or direct electric heating.
- You have a valid Energy Performance Certificate (EPC).
- The work is done by an MCS-certified installer using MCS-certified equipment.
New-build homes are generally excluded, with narrow exceptions such as self-builds. One change worth knowing: the old rule that you had to act on any loft or cavity-wall insulation recommendations on your EPC before applying was removed in 2022. You still need a valid EPC, but outstanding insulation recommendations no longer block the grant. Rules can change, so confirm the current position with your installer or on the Ofgem pages.
How to apply, step by step
You don't fill in a government form yourself. The installer does the heavy lifting, which is the part most people get wrong by trying to apply first.
- Find an MCS-certified installer and get a quote. The same care applies as with solar; the principles in how to read a solar quote carry across to heat-pump quotes.
- The installer applies for the grant on your behalf and gets a voucher from Ofgem.
- The £7,500 is deducted from your quote, so you only pay the balance.
- The install goes ahead, certified under MCS.
- The installer redeems the voucher with Ofgem after the work is signed off.
Because the grant comes off the bill up front, you never need the £7,500 in cash. A worked net cost:
| Line | Figure |
|---|---|
| Air source heat pump, installed | £11,000 |
| Boiler Upgrade Scheme grant | minus £7,500 |
| You pay | £3,500 |
Is the scheme ending?
The Boiler Upgrade Scheme has been extended and currently runs to 2028, with annual budgets set by government. Because funding is allocated each year, it's sensible to treat it as available now rather than indefinitely, and to confirm current status before you commit. Grant rules and amounts are reviewed periodically, so the £7,500 figure is correct as of 2026 but worth checking at the point you apply.
The detail most people miss
The grant is tied to the install meeting MCS standards, which means a proper heat-loss survey and correct sizing, not a like-for-like boiler swap. That requirement is doing you a favour: a well-sized system is what makes a heat pump cheap to run, as covered in are heat pumps worth it. A cheap quote that skips the survey is the thing to avoid, grant or no grant.
Frequently asked questions
£7,500 towards an air or ground source heat pump in England and Wales, or £5,000 towards a biomass boiler in eligible rural off-gas homes.
Owners of homes (and some small or rented properties) in England and Wales, replacing a fossil-fuel system, with a valid EPC, using an MCS-certified installer. New builds are generally excluded.
You don't apply directly. Your MCS-certified installer applies to Ofgem, gets a voucher, and deducts the grant from your quote.
No. The rule requiring you to act on EPC insulation recommendations was removed in 2022. You still need a valid EPC, and good insulation still helps a heat pump run efficiently.
No. The Boiler Upgrade Scheme covers heat pumps and some biomass, not solar. Solar has separate support, mainly 0% VAT until 31 March 2027 and the Smart Export Guarantee.