Boiler Upgrade Scheme: what you get and who qualifies
Figures updated 15 November 2026
The Boiler Upgrade Scheme takes £7,500 off the price of an air source or ground source heat pump, or £9,000 if you're replacing oil or LPG in a home with no mains gas. England and Wales only. You must own the property (homeowners, landlords and small businesses can apply), be replacing fossil fuel heating (gas, oil, LPG or direct electric), and use an MCS-certified installer, who applies for the grant.
| What you install | Grant |
|---|---|
| Air source or ground source heat pump | £7,500 |
| Air source or ground source heat pump, replacing oil or LPG, no mains gas (applications by 31 March 2027) | £9,000 |
| Air-to-air heat pump | £2,500 |
DESNZ notice of grant values, in force from 21 July 2026. Source
Who can get it
- Homes in England and Wales. Scotland has its own scheme through Home Energy Scotland. The scheme doesn't cover Northern Ireland.
- Property owners, including landlords, second-home owners and small businesses.
- You must be replacing fossil fuel heating: gas, oil, LPG, or electric heating that isn't a heat pump.
- Your installer must be MCS-certified. They apply for the grant and take it off your quote and invoice.
Most new builds and social housing can't get the grant, and nor can a property that has already had government funding for a heat pump or biomass boiler. Hybrid systems that pair a heat pump with a boiler don't qualify. GOV.UK eligibility
What a heat pump costs after the grant
| System | Typical installed price | After £7,500 grant |
|---|---|---|
| Air source heat pump | £12,826 | £5,326 |
| Ground source heat pump | £34,630 | £27,130 |
Median installed prices for 2026 Q3 (Jul to Sep), from Boiler Upgrade Scheme statistics (DESNZ). Half of grant-funded installs cost between £10,717 and £15,461 for air source. Source