All Heat Pump Grants & Schemes in the UK (2026)

What Heat Pump Grants Are Available in the UK in 2026?

In 2026, the main nationwide heat pump support for most owner-occupiers in England and Wales is the Boiler Upgrade Scheme, which offers £7,500 towards an eligible air source or ground source heat pump installation. Beyond that, support is more fragmented and can include 0% VAT relief, Warm Homes Local Grant pathways for eligible low-income homes in England, and some local-authority or supplier-backed schemes.

GOV.UK says the current BUS grant is £7,500 towards an air source heat pump and £7,500 towards a ground source heat pump, subject to eligibility. HMRC also says qualifying energy-saving materials are zero-rated for VAT from 1 May 2023 to 31 March 2027, which means the heat pump funding picture in 2026 is not just one grant but a mix of direct support and tax relief.

This matters because many homeowners search for “heat pump grants UK” expecting one simple national answer. The reality is that the support landscape depends on where you live, what kind of household you are, and whether you are looking for direct capital support, tax savings, or local-authority delivered schemes.

If your main question is the flagship grant route, start with our BUS Grant complete guide. If you are still deciding whether a heat pump is right for your home, read our complete guide to heat pumps in the UK.

If you want help working out which support route may fit your own property, start with our BUS Grant survey page.

How Does the Boiler Upgrade Scheme Work?

The Boiler Upgrade Scheme is the clearest and most important heat pump support route in 2026 because it reduces the upfront cost of an eligible installation by £7,500 and is handled by the installer on your behalf. In practical terms, it is the main reason many homeowners can move from “interested” to “ready to quote”.

GOV.UK says current grants are:

GOV.UK also says you can get one grant per property, hybrid systems are excluded, and the installer applies on your behalf. That means the scheme is designed around point-of-sale reduction rather than a homeowner reimbursement later.

For most homeowners, the important BUS rules are:

1. You must own the property.
2. The property needs a valid EPC.
3. The project must meet the scheme conditions.
4. The installer applies on your behalf.
5. The grant is always subject to eligibility.

The BUS grant is therefore not a route to a fully paid-for heat pump. It is a substantial capital contribution that makes the installed cost more manageable, but the project still needs to be designed properly and the homeowner still pays the balance.

What Is the Warm Homes Local Grant and Who Is It For?

The Warm Homes Local Grant is a government-funded scheme in England designed for low-income households in poorer-quality privately owned or privately rented homes, and it can support both energy-efficiency measures and low-carbon heating such as heat pumps. In simple terms, it is not the mainstream route for every homeowner, but it can be very important if your household meets the income and property criteria.

GOV.UK’s February 2026 statistics say Warm Homes: Local Grant is part of the Warm Homes Plan, with £0.5 billion allocated from April 2025 to March 2028 and 74 projects involving 271 local authorities funded. Surrey County Council also states that the local scheme in Surrey started on 1 September 2025 and is planned to run until 31 March 2028.

The broad eligibility pattern is usually:

This is important for London and Surrey homeowners because some households may be better served by WH:LG than by trying to think only in terms of BUS. A low-income owner-occupier in an eligible postcode may qualify for support that goes beyond the standard grant logic, especially if the property also needs insulation or wider efficiency upgrades.

Because the scheme is locally delivered, the best route is usually to check with the relevant council or programme delivery partner in your area. The local authority is often the practical gateway, not a national installer quote alone.

What About 0% VAT on Heat Pumps and Related Upgrades?

0% VAT matters because it reduces the tax cost of installing qualifying energy-saving materials even when you are not using a direct grant. In 2026, that relief is part of the real funding picture for heat pumps, solar panels, and some related technologies, and homeowners should treat it as meaningful support rather than background tax detail.

HMRC’s VAT Notice 708/6 says a zero rate applies to the installation of certain energy-saving materials from 1 May 2023 to 31 March 2027. HMRC also says electrical storage batteries were brought into the relief from 1 February 2024 in qualifying circumstances, which means the tax side now supports more joined-up renewable projects than it did a few years ago.

For homeowners, the practical message is:

This matters even more in combined projects. A home doing a heat pump plus solar or solar plus battery project is not only thinking about one grant; it is benefiting from a wider policy environment that lowers the cost of renewable upgrades across the system.

If you are also considering solar, read complete guide to solar panels in the UK and solar battery storage.

Are There Grants for Solar Panels or Only for Heat Pumps?

In 2026, there is no simple nationwide direct grant for ordinary domestic solar panels in England and Wales in the same way the BUS grant supports heat pumps. Instead, solar support usually comes through 0% VAT relief, local-authority or low-income schemes such as Warm Homes: Local Grant where applicable, and ongoing export payments through the Smart Export Guarantee.

Energy Saving Trust says there are not dedicated solar panel grants from the UK Government for England and Wales. Ofgem also says SEG licensees must offer a tariff and pay eligible generators for exported electricity, which means solar support is structured more around tax relief, local schemes, and export income than around a single direct national grant.

That distinction matters because many homeowners assume the same funding logic applies to heat pumps and solar. It does not. Heat pumps have a strong flagship grant route; solar usually depends on:

1. 0% VAT relief.
2. Smart Export Guarantee income.
3. Local-authority or low-income support pathways.
4. Combined-project economics with a heat pump.

This is one reason the heat pump-plus-solar combination is so attractive. The heat pump side may benefit from direct grant funding, whilst the solar side strengthens the whole project’s long-term economics even without a standalone national capital grant.

Which Heat Pump Grant or Scheme Is Best for You?

The best scheme depends on your household type and property, not on which support route sounds biggest in isolation. For many standard owner-occupiers, BUS is the main answer; for lower-income households in eligible homes, Warm Homes Local Grant may be more relevant; and for some households the key financial support is actually the combination of BUS plus 0% VAT plus longer-term savings rather than one scheme alone.

Here is a practical decision table:

The wrong move is to assume that all funding routes can simply be stacked or that all households qualify for the same help. The right move is to identify which scheme actually matches your tenure, income, property EPC position, and retrofit scope before the quote goes too far.

That is also why an installer should understand both the national and local picture. Homeowners often lose time chasing the wrong scheme because the internet summary sounded simpler than the real rules.

How Electromatic Can Help

If you want a clear answer on which heat pump support route may apply to your property, Electromatic can help you work through the main options and identify whether the right starting point is a standard BUS-funded quote or a broader scheme-led conversation. That matters because the best funding route depends on the property and household, not just the technology.

GOV.UK says the Boiler Upgrade Scheme offers £7,500 toward an eligible air source or ground source heat pump, whilst HMRC says qualifying energy-saving materials benefit from zero-rated VAT until 31 March 2027. Electromatic works under MCS certification via our accredited umbrella partner, which means we can manage compliant heat pump projects and help homeowners understand the funding position correctly before proceeding.

What we can help with:

1. Free survey for suitable properties in London, Surrey, and nearby TW areas.
2. BUS grant handling, subject to eligibility.
3. Advice on whether a local-authority route such as WH:LG may be more relevant.
4. Combined planning for heat pump, solar, and battery projects.
5. Clear explanations of what support is real, what is conditional, and what is not available.

Book your free home survey →

Call us: 07718 059 284 | Email: admin@electromatic.uk

Frequently Asked Questions

Most homeowners asking about heat pump grants UK are trying to separate real, current support from outdated articles and recycled marketing claims. The answers below stay focused on what is actually relevant in 2026.

What is the main heat pump grant in the UK in 2026?

For most owner-occupiers in England and Wales, it is the Boiler Upgrade Scheme. GOV.UK says it offers £7,500 toward an eligible air source or ground source heat pump installation, subject to eligibility.

Can I get a grant for solar panels as well as a heat pump?

Not through one simple nationwide solar grant in England and Wales. Solar usually benefits through 0% VAT relief, SEG export payments, and some local-authority or low-income schemes rather than a direct national capital grant like BUS.

What is the Warm Homes Local Grant?

It is a government-funded local-authority delivered scheme in England for low-income households in eligible privately owned or privately rented homes. It can support energy-efficiency measures and low-carbon heating, including heat pumps, where the home and household meet the criteria.

Do heat pumps have 0% VAT in 2026?

Qualifying energy-saving materials benefit from zero-rated VAT up to 31 March 2027 under HMRC rules. That matters because tax relief is a real part of the support picture even when you are not using a direct grant.

Can I use more than one support route?

Sometimes, but it depends on the scheme rules and the property. The safest approach is not to assume that all support can be stacked automatically, but to assess the project and the household against the current eligibility rules before the installation plan is finalised.

The information in this article is for general guidance only and does not constitute financial, legal, or technical advice. Energy savings estimates are based on typical UK household data from the Energy Saving Trust and Ofgem (April 2026 price cap). Actual savings depend on your property type, insulation levels, energy usage patterns, and electricity tariff. The Boiler Upgrade Scheme (BUS) grant of £7,500 is subject to eligibility criteria set by Ofgem — not all properties qualify. Electromatic M&E Ltd operates under MCS certification via an accredited umbrella partner. All installations comply with Building Regulations Part L and MCS standards. E&OE.

Written by Electromatic M&E Ltd — ASHP & Solar installer, London & Surrey (electromatic.uk)

Last updated: April 2026 | Electromatic M&E Ltd, Company No. 13837345