How to Qualify for Heat Pump Grants in 2026

For homeowners in Nottingham considering the switch to an air source heat pump, the question of what financial support is available is almost always one of the first that comes up. The Boiler Upgrade Scheme in Nottingham and across England currently provides a grant of up to £7,500 towards the cost of a qualifying heat pump installation, and understanding how to qualify for it, and what other support may be available alongside it, is the starting point for making an informed decision about the financial case for renewable heating. For clear, honest guidance on what is available and whether your property qualifies, speak to our heat pump specialists in Nottingham.

What is the Boiler Upgrade Scheme?

The Boiler Upgrade Scheme is a government grant programme administered by Ofgem on behalf of the Department for Energy Security and Net Zero. It was introduced to support the transition away from fossil fuel heating systems in homes and small non-domestic buildings by reducing the upfront cost of installing low-carbon alternatives. The scheme is part of the UK government's broader strategy to increase the number of heat pump installations and to make renewable heating financially accessible to a wider range of households.

For air source heat pump installations, the current grant is £7,500. Ground source heat pump installations qualify for a higher grant of £7,500, reflecting their typically higher installation cost. The grant amount has been updated since the scheme's launch in response to market conditions and policy priorities, and it is worth confirming the current figure when planning an installation rather than relying on information that may have been published some time ago.

One of the most practically important features of the scheme is how the grant is paid. It is paid directly to the MCS-certified installer, who deducts it from the cost of the installation before presenting the homeowner with an invoice. The homeowner does not need to apply for the grant themselves or wait for a rebate after payment. The benefit is applied at the point of purchase, which removes the cash flow disadvantage that would otherwise apply if the grant were paid retrospectively.

Who qualifies for the Boiler Upgrade Scheme?

Eligibility for the Boiler Upgrade Scheme is determined by a combination of property criteria and technology criteria, and both need to be satisfied for a grant application to succeed. The eligibility requirements are straightforward in principle, but the details matter, and the most common reason applications are declined is a property that does not fully meet the criteria at the time of application.

The property must be located in England or Wales. The scheme does not currently operate in Scotland or Northern Ireland, which have their own separate support mechanisms. The property must have a valid Energy Performance Certificate, and crucially, that EPC must not show outstanding recommendations for loft insulation or cavity wall insulation. This EPC insulation requirement is the eligibility condition that causes the most difficulty in practice and is covered in more detail in the following section.

The heat pump being installed must be an air source or ground source heat pump, and it must be installed by a contractor holding current MCS certification. The scheme is technology-specific: other heat pump types and other heating technologies do not qualify under the current scheme rules. There is no requirement for the property to be currently heated by gas. Homes using oil, LPG, electric storage heaters, or any other heating system are eligible provided the other criteria are met.

Owner-occupiers are the primary target of the scheme and are straightforwardly eligible. Landlords can also apply for properties they own, subject to the standard eligibility criteria. The property must be used as a domestic dwelling, and second homes and properties used primarily for commercial purposes do not qualify. Nottingham Air Source Heat Pumps can confirm eligibility for any specific property as part of the initial survey process.

What the EPC insulation requirement actually means

The requirement that a property's EPC shows no outstanding recommendations for loft or cavity wall insulation is the eligibility condition that most frequently prevents homeowners from claiming the grant, and it is worth understanding clearly before beginning the application process.

An Energy Performance Certificate assesses a property's energy efficiency and recommends measures that would improve it. When the assessor identifies that loft insulation or cavity wall insulation is absent or inadequate, they record this as a recommendation on the certificate. The Boiler Upgrade Scheme requires that these specific recommendations are addressed before a grant application can proceed, on the basis that a well-insulated property will benefit more from a heat pump and will produce better performance and lower running costs than a poorly insulated one.

For many homeowners, the practical response is straightforward: have the insulation installed, commission an updated EPC, and proceed with the heat pump application once the updated certificate no longer shows the relevant recommendations. The cost of loft insulation is modest relative to the heat pump grant, and in most cases the insulation itself generates energy savings that contribute to the overall financial case for the project.

Where cavity wall insulation is not technically feasible, typically because the property has solid wall construction rather than a conventional cavity, it may be possible to demonstrate this to the satisfaction of the scheme and have the relevant recommendation disregarded for eligibility purposes. This is a situation that requires specific documentation and assessment, and Nottingham Air Source Heat Pumps can advise on the most effective approach for any property where solid wall construction is a factor.

It is also worth checking whether a property's insulation status has been improved since the current EPC was produced. If loft insulation has been installed since the last assessment, the EPC may not reflect this, and an updated assessment that demonstrates the current insulation status may remove the recommendation and restore eligibility without requiring any additional work to the property.

What MCS certification means and why it matters

The Microgeneration Certification Scheme is an industry-led quality assurance framework for the installation of small-scale renewable energy systems, including heat pumps. MCS certification of the installer is a mandatory requirement for Boiler Upgrade Scheme applications, and only MCS-certified installers can submit applications on behalf of homeowners. The choice of installer is therefore not simply a quality consideration but a direct eligibility requirement: using an uncertified installer means no grant can be claimed, regardless of whether the property and the technology otherwise qualify.

For the homeowner, MCS certification provides meaningful assurance that the installer has been assessed against standards covering technical competence, health and safety practice, and customer service. MCS-certified installers are subject to audit and must maintain their certification by demonstrating ongoing compliance with the scheme's standards. An MCS installation also comes with specific consumer protections, including a requirement for a detailed system design and a commissioning report that confirms the installation has been carried out correctly.

Nottingham Air Source Heat Pumps holds current MCS certification and manages the Boiler Upgrade Scheme application process as a standard part of every qualifying installation. Homeowners do not need to navigate the grant application independently. From confirming eligibility through to submitting the application and claiming the grant after installation, the process is handled on the homeowner's behalf.

Other financial support available in 2026

The Boiler Upgrade Scheme is the most widely applicable and most straightforward financial support available for heat pump installation, but it is not the only option, and for some households other schemes may provide more substantial support or address different aspects of the installation cost.

The ECO4 scheme is a government-funded programme delivered through energy suppliers, targeting households on certain qualifying benefits or with low incomes. Where a household qualifies for ECO4, the support available can be more comprehensive than the BUS grant alone, potentially covering a larger proportion of the installation cost and in some cases the full cost. ECO4 eligibility is assessed against specific income and benefit criteria, and Nottingham Air Source Heat Pumps can advise on whether a household is likely to qualify and how to explore this route.

VAT relief on heat pump installation is a separate benefit that applies to all residential installations, regardless of income or property type. Heat pump installations in residential properties currently qualify for zero per cent VAT, compared to the standard twenty per cent rate that applies to most construction and installation work. This represents a meaningful cost reduction that is automatically applied to any qualifying residential installation and does not require a separate application.

Green mortgage products from a range of lenders offer improved interest rates for properties with higher EPC ratings. A heat pump installation typically improves a property's EPC rating, which may make a lower-rate mortgage product available on remortgage. For homeowners who are remortgaging in the period following an installation, this is worth exploring as part of the financial picture. Nottingham Air Source Heat Pumps can provide the documentation that supports an EPC reassessment following installation.

The application process step by step

The Boiler Upgrade Scheme application process involves several steps but is well established and, with an experienced installer managing it, requires relatively modest effort from the homeowner. Understanding the sequence helps avoid the common mistake of starting installation before grant approval has been obtained, which disqualifies the claim entirely.

The process begins with confirming that the property has a valid, up-to-date EPC that shows no outstanding recommendations for loft or cavity wall insulation. If the current EPC has either of these recommendations, they need to be addressed before the application proceeds. Once EPC eligibility is confirmed, the next step is agreeing the installation with an MCS-certified installer and authorising them to submit the BUS application on the homeowner's behalf.

Nottingham Air Source Heat Pumps submits the application to Ofgem, which reviews it against the eligibility criteria and issues an approval before any installation work begins. This approval step is the one that most commonly catches homeowners out if they proceed without understanding the process. Grant approval must be obtained before installation starts. An installation that begins without prior approval cannot claim the grant retrospectively, regardless of whether the property and the technology are otherwise eligible.

Once approval is confirmed, the installation proceeds. Following completion, Nottingham Air Source Heat Pumps submits the claim to Ofgem with the required documentation, including the MCS certificate, the commissioning report, and confirmation that the installation has been completed as described in the application. The grant is then paid to the installer, and the homeowner's invoice reflects the deduction.

Common reasons grant applications are declined and how to avoid them

Most BUS application failures are predictable and preventable. The following are the most frequently encountered reasons for ineligibility, along with the straightforward steps that avoid them:

• Outstanding loft or cavity wall insulation recommendations on the current EPC, the most common reason for ineligibility, which is resolved by having the insulation installed and the EPC updated before the application is submitted

• An EPC that has expired or that was produced before recent insulation improvements and does not reflect the current state of the property, which is resolved by commissioning an updated assessment

• Installation commencing before grant approval has been obtained from Ofgem, which is a disqualifying event regardless of all other eligibility criteria being met

• The installer not holding current MCS certification at the time of application, which is avoided entirely by choosing an MCS-certified installer from the outset

• Property type not meeting the eligibility criteria, including properties used primarily for non-domestic purposes or those located outside England and Wales

Nottingham Air Source Heat Pumps reviews eligibility for every property at the survey stage and will identify any issues before the application is submitted. Homeowners who come to us having already had an application declined can also discuss the specific reason for the decline and explore whether it is possible to address the relevant issue and reapply.

Is it worth applying even if the grant does not cover all the costs?

The Boiler Upgrade Scheme grant of £7,500 is a significant contribution to the cost of a heat pump installation, but it does not cover the full cost for most properties. Whether the installation makes financial sense beyond the grant depends on the running cost comparison, the direction of energy prices, and the other financial benefits that come with the installation.

The honest position on running costs is that they depend significantly on how well the property is prepared, how the system is designed and commissioned, and the current relationship between electricity and gas prices. For well-prepared properties where the heat pump achieves a high seasonal efficiency, the running cost difference compared to a gas boiler is often smaller than might be expected, and the direction of energy policy is towards making electricity more competitive relative to gas over the medium term. A heat pump installed now is a long-term asset whose financial position is likely to improve as that policy direction takes effect.

The EPC rating improvement that typically follows a heat pump installation has practical financial consequences that are worth factoring in. An improved EPC supports better mortgage product availability under green mortgage schemes and may positively influence property valuation as buyers increasingly factor heating system quality into their assessments. These benefits compound over time and contribute to the total financial return on the installation.

Nottingham Air Source Heat Pumps provides detailed, property-specific running cost projections as part of every survey, so homeowners have a realistic picture of the financial case for their specific property before making any commitment. The grant is one element of that picture, and for most homeowners it is not the only compelling element.

Supporting homeowners across Nottingham

Nottingham Air Source Heat Pumps works with homeowners across Nottingham and Nottinghamshire at every stage of the heat pump decision, from initial enquiries about eligibility and grant availability through survey, installation, and ongoing maintenance. Many of our clients come to us having heard about the Boiler Upgrade Scheme but uncertain whether their specific property qualifies, and the initial survey conversation is designed to answer that question clearly and honestly before any commitment is made.

We work with a range of property types across the area, from period homes in the older suburbs and villages of Nottinghamshire to inter-war semis and newer builds, and we understand the specific eligibility challenges that older properties can present. Where a property is not immediately eligible, we can advise on the practical steps that would make it so and provide a clear picture of the realistic timeline and cost for doing so.

Expert help from Nottingham Air Source Heat Pumps

Nottingham Air Source Heat Pumps is an MCS-certified supplier and installer serving homeowners across Nottingham and the surrounding area. We manage the Boiler Upgrade Scheme application process on behalf of every eligible client, from confirming eligibility through to claiming the grant after installation. Our heat loss assessments, system designs, and installation quality are all carried out to the standard the scheme requires, and our honest approach to financial projections means every client understands the realistic case for their property before they commit.

Whether you are ready to proceed with a heat pump installation or simply want to understand whether your property qualifies for a grant, get in touch today to book a survey or request a quote. We will give you a clear, honest picture of what is available before you commit to anything.

Frequently asked questions

How much is the Boiler Upgrade Scheme grant in 2026?

The current grant for an air source heat pump installation under the Boiler Upgrade Scheme is £7,500, paid directly to the MCS-certified installer and deducted from the cost of the installation. The grant amount has been updated since the scheme launched and may change further. Nottingham Air Source Heat Pumps will confirm the current grant level at the time of any survey, and it is always worth checking the official government guidance for the most current figure.

Does my property need to have a gas boiler to qualify for the grant?

No. The Boiler Upgrade Scheme does not require the property to be currently heated by gas. Homes using oil, LPG, electric storage heaters, or any other heating system are eligible provided the other criteria are met, including the EPC insulation requirement and the use of an MCS-certified installer. The scheme is intended to support the transition to low-carbon heating regardless of the current fuel type.

What if my EPC shows outstanding insulation recommendations?

A property with outstanding loft or cavity wall insulation recommendations on its current EPC is not eligible for the Boiler Upgrade Scheme until those recommendations are addressed. The most straightforward path is to have the insulation installed and commission an updated EPC that reflects the improvement. If the insulation was installed after the current EPC was produced, an updated assessment may be sufficient. Where cavity wall insulation is technically not feasible due to solid wall construction, it may be possible to have the recommendation waived. Nottingham Air Source Heat Pumps can advise on the right approach for any specific property.

Can I apply for the grant myself, or does the installer have to do it?

Only MCS-certified installers can submit Boiler Upgrade Scheme applications. The homeowner cannot apply directly. The installer submits the application on the homeowner's behalf, obtains approval before installation begins, completes the installation, and then claims the grant. Nottingham Air Source Heat Pumps manages the full application process for every eligible client as a standard part of the installation service.

What happens if I start my heat pump installation before the grant is approved?

Starting an installation before Ofgem has approved the BUS application disqualifies the claim entirely. The grant cannot be claimed retrospectively for an installation that was already underway or completed at the time of application. This is the most common avoidable reason for losing grant entitlement, and it is why Nottingham Air Source Heat Pumps always ensures that approval is confirmed before any installation work begins on a BUS-funded project.

Whether you are ready to go ahead with a heat pump installation or simply want to understand whether your property qualifies for a grant, Nottingham Air Source Heat Pumps is here to help. We manage the Boiler Upgrade Scheme application process on behalf of every eligible client, and we will give you an honest picture of what is available for your specific property before you commit to anything. Get in touch today to book a survey or request a quote.