Can you get a free heat pump? The £7,500 grant explained

If you have searched for a “free heat pump”, this guide sets out when a heat pump may cost you nothing, when it probably will not, and how to check which group you are in before anyone visits your home.

Can you get a heat pump at no cost?

You may, in England and Wales, if your quote comes in at or under the grant. The Boiler Upgrade Scheme (BUS) pays £7,500 towards an air source heat pump and your installer takes it off the price before you pay, so with a quote of £7,500 or less you may have nothing left to pay. Above that, you pay the difference.

A typical ByEco air source heat pump installation is around £7,000, so in many cases the £7,500 grant may cover the full installation. ByEco is MCS certified for air source heat pump installation (certificate IAA10330), and we apply for the £7,500 Boiler Upgrade Scheme grant on your behalf.

It all depends on the property. A few of the homes ByEco has installed cost the homeowner nothing after the £7,500 Boiler Upgrade Scheme grant. That is not a promise for every home: the size of heat pump, the radiators and pipework, and where the outdoor unit goes differ from property to property, so we give you a figure only after a free survey of your home.

What decides the cost of your installation

Every home is different, so there is no single price. The cost of your installation depends on:

• The size of system your home needs. A room-by-room heat loss calculation sets how powerful the heat pump has to be, so a bigger or draughtier house needs a larger unit.
• Your radiators. Some rooms may need a larger radiator to stay warm at heat pump temperatures, while others can stay as they are. Our guide to whether you need new radiators explains how that is decided.
• Your pipework. Whether the existing pipes can be reused or some need upgrading.
• Where the outdoor unit goes. How far it sits from where the pipes enter the house, and how straightforward that route is.
• Hot water and electrics. How your hot water will be provided, and whether any electrical work is needed.

That is why the only way to know your figure is a survey. Get in touch and we will arrange a free survey of your home, explain what your system needs and give you an itemised quote. If you are happy with it, we can go ahead.

The Boiler Upgrade Scheme: where the £7,500 comes from

The £7,500 is a Boiler Upgrade Scheme (BUS) grant. It is the government’s grant for replacing fossil fuel heating with a heat pump, and it is open in England and Wales. You never apply to Ofgem yourself: your MCS-certified installer makes the application on Ofgem’s website and takes the grant off your quote. Here is the scheme at a glance.

Boiler Upgrade Scheme eligibility in 2026

GOV.UK says you are eligible for the Boiler Upgrade Scheme if you:

• own the property, including a business, a second home or a property you rent out to tenants;
• are replacing fossil fuel heating, such as oil, gas, electric or LPG (GOV.UK’s examples).

GOV.UK lists no income or benefits condition alongside those two, so the grant is not means-tested: you do not need to be on a low income or on benefits to apply. The property must be in England or Wales. Having had help with insulation before does not stop you; GOV.UK says you are still eligible if your property has already had energy efficiency funding.

You cannot get the grant for:

• most new builds (a self-build can qualify if it meets GOV.UK’s conditions, and you may be able to get the grant if you move into a finished new build with a fossil fuel boiler);
• social housing;
• a property that has already had government funding for a heat pump or biomass boiler;
• a hybrid system that keeps a gas boiler alongside the heat pump (see our guide to hybrid heat pumps);
• replacing a heating system that is already low carbon.

Since 28 April 2026 you can apply without an Energy Performance Certificate. If your home has a valid one, the installer still gives its number with the application.

The heat pump must qualify too

• It has to replace the fossil fuel system. Ofgem lists keeping a fossil fuel appliance, for example to provide extra space heating, as non-compliance, and GOV.UK says a hybrid system with a gas boiler is not eligible.
• It must meet the scheme’s standards, such as minimum efficiency levels. GOV.UK says your installer can advise on these.
• Its capacity can be up to 45kWth for an individual system, which covers ordinary homes.
• It must be installed and commissioned by an MCS-certified installer.

How to apply for the Boiler Upgrade Scheme

You do not fill in a form yourself. The scheme is installer-led, and GOV.UK sets out the steps:

1. Get quotes from MCS-certified installers. Each should survey your home first.
2. Confirm you are eligible. Your installer checks this with you.
3. Agree a quote. It should show the £7,500 grant taken off.
4. The installer applies on your behalf on Ofgem’s website.
5. You confirm. Ofgem emails you from boiler.upgrade.scheme.ofgem@notifications.service.gov.uk to confirm your consent and identity. Its guidance says to respond within 14 days, or the application may be rejected.
6. The voucher is issued. For an air source heat pump, your installer must complete the work, commission the system and redeem the voucher within 3 months.
7. You pay the quote less the grant. The grant is shown on your quote and invoice, and Ofgem pays it to the installer.

Ofgem may also phone you or visit to check the installation, and MCS may carry out its own checks. In some cases an installer can apply after the work, within 120 days of commissioning, but Ofgem warns this carries extra risk, because the application could still be refused. If you need help with the scheme itself, Ofgem’s BUS team is on 0330 053 2006.

On top of the grant, installing a heat pump in a home is currently zero-rated for VAT. HMRC’s notice says the zero rate runs to 31 March 2027 and returns to 5% from 1 April 2027. The Boiler Upgrade Scheme guide covers the rules in more detail.

The catches

• The grant is fixed. It is £7,500 and does not grow with your quote. If your home needs a larger heat pump, extra radiators or electrical upgrades, anything above the grant is yours to pay (see whether you need new radiators).
• Only an MCS-certified installer can claim it. An installer without MCS certification for heat pumps cannot get you the grant, however good the price looks. You can check an installer on the MCS website.
• The three-month deadline. If the installation slips past the voucher’s expiry, the installer has to withdraw and re-apply, and you give consent again.
• The budget is finite. Ofgem cannot issue new vouchers once the scheme budget is used up, and may run a queue until budget becomes available.
• Running costs are separate. A no-cost installation does not mean lower bills. That depends on the design and your tariff; see heat pump vs gas boiler running costs.

The pros and cons guide covers the wider trade-offs.

Be wary of cold callers offering a free heat pump

Unexpected calls, texts and doorstep visits promising a free heat pump or a “government grant” are worth treating with caution. Citizens Advice says a scam often starts when someone you do not know contacts you unexpectedly, and that it might be a scam if you are asked to transfer money quickly, asked for personal information, or have no written confirmation of what has been agreed. For the ECO scheme, Ofgem notes that people may be approached by several companies, and that you do not have to sign a contract for any work you do not think suits your home.

The safe way round is to start from the scheme, not the caller. For the Boiler Upgrade Scheme, choose your own MCS-certified installer and expect Ofgem to contact you to confirm the application. For council schemes, go through GOV.UK, your council or the GMCA portal. One exception to the “unexpected contact” rule: under its area-based scheme, GMCA says officers from GMCA or the council will contact residents in selected parts of Greater Manchester. It says all those officers carry official photo identification and asks you to check it before letting anyone into your home.

How to find out if you may be eligible

1. Check the basics: you own the home, it is in England or Wales, and it is heated by gas, oil, LPG or electric heating that is not a heat pump.
2. Rule out the exclusions: not social housing, not a developer’s new build, and no previous government-funded heat pump at the address.
3. Check the heating system: the heat pump must replace your boiler completely, not run alongside it.
4. Get a survey and an itemised quote from an MCS-certified installer showing the grant taken off. That figure, not the headline, tells you whether you may pay nothing.
5. Compare at least two quotes, and ask each installer how hot water will be provided (see what happens during an installation).

Other schemes (separate from the £7,500 grant)

The £7,500 grant comes only from the Boiler Upgrade Scheme. You may also see council and supplier schemes for lower-income households, but they are separate, they are run by councils, the Welsh Government or energy suppliers rather than installers, and they cannot be combined with the Boiler Upgrade Scheme for the same heat pump:

• Warm Homes: Local Grant (England, through councils; Greater Manchester runs its own version through the GMCA Retrofit Portal), for privately owned homes rated EPC D to G on lower incomes.
• Nest (Wales), run by the Welsh Government.
• ECO4, through energy suppliers, which the government has confirmed ends on 31 December 2026.

Where ByEco stands

ByEco is MCS certified for air source heat pump installation (certificate IAA10330), and we apply for the £7,500 Boiler Upgrade Scheme grant on your behalf. You can read more on our heat pumps page and our grants page, or get in touch to talk through your home.

Sources

Every figure on this page was checked against primary sources on 27 October 2026. Grant rules, planning rules and prices change — if you are reading this much later, verify before acting.

• GOV.UK — Apply for the Boiler Upgrade Scheme: what you can get
• GOV.UK — Apply for the Boiler Upgrade Scheme: check if you’re eligible
• GOV.UK — Apply for the Boiler Upgrade Scheme: how to apply
• Ofgem — Boiler Upgrade Scheme: Guidance for Installers, Version 5.1
• Ofgem — Boiler Upgrade Scheme: Guidance for Property Owners, Version 5.1
• legislation.gov.uk — Boiler Upgrade Scheme (England and Wales) Regulations 2022, regulation 15
• legislation.gov.uk — Boiler Upgrade Scheme (England and Wales) Regulations 2022, regulation 5
• HMRC — VAT on energy-saving materials and heating equipment (Notice 708/6)
• GOV.UK — Apply for the Warm Homes: Local Grant to improve a home
• DESNZ — Warm Homes: Local Grant policy guidance for local authorities (July 2026)
• Greater Manchester Combined Authority — Warm Homes: Local Grant GM Wide Scheme
• Greater Manchester Combined Authority — Warm Homes: Local Grant Area Based Scheme
• Welsh Government — Get free home energy efficiency improvements (Nest): eligibility
• DESNZ — Extending the ECO4 end date: government response
• Ofgem — Energy Company Obligation: homeowners and tenants
• Citizens Advice — Get help paying for energy efficiency home improvements
• Citizens Advice — Check if something might be a scam