The £7,500 heat pump grant
£7,500 is the standard grant for an air-to-water or ground source heat pump. It is not the oil and LPG amount, and it is not the air-to-air amount.
Key takeaways
- Gas, electric and coal replacements are in the £7,500 rows of the values notice when the heat pump is air-to-water or ground source.
- Oil and LPG can be £9,000 until 31 March 2027.
- The grant is a discount on the install, not a cash payment to you.
What it is for
The £7,500 grant is towards the cost and installation of an eligible air-to-water heat pump or ground source heat pump, including water source. It is one grant for the property. It does not pay the whole bill for every home. A typical air-to-water install is often quoted around £10,000 to £16,000 before the grant, so many households still pay a balance.
Radiators, a hot water cylinder and pipework can change the quote. We do not publish separate prices for that extra work, because we do not have a checked price list for it. Ask for those lines on the quote.
Who sees this amount
Use it for mains gas, for electric heating that is not already a heat pump, and for coal. The values notice puts those rows at £7,500. Homes on oil or LPG should read the off-gas grant before they assume £7,500 is the ceiling.
Air-to-air stays at £2,500 even in a house that would otherwise be described as off-gas. Biomass is a separate £5,000 grant.
A typical balance
Taking £7,500 off the air-to-water range leaves about £2,500 to £8,500. That arithmetic is on the net cost estimator. It is not a promise that your invoice will land in that band.
Link the figure back to the values notice when you talk to an installer.
Sources
- Ofgem: Boiler Upgrade Scheme for property owners
- Ofgem: Boiler Upgrade Scheme for installers
- Ofgem: Boiler Upgrade Scheme property owner guidance (April 2026)
- GOV.UK: Notice of approved grant categories and values (updated 29 September 2026)
- GOV.UK: Apply for the Boiler Upgrade Scheme — what you can get
- GOV.UK: Apply for the Boiler Upgrade Scheme
Reviewed by
UK Heat Pump & Funding Specialist
MCIBSE and MCS certified retrofit specialist. Director of Thomson and Sons Low Carbon Consulting Firm Ltd, specialising in heat pump retrofits since 2005.