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Government Funding and Grants for Renewable Energy
What the Boiler Upgrade Scheme pays in 2026 and who qualifies. £9,000 for oil and LPG homes to March 2027. We handle the Ofgem application for you.
- £9,000 for oil and LPG homes
- Not means tested
- Comes off your invoice
- We handle the Ofgem application
Government funding
Grants of up to £9,000 towards renewable heating
If you are considering installing a renewable energy system, such as a heat pump or solar photovoltaic (PV) system, you may be wondering what government funding and incentives are available to help offset the costs. You might have already researched it, but become overwhelmed by all the options…you wouldn’t be the first person to feel this way. It can be a minefield.
At Eco Installer, we guide our customers through every stage from installation to securing funding, making the process stress-free and straightforward. We can even help you make the initial decision as to which option is right for your home.
£9,000 for oil and LPG homes
Air source or ground source heat pumps in homes heated by oil or LPG with no mains gas connection. Available until 31 March 2027.
£7,500 for heat pumps
Air source or ground source heat pumps replacing mains gas, electric or other fossil fuel heating.
£2,500 for air to air and heat batteries
Air-to-air heat pumps in residential properties, and heat batteries such as Sunamp. Both were added to the scheme in 2026.
Boiler Upgrade Scheme
What the Boiler Upgrade Scheme pays in 2026
The Boiler Upgrade Scheme is the main government grant for replacing a fossil fuel heating system in England and Wales. It is a grant, not a loan, it is not means tested, and the money comes off your invoice rather than being paid back to you later.
The scheme was expanded twice this year, so the figures below are different to what you may have read even a few months ago.
The £9,000 rate is temporary. It runs to 31 March 2027 and then off-gas-grid homes revert to the standard £7,500. A heat pump install involves a survey, a system design and an Ofgem application before any work starts, so the window is shorter than the date suggests. If you heat with oil or LPG, book the survey while the uplift is live.
Grants available in 2026
Paid directly off your installation invoice
| What you are installing | Grant | Who qualifies |
|---|---|---|
| Air source or ground source heat pump, off gas grid | £9,000 | Homes currently heated by oil or LPG with no mains gas connection |
| Air source or ground source heat pump | £7,500 | Homes replacing mains gas, electric or other fossil fuel heating |
| Air-to-air heat pump | £2,500 | Residential properties only, existing boiler fully removed |
| Heat battery | £2,500 | Added to the scheme in 2026, pairs well with a time-of-use tariff |
| Biomass boiler | £5,000 | Rural properties with no gas grid connection |
New for 2026
What changed in 2026, and what it means for you
1
You no longer need to fix your insulation first
Until April 2026 you had to clear any outstanding loft or cavity wall insulation recommendations on your EPC before you could apply. That condition has been removed. It was the most common reason applications stalled, and it is gone.
2
Cooling is covered for the first time
Air-to-air heat pumps, the type that heats in winter and cools in summer, now attract £2,500. It is one grant per property, so if you might want a full wet system later, talk to us before choosing.
3
Heat batteries are covered too
Compact thermal stores such as the Sunamp units we install now attract £2,500. They are worth considering where there is no room for a hot water cylinder.
4
The scheme runs to 2030
The standard £7,500 is not going anywhere. Only the extra £1,500 for oil and LPG homes expires in March 2027.
The application
How we handle the application
The scheme is installer-led, which means we apply on your behalf.
1. We submit to Ofgem
Once your installation is confirmed we submit your application to Ofgem.
2. You confirm your consent
You receive an email asking you to confirm you consented.
3. We redeem the funding
After the install we redeem the funding directly.
4. It comes off your invoice
The grant is deducted from your invoice, so you never pay it out and claim it back.
You will need a valid EPC for the property. If you do not have one we can put you in touch with a local assessor.
Self-builders need additional paperwork to confirm the project is a genuine self-build rather than a developer project. We will tell you exactly what is needed.
Solar panels
Solar: the Smart Export Guarantee
If you install solar panels you can be paid for the electricity you export to the grid under the Smart Export Guarantee. Every energy supplier sets its own SEG rate, so it is worth comparing before you switch or renew. Note that solar PV does not qualify for the Boiler Upgrade Scheme, which covers heating systems only.
After your install we provide your DNO approval and your MCS certificate. You forward both to your energy supplier to set up the tariff.
Why Eco Installer
Why Choose Eco Installer?
To qualify for both BUS and SEG funding, your installation must be completed by an MCS-certified installer, such as us. Eco Installer has been MCS certified since 2011.
With all our heat pump installations, we carry out full MCS heat loss calculations (checking the thermal/performance of the house, radiator sizing or underfloor heating, etc). Not only do our team install these systems, we also provide after-care and annual servicing.
At risk of blowing our own trumpet, we combine expert installation, award-winning customer service, and comprehensive funding support, ensuring the process is simple and rewarding. Why not take a look at our case studies, which feature customers who have firsthand experience with choosing us.
Installation of a 5kW Stiebel Eltron Trend Air Source Heat Pump with a 200ltr Heat Pump Hot Water Cylinder
Existing Heating System: Oil Central Heating Technology Installed: • 5kW Stiebel Eltron Trend Air Source Heat Pump• 200ltr...
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