Heat Pump Grants Boosted to £9,000 for Oil and LPG Homes: What You Need to Know in 2026

If your home runs on oil or LPG, the government has just increased your Boiler Upgrade Scheme grant from £7,500 to £9,000. That's a serious chunk off the cost of a heat pump installation, and it's available right now. Here's everything you need to know to take advantage of it before the funding runs out.

Why Has the Grant Increased to £9,000 for Oil and LPG Homes?

The government wants to get the hardest-to-decarbonise homes off fossil fuels first. Oil and LPG boilers are mostly found in rural properties that aren't connected to the gas grid, and these homes tend to have higher carbon emissions per household than their mains gas equivalents.

By bumping the grant to £9,000, the aim is to remove the biggest barrier for rural homeowners: upfront cost. A typical air source heat pump installation runs between £10,000 and £14,000 depending on the size of your property and how much pipework needs changing. With £9,000 covered by the grant, you could be looking at as little as £1,000 to £5,000 out of pocket.

Frankly, that makes the numbers work for a lot of people who were sitting on the fence.

Who Qualifies for the £9,000 Heat Pump Grant in 2026?

The eligibility criteria are straightforward. Your home must currently be heated by an oil or LPG boiler. It must be an existing property in England or Wales (new builds don't qualify). And the heat pump must be installed by an MCS certified installer.

You don't need to be on a low income. This isn't means-tested. Whether you earn £20,000 or £200,000, the grant is the same. The property does need a valid EPC (Energy Performance Certificate), but there's no minimum EPC rating required to apply.

One thing to watch: if you've already had a BUS grant on that property, you can't get another one. It's one grant per property, not per owner.

How Does the £9,000 Grant Compare to the Standard £7,500 BUS Grant?

The standard Boiler Upgrade Scheme grant of £7,500 still exists for homes currently on mains gas. That hasn't changed. What's new is the higher tier specifically for oil and LPG properties.

Here's how it breaks down:

Mains gas homes: £7,500 grant towards an air source or ground source heat pump
Oil heated homes: £9,000 grant
LPG heated homes: £9,000 grant
Ground source heat pumps (all fuel types): eligible for the same grant amounts

The £7,500 grant is still excellent value for gas-heated homes. But the extra £1,500 for oil and LPG properties reflects the fact that these installations can be slightly more complex and that running costs savings are often larger, since oil and LPG are typically more expensive per kilowatt hour than mains gas.

If you're on mains gas, don't feel short-changed. £7,500 off a heat pump installation is still one of the most generous renewable energy grants available anywhere in Europe.

What Does a Real Installation Look Like for an Oil-Heated Home?

Let's say you own a three-bedroom detached cottage in Devon. You've been running an oil boiler that's 18 years old, and you're spending roughly £2,200 a year on heating oil. Your oil tank is rusting and needs replacing anyway, which would cost around £1,500.

An MCS certified installer quotes you £12,500 for an 11kW air source heat pump, including a new hot water cylinder, controls, and all the pipework modifications. With the £9,000 grant applied directly to your invoice, you pay £3,500.

Your annual heating costs drop to around £1,200 on a standard electricity tariff, or even lower if you switch to a heat pump tariff or add solar panels. You've saved the cost of a new oil tank. And you've got a heating system that should last 20 years with minimal maintenance.

That's a payback period of roughly three to four years. Not many home improvements offer that kind of return.

"I'm Worried a Heat Pump Won't Heat My Old, Draughty House Properly"

This is the number one concern we hear, and it's completely understandable. Older rural homes often have solid walls, single-glazed windows, and draughty rooms. The idea of replacing a boiler that kicks out plenty of heat with something quieter and lower temperature feels risky.

But here's the thing: thousands of heat pumps are already running successfully in older UK properties. The key is correct sizing and good installation practice. A properly surveyed and installed heat pump will heat your home to the same temperatures as your oil boiler. It just works differently, running for longer periods at lower flow temperatures rather than blasting heat in short bursts.

You might need to upsize a few radiators. Your installer should check every room's heat loss during the survey and tell you exactly what's needed before you commit. If they don't do this, pick a different installer. A proper heat loss survey is non-negotiable.

Some insulation improvements can help too, but you don't necessarily need to wrap your entire house in external wall insulation before getting a heat pump fitted. Talk to your installer about what's practical and cost-effective for your specific property.

How Do You Actually Apply for the £9,000 Grant?

You don't apply directly. Your MCS certified installer handles the paperwork. They submit the application to Ofgem on your behalf after they've surveyed your property and you've accepted their quote.

The process works like this:

Find an MCS certified heat pump installer in your area
Get a survey and quote
Your installer applies to Ofgem for the BUS grant voucher
Ofgem issues the voucher (usually within a few weeks)
The installation goes ahead
The £9,000 is paid directly to the installer, so it comes straight off your bill

You never need to pay the full amount upfront and claim back later. The grant is deducted before you pay.

One important detail: the voucher is valid for three months from issue. If the installation isn't completed within that window, the voucher expires. Make sure your installer has availability before they apply.

Frequently Asked Questions

Can I get the £9,000 heat pump grant if I have an LPG boiler?

Yes. The increased £9,000 BUS grant applies to both oil and LPG heated homes. Your installer will confirm your current fuel type as part of the application process. The grant is deducted directly from your installation cost.

Do I need planning permission for a heat pump on an oil heated rural property?

Most air source heat pump installations fall under permitted development and don't need planning permission. There are rules about placement, noise, and distance from boundaries. If your property is listed or in a conservation area, you may need to apply. Your MCS installer will advise you on this during the survey.

How long will the £9,000 heat pump grant be available?

The Boiler Upgrade Scheme is currently funded through to March 2028. But the budget is allocated on a first-come, first-served basis. When earlier rounds of BUS funding were available, uptake increased sharply after grant increases. If you're serious about applying, don't wait until the end of the scheme.

Is the £9,000 grant available in Scotland and Northern Ireland?

The BUS grant applies to properties in England and Wales only. Scotland has its own Home Energy Scotland grant and loan scheme, which offers up to £7,500 in grants plus an optional interest-free loan. Northern Ireland has separate schemes as well. Check your local government's website for details.

What size heat pump do I need to replace an oil boiler in a 4-bed house?

A four-bedroom detached property typically needs a heat pump rated between 10kW and 16kW, depending on insulation levels, ceiling heights, and how many bathrooms you have. Your installer will calculate this precisely using a room-by-room heat loss assessment. Don't accept a quote from anyone who hasn't done this calculation.

Ready to find out what a heat pump would cost for your home after the £9,000 grant? Use our directory at heatpumpinstallerdirectory.co.uk to find MCS certified installers near you. Every installer listed is qualified to handle your BUS grant application, so you can get accurate quotes and move forward with confidence.