Heat Pump Grants in Wales 2026: Nest Scheme and BUS Grant Explained

If you live in Wales and you're thinking about a heat pump, you've got two main funding routes available in 2026. The Boiler Upgrade Scheme (BUS) offers a £7,500 grant to most homeowners regardless of income, while the Welsh Government's Nest scheme can cover the full cost of a heat pump installation for lower-income households. Which one you go for depends entirely on your financial situation and the property you live in.

What Are the Two Main Heat Pump Grants Available in Wales?

Wales is in a slightly unusual position compared to England. Welsh homeowners can access the UK-wide Boiler Upgrade Scheme just like anyone else in England, but they also have Nest, a Wales-only programme funded by the Welsh Government and delivered by Energy Saving Trust.

Nest is specifically aimed at people on low incomes or those living in energy-inefficient homes. It can fund a whole package of energy efficiency improvements, including heat pumps, insulation, and new heating systems, sometimes at no cost at all to the homeowner.

The BUS grant is different. It's a flat £7,500 contribution towards the cost of an air source or ground source heat pump, available to almost any homeowner with a valid EPC and an existing fossil fuel heating system. You don't need to be on a low income to qualify.

So the short version: Nest might pay for everything if you're on a lower income. The BUS grant knocks £7,500 off the bill for everyone else.

Who Qualifies for the Nest Scheme in Wales?

Nest eligibility works in two ways. The first is the simplest: if you receive a means-tested benefit like Universal Credit, Pension Credit, or income-based ESA, you can get a referral for a free home energy assessment. If the assessor decides your home needs a heat pump or other heating upgrade, the work can be fully funded.

The second route is less well known. Even if you're not on benefits, you might qualify if your home has a poor energy efficiency rating (typically E, F, or G on your EPC) and your household income is below a certain threshold. The exact figures change, but broadly speaking, if your annual household income is under around £31,000, it's worth applying.

One thing to be aware of: Nest doesn't guarantee a heat pump. The assessor might recommend insulation first, or a different heating system entirely. The programme decides what your home actually needs, not what you'd prefer.

You can self-refer by calling the Nest helpline on 0808 808 2244. It's free and the call usually takes about 15 minutes.

How Does the £7,500 BUS Grant Work in Wales?

The Boiler Upgrade Scheme is the main grant for homeowners who don't qualify for Nest or who want to choose their own installer and system. Since April 2025, the grant stands at £7,500 for air source heat pumps and £7,500 for ground source heat pumps.

Here's how it works in practice. You find an MCS certified installer, they quote you for the job, and they apply for the BUS voucher on your behalf through Ofgem. If approved, the £7,500 is deducted directly from your bill. You never handle the grant money yourself.

To qualify, your property needs a valid Energy Performance Certificate with no outstanding recommendations for loft or cavity wall insulation. The property must be an existing building, not a new build, and it must currently be heated by a fossil fuel system like a gas or oil boiler. You can only claim one BUS voucher per property.

A typical air source heat pump installation in Wales costs between £10,000 and £14,000 before the grant. So after the £7,500 BUS payment, you're looking at somewhere between £2,500 and £6,500 out of pocket. That's a significant difference from even two years ago.

The scheme is currently funded through to March 2028, so there's no immediate rush, but voucher availability can tighten as demand increases.

Can You Get Both the Nest Scheme and the BUS Grant?

This is a question that comes up constantly, and the answer is no, not for the same measure. If Nest funds your heat pump, you can't also claim the BUS grant on top. They cover the same thing.

But here's where it gets interesting. If Nest funds insulation improvements for your home but doesn't cover a heat pump, you could then apply for the BUS grant separately to install one. The two schemes can work in sequence, just not for the same piece of equipment.

Frankly, if you think you might qualify for Nest, try that route first. A fully funded installation beats a £7,500 contribution every time. If Nest turns you down or only covers partial measures, the BUS grant is still there as your backup.

A Real Example: What a Welsh Homeowner Might Pay

Let's say you're a homeowner in Swansea with a three-bedroom semi-detached house currently heated by an ageing oil boiler. Your EPC rating is D, and your household income is £42,000. You wouldn't qualify for Nest because your income is too high and the EPC isn't poor enough.

You get three quotes from MCS certified installers for an 8kW air source heat pump. The quotes come in at £11,200, £12,400, and £11,800. You go with the middle option because the installer has better reviews and includes a longer warranty.

Your chosen installer applies for the BUS voucher. Once approved, your final cost is £12,400 minus £7,500, leaving you with £4,900 to pay. You could finance that through a personal loan, savings, or the installer's own payment plan if they offer one.

Compare that to a new oil boiler at around £3,000 to £4,500 installed, and yes, the heat pump costs a bit more upfront. But your running costs drop because heat pumps are roughly three times more efficient than oil boilers, and you're no longer tied to volatile oil prices. Over 10 to 15 years, the heat pump should cost less overall.

"I'm Worried the Grant Won't Cover Enough and I'll Be Out of Pocket"

This is probably the biggest concern Welsh homeowners have. And it's fair. Even with £7,500 off, you're still spending several thousand pounds.

But consider what you'd spend anyway. If your gas or oil boiler packs in tomorrow, a replacement costs £2,500 to £5,000. That's money you'll never see a return on, and you'll still be paying rising fossil fuel prices for the next 15 years.

With a heat pump, you're paying a bit more now but locking in lower running costs for the life of the system. The average UK household with an air source heat pump saves between £200 and £400 a year compared to an oil boiler, according to the Energy Saving Trust. Over 20 years, which is the typical lifespan of a heat pump, that adds up to £4,000 to £8,000 in savings.

And there's another angle. Heat pumps can increase your property's EPC rating, which affects your home's value. Buyers increasingly care about energy costs, and a home with a modern heat pump and good insulation is a more attractive proposition than one with a 12-year-old gas boiler.

If the upfront cost still feels like a stretch, ask your installer about 0% finance options. Several manufacturers and installers in Wales now offer interest-free payment plans over 2 to 5 years.

Frequently Asked Questions

Can I get a free heat pump through the Nest scheme in Wales?

Yes, if you qualify. Nest can fully fund a heat pump installation for homeowners on means-tested benefits or those with low household incomes living in energy-inefficient properties. Call 0808 808 2244 to check your eligibility. The programme decides what measures your home receives based on an energy assessment.

How much is the BUS grant for heat pumps in Wales 2026?

The Boiler Upgrade Scheme grant is £7,500 for both air source and ground source heat pumps as of 2025, and this amount applies across Wales and England. Your MCS certified installer applies for the voucher on your behalf, and the grant is deducted directly from your installation cost.

Do I need an EPC to get a heat pump grant in Wales?

Yes, for the BUS grant you need a valid Energy Performance Certificate with no outstanding recommendations for loft or cavity wall insulation. For the Nest scheme, your EPC rating can actually help your case, as homes rated E, F, or G are prioritised. If you don't have an EPC, your installer or a local assessor can arrange one for around £60 to £80.

Can I get both the Nest scheme and BUS grant for a heat pump?

Not for the same installation. You can't claim Nest funding and a BUS voucher for the same heat pump. However, if Nest covers insulation and you then want to install a heat pump separately, you could apply for the BUS grant for the heat pump. The two schemes can work in sequence but not on the same measure.

Is the BUS grant available for new builds in Wales?

No. The Boiler Upgrade Scheme only applies to existing properties that currently use fossil fuel heating. New builds in Wales are expected to include low-carbon heating as standard under updated building regulations, so they don't qualify for the BUS grant.

Find a Local MCS Certified Installer in Wales

Whichever grant route suits your situation, you'll need an MCS certified installer to do the work. For the BUS grant, it's a strict requirement, and for Nest, the programme uses its own approved contractors. If you're going the BUS route, start by getting quotes from qualified local installers who know the Welsh housing stock and can handle the voucher application for you. Use our directory at heatpumpinstallerdirectory.co.uk to find MCS certified heat pump installers near you and request free, no-obligation quotes.