There are two ways to get government funding for a heat pump in England — and together they cover almost every homeowner. 2026 may be the most favourable time in the scheme's history to act.
Read our hub guide on the Warm Homes Plan, or learn more about our air source heat pump installation.
Two routes to a funded heat pump
Route 1: Warm Homes Local Grant (WH:LG) — up to £30,000
For households with EPC D–G and gross income ≤£36,000. The WH:LG funds a heat pump as part of a whole-house package — often alongside insulation, solar and a battery. In Lancashire, administered by Cosy Homes in Lancashire.
Route 2: Boiler Upgrade Scheme (BUS) — £7,500 (£9,000 oil/LPG from July 2026)
For any homeowner in England, regardless of income or EPC. Your MCS-certified installer (Alliant Energy) claims the grant on your behalf. Runs until 2030.
Which to choose
Which heat pumps qualify for funding?
Air source heat pumps (ASHPs) qualify for both funding routes. To be eligible, the heat pump must be supplied and installed by an MCS-certified installer and the model must appear on the MCS Product Characteristics Database. Ground source heat pumps are eligible for a separate BUS tier. Hybrid systems (heat pump + gas boiler backup) are also eligible for BUS funding.
Is my home suitable for a heat pump?
Heat pumps work well in well-insulated properties. They produce heat at 40–55°C (vs 70–80°C for gas), so they're most efficient with:
- Good wall and loft insulation (WH:LG can fund this first if needed)
- Larger radiators or underfloor heating
- A well-sealed building envelope
Alliant Energy includes a free heat loss assessment with all heat pump surveys. We don't install systems that won't work properly in your home.
Interested in a funded heat pump?
Alliant Energy handles the grant application. Call 0800 088 4286 or request a free quote.
What does heat pump installation involve?
- Outdoor unit (about the size of an air conditioning unit) mounted on an external wall or pad
- Refrigerant pipework to an indoor unit or hot water cylinder
- Controls, thermostat and smart scheduling commissioned
- Installation typically takes 1–2 days
Permitted development rules mean planning permission is not usually required for a single domestic ASHP. Alliant confirms this during the survey.
Running costs compared to a gas boiler
With the current price cap and typical usage, annual running costs are broadly similar to a well-maintained gas boiler — but with low-carbon operation and protection against gas price volatility. Heat pumps are eligible for the Domestic Heat Pump Tariff from some suppliers, offering cheaper overnight electricity specifically for heat pump use.
Frequently asked questions
What heat pump funding is available in 2026?
Two routes: the Boiler Upgrade Scheme (£7,500 for any homeowner, rising to £9,000 for oil/LPG homes from July 2026) and the Warm Homes Local Grant (up to £30,000 for income ≤£36,000 and EPC D–G). Alliant Energy can advise which route applies.
Do I need planning permission for a heat pump?
Usually not. Air source heat pumps qualify as permitted development in most cases, provided they meet siting criteria. Alliant confirms this during your free survey.
How long does a heat pump installation take?
Typically 1–2 days for an air source heat pump, including commissioning and handover.
Related Warm Homes Plan guides
