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Warm Homes Plan · Heat pumps

# Warm Homes Plan Heat Pumps — What You Can Get Funded

Two funding routes that, together, cover almost every homeowner: the Warm Homes Local Grant (up to £30,000) and the Boiler Upgrade Scheme (£7,500 — rising to £9,000 from July 2026 for oil/LPG homes — any homeowner).

By **Alliant Energy Team**· reviewed by MCS Registered Engineer Last updated  19 May 2026 

[Check eligibility](/request-callback) [Call 01282 501589](/contact)

On this page

-   [Two funding routes](#routes)
-   [Which heat pumps qualify](#models)
-   [Is my home suitable?](#suitability)
-   [Installation](#install)
-   [Running costs](#costs)
-   [FAQ](#faq)

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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](/guides/what-is-the-warm-homes-plan), or learn more about our [air source heat pump installation](/services/heat-pumps).

## 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-registered installer (Alliant Energy) claims the grant on your behalf. Runs until 2030.

Which to choose

If you're on a low income with a poor EPC, the WH:LG covers more and is the better route. If you earn above £36,000 or have a good EPC, the BUS is your route.

## 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-registered 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 01282 501589 or request a free quote.

[Get a Quote](/quote) [Heat pump service](/services/heat-pumps)

## 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

-   [Boiler Upgrade Scheme — full guide ](/guides/boiler-upgrade-scheme-2026)
-   [Heat pump installation service ](/services/heat-pumps)
-   [Combining solar, battery and heat pump ](/guides/warm-homes-plan-solar-battery-heat-pump)

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