Information about energy efficient heating funding grants
UK heating grants offer significant financial support to upgrade home heating systems or lower energy bills. Key schemes include the Boiler Upgrade Scheme (BUS) (up to £9,000 for heat pumps in eligible off-gas grid homes in England & Wales) and regional variations like Home Energy Scotland (HES).
0% VAT for Domestic Properties
The VAT rate for domestic installations in the UK is currently 0%. This applies to the supply and installation of heat pumps and wood-fuelled biomass boilers.
United Kingdom
Biomass
The UK government’s Boiler Upgrade Scheme (BUS) offers grants of £5,000 for installing biomass boilers in England and Wales to replace fossil fuel heating. This applies to rural properties and is available for domestic or commercial properties, up to 45kW.
Heat Pumps
In 2026, the UK government offers a £7,500 grant via the Boiler Upgrade Scheme (BUS) for air source or ground source heat pumps. As of July 2026, this grant is expected to increase to £9,000 for homes switching from oil or LPG.
Scotland
Biomass & Heat Pumps
The Home Energy Scotland (HES) Grant and Loan scheme offers homeowners up to £15,000—a £7,500 grant plus an optional £7,500 interest-free loan—for installing heat pumps or biomass boilers, with up to £9,000 in grants available for rural homes.