Heat pump or a new boiler?
A heat pump can come with a government grant of £7,500 when it replaces a fossil fuel system. A new boiler does not get that grant, so the choice often starts with the money and the property.
- A few quick questions
- No obligation
There is no single right answer. A heat pump has a grant behind it, while a new boiler is the straight swap. Here is how the routes compare, what the grant covers, and what to check before you decide.
Heat pump, new boiler or something in between
Heat pump
Replaces your gas, oil, LPG or electric heating with an air source, ground source or air-to-air heat pump.
- The Boiler Upgrade Scheme grant is £7,500 for an air-to-water or ground source heat pump
- The installer applies to Ofgem and takes the grant off your bill
- Earlier insulation funding does not stop you applying
- The installer must be MCS certified to apply for the grant
- The heat pump must be installed and commissioned within 120 days of applying
- Most new build properties and social housing are not eligible
New boiler
A like-for-like replacement of your current boiler. See boiler installation and replacement.
- The simplest change if your heating works the way you want it to
- No Boiler Upgrade Scheme grant, which is for heat pumps and biomass boilers
Hybrid system
A gas boiler working alongside a heat pump.
- Keeps your gas boiler in the system
- You cannot get a Boiler Upgrade Scheme grant for a hybrid system
Get a price from us
Tell us about your home and the job, and we price it.
- A written price before any work starts
- No obligation to go ahead
- A local installer, not a national call centre
Boiler Upgrade Scheme
£7,500
Air source (air-to-water) heat pump
- £7,500 Ground source or water source heat pump
- £5,000 Biomass boiler
- £2,500 Air-to-air heat pump (homes only)
- £9,000 Air-to-water or ground source heat pump in an off-gas-grid home replacing oil or LPG, until 31 March 2027
Who it is for
- You own the property, including a business, second home or a property you let to tenants.
- You are replacing a fossil fuel system such as oil, gas, electric or LPG heating.
- The property is in England or Wales.
- Earlier insulation funding does not stop you applying.
How to apply
- 1Get quotes from MCS certified installers.
- 2The installer confirms you are eligible.
- 3Agree a quote; the installer applies to Ofgem for you.
- 4Ofgem contacts you to confirm the installer is acting for you, and may check the installation.
Source: Apply for the Boiler Upgrade Scheme: Overview, checked 2 November 2026
What the grant does and does not cover
The grant is one per property, and it is for replacing a fossil fuel system with a heat pump or biomass boiler. You can own the property as a business, a second home or a let.
If you are off the gas grid and replacing oil or LPG heating, the grant for an air-to-water or ground source heat pump is £9,000 until 31 March 2027.
The rules changed on 28 April 2026, when air-to-air heat pumps were added. The details are on our Boiler Upgrade Scheme page.
Heating grants side by side
Boiler Upgrade Scheme
National£7,500 Air source (air-to-water) heat pump
A government grant in England and Wales towards replacing fossil fuel heating (gas, oil, LPG or electric) with a heat pump or biomass boiler. An MCS certified installer applies to Ofgem and takes the grant off your bill.
Who: You own the property, including a business, second home or a property you let to tenants.
Energy Company Obligation (ECO4)
NationalECO4 makes medium and large energy suppliers fund insulation and heating upgrades for low-income, fuel-poor and vulnerable households in Great Britain. It ends on 31 December 2026 and the government has said there will be no successor supplier obligation.
Who: Your home needs energy efficiency upgrades, decided by a retrofit assessment.
Great British Insulation Scheme (closed)
NationalA supplier obligation that funded mostly single insulation measures for less energy-efficient homes in Great Britain. It ran from April 2023 and closed to new installations on 31 March 2026.
Warm Homes Plan and Warm Homes: Local Grant
NationalThe Warm Homes Plan (published 21 January 2026) is the government's programme of grants and loans for home energy upgrades, replacing supplier obligations such as ECO4. For households in England the grant open now is the Warm Homes: Local Grant, run by councils for low-income homes with an EPC of D to G.
Who: Local Grant: the home is in England and privately owned (by you or your landlord).
Source: Apply for the Boiler Upgrade Scheme: Overview, checked 2 November 2026; Energy Company Obligation (ECO) | Ofgem, checked 2 November 2026; Great British Insulation Scheme | Ofgem, checked 2 November 2026; Warm Homes Plan, checked 2 November 2026
Questions to settle before you choose
- Do you own the property you are heating?
- What fuel heats it now: gas, oil, LPG or electric?
- Is it a new build or social housing, which are mostly not eligible?
- Would you want a hybrid, which gets no grant?
- Is the installer MCS certified, if you want the grant?
- Is the quote clear about the grant being taken off the price?
Heating installations, as examples of the style
Example images of the style of work, not photos of our jobs.
Heat pump or boiler questions
Can I get a grant for a new gas boiler?
The Boiler Upgrade Scheme covers heat pumps and biomass boilers, not a new gas boiler. For other grants, see the comparison above and check each scheme's own page.
Can I get a grant for a gas boiler with a heat pump?
No. You cannot get a Boiler Upgrade Scheme grant for a hybrid system such as a gas boiler with a heat pump.
Who applies for the grant?
Your MCS certified installer applies on Ofgem's website. The grant is taken off the price shown on the quote and invoice.
Who do I ask about the scheme itself?
Ofgem runs it for the Department for Energy Security and Net Zero. Its Boiler Upgrade Scheme enquiry line is 0330 053 2006.
How it works
Get my price- 1
Tell us about the job
A few quick questions about your boiler and what is going on.
- 2
Get your price
A written price before any work starts.
- 3
We do the work
We do the work you agreed.
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Want it sorted for you?
Tell us what's going on and we'll price the job.
- A few quick questions
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