Heat pumps are central to the Warm Homes Plan, which aims for 450,000 installations a year by 2030. Grants and low-interest loans can cut the upfront cost.
Last reviewed 3 November 2026 · Independent guide, not affiliated with the UK Government
Types of heat pump
- Air source (air-to-water): sits outside and heats radiators and hot water. The most common type.
- Ground source: takes heat from pipes in the ground. Costs more to install.
- Air-to-air: warms rooms directly, like air conditioning in reverse. Doesn’t heat water.
Help with the cost
| Type | Grant (England and Wales) | Max loan |
|---|---|---|
| Air-to-water | £7,500 (£9,000 off-gas until March 2027) | £20,000 |
| Ground source | £7,500 (£9,000 off-gas until March 2027) | £35,000 |
| Air-to-air | £2,500 | £10,000 once MCS certified |
See the Boiler Upgrade Scheme and Warm Homes loans. Lower-income households in England may get one free through the Local Grant.
Is my home suitable?
Most homes can have a heat pump. Use GOV.UK’s heat pump suitability checker, then get a survey from an MCS-certified installer.
Latest on heat pumps
- Off oil or LPG? The £9,000 heat pump grant runs until 31 March 2027
- Budget cuts £1bn from Warm Homes Plan grants: what it means for you
- Warm Homes Loan Scheme launches with 10 lenders
Not sure what applies to you?
Answer up to seven questions and we’ll show the grants and loans you may qualify for, with the official contact for each.