This guide is for homeowners who do not qualify for low-income support. You still have grant and loan options for heat pumps, solar panels and batteries. We explain the Boiler Upgrade Scheme, the Warm Homes Loan Scheme and Home Energy Scotland funding. We also show how to combine a grant with a loan.
We do not quote prices, savings or interest rates beyond published figures. Check each scheme with its official provider before you commit.
Independent guide. We are not a lender or a government body. Always check current scheme rules with the official provider.
The Boiler Upgrade Scheme
The Boiler Upgrade Scheme gives a grant towards a heat pump or biomass boiler in England and Wales. It has no income test. New grant values took effect on 21 July 2026. Your MCS-certified installer applies and takes the grant off your bill.
| Measure | Grant value |
|---|---|
| Air-to-water heat pump | £7,500 (£9,000 if replacing oil or LPG in an off-gas-grid home) |
| Ground source heat pump | £7,500 (£9,000 if replacing oil or LPG in an off-gas-grid home) |
| Air-to-air heat pump | £2,500 |
| Biomass boiler | £5,000 (off-gas-grid homes only) |
The Warm Homes Loan Scheme
The Warm Homes Loan Scheme offers government-backed loans for energy upgrades. Treasury backing lets lenders offer rates up to 5 percentage points below their normal rates. Some borrowers may get 0%. Each measure has its own maximum, shown below.
- HomeServe (with E.ON)
- HTG Finance
- Propensio
- Secure Trust Bank
- Selina Finance
- South Manchester Credit Union
- Sunsave
- Tandem Bank
- The Money Co-op
- This Bank
| Measure | Maximum loan |
|---|---|
| Solar panels | £15,000 |
| Battery storage | £15,000 |
| Air-to-water heat pump | £20,000 |
| Air-to-air heat pump | £10,000 |
| Ground source heat pump | £35,000 |
| Biomass boiler | £20,000 |
| Heat network connection | £7,500 |
| Micro-renewables such as domestic wind | £20,000 |
Three details are not yet confirmed. The Government has not published the eligibility rules. It has not confirmed how or when you apply. Each lender has not yet published its rates. Ten lenders are taking part.
Scotland and combining funding
Home Energy Scotland offers a grant of up to £7,500 for a heat pump or biomass boiler. You can add an optional interest-free loan of up to a further £7,500. Eligible remote rural, island and off-gas rural areas get an extra £1,500. You need an MCS-certified installer and MCS-certified products. The rules below apply to every applicant.
- You must be a homeowner in Scotland. There is no benefits requirement.
- You must use an MCS-certified installer and MCS-certified products.
- Funding is first-come, first-served.
- Do not start work before you receive a written funding offer.
- Offers stay valid for up to nine months.
Combining funding lowers what you borrow. Apply the grant first, then borrow only the balance. In England and Wales, pair the Boiler Upgrade Scheme grant with a Warm Homes Loan. Compare every loan on its total cost of credit, not only the monthly payment.
Checklist
- Boiler Upgrade Scheme grant value checked for your heat pump
- Warm Homes Loan maximum checked for each measure
- Lender confirmed on the official list and the FCA register
- Written funding offer received before work starts in Scotland
- Grant applied before borrowing the balance
- Two or three MCS-certified quotes compared
Frequently asked questions
Can I get a heat pump grant if my income is above £36,000?
Yes. The Boiler Upgrade Scheme in England and Wales has no income test.
How much can I borrow under the Warm Homes Loan Scheme?
It depends on the measure. Solar panels have a £15,000 maximum, and a ground source heat pump has a £35,000 maximum.
Can I combine the grant and the loan?
Yes. The grant lowers the price, so you borrow less.
I live in Scotland. What can I get for a heat pump?
A grant of up to £7,500 plus an optional interest-free loan of up to £7,500. Eligible rural and island areas get an extra £1,500.
Can I start work before my Home Energy Scotland offer arrives?
No. Wait for your written funding offer before any work starts.
Can I apply for the Warm Homes Loan now?
Not yet. The Government has not confirmed eligibility rules or how and when you apply.
So you can fund your upgrade with the right mix of grant and loan for your home.
WHLS Editorial Team
Our editorial team writes independent, plain-English guides on home energy finance. We review guides when scheme rules change.
References
- GOV.UK – Notice of approved grant categories and values for the Boiler Upgrade Scheme (opens in a new tab)
- Energy Saving Trust – Boiler Upgrade Scheme (opens in a new tab)
- MoneySavingExpert – Warm Homes Loan Scheme news (October 2026) (opens in a new tab)
- Financial Conduct Authority – Financial Services Register (opens in a new tab)
- MCS – Find an installer (opens in a new tab)
- Energy Saving Trust – Warm Homes: Local Grant guide (opens in a new tab)
- GOV.UK – Extending the ECO4 end date: government response (opens in a new tab)
- Home Energy Scotland – Grants and loans (opens in a new tab)
- MCS – Home Energy Scotland Grant and Loan (opens in a new tab)
- Energy Saving Trust – Welsh Government Nest scheme (opens in a new tab)
