Heat Pump Grants in Plymouth

The Boiler Upgrade Scheme in Plymouth

The Boiler Upgrade Scheme (BUS) is a government grant that helps property owners in England and Wales switch from fossil fuel or direct electric heating to a heat pump. It’s run by Ofgem. You don’t apply yourself — your installer applies on your behalf and the grant comes off the price you pay.

Since 2026, the scheme has included air-to-air heat pumps as well as air source and ground source systems. That makes the systems we install in Plymouth homes and flats more affordable than ever.

How Much You Can Get

Only one grant can be claimed per property. The scheme sets maximum capacities, which are well above what a typical home needs.

Who Is Eligible

According to the government’s published rules, you can usually apply if:

• you own the property — this includes homes you live in, second homes, rental properties and small business premises;
• the property is in England or Wales;
• the new heat pump replaces a fossil fuel or electric heating system, such as gas, oil, LPG, storage heaters or panel heaters;
• the heat pump is installed and commissioned by an MCS-certified installer within the scheme’s time limits.

Properties that usually can’t apply

• Social housing;
• most new builds still being built by a developer (self-builds can qualify);
• properties that have already received government funding for a heat pump;
• installations that replace an existing low-carbon system, or hybrid systems that keep a gas boiler alongside the heat pump.

These rules can change. We check your eligibility at the survey against the current scheme guidance, and the final decision rests with Ofgem.

How the Grant Works With Us

1. Survey and quote

   We survey the property and give you a quote showing the full price and the price after the grant.

2. You agree the quote

   Once you’re happy, the installer applies to Ofgem for a voucher on your behalf. You’ll be asked to confirm the application.

3. Voucher issued

   Ofgem checks eligibility and issues a voucher, which is valid for a set period while the installation takes place.

4. Installation

   The heat pump is installed and commissioned to MCS standards.

5. Grant redeemed

   The installer redeems the voucher, and you pay only the balance on the quote.

You don’t pay the grant amount yourself and claim it back — it’s taken off the bill. Make sure any quote you receive shows the full price, the grant and the amount you’ll pay.

The Grant and Electric Heating in Plymouth

A large share of Plymouth’s flats and smaller homes are heated by electricity — night storage heaters, panel heaters or a mix. Because the scheme treats direct electric heating as a system that can be replaced, many of these homes can use the £2,500 air-to-air grant to switch to a far more efficient system. For a flat with two or three rooms, the grant can cover a significant part of the cost. Read more on our flats and electric heating page.

Homes on Oil or LPG

Most of Plymouth is on mains gas, but some properties on the edges of the city and in nearby villages still use oil or LPG. For these homes, the extra £1,500 uplift brings the air source heat pump grant to £9,000 until March 2027, which can make replacing an old oil boiler very cost-effective.

Landlords

Private landlords who own the property can apply in the same way as homeowners. With minimum energy efficiency standards for rented homes set to rise, a heat pump can improve a property’s energy rating while cutting tenants’ bills. You’ll need your tenant’s cooperation for access during the survey and installation.

Other Costs to Consider

The grant covers part of the installed price, not everything. Electrical upgrades, radiator changes for air source systems, scaffolding for high walls and making good are included in our quotes, so the figure you see is the figure you pay after the grant. Heat pump installations currently benefit from 0% VAT on qualifying energy-saving materials, which is reflected in our prices.

Choosing Between the £2,500 and £7,500 Grants

Because only one grant is available per property, it’s worth thinking about the long-term plan before you apply. If your home has radiators and a gas, oil or LPG boiler, and you want to replace the whole heating and hot water system, an air source heat pump with the £7,500 grant (or £9,000 for oil and LPG homes until March 2027) is usually the better use of the grant. If you live in a flat, heat with electricity, or want to heat and cool the rooms you use most, the £2,500 air-to-air grant is often the better fit. We set out both options at the survey where both are realistic.

What the Survey Checks for the Grant

• That you own the property, and whether it’s a home, second home, rental or business premises;
• what the existing heating system is, and what it will be replaced by;
• the property type and whether it falls into an excluded category, such as social housing or a developer new build;
• whether the property has had government funding for a heat pump before;
• the heat loss of the rooms or home, so the system is sized to meet the scheme’s standards;
• any planning, listed building or leasehold consents that might be needed before installation.

Common Misunderstandings

“The grant covers everything”

It doesn’t. The grant is a fixed amount off the installation. For a single-room air-to-air system it can cover a large share; for a whole-home air source heat pump it typically covers a good part, but not all, of the cost.

“I need to apply myself”

No. The installer applies to Ofgem and you confirm the application when contacted. You don’t fill in forms or claim the money back.

“Any air conditioning qualifies”

Only air-to-air heat pumps used to heat the home and replacing fossil fuel or electric heating can qualify. A cooling-only unit, or one added alongside a heating system that stays in place, doesn’t meet the scheme rules.