£9,000 Heat Pump Grant for Oil and LPG Homes

Why Has the Heat Pump Grant Increased to £9,000?

The Boiler Upgrade Scheme helps reduce the upfront cost of installing low-carbon heating. Eligible air source and ground source heat pump installations can normally receive £7,500, but the grant has now increased to £9,000 for qualifying off-grid properties currently heated by oil or LPG. That gives eligible property owners an additional £1,500 towards their heat pump installation.

Oil and LPG prices can fluctuate, which can make heating costs less predictable for off-grid households. Therefore, the increased grant provides additional support for people considering a move away from these fuels.

However, the £9,000 grant is time limited, so it is worth exploring your options in good time.

Do You Qualify for the £9,000 Heat Pump Grant?

The increased grant applies specifically to eligible off-gas-grid properties currently heated by oil or LPG.

For the purposes of the Boiler Upgrade Scheme, the property must:

• not be connected to mains gas
• have no gas meter
• have no capped or clamped mains gas supply
• not be a new-build or self-build property
• not be connected to a heat network

In addition, your existing heating system must use oil or LPG. If your property meets these conditions, you may qualify for the increased grant. Other Boiler Upgrade Scheme requirements also apply, so eligibility should always be checked before proceeding.

Your MCS-certified installer will confirm the existing fuel type and relevant property details as part of the application process.

Which Heat Pumps Qualify for the £9,000 Grant?

The increased £9,000 grant applies to eligible air-to-water air source heat pumps and ground source heat pumps. Both systems can provide heating and hot water when correctly designed for the property.

Air source heat pumps take naturally occurring heat from the outside air and transfer it into the heating system. They are suitable for many UK properties and usually require less space than a ground source system.

Ground source heat pumps collect stored heat from the ground through underground pipework or boreholes. As a result, they tend to suit properties with sufficient land or suitable space available.

Red Van Plumbers installs both air-to-water and ground source heat pumps. However, the property and installation must meet the Boiler Upgrade Scheme requirements to receive the grant.

Replacing Oil or LPG Heating With a Heat Pump

Many rural and off-grid properties still rely on oil or LPG for heating and hot water. A heat pump provides an alternative without burning oil or LPG in the property. For some homeowners, switching can also remove the need for fuel storage and regular deliveries.

However, replacing a boiler with a heat pump involves more than simply changing the heating appliance. The system needs to be correctly sized for the property, while radiators, hot water storage, insulation and heating controls may also need to be considered.

Therefore, a professional survey and heat-loss calculation are important before choosing a system. For qualifying properties, the £9,000 Boiler Upgrade Scheme grant can now significantly reduce the upfront installation cost.

How Long Is the £9,000 Heat Pump Grant Available?

The increased £9,000 grant is currently available until 31 March 2027. The Government will review the level of support ahead of the next financial year, so there is no guarantee that the £9,000 grant value will continue after this date.

There is also another important financial incentive to consider. Qualifying heat pump installations currently benefit from 0% VAT, and this relief is also available until 31 March 2027. For oil and LPG property owners, two valuable incentives therefore currently run to the same date.

So, if you are already considering replacing oil or LPG heating, it makes sense to explore your options sooner rather than later.

This information is correct as of August 2026. Government grant values, VAT rates and scheme requirements can change.

What If Your Property Is Heated by Mains Gas?

The increased £9,000 grant is specifically for qualifying off-grid properties currently heated by oil or LPG. However, homeowners and eligible property owners currently using mains gas can still receive £7,500 towards a qualifying air source or ground source heat pump.

Therefore, gas-heated properties can still benefit from substantial support through the Boiler Upgrade Scheme.

The key difference is the current grant value:

• Mains gas property: £7,500 towards an eligible heat pump.
• Off-grid oil or LPG property: £9,000 towards an eligible heat pump until 31 March 2027.

If you currently use mains gas and are considering a heat pump, our renewable energy team can explain the grant available and assess whether your property is suitable.

Other Savings Including 0% VAT

The Boiler Upgrade Scheme is not the only financial benefit worth considering. Qualifying heat pump installations currently benefit from 0% VAT until 31 March 2027.

The 0% VAT can also apply to certain associated work carried out as part of the same eligible renewable energy installation. This may include improvements such as radiator upgrades, underfloor heating, solar panels, battery storage, depending on the work being completed.

For homeowners planning wider energy improvements, this can make it more cost-effective to complete several upgrades at the same time rather than treating each one as a separate project.

Some mortgage providers may also offer incentives for eligible energy-efficiency improvements. These can include cashback or other green-home benefits, depending on your lender and mortgage product.

How Does Red Van Plumbers Help With the Grant?

The Boiler Upgrade Scheme is installer-led, so you do not have to apply for the grant yourself. As an MCS-certified heat pump installer, Red Van Plumbers will manage the application on your behalf.

Our process can include:

• An initial heat pump consultation
• Heat-loss calculations
• Managing the Boiler Upgrade Scheme application
• Installation and commissioning

We can also advise on radiators, hot water systems, underfloor heating and other renewable technologies where appropriate. Most importantly, we will explain your options clearly before you decide whether a heat pump is right for your property.

Book Your Free Heat Pump Consultation

If your property is currently heated by oil or LPG, you could now qualify for £9,000 towards an eligible heat pump installation. The higher grant and current 0% VAT relief are both available until 31 March 2027, so if you are already considering a heat pump, it makes sense to explore your options in good time.

Our renewable energy team can assess your property, explain the grant criteria and advise whether an air source or ground source heat pump could work for you. If your property is currently heated by mains gas, you may still qualify for the standard £7,500 Boiler Upgrade Scheme Grant.

GET YOUR FREE HEAT PUMP CONSULTATION

Resources

The information in this article is based on current Government and Ofgem guidance.

For further information, we recommend:

• Ofgem: Boiler Upgrade Scheme Guidance for Property Owners
• Ofgem: Boiler Upgrade Scheme Guidance for Installers
• GOV.UK: Apply for the Boiler Upgrade Scheme
• GOV.UK/HMRC: VAT relief on energy-saving materials

Grant values, eligibility requirements and tax rules can change. Our renewable energy team can explain the current requirements when you enquire, or learn more via our BUS Grant Guide page.