If you live in Wales, there are two main ways to get help paying for a heat pump. The UK Government's Boiler Upgrade Scheme takes £7,500 off the cost of an air source or ground source heat pump. Eligible homes that are not on the gas grid can get £9,000 until 31 March 2027. The Welsh Government's Warm Homes Nest scheme goes further for some low-income households and can pay for improvements in full.
The rules changed more than once during 2026, which has left many homeowners unsure what they can claim. This guide sets out the heat pump grants Wales currently offers, who qualifies for each one, how to apply and what to check before you choose an installer.
Key Facts at a Glance
| Question | Short answer |
|---|---|
| What is the main heat pump grant in Wales? | The Boiler Upgrade Scheme (BUS), funded by the UK Government and run by Ofgem. |
| How much does it pay? | £7,500 towards an air source or ground source heat pump. |
| Is there more for homes off the gas grid? | Yes. Eligible off-gas homes can get £9,000 until 31 March 2027. |
| Do air-to-air heat pumps qualify? | Yes. Since 28 April 2026 they qualify for a £2,500 grant in homes. |
| Is there a free option? | Warm Homes Nest can fund improvements in full for eligible low-income households. |
| Who applies for the BUS grant? | Your MCS certified installer, who takes the grant off your quote. |
| Do I need an EPC to apply for BUS? | Not since 28 April 2026. Your installer can provide other evidence instead. |
| Is VAT charged on heat pumps? | No. Installing a heat pump in a home is zero-rated until 31 March 2027. |
What Heat Pump Grants Are Available in Wales?
Most homeowners in Wales will use the Boiler Upgrade Scheme. It is open to anyone who owns their home and is replacing a fossil fuel heating system, whatever their income. Warm Homes Nest is narrower. It is aimed at low-income households in cold, hard-to-heat homes, but for those who qualify it can cover the whole cost of the work.
| Feature | Boiler Upgrade Scheme | Warm Homes Nest |
|---|---|---|
| Who runs it | UK Government, administered by Ofgem | Welsh Government |
| Who it is for | Property owners in England and Wales | Low-income households in Wales |
| Income test | None | Yes, through benefits or income thresholds |
| What you get | £7,500 off a heat pump (£9,000 off-gas, £2,500 air-to-air) | A tailored package of free improvements |
| How you apply | Through your chosen MCS certified installer | By contacting Nest directly |
| Can you choose your installer? | Yes | No. Nest uses its own approved installers. |
What About Other Support?
Other help is more limited than it was a year or two ago. ECO4, the energy supplier scheme that paid for many free heating upgrades, is winding down in 2026, and most suppliers are no longer taking new applications. The Welsh Government has said the UK Government's Warm Homes Plan will give households in Wales access to loans for energy efficiency upgrades through a Warm Homes Fund. Some local councils also run their own schemes, so it is worth checking your council's website.
How Does the Boiler Upgrade Scheme in Wales Work?
For the Boiler Upgrade Scheme, Wales follows exactly the same rules as England. It is a UK Government grant paid as a voucher, which your installer claims back from Ofgem. Since 28 April 2026, installers must take the grant off your quote from the start, so you only ever pay the reduced price.
How Much Is the Grant?
| Heating system | Grant available |
|---|---|
| Air source heat pump (air-to-water) | £7,500 |
| Air source heat pump in an eligible off-gas grid home | £9,000 until 31 March 2027 |
| Ground source heat pump | £7,500, or £9,000 in an eligible off-gas grid home until 31 March 2027 |
| Air-to-air heat pump | £2,500, homes only |
| Biomass boiler | £5,000 |
Air-to-water heat pumps are the most common type in UK homes. They heat water for your radiators or underfloor heating and also provide your hot water. Air-to-air heat pumps work differently. They blow warm air into rooms, much like an air conditioning unit in reverse, and they do not heat your hot water.
Who Qualifies for the Boiler Upgrade Scheme?
You can usually apply if all of the following are true:
- You own the property, whether as a homeowner, a landlord or a small business.
- The property is in England or Wales.
- You are replacing an existing fossil fuel heating system, such as gas, oil, LPG or electric heating.
- The new system is installed by an MCS certified installer.
Most new-build homes are not eligible, although self-builds can be. Social housing is also excluded, as it is funded in other ways.
What Changed in 2026?
The scheme changed twice this year, and both changes make it easier to use.
- 28 April 2026: You no longer need a valid EPC to apply. Your installer can send other evidence instead, such as a recent energy bill and photos of your current heating system. Installers must also deduct the grant from your quote up front. Air-to-air heat pumps became eligible for £2,500.
- 21 July 2026: The grant for eligible homes off the gas grid rose to £9,000 for air source and ground source heat pumps. This higher rate is available until 31 March 2027.
How the £9,000 Off-Gas Grant Works
Many homes in rural Wales are not connected to mains gas and rely on oil or LPG for heating. If your home is off the gas grid and eligible, the £9,000 grant applies to both air source and ground source heat pumps.
Ofgem links the grant rate to when an application is "properly made". That means Ofgem has all the information it needs, including your consent and an identity check. Survey, design and paperwork all take time, so if you are thinking of switching, start well before the 31 March 2027 deadline.
How to Apply for the Boiler Upgrade Scheme
You do not apply for the grant yourself. Your installer does it for you, but you still have a part to play.
- Book a survey with an MCS certified installer. They should carry out a room-by-room heat loss calculation.
- Agree a quote. The grant should already be taken off the price.
- Your installer applies to Ofgem for a voucher on your behalf.
- Ofgem contacts you to confirm that you agreed to the application and to check your identity. Reply promptly, as nothing moves forward until you do.
- The heat pump is installed and commissioned, and you receive your MCS certificate.
- Your installer redeems the voucher with Ofgem.
If you would like to know what the survey and installation involve, our air source heat pump installations page explains each stage.
Warm Homes Nest Wales: Free Help for Low-Income Households
Warm Homes Nest is the Welsh Government's energy efficiency scheme for low-income households. It offers free advice to anyone in Wales. For eligible households, it also provides a tailored package of home improvements at no cost. That package can include a heat pump, a boiler repair or replacement, insulation or solar panels. Since 2011, Nest has helped more than 60,000 households with free home energy improvements.
Who Can Get Help From Nest?
Warm Homes Nest is the Welsh Government's energy efficiency scheme for low-income households. It offers free advice to anyone in Wales. For eligible households, it also provides a tailored package of home improvements at no cost. That package can include a heat pump, a boiler repair or replacement, insulation or solar panels. Since 2011, Nest has helped more than 60,000 households with free home energy improvements.
Who Can Get Help From Nest?
The Welsh Government's annual report for 2024 to 2025 describes two main routes:
- Benefits route: someone in the household receives a means-tested benefit, and the home is rated E, F or G for energy efficiency.
- Health route: someone in the household has a qualifying health condition, the home is rated D or lower, and household income is below set limits.
The home must be privately owned or privately rented. If you rent, your landlord must be registered with Rent Smart Wales. Nest also runs a crisis route, which provides urgent repairs for households left without heating or hot water.
Can You Get a Free Heat Pump in Wales?
Yes, but only through Nest, and only if Nest decides a heat pump is the right choice for your home. Nest takes an efficiency-first approach. Every home has a whole-house assessment, and the package focuses on the most cost-effective improvements. In practice, that often means insulation or a new boiler rather than a heat pump. Between October 2024 and March 2025, air source heat pumps made up only around 2% of the measures Nest installed.
Be careful with anyone who cold calls offering a free heat pump in Wales. Genuine fully funded support comes through the Welsh Government scheme itself. If you are unsure about an offer, contact Nest directly before you give out any personal details.
How to Apply to Nest
Call Nest free on 0808 808 2244, Monday to Friday from 9am to 6pm. Calls in Welsh are welcome. You can also request a callback through the Welsh Government's Nest page. An adviser will check what you may be entitled to, including benefits and better energy tariffs.
Nest arranges the work through its own approved installers, so you cannot choose your own company. In July 2026, the Welsh Government also committed to reviewing its Warm Homes Programme. Some details of the Warm Homes Nest Wales scheme may change as a result, so check the latest position when you apply.
Which Heat Pump Grant Is Right for You?
If you receive a means-tested benefit or have a qualifying health condition and live in a cold home, contact Nest first, as the work could be fully funded. Everyone else who owns their home and is replacing fossil fuel heating should look at the Boiler Upgrade Scheme.
| Your situation | Where to start |
|---|---|
| Means-tested benefit, home rated E, F or G | Contact Nest first |
| Health condition and low income, home rated D or below | Contact Nest first |
| Homeowner with a gas boiler, not eligible for Nest | Boiler Upgrade Scheme: £7,500 |
| Homeowner with oil or LPG heating, off the gas grid | Boiler Upgrade Scheme: £9,000 until 31 March 2027 |
| Private landlord | Boiler Upgrade Scheme. Your tenants may also qualify for Nest. |
| You want room heating and cooling, with hot water handled separately | Air-to-air heat pump through BUS: £2,500 |
You cannot normally use two grants to pay for the same heat pump. If Nest funds your installation in full, you will not need the Boiler Upgrade Scheme as well.
Do You Need Planning Permission for a Heat Pump in Wales?
Most homes in Wales can install an air source heat pump without planning permission, under permitted development rights. The Welsh Government relaxed these rules from 1 June 2026, which makes installation easier in tight urban plots.
- A unit can now sit within 3 metres of your property boundary.
- Detached houses can have up to two heat pumps.
- The maximum unit size for houses has risen from 1 to 1.5 cubic metres.
- The installation must still pass the MCS 020 noise calculation. Where there are two units, their combined noise must stay within the 40dB limit.
Listed buildings and homes in conservation areas may still need consent. If you are unsure, check with your local planning authority before work is booked.
Getting an Air Source Heat Pump in Cardiff and South Wales
What Do Cardiff Homes Need to Consider?
Many homes in Cardiff are Victorian or Edwardian terraces, especially in areas such as Roath, Cathays, Canton and Splott. These homes can work well with a heat pump, but they need some planning first.
- Solid walls: Older terraces often have solid walls that lose heat quickly. Insulating them first, for example with external wall insulation, means a smaller heat pump can do the job.
- Outdoor space: Rear yards are often small. The unit needs good airflow and a position that meets the noise rules.
- Radiators: Heat pumps run at lower water temperatures, so some rooms may need larger radiators.
- Hot water cylinder: Most air-to-water systems need a cylinder. Homes with a combi boiler often do not have one, so you will need space for it.
A well-designed air source heat pump in Cardiff should keep your home at a steady, comfortable temperature right through winter. Our Cardiff page explains the work we carry out across the city and the surrounding area.
How to Choose Heat Pump Installers in South Wales
Your installer matters as much as your grant. Without an MCS certified installer, you cannot claim the Boiler Upgrade Scheme at all. When you compare heat pump installers in South Wales, ask each one these questions:
- Are you MCS certified, and can I check that on the MCS register?
- Will you carry out a room-by-room heat loss calculation?
- Does the quote show the full price and the grant deducted?
- Who handles the grant application, the MCS certificate and the electricity network notification?
- What warranty do I get, and what servicing does it require?
- Who do I contact if something is not right after installation?
A good installer will answer all six clearly and in writing. Our installers are MCS and TrustMark certified. You can see what each stage looks like in our guide to how our home energy improvement process works.
How Can You Get the Most From Your Heat Pump Grant?
- Reduce heat loss first where you can. A home that holds its heat needs a smaller heat pump and costs less to run. Our guide to making your home warmer and cheaper to heat covers the simplest improvements.
- Ask about a heat pump tariff. Some energy suppliers offer cheaper electricity rates for homes with a heat pump.
- Keep your paperwork safe. Your MCS certificate, commissioning records and warranty are worth having when you sell your home.
- Book annual servicing. Manufacturers usually require it to keep your warranty valid.
- Apply early if you are off the gas grid. Ofgem links the £9,000 rate to when your application is properly made, so leave time for the survey and paperwork.
Planning Your Heat Pump Grant Application in Wales
For most households, the steps are simple. Check whether you could qualify for Nest first. If you do not, get a survey and quote from an MCS certified installer, who will apply for the Boiler Upgrade Scheme on your behalf. If your home is off the gas grid, aim to apply well before 31 March 2027.
Greentek Energy Ltd is an MCS certified installer working across the UK, including Cardiff, Swansea and the rest of South Wales. We handle the Boiler Upgrade Scheme paperwork for you and take the grant off your quote from the start. If you would like to know which heat pump grants in Wales you could claim, book a free survey and we will talk you through your options.
