Heat Pump Grant 2026: Updated Amounts and How to Apply in Lancashire

the government heat pump grant provides up to £7,500 towards the cost of a heat pump installation in 2026, covering air source heat pumps, ground source heat pumps, and biomass boilers. Lancashire homeowners do not need to apply directly – your qualified installer handles the entire process, and the grant is deducted from your final bill. Here is everything you need to know about qualifying, applying, and making the most of this substantial grant.

How Much Is a government grant scheme Grant in 2026?

The grant amount is a flat £7,500 for all qualifying heat pump types. This increased from £5,000 in October 2023, making heat pumps significantly more affordable. For a typical Lancashire air source heat pump installation costing £9,000 to £13,000, the grant brings the out-of-pocket cost down to £1,500 to £5,500.

The grant applies equally to air source heat pumps, ground source heat pumps, and biomass boilers. There is no difference in grant amount based on the technology you choose, though ground source systems cost more overall so the grant covers a smaller percentage of the total.

The government grant cannot exceed the total cost of the installation. If your heat pump system costs £7,000 (which is possible for smaller properties), the grant would be capped at £7,000. In practice, this situation is rare because most installations cost more than the grant amount.

Who Qualifies for a government grant scheme Grant?

The eligibility criteria are straightforward and not means-tested, meaning your income does not affect your entitlement. Here are the requirements:

• You must own the property (homeowners and landlords qualify; tenants do not, though they can ask their landlord to apply).
• The property must be in England or Wales.
• The property must have a valid Energy Performance Certificate (EPC). There is no minimum EPC rating required.
• The property must not be a new build (the building must have been occupied or had a previous heating system).
• The installation must be carried out by a qualified installer.
• You must not have already received a government grant for the same property.
• The heat pump must be replacing a fossil fuel heating system (gas, oil, LPG, or electric storage heaters qualify).

Most Lancashire homeowners meet these criteria without difficulty. The most common stumbling block is not having a current EPC. If yours has expired or you do not have one, an EPC assessment costs £60 to £90 and takes about an hour. Your installer can often recommend a local assessor.

Step-by-Step: How to Get a government grant scheme Grant in Lancashire

The application process is handled by your installer, not by you directly. Here is how it works from start to finish:

Step 1: Get an EPC. If you do not already have a valid EPC for your property, arrange one. Search online for EPC assessors in Lancashire – there are dozens operating across the county. The certificate lasts 10 years, so if you have had one done since 2016, it may still be valid. Check the government EPC register to find out.

Step 2: Get quotes from qualified installers. Request at least three quotes from installers who are qualified for heat pump installation. They will visit your home, carry out a survey, perform a heat loss calculation, and provide a detailed quotation showing the system design and costs.

Step 3: Choose your installer. Once you accept a quote, your installer applies for the government grant voucher through the government grant portal. They need your EPC reference number and property details. You will receive an email from the energy regulator confirming the application.

Step 4: Voucher issued. the energy regulator reviews the application and issues a voucher, typically within two to four weeks. The voucher is valid for three months, giving your installer a window to complete the work.

Step 5: Installation. Your installer carries out the work. An air source heat pump installation typically takes two to four days. Ground source systems take longer depending on the ground works required.

Step 6: Commissioning and payment. Once the system is installed, tested, and commissioned, your installer submits the completion paperwork to the energy regulator. The government grant (currently up to £7,500, subject to eligibility) is paid directly to the installer, and your final bill reflects the deduction. You only pay the difference.

Common Questions About a government grant scheme Grant Process

Do I need to pay £7,500 upfront and get it back later? No. The grant is deducted from your bill before you pay. You never pay the full amount. Some installers may ask for a deposit (typically 10% to 20% of the post-grant price) when you place your order, with the balance due on completion.

Can I combine the government grant with government energy efficiency schemes? Generally, you cannot use two grants for the same measure. However, you can use government energy efficiency schemes for insulation and the government grant for a heat pump on the same property – they fund different things. If government energy efficiency schemes would fund a heat pump and government grant scheme would also fund it, you must choose one.

Is the 0% VAT applied as well? Yes. The 0% VAT rate on heat pump installations applies in addition to the government grant. So on a £12,000 installation, you save an estimated £2,000 from 0% VAT and £7,500 from the government grant, paying just £2,500.

Can I get the government grant if I am replacing a boiler that still works? Yes. You do not need to wait for your boiler to break down. The scheme is designed to encourage proactive switching from fossil fuels to low-carbon heating.

government grant scheme Grant Budget: Will Funding Run Out?

The government has allocated substantial funding for a government grant scheme through 2025 and into 2026. After a slow start, uptake has increased significantly, with over 40,000 vouchers issued in 2024 and the rate continuing to climb.

The scheme is funded on a first-come, first-served basis. While there is no immediate risk of funds running out, applying sooner rather than later ensures you are in the queue. If demand exceeds the budget, the government has the option to either increase funding or cap applications.

In Lancashire, government grant scheme uptake has been growing steadily. The combination of a well-established installer network, high proportion of homes on gas heating, and increasing awareness of heat pump benefits means more Lancashire homeowners are applying each month.

Finding qualified installers in Lancashire

relevant certification is mandatory for the government grant. You can search for qualified installers on installer directories by entering your postcode. Currently, there are 25 to 30 qualified heat pump installers serving Lancashire and Greater Manchester.

When choosing an installer, ask about their experience with a government grant scheme application process. An installer who has processed dozens of vouchers will handle the paperwork smoothly. Also ask for references from recent Lancashire installations – a good installer will be happy to connect you with satisfied customers.

Beware of companies that charge a fee for handling a government grant scheme application. The application is a standard part of the installation process and should be included in the quoted price. If a company tries to add an admin fee for the grant, consider it a red flag.

What If My Application Is Rejected?

Rejections are uncommon but can happen if the EPC is invalid, the property does not meet the criteria, or there is an error in the application. The most common issue in Lancashire is an expired or missing EPC. If your application is rejected, your installer can help you understand the reason and reapply once the issue is resolved.

You have the right to appeal a rejection through the energy regulator’s dispute resolution process. In practice, most rejections are resolved by correcting the application details rather than going through a formal appeal.

How long does the government grant application take?

From your installer submitting the application to receiving the voucher typically takes two to four weeks. The entire process from initial survey to completed installation usually takes six to twelve weeks, depending on installer availability and any additional work needed such as radiator upgrades or insulation improvements.

Can landlords claim the government grant?

Yes. Landlords can claim the government grant for rental properties they own. The same eligibility criteria apply – the property needs a valid EPC, and the installation must be done by a qualified installer. The tenant does not need to be involved in the application. Lancashire landlords with multiple properties can apply for each one separately.

Will the government grant continue after 2026?

The government has committed to a government grant scheme as part of its heat pump deployment strategy, targeting 600,000 installations per year by 2028. While the exact funding for future years has not been confirmed, the political commitment to heat pumps suggests the scheme will continue in some form. However, the grant amount could change, so applying while the £7,500 level is guaranteed is sensible.