How much is the Boiler Upgrade Scheme grant in 2026?

The Boiler Upgrade Scheme provides £7,500 off the cost of installing an air source or ground source heat pump. The grant is applied directly to your installer invoice — you pay the net amount. The scheme runs until 31 December 2027.

What VAT rate applies to solar panel installations?

0% VAT applies to residential solar panel installations in the UK until at least 2027. This saves homeowners approximately 20% compared to standard commercial VAT rates.

2026 Grant Guide — Updated Q1 2026

UK Government Grants for Solar & Heat Pumps

Up to £7,500 off a heat pump installation and 0% VAT on solar panels — here is exactly how each scheme works, who qualifies, and how your installer applies on your behalf.

Up to £7,500

Boiler Upgrade Scheme (BUS)

The BUS provides a voucher deducted directly from your installation invoice. Your MCS-certified installer applies for the grant on your behalf — there is no separate application process for the homeowner.

Air Source Heat Pump

£7,500 grant

Ground Source Heat Pump

£7,500 grant

Scheme End Date

31 December 2027

EPC Required

Yes, within 10 years

Eligibility Requirements

Property must be your primary residence or a property you own
You must have a valid Energy Performance Certificate (EPC) — any rating qualifies since March 2024
The property must not currently have an MCS-certified heat pump installed
Installation must be completed by an MCS-certified installer
The heat pump must meet MCS performance standards

0% VAT

Solar Panel 0% VAT Scheme

All residential solar panel installations in the UK are subject to 0% VAT — a reduction from the standard 20% rate. This is automatically applied to your quote; no application is required.

On a £7,000 solar installation, 0% VAT saves £1,400 compared to the standard commercial rate. This benefit was extended in the 2023 Spring Budget and is expected to remain in place until at least 2027.

What's Covered at 0% VAT:

✓ Solar photovoltaic panels
✓ Inverters and power optimisers
✓ Mounting systems and racking
✓ Battery storage systems
✓ All installation labour
✓ Associated electrical work

Warm Homes Local Grant

The Warm Homes Local Grant targets households in England with an EPC rating of D to G and a household income under £36,000 per year. It can provide up to £15,000 for combined insulation and low-carbon heating measures.

In Cornwall, Lendology CIC operates a £668,254 green loan fund supporting eligible households. Northern Ireland has separate schemes via the Affordable Warmth Scheme. Scotland has the Home Energy Scotland Grant and Loan scheme.

Check Eligibility:

• EPC rating D, E, F, or G
• Household income below £36,000/year
• Owner-occupied property in England
• Not in receipt of certain other energy grants

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