Ground Source Heat Pump Grants UK 2026

What is a ground source heat pump?

A ground source heat pump (GSHP) extracts low-grade heat from the ground using a network of buried pipes (ground loops) and concentrates it to provide heating and hot water for your home. The ground maintains a relatively constant temperature throughout the year, making this an efficient and reliable renewable heating solution.

Ground source systems are among the most efficient heat pumps available, typically achieving a coefficient of performance (COP) of 3.5 to 4.5 — meaning for every 1kW of electricity used, they produce 3.5 to 4.5kW of heat. They are quieter than air source alternatives and well-suited to UK climates.

Are there grants available for ground source heat pumps?

Yes. Two main routes currently exist for ground source heat pump funding in the UK:

• Boiler Upgrade Scheme (BUS) — provides grants of up to £7,500 towards ground source heat pump installation for homeowners in England and Wales.
• ECO4 — may fund ground source heat pumps as part of whole-house energy efficiency improvements for eligible low-income and vulnerable households.
• Local authority programmes — some councils offer additional support or top-up funding for heat pump installations in their area.

ECO4 and ground source heat pumps

ECO4 (Energy Company Obligation 4) requires large energy suppliers to fund energy efficiency improvements for eligible households. While more commonly associated with insulation and boiler replacements, ECO4 can include ground source heat pumps where they form part of a suitable package of measures.

ECO4 eligibility typically requires receiving qualifying benefits (such as Universal Credit, Pension Credit, or Income Support) or meeting local authority flexible eligibility criteria. Your property usually needs an EPC rating of D, E, F, or G. ECO4-funded measures may cover a greater proportion of installation costs than BUS alone.

Who may qualify for support?

Eligibility depends on which scheme you apply through. You may be considered if:

• You own your property (or have landlord consent for rented homes)
• Your home currently uses a fossil fuel heating system (oil, LPG, or gas)
• Your property has sufficient outdoor space for ground loops or boreholes
• Your EPC rating is D, E, F, or G (for ECO4)
• You receive qualifying benefits or meet LA Flex criteria (for ECO4)
• Your property is in England or Wales (for BUS)
• You have not previously claimed BUS or RHI for the same installation

How much funding may be available?

A typical ground source heat pump system costs between £15,000 and £35,000 depending on property size, ground conditions, and system design. With BUS funding, the net cost could be reduced to £7,500–£27,500. Running costs are typically lower than oil or LPG heating.

Who is most suitable for a ground source heat pump?

Ground source heat pumps work best for certain property types. You may be particularly suitable if your home matches one or more of these criteria:

Properties with limited outdoor space may be better suited to air source heat pumps or vertical borehole systems (which require less surface area but cost more to install). An MCS-certified installer can advise on the best option for your property.