Earlier this year, the conflict in the Middle East caused heating oil prices to rise. To support vulnerable families, the government pledged over £50 million of targeted financial support, helping low-income households in rural communities with the cost of filling up tanks and heating their homes.
From 21 July 2026, Government confirmed that homeowners that use heating oil or liquefied petroleum gas (LPG) and are not connected to the gas grid will be eligible for a new £9,000 government grant towards the cost of installing a heat pump. The grant applies to eligible domestic and non-domestic properties in England and Wales and represents an increase from the current £7,500 level of support.
What does this mean for installers?
For many customers, the upfront cost remains one of the biggest barriers to installing a heat pump.
The additional funding could make heat pumps a more attractive option for thousands of off-grid property owners who rely on oil or LPG heating. That means installers may see increased interest from customers who previously felt a heat pump was financially out of reach.
For installers already working in rural and off-grid communities, the grant uplift could help unlock new opportunities with customers considering a replacement for ageing oil heating systems.
Which customers qualify?
The £9,000 grant is being applied across both domestic and non-domestic premises off the gas grid. Customers can find out if they are eligible and how to get the grant, by visiting the eligibility page on GOV.UK.
Customers can find out more by visiting the government’s clean energy website, with other key questions answered below. Customers may be eligible if they:
- Own the property, including landlords
- Are not connected to the gas grid
- Use heating oil or LPG as their primary heating fuel
- Are based in England or Wales
What do installers need to do?
The application process remains the same.
If you’re not already MCS-certified, customers will need a quote from a Microgeneration Certification Scheme (MCS) installer to move forward with the grant.
If they choose to proceed, the installer applies for the grant on the customer’s behalf. With the new funding coming into effect on 21 July, now could be a good opportunity to review marketing materials, update quotes and revisit enquiries from off-grid customers.
The funding uplift may also provide an opportunity to re-engage customers who previously decided not to proceed with a heat pump installation due to upfront cost.
Looking to expand your heat pump offering?
As demand for low-carbon heating grows, installers can also access government support to build their skills.
The £500 Heat Training Grant is available to eligible heating engineers completing an approved heat pump training course. The grant helps reduce the cost of upskilling and supports businesses looking to grow their heat pump offering and prepare for future demand. Once you have completed your training, you can move forward with becoming MCS certified and offering the Boiler Upgrade Scheme grant to your customers.
Helping customers make the switch
Heat pumps work by taking heat from the air or ground and increasing it to a higher temperature to provide heating and hot water. More than 80,000 heat pumps were sold in the UK in 2024, making it a record year for the technology.
Customers can use the government’s Heat Pump Checker Tool to explore whether a heat pump could be suitable for their property. They can also connect with local heat pump owners through Nesta and hear about their experiences.
Meanwhile, installers can find further information on eligibility, training support and the new £9,000 grant on GOV.UK.
