Scotland vs England Heat Pump Grant 2026

Both schemes deliver up to £7,500 of non-repayable funding for an air source heat pump installation, so the financial outcome is broadly equivalent for most homeowners. England + Wales use the £7,500 BUS grant — a single grant paid by Ofgem to the installer at install time. Scotland uses Home Energy Scotland Loan + Cashback — structured as an interest-free loan with cashback (the cashback portion is non-repayable). Scottish rural/island properties get an extra £1,500 uplift, making the net cashback £9,000 in those areas.

Scheme structure differences

England/Wales BUS: one grant of £7,500 paid by Ofgem to your MCS-certified installer. No upfront fee. No claim-back paperwork. No loan element.

Scotland HES: interest-free loan covers the install cost (up to £15,000 urban / £16,500 rural). The cashback portion (£7,500 urban / £9,000 rural) is non-repayable — effectively a grant. The remaining loan balance is repaid in monthly instalments over up to 10 years, interest-free.

Mechanically: an English homeowner with a £12,000 install pays £4,500 net. A Scottish urban homeowner with a £12,000 install gets £7,500 cashback + £4,500 interest-free loan repaid over 5 years — same effective net, just spread differently.

Eligibility criteria comparison

Both schemes require: home ownership or private landlord status, replacement of fossil-fuel system (gas/oil/LPG/electric storage), MCS-certified installer, valid EPC.

Both exclude: existing heat pump replacement, hybrid systems, air-to-air heat pumps, social-rented tenants.

Scotland HES adds: credit-worthiness check for the loan element. Most homeowners pass; not means-tested.

Scotland HES adds: rural uplift designation set by Scottish Government rural classification. Most Highland Scotland qualifies; Glasgow/Edinburgh city centres do not.

Application process comparison

England/Wales BUS: installer applies on your behalf via Ofgem portal. Approval 1–2 weeks. Grant deducted from final invoice.

Scotland HES: homeowner applies via Home Energy Scotland portal (homeenergyscotland.org). Loan + cashback assessed together. Approval typically 2–4 weeks.

Both schemes: cashback/grant is paid to installer, never to homeowner directly.

Both schemes: total enquiry-to-completion timeline 5–9 weeks (longer with planning consent).

FAQ

Which scheme is more generous?

Net cashback is identical for urban properties (£7,500 in both schemes). Scottish rural/island properties have a £1,500 advantage (£9,000 vs £7,500). However, Scotland's loan element means you have ongoing repayments — England/Wales is simpler with no loan.

Can I move from England to Scotland and qualify for HES?

Yes, after establishing residency. The HES scheme requires Scottish residency at the time of application — you cannot apply from outside Scotland.

What if I'm in the Welsh borders or near the Scotland border?

Scheme eligibility follows the home address. A home in Carlisle (England) is BUS-eligible; a home in Dumfries (Scotland) 30 miles away is HES-eligible. The Welsh Government also runs Nest, a separate scheme offering free heat pumps for low-income households on means-tested benefits — check eligibility separately.

Are both schemes ending in 2028?

BUS runs to March 2028 with a £450M total budget. HES is administered annually through devolved Scottish funding; budget commitments extend through 2030 but specific year-by-year amounts can change.

Sources

Get a personalised quote

We connect you with MCS-certified installers serving your area.

Get a free quote →

Related UK heat pump guides

Continue your research with these locally-sourced UK heat pump articles.

Am I Eligible for the £7,500 BUS Grant?

Check if you're eligible for the £7,500 Boiler Upgrade Scheme grant in 2026. Eligibility rules: England/Wales homeowner, fossil-fuel heating replacement, valid EPC. Step-by-step checker.