Heat pump grant applications hit a record

On 29 October 2026 the Department for Energy Security and Net Zero (DESNZ) published Boiler Upgrade Scheme statistics: September 2026, which covers the scheme up to the end of September. July to September 2026 was the busiest quarter since the scheme opened in May 2022. Applications almost doubled compared with the previous quarter, and September set records for applications, approvals and grants paid.

Every figure in this article comes from that release, which uses data from Ofgem and the Microgeneration Certification Scheme (MCS) Installation Database. Where the release does not state a percentage or comparison, it is calculated from the release's tables. The figures cover England and Wales only, because the scheme does not run in Scotland or Northern Ireland.

Grant stages

The statistics follow each grant through four stages. Knowing what each stage means makes the figures much easier to read.

1. Voucher application. Your installer applies to Ofgem for a grant voucher on your behalf, before the work starts.
2. Voucher issued. Ofgem checks the application and approves it.
3. Redemption application. After the installation, your installer claims the grant.
4. Redemption paid. Ofgem pays the grant. This is the closest measure of finished installations.

A rise in applications shows demand. A rise in redemptions paid shows heat pumps that are working in people's homes. The two can move at different speeds, and in this release they did.

Quarterly figures

Every stage grew, but by less at each step. Demand rose fastest, approvals followed more slowly, and installations more slowly still.

Monthly figures

Applications ran steadily at about 4,400 to 4,500 a month through the spring, then almost doubled in July. August was about 8% lower than July, which looks more like a pause after a surge than a change of direction, because September set a new record. The 9,738 applications in September were 138% more than in September 2025.

Vouchers issued and redemptions paid both rose every month of the quarter, and both set records in September.

The £9,000 grant

The jump in July coincides with a change to the scheme. From July 2026, homes off the gas grid that are heated by oil or LPG can have £9,000 towards an air source or ground source heat pump, instead of the standard £7,500. The Boiler Upgrade Scheme guide explains who qualifies.

The release shows how much of the growth came from the higher grant:

• 8,107 of the 25,374 applications from July to September were for the £9,000 grant, which is 32%.
• In September, the £9,000 grant accounted for 32% of vouchers issued and 36% of redemptions paid.

So the higher grant explains about a third of the quarter's applications, not all of them. The other applications came to about 17,300, which is still about 30% more than the total for April to June. Some of the £9,000 applications would probably have arrived anyway under the standard grant, so the extra demand the higher grant created is smaller than 8,107.

The £9,000 grant is also turning into installations quickly. More than a third of the grants paid in September were at the higher rate, only three months after it opened.

Approval backlog

In April to June, Ofgem issued about 77 vouchers for every 100 applications it received. In July to September, the figure fell to about 65. Over the quarter, about 9,000 more applications arrived than vouchers were issued.

Some of that gap is timing, because a voucher is issued weeks after its application, and applications that arrived in September will be approved in later months. Some applications are also rejected or withdrawn. Even so, approvals are not keeping up with applications, and redemption applications grew 19% in September alone, which points to a busy period for installers.

If you are planning a heat pump, expect the process to take longer than it would have done in the spring. Ask your installer when they expect the voucher to be issued and when they can fit the system, and agree what happens if the voucher is delayed.

Installation costs

The extra demand has not pushed prices up. The release reports the cost of each installation that had its grant paid, including the grant.

A quarter of installations cost less than the lower quartile figure, and a quarter cost more than the upper quartile figure. All three figures fell slightly over the year, and the typical heat pump stayed the same size. After the standard £7,500 grant, the median installation left about £5,300 for the householder to pay. DESNZ also notes that, after allowing for inflation, the median cost is 14% lower than in July to September 2022.

These figures are useful for checking a quotation. A quotation well above the upper quartile is not necessarily wrong, because a large house or extra work such as new radiators or a hot water cylinder costs more, but it is worth asking the installer what makes the difference. The article on reading a quotation explains what to look for.

Ground source heat pumps are harder to read. Their median cost rose from £27,232 to £34,630 in July to September, but only 54 had grants paid in the quarter, and the typical system was larger (15 kW against 10.5 kW). With so few installations, a handful of large systems can move the median a long way.

Technology mix

Air-to-water heat pumps dominate the scheme more than ever. They made up 99.5% of applications in September.

• Ground source heat pump applications fell slightly, from 123 in April to June to 102 in July to September.
• Air-to-air heat pumps have been eligible since April 2026, but take-up is small: 157 applications in six months, and only 12 in September. The release shows no vouchers issued for them yet.
• Biomass boilers are close to zero, with 5 applications in September.

For homeowners

Demand for heat pumps is at a record level, and prices have held steady so far. If you are thinking about one, the figures suggest three things:

• Start early. Approvals and installers are under more pressure than in the spring, so allow extra time.
• Check the deadline if you are on oil or LPG. The £9,000 grant runs until 31 March 2027, and an application has to be made in time.
• Compare quotations against the national figures. High demand does not have to mean high prices, and the cost table gives you a benchmark. The Warm Homes Loan Scheme can spread the part the grant does not cover.

Data caveats

• Monthly figures are provisional. Ofgem revises them as applications are cancelled, resubmitted or rejected, and the latest months are the most likely to change.
• The figures cover England and Wales only.
• Median costs depend on the mix of system sizes installed in each quarter, so a change in the median does not always mean a change in price.
• Three months is a short period. Whether demand stays at the September level depends on the grant rules, the scheme's budget and the number of installers available.

Source

Department for Energy Security and Net Zero, Boiler Upgrade Scheme statistics: September 2026, published 29 October 2026. Tables 1.1, M1.1 and Q1.1A, and the commentary in the accompanying spreadsheet. Data from Ofgem and the MCS Installation Database.