Across the UK, the installation of heat pumps is also zero-rated for VAT until 31 March 2027, so a qualifying installation has no VAT added to the quoted price. Our guide prices are shown including VAT on that basis.
We confirm at the survey which funding route a home in the Highlands and Islands is likely to qualify for. Oil and LPG-heated homes around the Highlands and Islands can have their options set out alongside the cost of a full system. Across the Highlands and Islands and the Highlands and Islands, the paperwork for funding applications is prepared alongside your quote.
Who it suits
- Anyone unsure which scheme applies and wanting it checked before committing
- Scottish homeowners applying through Home Energy Scotland, including rural and island homes
Grants and rules for heat pumps in Scotland
The Boiler Upgrade Scheme does not apply in Scotland. Instead, homeowners in the Highlands and Islands can apply to Home Energy Scotland for a grant of up to £7,500 towards a heat pump, with up to £1,500 more for eligible rural and island homes, plus an optional interest-free loan of up to £7,500. You need a written funding offer before any work starts.
There is no VAT on installing a heat pump anywhere in the UK, Scotland included, until 31 March 2027. Scottish permitted development rules and building standards apply, and the surveyor checks the unit position and any listed or conservation-area constraints.
Grants and VAT across the UK
| Nation | Main support for heat pumps | Key points |
|---|---|---|
| England | Boiler Upgrade Scheme: £7,500 (£9,000 replacing oil or LPG, 21 July 2026 to 31 March 2027; £2,500 air-to-air) | MCS-certified installer applies; deducted from your quote |
| Wales | Boiler Upgrade Scheme: £7,500 (£9,000 replacing oil or LPG, 21 July 2026 to 31 March 2027) | Same scheme and rules as England |
| Scotland | Home Energy Scotland grant up to £7,500, plus up to £1,500 rural uplift; interest-free loan up to £7,500 | You apply; written offer needed before work starts |
| Northern Ireland | No dedicated heat pump grant for homeowners at present | Some heat pumps funded through NISEP in the past |
Heat pump installation is zero-rated for VAT across the UK, including Northern Ireland, until 31 March 2027. Scheme figures as at October 2026; check gov.uk, Ofgem or Home Energy Scotland before relying on them.
Towns we cover in the Highlands and Islands
We cover 12 towns in the Highlands and Islands for heat pump grants. Each links to local guide prices and the grant position for Scotland.
| Town | Postcode district | Nearest town | Midwinter daylight |
|---|---|---|---|
| Inverness | IV1 | Dingwall | 6 h 35 min |
| Fort William | PH33 | Oban | 6 h 45 min |
| Aviemore | PH22 | Inverness | 6 h 40 min |
| Dingwall | IV15 | Inverness | 6 h 34 min |
| Kirkwall | KW15 | – | 6 h 11 min |
| Lerwick | ZE1 | – | 5 h 49 min |
| Nairn | IV12 | Forres | 6 h 34 min |
| Portree | IV51 | – | 6 h 36 min |
| Stornoway | HS1 | – | 6 h 24 min |
| Thurso | KW14 | Wick | 6 h 17 min |
| Ullapool | IV26 | Dingwall | 6 h 29 min |
| Wick | KW1 | Thurso | 6 h 20 min |
Heat pump grants questions
Can I start work before my Home Energy Scotland offer arrives?
No. In Scotland you must receive a written funding offer from Home Energy Scotland before work starts, otherwise the work may not be funded. We plan the installation date only once your offer is confirmed. Funding is first come, first served, so it helps to apply once you have your written quote.
How much is the heat pump grant?
It depends on where you live. In England and Wales, the Boiler Upgrade Scheme pays £7,500 towards an air-to-water heat pump, or £9,000 when replacing oil or LPG heating for installations from 21 July 2026 to 31 March 2027. In Scotland, Home Energy Scotland offers up to £7,500, plus a rural uplift and an optional loan. Northern Ireland has no dedicated grant at present.