Most new builds are not eligible for the Boiler Upgrade Scheme in England and Wales. Some self-builds can be, depending on the circumstances, so check eligibility before relying on a grant in your budget. In Scotland, ask Home Energy Scotland about new homes; Northern Ireland has no dedicated homeowner heat pump grant at present.
Self-builders in and around the Highlands and Islands can bring us in at drawing stage so the heat pump, cylinder and pipe routes are designed in from the start. Plots in the Highlands and Islands with tight boundaries benefit from fixing the outdoor unit position before landscaping is finalised. Small developments near the Highlands and Islands can be designed plot by plot, with heat loss worked out from each house type's drawings.
Who it suits
- Homes designed with underfloor heating on one or more floors
- Small builders and developers working on one-off homes or small groups
- Self-builders planning heating alongside the structure
- Replacement dwellings and major conversions treated as new homes
Grants and rules for heat pumps in Scotland
In Scotland, heat pump funding comes through Home Energy Scotland rather than the Boiler Upgrade Scheme: a grant of up to £7,500 (up to £1,500 extra for eligible rural and island homes) and an optional interest-free loan of up to £7,500. For a home in the Highlands and Islands, apply and receive the written offer before the installation date is fixed.
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.
New-build and self-build heat pumps prices in the Highlands and Islands
These are guide prices for the Highlands and Islands, installed and including VAT. Your final price is fixed in a written quote after the survey and depends on the heat loss of the house, the radiators that need changing and where the unit goes.
| Home | Typical size | Installed guide price |
|---|---|---|
| 1–2 bedroom flat or small terrace | 4–5 kW | £10,650–£14,000 |
| 2–3 bedroom terrace or semi | 5–7 kW | £11,750–£15,100 |
| 3 bedroom semi or small detached | 6–9 kW | £13,450–£17,350 |
| 4 bedroom detached | 8–12 kW | £15,700–£20,150 |
| 5+ bedroom or larger older house | 11–16 kW | £18,500–£25,200 |
Installed, inc VAT: unit, cylinder, controls, minor pipework and commissioning. Most new builds are not eligible for grant funding, so no deduction is shown.
Towns we cover in the Highlands and Islands
We cover 12 towns in the Highlands and Islands for new-build and self-build heat pumps. 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 |
New-build and self-build heat pumps questions
Is underfloor heating worth it in a new build?
For many new homes, yes, because underfloor heating runs at low water temperatures that suit a heat pump, and laying pipes during the build is far easier than adding them later. It also frees up wall space. Radiators cost less and respond faster, so some self-builders combine underfloor heating downstairs with radiators upstairs. The design shows the flow temperature each option needs.
Where should the outdoor unit go on a new build?
Somewhere with free airflow, a solid base and drainage, away from bedroom windows and boundaries where possible, and positioned to pass the MCS noise assessment. On a new build this can be planned into the landscaping, such as a side return or screened area near the plant room, which keeps pipe runs short. Planning rules differ by nation, so we check the position at design stage.
Do new builds have to have a heat pump?
The rules depend on the nation and when your project was approved, so check with your architect or building control. New homes in England are being built to tighter carbon standards, and Wales, Scotland and Northern Ireland set their own building regulations. A heat pump is one of the main ways new homes meet these standards, and we design the heating to whichever applies.
Can a self-build get the Boiler Upgrade Scheme grant?
In some cases. In England and Wales the scheme is aimed at existing homes and most new builds are not eligible, but some self-builds can qualify depending on circumstances, so check eligibility before including a grant in your budget. If the scheme can apply, the MCS-certified installer named in your quote handles the application. Scotland and Northern Ireland are outside the scheme.