Heat Pump Finance Options UK: How to Fund Your Installation

The upfront cost of a heat pump can be significant, but multiple finance options can spread the cost. Here's every option available in the UK.

📅 28 February 2026 ⏱ 7 min read Last updated: 11 September 2026

Written by Myles Robinson, Founder, UK Heat Pump Servicing

Myles Robinson founded UK Heat Pump Servicing, the trading name of Home By Eight Ltd, to give heat pump owners across the UK a single nationwide point of contact for annual servicing, fault diagnosis and repair, cover plans and new installations. The guides published here are written and maintained by Myles with input from the company's MCS-accredited engineering team, and are reviewed whenever grant schemes, prices or manufacturer advice change.

1. Boiler Upgrade Scheme Grant

The first step for any heat pump purchase should be claiming the £7,500 BUS grant (for eligible properties in England and Wales). This is free money — not a loan — applied directly by your installer. Always claim this before considering other finance.

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2. Home Energy Scotland Loan

Scotland residents can access interest-free loans of up to £15,000 for heat pump installation through the Home Energy Scotland programme, alongside cashback grants of up to £9,000. This significantly reduces the financial barrier in Scotland.

3. Green Home Finance

Several UK lenders offer green home improvement loans at preferential rates for energy-efficient upgrades including heat pumps. Rates from 3.9% APR are available for eligible customers. Check with your bank and compare with providers like Zopa, NatWest Green, and Barclays Green Home Finance.

4. Green Mortgages

If you’re purchasing a property or remortgaging, some lenders offer additional borrowing at lower rates for green improvements. Halifax, Nationwide, and Barclays all offer green mortgage products.

5. Installer Finance

Many MCS-accredited installers offer 0% purchase finance over 12–24 months or low-rate finance over longer periods (typically 5–10 years). This is arranged through third-party finance providers and subject to credit approval.

6. Energy Bills Savings

Don’t forget to factor in running cost savings. If a heat pump saves £200–£400/year on energy bills, this partially offsets finance costs. Calculate your total cost of ownership including savings over 10–15 years.