Nearly 10,000 households applied for a heat pump grant in September, the most in a single month since the Boiler Upgrade Scheme began. That’s according to Installer Online’s report (opens in a new tab) on the government’s latest figures (opens in a new tab).
Applications have more than doubled since June. And the people behind the surge aren’t who you might expect: they’re households with an oil tank or LPG bottles outside.
For rural Devon, Cornwall and Somerset, where so many properties are off the gas grid, that makes this very much a local story. Here’s what is going on, and what it could mean for you.
The numbers
What Do the Figures Show?
The rise has been steep. In July, a previous record 8,150 households applied, up 81% on June, the government said (opens in a new tab).
September went further still: close to 10,000, which Installer Online describes as a 118% jump in three months.
Boiler Upgrade Scheme applications
What changed in July? On the 21st, the grant for off-gas homes went up.
Two reasons
Why Are Oil and LPG Homes Leading the Switch?
Two reasons stand out: a bigger grant, and the price of oil.
The £9,000 Grant
Most homes in England and Wales can get £7,500 towards an air source heat pump. But if yours is heated by oil or LPG and has no mains gas connection, there’s an extra £1,500 until March 2027, GOV.UK confirms (opens in a new tab). That brings the total to £9,000.
Our guide to the £9,000 heat pump grant for oil and LPG homes explains exactly who qualifies.
Oil Prices Nobody Can Predict
Gas and electricity are covered by Ofgem’s price cap. Heating oil isn’t. What you pay depends on world markets and on the day you happen to order.
On 10 November, the UK average was about 110p a litre including VAT, according to price tracker Fueltool (opens in a new tab). Back in mid-September it was above 120p.
The government’s announcement in August featured Ross, a homeowner in Cornwall who swapped his oil boiler for a heat pump using the £9,000 grant. “We’ve insulated ourselves against future price rises,” he said.
Running costs
What Does a Heat Pump Cost to Run?
This is the question we’re asked most. So here’s a comparison, using today’s prices.
A boiler burns fuel to make heat, and loses some of it up the flue. A heat pump works differently: it moves warmth from the outside air into your home, so it delivers several units of heat for each one of electricity it consumes.
The table shows the cost of each kWh of heat that actually reaches your radiators:
| Heating system | Fuel price | Efficiency assumed | Cost per kWh of heat |
|---|---|---|---|
| Air source heat pump | 26.32p per kWh (electricity) | 300% | 8.8p |
| Gas boiler | 7.97p per kWh (gas) | 90% | 8.9p |
| Oil boiler | 110p per litre (about 10.7p per kWh) | 85% | 12.5p |
Two things stand out. Against oil, a heat pump is clearly cheaper to run at current prices. Compared with mains gas, it’s roughly level, although a household that gives up gas altogether also stops paying the daily standing charge, which is about £108 a year (29.68p x 365 days).
Add solar panels, and some of the electricity your heat pump uses costs you nothing. Our guide to heat pumps and solar panels explains how the two work together.
Owner satisfaction
Are People Happy With Their Heat Pumps?
It’s a fair thing to ask before spending this sort of money. Helpfully, the government has surveyed thousands of households who used the grant, and published the results (opens in a new tab) in September.
After at least one winter with their new system:
- 91% of owners said they were satisfied
- 93% described the temperature indoors as about right
- 42% reported that their total energy bills had gone down, rising to 52% of those who had replaced a gas boiler
It wasn’t all positive. Only 26% felt completely confident programming their system to keep running costs low, and some owners found servicing dearer than expected.
The lesson? A heat pump has to be designed for your home, and you need to be shown how to use it. That’s what a proper survey and handover are for.
Off-gas homes
Why This Matters in the South West
Few parts of England have as many off-gas homes as ours. In Cornwall alone, roughly 14% of households, about 35,000 properties, aren’t connected to mains gas, and much of rural Devon and Somerset is in the same position.
If that’s you, the higher grant was designed for exactly your situation.
Three dates
Why You Shouldn’t Wait Too Long
Three dates are worth knowing:
- March 2027: the extra £1,500 for oil and LPG homes ends.
- 31 March 2027: 0% VAT on installing a heat pump finishes too; from 1 April it’s 5%. Our article on the 0% VAT deadline explains which date counts.
- April 2027: funding for the scheme is set at £400 million a year, less than had been planned, as we explained in our Budget update.
With applications running at record levels, surveys and installation dates are likely to get harder to book as the spring approaches.
Talk to us
Thinking About Replacing Your Oil or LPG Boiler?
“We’re hearing from more oil and LPG customers than ever. With £9,000 off, a heat pump can cost less than a new oil boiler, and you’re no longer watching the price of oil. But the grant only runs until March, so now is the time to get a survey booked.”
We install air source heat pumps across Devon, Cornwall and Somerset, and we apply for the grant on your behalf, so it comes straight off your quote. After the £9,000 grant, our installations start from around £3,000.
Based in Devon? We have a page on heat pumps in Devon as well.
Book your free heat pump survey or call us on 01752 916 013.
Your questions answered
Heat Pump Grant FAQs
How many people applied for a heat pump grant in September 2026?
Nearly 10,000 households applied to the Boiler Upgrade Scheme in September 2026, the highest monthly total since it began, according to government figures reported by Installer Online.
How much is the heat pump grant for oil and LPG homes?
£9,000 towards an air source or ground source heat pump, if your home in England or Wales is heated by oil or LPG and has no mains gas connection. The higher rate runs until March 2027; the standard grant is £7,500.
Is a heat pump cheaper to run than an oil boiler?
At November 2026 prices, usually yes. In our illustration, a heat pump costs about 8.8p for each kWh of heat, against roughly 12.5p for oil. Your own costs will depend on your home, your tariff and how well the system is set up.
Are people happy with their heat pumps?
The majority, yes. In the government’s evaluation of the Boiler Upgrade Scheme, 91% of owners said they were satisfied after at least one winter with their system.