Grant vs finance
Grant vs finance: paying the balance
The grant covers a big chunk — here's an honest look at the options for covering what's left, from savings to finance.
In this section: Boiler Upgrade Scheme Eligibility EPC rating Who can apply Landlords New builds Pensioners Oil boiler replacement Air source Grant vs finance
The Boiler Upgrade Scheme grant reduces your bill substantially, but most homeowners still have a balance to pay. Here's a straight look at the options.
What's left after the grant
After the £7,500 grant (or £9,000 off-grid), typical net costs run from the low thousands up to around £12,000, depending on system size. The calculator shows your figure.
Ways to cover the balance
- Savings. The simplest route — you pay only the post-grant balance, with 0% VAT.
- Finance. Many installers offer finance to spread the cost over months or years. As with any borrowing, you'll pay interest, so compare the total repayable, not just the monthly figure.
- Replacing an ageing boiler anyway? If your current boiler is near end of life, compare the heat pump's post-grant cost against the cost of a like-for-like replacement, not against zero.
This page is general information, not financial advice. Always check the full terms and total cost of any finance before committing.
Common questions
Can I get finance for the part the grant doesn't cover?
Often yes — many MCS installers offer finance to spread the post-grant balance. Compare the total amount repayable, including interest, before committing.
Is it better to pay cash or finance a heat pump?
Paying from savings avoids interest and is cheapest overall. Finance helps if you'd rather spread the cost — just weigh the total repayable against the convenience.
Does the grant get bigger if I use finance?
No. The grant is a fixed amount (£7,500 or £9,000) regardless of how you pay the balance.
Is comparing against a new boiler fair?
Yes — if your boiler is near end of life, the honest comparison is the heat pump's post-grant cost versus a replacement boiler, not versus spending nothing.
See your grant and net cost in seconds
The calculator applies the right grant to your home and shows what you'd pay after it.