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The £9,000 heat pump grant for oil-heated Norfolk homes: what changes on 21 July
From 21 July 2026 the Boiler Upgrade Scheme grant for households replacing oil heating rises to £9,000. Norfolk sits at the top of the off-grid map: what changes on the maths.
From 21 July 2026 the Boiler Upgrade Scheme grant for off-grid households moving off oil or LPG heating rises from £7,500 to £9,000. In Norfolk, where roughly 30 percent of homes are off the mains gas grid, this affects a large share of the county, not a fringe case.
On 26 June the government announced a 20 percent uplift to the Boiler Upgrade Scheme (BUS) grant for oil-heated homes in England and Wales. The new £9,000 grant replaces the current £7,500 from 21 July 2026 and runs until the end of March 2027, after which the grant reverts to £7,500. In the week of the announcement (late June 2026), leaflets were sent to 200,000 eligible off-grid homes in England and Wales.
Norfolk sits at the top end of the off-grid map. Roughly 30 percent of Norfolk homes are off the mains gas grid, against a national figure of around 15 percent. Kerosene heating is normal in Reepham, Aylsham, most of the north-west and much of the Broads. This grant change affects a big share of the county.
What changed
The BUS is a government grant paid to the installer. It comes off the quoted price of a new heat pump or biomass boiler. The homeowner does not claim it directly.
| System (from 21 July 2026) | New grant | Previous grant |
|---|---|---|
| Air-to-water heat pump, off-grid oil or LPG home | £9,000 | £7,500 |
| Ground source heat pump, off-grid oil or LPG home | £9,000 | £7,500 |
| Biomass boiler (rural only) | £5,000 | £5,000 |
| Air-to-water or ground source, gas-heated home | £7,500 | £7,500 |
| Air-to-air heat pump (any home) | £2,500 | £2,500 |
The uplift is for off-gas-grid homes replacing oil or LPG. Homes on mains gas stay at £7,500. Biomass grants are unchanged. Air-to-air heat pumps sit on a separate £2,500 tier and do not receive the off-grid uplift.
What counts as a qualifying home
The scheme is administered by Ofgem via MCS-certified installers. To qualify at the £9,000 rate, the home has to be off the mains gas grid and heated by oil or LPG as its main heating source when the application is made. That covers the kerosene tanks in the garden that most Norfolk villages already have, and LPG properties served by either a bulk tank or bottled cylinders. The gate is oil or LPG as the main heating fuel with no mains-gas connection.
The BUS operates across England and Wales. Scotland and Northern Ireland run separate schemes. The property has to have a valid EPC, and the installer applies for the grant on the homeowner’s behalf.
Eligibility gates at a glance for the £9,000 rate:
- Property in England or Wales.
- Off the mains gas grid, heated by oil or LPG as the main heating fuel.
- Owned by the applicant (owner-occupier or landlord). Most new builds and social housing are excluded.
- Valid EPC in place.
- No previous BUS grant for a heat pump or biomass boiler at the property.
- Installer is MCS-certified.
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Norfolk’s off-grid share is twice the national average
The site’s 2026 read on Norfolk oil heating (published in May) puts the county at ~30 percent off-grid. Central Norfolk villages, the north coast hinterland, most of Breckland and the Fens have mains gas only in the main settlements. The rest run on kerosene or bottled gas.
Typical Norfolk kerosene use is around 2,100 litres a year for a three-bedroom rural home. At Spring 2026 pricing that is a heating bill that has been the household’s largest utility cost by a wide margin for years. A £9,000 grant does not remove that. It changes the payback maths on switching.
Costs and payback
The site’s Norfolk oil heating guide has the post-grant install ranges. Under the old £7,500 grant, a typical air source heat pump install in Norfolk was £6,500 to £11,000 out of pocket, depending on the age of the property, the state of the radiators and whether a hot water cylinder had to come with the job. The new £9,000 grant knocks another £1,500 off, bringing the same jobs to roughly £5,000 to £9,500.
Running costs on a heat pump in Norfolk have been coming in 20 to 30 percent below oil for well-insulated homes, with payback in 10 to 14 years. Poorly insulated older cottages sit closer to 12+ years and often need fabric upgrades before the maths gets there.
The grant change does not turn any of that around. It moves the switch-decision point by £1,500 in favour of switching, and pulls forward the year in which the household breaks even.
What the grant does not cover
- Radiator upsizing (often needed with heat pumps)
- Hot water cylinder replacement
- Insulation upgrades
- Removing or decommissioning the old oil tank
- Electrical consumer unit upgrades in older properties
Most heat pump installations in older Norfolk stock need at least two of the above. Ask any MCS installer to quote the whole job before signing.
How to apply
- Find an MCS-certified installer via the MCS database.
- Book a survey. The installer confirms eligibility.
- The installer applies for the BUS grant on the homeowner’s behalf.
- The grant comes off the quoted price. The homeowner pays the balance.
- The installer must commission and install the heat pump within 120 days of the application. Plan the schedule so installation completes inside that window.
Applications submitted from 21 July onward at qualifying off-grid oil or LPG properties should trigger the £9,000 rate, up to the end of March 2027. Anything applied for before then stays at £7,500. The Department for Energy Security and Net Zero has not published guidance on whether pending applications will be back-graded.
Frequently asked questions
Does the £9,000 grant apply to gas-heated homes?
No. Homes on mains gas stay at £7,500. The £9,000 rate is for off-gas-grid homes heated by oil or LPG.
Is the grant paid to me or to the installer?
To the installer. It comes off the quoted price, so what you pay is the balance.
Do I need a new EPC?
A valid EPC is required. If the current one has recommendations for loft or cavity wall insulation, check with the installer whether that will affect eligibility before applying.
My tank is in the garden. Does the grant cover removing it?
No. Tank removal and any groundworks around it are not covered.
What if I do not qualify for BUS?
Some Norfolk councils and community energy schemes have separate insulation grants. Norfolk County Council maintains a Warm Homes information page with the current list.
What if the leaflet does not arrive?
The 200,000 leaflet drop is targeted. Not every eligible oil-heated household will receive one. Eligibility does not depend on the leaflet.
Related
- The Norfolk oil heating guide for scenario breakdowns, tank rules and Spring 2026 kerosene prices.
- Best Norfolk market towns. Which of these places are on mains gas and which run on oil.
Data sources
- Department for Energy Security and Net Zero, press release 26 June 2026, “Thousands of homes will be eligible for £9,000 off a heat pump” (gov.uk)
- Boiler Upgrade Scheme guidance, gov.uk/apply-boiler-upgrade-scheme
- Norfolk Living Guide, Norfolk Oil Heating Guide 2026, May 2026
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