Is a Heat Pump Worth It in 2026? Grant & Payback Calculator
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Heat pump incentives are unusually generous in 2026, which changes the maths. In the UK, the Boiler Upgrade Scheme gives £7,500 off an air or ground source heat pump (rising to £9,000 for oil and LPG homes from July 2026). In the US, a $2,000 federal credit still applies. This calculator subtracts your region's grant from the install cost and shows how quickly the running-cost savings pay back the rest.
Note: Grants depend on eligibility and your property. The UK Boiler Upgrade Scheme runs to 2028 for homes replacing fossil-fuel heating in England and Wales; the £9,000 oil/LPG rate is expected from July 2026. The US $2,000 credit applies to qualifying equipment. Confirm current rules and eligibility before deciding.
How this calculator works
The calculator subtracts your region's grant or credit from the quoted install cost to find what you actually pay. It then divides that net cost by the amount you save each year on heating compared with your old system. The result is the number of years until those savings have repaid your outlay. Because the UK grant is large relative to typical install costs, the net cost — and therefore the payback — can be dramatically lower than the headline price suggests.
Worked example
A £13,000 UK heat pump install with the £7,500 Boiler Upgrade Scheme grant leaves you paying £5,500. If it saves £600 a year over your old heating, it pays back in about 9.2 years. Without the grant, the same install would take nearly 22 years — which shows how much the grant drives the decision.
Frequently asked questions
How much is the UK heat pump grant in 2026?
The Boiler Upgrade Scheme gives £7,500 off an air or ground source heat pump. From July 2026 homes currently heated by oil or LPG can get up to £9,000. The grant is applied directly to your installer's invoice.
What is the US heat pump incentive in 2026?
A federal tax credit of up to $2,000 applies to qualifying heat pump installations. Unlike the solar credit, this one was not removed for 2026. State and utility rebates may add to it.
Why is heat pump saving lower than I expected?
Heat pumps are very efficient, but if you are replacing cheap mains gas the annual running-cost saving can be modest. The saving is largest when replacing oil, LPG, or electric heating, which is partly why the UK grant is higher for those homes.
Is a heat pump worth it if payback is over 10 years?
Possibly. Heat pumps typically last 15 to 20 years, and the grant means your upfront cost is much lower. Factor in rising fossil-fuel prices, carbon goals, and comfort, not just the raw payback number.