Heat Pump Grants in Northern Ireland: Every Funding Option Explained

Heat Pump Grants in Northern Ireland: What Is Actually Available?

If you are considering a heat pump for your home in Northern Ireland, one of the first questions you will have is whether there are any grants to help with the cost. The honest answer is that NI’s heat pump grant landscape is more limited than what is available in England, Wales, or the Republic of Ireland. But there are genuine funding options, and understanding them can save you thousands of pounds.

This guide covers every heat pump grant and funding route available to Northern Ireland homeowners in 2026. We will explain exactly who qualifies, how much you can get, and how to apply. No jargon, no fluff, just the information you need to make a decision.

Quick summary of heat pump funding in NI

Before we go into the detail, here is a snapshot of where things stand:

Scheme	Who it is for	What it covers	Worth
NISEP heat pump schemes	Households off the gas network; low-income priority	Air source heat pump installation	Up to 100% (fully funded schemes) or 50% discount
Warm Homes Plan	Low-income homeowners on qualifying benefits	Heating system upgrades including heat pumps	Up to 100% of costs
0% VAT	All domestic installations	VAT removed from heat pump costs	Save 20% on total cost
Invest NI energy support	NI businesses	Grants up to £150,000 for energy efficiency including heating	Varies
UK Warm Homes Plan (forthcoming)	To be confirmed for NI	Heat pump grants expected	£7,500 grant anticipated

It is worth noting upfront that the Boiler Upgrade Scheme (BUS), which provides £7,500 towards heat pump installations in England and Wales, is not available in Northern Ireland. This is one of the most common sources of confusion, so if you have seen headlines about £7,500 heat pump grants, be aware that those do not apply here. Northern Ireland has its own separate programmes.

Types of Heat Pump: A Quick Primer

Before we look at the grants in detail, it helps to understand the two main types of heat pump available for homes in Northern Ireland.

Air source heat pumps (ASHP)

An air source heat pump sits outside your home (roughly the size of a large air conditioning unit) and extracts heat from the outside air, even when it is cold. It then compresses that heat to a higher temperature and uses it to warm your home through radiators, underfloor heating, or warm air systems. Air source heat pumps also heat your hot water.

Key facts:

• Typical cost: £8,000 to £14,000 fully installed
• Efficiency: For every 1 kWh of electricity used, an ASHP produces 2.5 to 3.5 kWh of heat
• Installation time: 2 to 5 days
• Lifespan: 20 to 25 years
• Best suited to: Well-insulated homes; works in NI’s mild climate

Air source heat pumps are by far the most popular choice in Northern Ireland. They are cheaper to install than ground source systems, require less space, and perform well in our relatively mild, maritime climate where temperatures rarely drop below freezing for extended periods.

Ground source heat pumps (GSHP)

A ground source heat pump extracts heat from the ground via a network of pipes (ground loops) buried in your garden, or through vertical boreholes drilled into the earth. The ground maintains a fairly constant temperature year-round (around 10 to 12 degrees Celsius in NI), which makes ground source systems very efficient.

Key facts:

• Typical cost: £15,000 to £25,000 fully installed
• Efficiency: For every 1 kWh of electricity used, a GSHP produces 3.5 to 4.5 kWh of heat
• Installation time: 3 to 7 days (longer if boreholes are required)
• Lifespan: 20 to 25 years (ground loops last 50+ years)
• Best suited to: Properties with sufficient garden space; larger homes with high heating demand

Ground source systems are more efficient than air source but cost significantly more upfront. They require either a large enough garden for horizontal ground loops or the budget for vertical boreholes. For most NI households, air source is the more practical and affordable option.

Which grants cover which type?

Most NI heat pump grant schemes focus on air source heat pumps. This is because they are cheaper, simpler to install, and suitable for a wider range of properties. Ground source heat pumps can sometimes be included under the Warm Homes Plan or NISEP, but they are less commonly funded due to the higher cost.

NISEP: The Main Heat Pump Funding Route

The Northern Ireland Sustainable Energy Programme (NISEP) is currently the most significant source of heat pump funding in NI. Funded through a levy on electricity bills collected by NIE Networks, NISEP distributes several million pounds each year to support energy efficiency improvements, including heat pump installations.

How NISEP heat pump schemes work

NISEP does not operate as a single application process. Instead, it funds a range of individual schemes run by approved scheme managers (such as Bryson Energy, Refresh NI, SSE Airtricity, and Power NI). Each scheme has its own eligibility criteria, target group, and funding level.

For heat pumps specifically, NISEP has funded schemes including:

• Green Heat NI: A fully funded heat pump scheme targeting households that are off the gas network. When open, this scheme provides a free air source heat pump installation to qualifying homes.
• Efficiency Plus Heat Pump: Offers a 50% discount on air source heat pumps with heating controls. Available to a limited number of households each funding year.
• Whole House Solutions: A comprehensive scheme that can include a heat pump alongside insulation and other measures, sometimes fully funded for eligible households.

Who qualifies for NISEP heat pump funding?

Eligibility varies between schemes, but NISEP heat pump programmes generally prioritise:

• Households off the gas network. Many NI homes, particularly in rural areas, rely on oil heating. NISEP targets these homes because the savings from switching to a heat pump are greatest when replacing oil.
• Low-income households. NISEP splits applicants into priority and non-priority groups. Priority group members (those on means-tested benefits, aged over 60, or with a disability) receive higher levels of funding, sometimes covering 100% of costs.
• Non-priority households can still apply but receive lower funding levels (typically the 50% discount rather than a fully funded installation).

How to apply

You cannot apply directly to NISEP. Instead:

1. Contact a scheme manager. Refresh NI (refreshni.com) is one of the most active scheme managers for heat pump installations. You can also contact Bryson Energy, SSE Airtricity, or Power NI.
2. Complete an eligibility assessment. The scheme manager will ask about your property, heating system, income, and benefits to determine which schemes you qualify for.
3. Home survey. If you appear eligible, a surveyor will visit your home to assess whether a heat pump is suitable and what supporting work (such as insulation) might be needed.
4. Installation. If approved, the scheme manager arranges the installation through approved contractors.

Important: funding runs out quickly

NISEP funding is allocated on an annual basis (April to March), and popular schemes, particularly the fully funded heat pump programmes, tend to fill up fast. The Green Heat NI fully funded scheme for 2025/26, for example, is already closed. The Efficiency Plus Whole House Solutions fully funded programme for 2026/27 has also stopped accepting applications.

The practical advice here is to apply early. Contact scheme managers at the start of the NISEP year (April) to have the best chance of securing funding. Even if the fully funded schemes are closed, the 50% discount programme may still have places available.

NISEP has been extended to March 2027 by the Utility Regulator, so the programme will continue to operate for at least another year.

Warm Homes Plan

The Warm Homes Plan is the Northern Ireland Executive’s flagship energy efficiency programme, primarily targeting fuel-poor households. While it is best known for providing insulation and solar panel installations, it can also fund heating system upgrades, which may include heat pumps.

Does the Warm Homes Plan cover heat pumps?

Yes, but with a caveat. The Warm Homes Plan’s primary focus is on improving overall energy efficiency. The exact measures offered to you depend on the results of a professional home energy assessment. Heating system replacements are included in the scheme, and in some cases this can mean a heat pump rather than a new gas or oil boiler, particularly for homes that are off the gas network.

However, the scheme follows a fabric-first approach. This means insulation improvements (cavity wall, loft, draught-proofing) are typically addressed before any heating system changes. If your home needs significant insulation work, that will be done first. A heat pump is only recommended if your property is suitable and if it represents the most effective improvement.

Who qualifies?

The eligibility criteria for the Warm Homes Plan are the same regardless of which measures are offered:

• Homeowner or private tenant in Northern Ireland
• In receipt of qualifying means-tested benefits (Universal Credit, Pension Credit, Income Support, Income-based JSA, Income-related ESA, Child Tax Credit or Working Tax Credit with household income below £16,190, or disability/carer benefits combined with low income)
• Or a total household income below approximately £23,000 per year (assessed through the low-income pathway via your local council)
• Property with an EPC rating below Band C
• Property not already fully improved under the scheme or its predecessors

How to apply

Contact the Northern Ireland Housing Executive on 03448 920 900, or reach out to your local council’s environmental health or energy efficiency team. They will arrange a home assessment to determine which measures your property qualifies for.

For the full application process, eligibility details, and what to expect, see our complete Warm Homes Plan guide.

The UK Warm Homes Plan: What It Means for NI

In January 2026, the UK Government announced the Warm Homes Plan, a £15 billion initiative designed to upgrade up to 5 million homes by 2030. This national plan includes:

• £7,500 heat pump grants for homeowners across the UK
• £5 billion specifically for low-income households, offering free upgrades including heat pumps, solar panels, and battery storage
• Government-backed loans at zero or low interest for those who do not qualify for free upgrades

How does this affect Northern Ireland?

The UK Government has confirmed that Northern Ireland will receive dedicated funding as part of devolved allocations. However, as of early 2026, the specific details for NI have not yet been published. This includes:

• Exactly which measures will be available
• The eligibility criteria for NI households
• How to apply
• When the scheme will open for applications

This is a common pattern with UK-wide announcements. Energy policy is partially devolved to the Northern Ireland Executive, so the NI-specific implementation often follows the national announcement by several months.

What should you do?

If you are interested in the £7,500 heat pump grant, the best approach is to monitor announcements from the Department for Communities (NI) and the Northern Ireland Housing Executive. We will update this page as details are confirmed.

In the meantime, the existing NISEP and Warm Homes Plan programmes remain the best routes for heat pump funding in NI.

0% VAT on Heat Pumps

One funding benefit that applies to every homeowner in Northern Ireland, regardless of income or benefits, is the 0% VAT rate on domestic heat pump installations.

How much does 0% VAT save?

Before this relief was introduced, heat pump installations carried 20% VAT. On a typical air source heat pump costing £10,000, that means you save approximately £1,670 compared to what you would have paid with VAT.

Here is the saving across different installation costs:

Heat pump cost (ex-VAT)	With 20% VAT	With 0% VAT	You save
£8,000	£9,600	£8,000	£1,600
£10,000	£12,000	£10,000	£2,000
£14,000	£16,800	£14,000	£2,800
£20,000	£24,000	£20,000	£4,000

Who qualifies?

Every homeowner in Northern Ireland qualifies automatically. There is no application form and no income threshold. Your installer simply charges 0% VAT on the supply and installation of the heat pump system. This applies to both air source and ground source heat pumps.

The only requirement is that the installation must be domestic. If an installer quotes you a price including 20% VAT on a domestic heat pump installation, query it.

Invest NI: Business Heat Pump Support

If you run a business in Northern Ireland, you may be able to access heat pump funding through Invest NI’s energy support programmes.

The Department for the Economy has announced a £20 million energy support fund for businesses, offering grants of up to £150,000 for investments in energy efficiency, including heating and cooling equipment. Heat pumps fall within the scope of eligible improvements.

Who qualifies?

The programme is available to registered businesses in Northern Ireland. Contact Invest NI’s Business Support Team on 0800 181 4422 to discuss your project and check whether your heat pump installation qualifies.

Capital allowances

Beyond direct grants, businesses installing heat pumps can claim capital allowances through the Annual Investment Allowance (AIA), allowing 100% of the cost to be deducted from taxable profits in year one. For a business paying corporation tax at 25%, a £15,000 heat pump installation would reduce the tax bill by £3,750. For more on commercial energy incentives, see our commercial solar grants guide.

How Much Can You Actually Save with a Heat Pump?

The financial case for a heat pump depends heavily on what you are currently using to heat your home.

Savings by current heating system

Current system	Annual heating cost (approx.)	With air source heat pump	Annual saving
Old oil boiler (60% efficient)	£1,400 - £1,800	£900 - £1,200	£300 - £600
Modern oil boiler (90% efficient)	£1,000 - £1,300	£900 - £1,200	£100 - £200
Direct electric heating	£1,800 - £2,500	£900 - £1,200	£500 - £1,300
Old gas boiler (60% efficient)	£1,100 - £1,400	£900 - £1,200	£200 - £400
Modern gas boiler (90% efficient)	£750 - £1,000	£900 - £1,200	-£100 to £0

Two things stand out from this table. First, heat pumps deliver the biggest savings for households currently using old oil boilers or direct electric heating. These are exactly the households that NISEP’s heat pump schemes target. Second, if you already have a modern, efficient gas boiler, a heat pump may not reduce your heating costs. The environmental benefit is still there (a heat pump produces less carbon than a gas boiler), but the financial case is weaker.

The solar and heat pump combination

This is where things get particularly interesting for NI homeowners. A heat pump runs on electricity. If you have solar panels generating electricity during the day, that electricity can power your heat pump for free.

A typical 4kW solar panel system generates around 3,400 kWh per year in Northern Ireland. An air source heat pump for an average home uses around 3,000 to 4,000 kWh of electricity per year. With smart controls and a hot water tank, you can time your heat pump to run primarily during daylight hours when your solar panels are generating.

The result: a significant chunk of your heating becomes effectively free, powered by sunshine on your roof.

If you are thinking about solar panels as a first step (or already have them), our guide to solar panels vs heat pumps covers the comparison in detail, and our solar panel grants guide explains the funding available for solar.

Step-by-Step: How to Get a Heat Pump Grant in NI

Here is a practical walkthrough of the process, from first enquiry to installation.

Step 1: Check which schemes are open

Start by contacting the main scheme managers:

• Refresh NI (refreshni.com): one of the most active managers of NISEP heat pump schemes
• Bryson Energy (brysonenergy.org): delivers multiple NISEP schemes including heating upgrades
• Your electricity supplier (SSE Airtricity, Power NI, or budget energy): ask about current NISEP-funded programmes
• Northern Ireland Housing Executive (03448 920 900): for the Warm Homes Plan

Because NISEP schemes open and close throughout the year (and can fill up quickly), it is worth contacting multiple organisations to find what is currently accepting applications.

Step 2: Eligibility assessment

The scheme manager will ask about:

• Your address and property type
• Your current heating system (oil, gas, electric, or other)
• Whether you are connected to the gas network
• Your household income and any benefits you receive
• Whether you own or rent the property

If you appear to qualify, they will arrange a home survey.

Step 3: Home survey

A qualified assessor will visit your property to check:

• Insulation levels: Are your walls, loft, and floors adequately insulated? Heat pumps work best in well-insulated homes, and many schemes require insulation to be in place first.
• Current heating system: What are you replacing, and is a heat pump a suitable alternative?
• Hot water system: Does your property have a hot water cylinder? Heat pumps typically need one.
• Radiator suitability: Heat pumps operate at lower flow temperatures than boilers, so larger radiators or underfloor heating may be needed. The surveyor will assess this.
• External space: Where will the outdoor unit be positioned? It needs adequate airflow and should be away from bedroom windows (they produce a low hum).

Step 4: Receive recommendations

The surveyor will tell you:

• Whether a heat pump is suitable for your home
• What supporting work is needed (insulation, radiator upgrades, hot water cylinder)
• Which scheme you qualify for and how much of the cost is covered
• An estimated timeline for installation

You are under no obligation to proceed. Take the time to understand what is being offered and ask questions.

Step 5: Installation

If you agree to go ahead, the scheme manager will arrange approved contractors to carry out the work. A typical air source heat pump installation involves:

• Fitting the outdoor unit (usually on a concrete base beside an external wall)
• Installing the indoor unit and connecting it to your heating and hot water system
• Upgrading radiators if necessary (or connecting to underfloor heating)
• Installing new heating controls
• Commissioning and testing the system

Installation takes 2 to 5 days for a standard air source heat pump. The contractor will explain how to use the controls and set heating schedules.

Step 6: Post-installation

After installation, you should receive:

• Warranty documentation for the heat pump (typically 5 to 10 years)
• MCS certification (if applicable)
• Guidance on how to operate the system efficiently
• Contact details for maintenance and servicing

Heat pumps require an annual service, similar to a boiler. Budget around £150 to £300 per year for servicing and maintenance.

Is Your Home Suitable for a Heat Pump?

Not every home is a good candidate for a heat pump. Here are the key factors that determine suitability.

Good candidates

• Well-insulated properties (or properties willing to have insulation installed first)
• Homes off the gas network currently using oil or direct electric heating
• Properties with space for an outdoor unit (minimum 1 metre clearance around the unit)
• Homes with a hot water cylinder (or space to install one)
• Larger radiators or underfloor heating (or willingness to upgrade)

Less suitable

• Poorly insulated homes that cannot be improved (some solid-wall properties are difficult to insulate cost-effectively)
• Properties with no space for an outdoor unit
• Homes with very small radiators and no budget for upgrades (the heat pump may struggle to heat the house)
• Flats or apartments where an outdoor unit cannot be positioned

If you are unsure whether your home is suitable, the free home survey offered through NISEP or the Warm Homes Plan will give you a definitive answer.

Common Questions and Misconceptions

“Heat pumps do not work in cold weather.” This is outdated information. Modern air source heat pumps operate efficiently down to temperatures of minus 15 to minus 25 degrees Celsius. Northern Ireland’s climate is mild by comparison. Our average winter temperature rarely drops below zero for extended periods, and the maritime climate means we avoid the extreme cold snaps seen in other parts of the UK. Heat pumps are well suited to NI conditions.

“I need to rip out my entire heating system.” Not necessarily. An air source heat pump connects to your existing pipework and radiators in many cases. However, because heat pumps operate at lower temperatures than boilers, you may need larger radiators in some rooms to achieve the same level of warmth. The home survey will identify exactly what needs to change.

“Heat pumps are noisy.” Modern air source heat pumps produce a sound level of around 40 to 45 decibels at one metre, roughly equivalent to a quiet conversation or a refrigerator humming. They are significantly quieter than older models, and planning regulations require that noise levels at your neighbour’s boundary stay within acceptable limits. Most homeowners report that they stop noticing the sound within a few days.

“The electricity to run a heat pump costs more than oil.” This depends on the relative prices of oil and electricity, which fluctuate. However, because a heat pump produces 2.5 to 3.5 units of heat for every unit of electricity it uses, the overall cost per unit of heat is typically lower than oil. And unlike oil, electricity prices are more stable and predictable. If you add solar panels to the equation, a portion of your electricity becomes free.

“I should wait for the £7,500 grant to come to NI.” This is a reasonable consideration, but there is no confirmed date for when the UK Warm Homes Plan’s heat pump grants will be available in Northern Ireland. If NISEP funding is available now and you qualify, you may benefit from acting sooner rather than waiting for a scheme that has no confirmed launch date. Meanwhile, 0% VAT is available immediately.

“Ground source heat pumps are always better.” Ground source systems are more efficient, but the additional cost (often £7,000 to £15,000 more than air source) and the need for garden space or boreholes mean they are not automatically the better choice. For most NI homes, an air source heat pump offers the best balance of cost, performance, and practicality.

Heat Pumps and Solar Panels: A Powerful Combination

If you are exploring heat pumps, it is worth considering how they fit alongside solar panels. The two technologies complement each other exceptionally well.

Why they work together

• Solar panels generate electricity; heat pumps consume electricity. Pairing them means your roof helps power your heating.
• Timing works in your favour. Heat pumps can be set to heat your hot water tank during the day when solar generation is highest, storing that heat for the evening.
• Adding battery storage takes this further. A home battery stores surplus solar electricity for use when the sun goes down, extending the hours when your heat pump runs on free electricity.

The numbers

A household with a 4kW solar system and an air source heat pump could see combined annual savings of £900 to £1,500 compared to running an old oil boiler without solar. The solar panels offset the electricity the heat pump uses, and any surplus generation covers other household electricity needs.

Which should you install first?

For most NI homeowners, solar panels are the better first step. They cost less (£6,000 to £8,000 vs £8,000 to £14,000), have a faster payback, involve less disruption, and work with your existing heating system from day one. Once solar panels are in place, adding a heat pump later becomes even more cost-effective because your panels are already generating the electricity to power it.

Our detailed solar panels vs heat pumps comparison covers this decision in full.

What to Expect: Timeline

Here is a realistic timeline for getting a heat pump through a grant scheme in NI:

Stage	Timeframe
Initial enquiry and eligibility check	1 to 2 weeks
Home survey arranged and completed	2 to 4 weeks
Recommendations and approval	1 to 2 weeks
Insulation work (if needed)	1 to 3 weeks
Heat pump installation	2 to 5 days
Total (typical)	6 to 12 weeks

If your home needs significant insulation work before the heat pump can be installed, the total timeline may be longer. Demand for NISEP-funded installations also varies throughout the year, so the process may take longer during peak periods.

What If You Do Not Qualify for a Grant?

If you do not meet the eligibility criteria for any of the grant schemes, you still have options.

0% VAT

Every homeowner benefits from 0% VAT on domestic heat pump installations. On a £10,000 system, that saves you £2,000 compared to the standard rate.

Compare quotes

Prices for heat pump installations vary significantly between installers. Getting quotes from at least three MCS-certified installers ensures you receive a competitive price. Look for installers who are experienced with heat pumps specifically, not just general heating engineers.

Finance options

Some installers offer finance arrangements, allowing you to spread the cost over several years. The monthly payments may be comparable to (or less than) your current oil or electric heating bills, meaning you could be better off from month one.

Combine with solar

If you are investing in a heat pump at full cost, consider installing solar panels at the same time. Many installers offer package deals, and the combined system reduces your ongoing electricity costs, improving the return on your heat pump investment.

Check back regularly

Grant schemes like NISEP reset each year and new programmes are announced periodically. Even if you do not qualify today, new schemes may open that suit your circumstances. The anticipated UK Warm Homes Plan grant of £7,500 per household could significantly change the picture when it arrives in NI.

Take the Next Step

If you think you might qualify for heat pump funding in Northern Ireland, here is what to do:

1. Contact Refresh NI or another NISEP scheme manager to ask about current heat pump programmes.
2. Call the Housing Executive on 03448 920 900 to check your eligibility for the Warm Homes Plan.
3. If you are not eligible for grants, take advantage of 0% VAT and compare quotes from MCS-certified heat pump installers.

And if you are considering solar panels alongside (or instead of) a heat pump, get free quotes from MCS-certified solar installers through our comparison service. It takes less than a minute, and homeowners who compare typically save £800 or more.