What is the Warm Homes Plan?
The Warm Homes Plan is the UK Government's £15 billion programme to upgrade homes across England, Scotland, Wales, and Northern Ireland. Published in January 2026, it sets out how the Government will help homeowners, landlords, and social housing providers make the switch to cleaner, cheaper heating.
The plan targets 300,000 home upgrades by the end of 2026 and aims to reach 5 million homes by 2030, lifting 1 million families out of fuel poverty in the process.
For homeowners in Wales considering a heat pump, the Warm Homes Plan brings several important changes that make renewable heating more affordable than ever.
Boiler Upgrade Scheme — Extended to 2030
The single biggest announcement for Welsh homeowners is the extension of the Boiler Upgrade Scheme (BUS) through to at least 2030. The BUS offers a £7,500 grant towards the cost of a heat pump installation — available to any homeowner in England or Wales, regardless of income.
The scheme's budget will increase by an average of 26% per year over the next four years, peaking at over £700 million per year. This means more grants available and shorter waiting times.
What's covered by the £7,500 BUS grant:
- Air source heat pumps (air-to-water)
- Ground source heat pumps
- Water source heat pumps
- NEW: Air-to-air heat pumps (previously excluded) — eligible for a £2,500 grant
Thermal Earth is an MCS certified installer and handles the full BUS application on your behalf. You don't need to apply separately — we manage everything.
New Low-Interest Loans for Solar and Heat Pumps
The Warm Homes Plan introduces the Warm Homes Loan Scheme — Government-backed, low and zero-interest loans to help cover the cost of solar panels, batteries, and heat pumps. This scheme is expected to launch in 2027 and will be particularly helpful for homeowners who want to pair a heat pump with solar PV for maximum savings.
For those who can't wait, Thermal Earth already offers flexible finance options to spread the cost of your installation.
What Does This Mean for Wales Specifically?
Wales benefits from both UK-wide schemes and Welsh Government programmes:
- Boiler Upgrade Scheme (£7,500) — available to all Welsh homeowners
- Nest Scheme — the Welsh Government's home energy efficiency programme, offering free or subsidised improvements to eligible households
- Green Homes Wales — additional Welsh Government funding for energy efficiency upgrades
- Landlord EPC requirements — privately rented homes in Wales must reach EPC rating C by 2030. Heat pumps are one of the most effective ways to achieve this
These schemes can often be combined. For example, a Welsh homeowner could use the £7,500 BUS grant alongside Nest funding to significantly reduce or eliminate the upfront cost of a heat pump.
How to Claim Your £7,500 Grant with Thermal Earth
Getting started is straightforward:
- Free consultation — contact us for a free, no-obligation assessment of your property
- System design — our engineers design the right heat pump system for your home
- BUS application — we handle the full grant application as your MCS certified installer
- Installation — professional installation by our experienced team
- Aftercare — ongoing support and optional Comfort Care service plan
With over 20 years of experience and 3,500+ installations across Wales and the UK, Thermal Earth is one of the most experienced heat pump installers in the country.
Is Now the Right Time to Switch?
Yes. The combination of the £7,500 BUS grant, rising gas prices, and the new Warm Homes Plan makes 2026 the strongest year yet for switching to a heat pump. The BUS budget is increasing, but demand is growing faster — acting sooner means shorter lead times and guaranteed grant availability.
Ready to find out how much you could save? Get in touch with Thermal Earth for a free consultation, or explore our Boiler Upgrade Scheme page for more details on claiming your grant.