Replace Your Oil or LPG Boiler with a Heat Pump
Off the gas grid? Homes heated by oil or LPG can currently get £9,000 towards an air source or ground source heat pump, the highest grant available, until 31 March 2027.
Why off-grid homes are switching now:
*Where the property is heated by oil or LPG and has no mains gas connection. The £9,000 is confirmed until 31 March 2027; the standard grant is £7,500.
£9,000
towards a heat pump for off-grid oil and LPG homes
31 Mar 2027
when the extra £1,500 is currently due to end
3.5x
units of heat per unit of electricity from a well-designed heat pump
0
fuel deliveries, tank checks or winter run-outs
Eligibility
Who qualifies for the £9,000
You get the extra £1,500 on top of the standard £7,500 if both of these are true:
- your home is currently heated by oil or LPG, and
- your home has no mains gas connection.
It applies to air source and ground source heat pumps only. The usual rules apply too: you need to own the property, have a valid EPC with no outstanding loft or cavity wall insulation recommendations, and the heat pump must meet all of your heating and hot water needs. Homes heated by electricity get the standard £7,500. More in our guide to who qualifies.
Running costs
Is a heat pump cheaper to run than oil or LPG?
It depends on what you pay for fuel and how well the heat pump is designed, so here is how to check it against your own bills rather than a headline figure.
A well-designed air source heat pump delivers around 3.5 units of heat for every unit of electricity. At the Ofgem price cap rate from 1 October 2026 (26.32p per kWh), that is about 7.5p per kWh of heat.
| Your fuel | Energy per litre | Heat pump is cheaper above |
|---|---|---|
| Heating oil, older boiler at 85% | about 10 kWh | 65p a litre |
| LPG, boiler at 90% | about 7 kWh | 48p a litre |
Check the price per litre on your last delivery invoice. That uses the standard capped rate; on a dedicated heat pump tariff, which we can help with as an Octopus Energy Trusted Partner, the break-even point falls further. The efficiency figure is the part to get right, which is why we calculate heat loss room by room before quoting.
Practicalities
What happens to the oil tank?
Once the heat pump is running, the tank needs emptying and then either removing or safely decommissioning.
- time your last oil delivery so you are not left with a full tank when the heat pump goes in
- mention the tank at the survey, so it is planned into the job rather than an afterthought
Older, rural and stone-built homes
Many off-grid homes in West Wales are older, solid-walled or exposed. They can all work well with a heat pump, but they need designing for: a full heat loss calculation, some radiators upsized to run at lower temperatures, any insulation the EPC flags sorted first, and space for a hot water cylinder.
Cut what you buy
Pair it with solar and a battery
Moving off oil or LPG means buying more electricity. Solar PV and battery storage reduce how much of that you buy, and a battery lets you use daytime generation, or cheaper overnight electricity, for heating in the evening.
Not sure your home is ready? Our checklist is my home suitable for a heat pump? covers the main points.
Do not leave it until March
How long a switch takes
A switch usually takes several weeks and sometimes a few months, so starting in the autumn gives you far more room to secure the full £9,000 than starting in February.
- SurveyWe check eligibility, measure the house and look at your EPC.
- DesignRoom-by-room heat loss calculation and system design.
- GrantWe apply for your Boiler Upgrade Scheme voucher.
- InstallUsually two to four days on site, then handover.
Find out if your home qualifies for £9,000
We will check whether you meet both conditions, look at your current fuel costs, and give you an honest view of what a heat pump would cost and save.
Check if I qualify
