1 Oct 2026 · @Hayley Flaxman
If your Cotswold home runs on heating oil or LPG, there has never been a better time to switch to a heat pump. Homes replacing oil or LPG can now get a £9,000 government grant towards an air source or ground source heat pump. That’s £1,500 more than the standard grant, but only until 31 March 2027.
Many villages across the Cotswolds aren’t connected to mains gas, so thousands of local homes rely on oil tanks and LPG bottles. This grant is aimed squarely at them. Here’s what it is, who qualifies, and whether a heat pump will suit your home.
What is the £9,000 grant?
The grant comes through the government’s Boiler Upgrade Scheme (BUS). It normally gives £7,500 off a heat pump. If you’re replacing an oil or LPG system and your home has no mains gas connection, it goes up to £9,000 until 31 March 2027 (Retrofit Planner).
You could qualify if:
- You own the property in England or Wales. Second homes and rental properties count too.
- You’re replacing an existing oil or LPG heating system.
- Your home isn’t connected to mains gas.
- You use an MCS-certified installer, like PBT.
There’s no income test, and since April 2026 you no longer need a valid EPC. You don’t apply yourself: your installer applies to Ofgem, and the grant comes straight off your bill.
Why oil and LPG homes have the most to gain
If you heat with oil or LPG, you’ll know the drawbacks:
- Unpredictable prices. Oil and LPG prices follow world markets, and this year’s conflict in the Middle East has pushed fuel costs up again.
- Deliveries and running out. Ordering, waiting for the tanker and checking the gauge in a cold snap all become a thing of the past.
- Tanks and upkeep. Oil tanks need checking, can leak, and eventually need replacing. Bottled LPG means rental and delivery charges.
A heat pump runs on electricity and turns 1kW of power into around 3–4kW of heat. Pair it with a smart electricity tariff, solar panels or a home battery and you can cut your running costs further while taking control of where your energy comes from.
Will a heat pump work in a Cotswold stone home?
Yes, as long as it’s designed properly. Older stone cottages, barn conversions and farmhouses can all run well on a heat pump. What matters is getting the details right for your home:
- A room-by-room heat loss survey, so the heat pump is sized for your home, not guessed.
- The right radiators. Heat pumps run at lower temperatures, so some rooms may need larger radiators or underfloor heating.
- Sensible insulation and draught-proofing where it’s practical, such as loft insulation and sealing gaps.
- A good spot for the outdoor unit. In conservation areas and on listed buildings, we’ll check whether planning permission or listed building consent is needed before we start.
We install Stiebel Eltron heat pumps and have more than 14 years’ experience with homes across Gloucestershire and the Cotswolds.
Have a look at our Castlemorton Case study here for an excellent example.
Roger and Beverly both say they are very happy with the changes they have made and speak highly of the efficient and friendly engineers who carried out the installation. They have installed sustainable central heating to a quirky period property, without compromising the integrity of the building, and most importantly, feel confident about their future in the cottage as they get older.
How it works with PBT
- Fill out our short questionnaire. We look at your current oil or LPG system, and the property and take into consideration any other requirements.
- Your design and quote. You get a quote for the full amount without the £9,000 grant already taken off. Finance is available to spread the rest. Once the grant is confirmed, the deduction is made from your bill.
- We apply for the grant. As an MCS-certified installer, we handle the Boiler Upgrade Scheme application. Ofgem will contact you to confirm.
- Installation. We fit the heat pump, update radiators where needed (as pre-arranged), and remove or decommission the old system.
- Handover and support. We set up your controls, show you how to get the best from the system, and offer ongoing servicing.
Because the uplift ends on 31 March 2027, we recommend booking your survey early to make sure your install is completed in time.
FAQ
Frequently Asked Questions
What’s included in the plan?
You get full access to all features, including priority support, unlimited projects, and monthly updates. No hidden fees.
Can I get the £9,000 grant if I have mains gas?
No. The higher amount is only for homes replacing oil or LPG with no mains gas connection. Gas-heated homes can still get the standard £7,500.
Do I need to pay the grant amount upfront?
No. The grant is taken off your quote, so you only pay the balance.
Is there VAT on a heat pump?
Heat pump installations currently have 0% VAT until 31 March 2027.
Can I get the grant for a second home or holiday let?
Yes. Second homes and rental properties can qualify, as long as you own them.
What happens to my oil tank?
We can advise on safely decommissioning or removing it as part of your installation.
Book your free survey
The £9,000 grant is only here until 31 March 2027. If you live in the Cotswolds and heat your home with oil or LPG, call us on 01242 323923 or tell us about your project to book a free, no-obligation survey.