The short answer for Fenland & Peterborough: if your home is heated by oil or LPG and has no mains gas connection, the Boiler Upgrade Scheme pays £9,000 towards a heat pump for applications from 21 July 2026 to 31 March 2027 — £1,500 more than the standard grant. On today's prices a well-designed heat pump costs less to run than an oil or LPG boiler in the same house; how much less depends on its efficiency.
In Fenland 10% of households heat with oil alone — three times the England average — against 2% in Peterborough, and its housing is dominated by detached homes on open, exposed ground. Peterborough's rural villages share much of the same picture.
How many Fenland & Peterborough homes are off the gas grid
| Area | Households | Oil only | LPG only | Electric only | Mains gas only |
|---|---|---|---|---|---|
| Fenland | 44,083 | 10.3% | 2.0% | 8.0% | 68.0% |
| Peterborough | 84,533 | 2.1% | 1.2% | 7.9% | 76.7% |
| England and Wales | 24,783,199 | 3.5% | 1.0% | 8.5% | 73.8% |
Census 2021, table TS046 (central heating), share of households using each fuel as their only type of central heating. Homes with two or more heating types are not in these columns, so the true number using some oil or LPG is higher.
Nearly half of Fenland homes are detached — the highest share of any area we cover — which usually means more room for an outdoor unit, and sometimes the land for a ground source system if you want the higher efficiency and can meet the higher cost.
Running costs: oil and LPG vs a heat pump in Fenland & Peterborough
| Heating | Fuel bought a year | Price | Annual running cost |
|---|---|---|---|
| Oil boiler (85% efficient) | 17,650 kWh (about 1,710 litres) | 8.75p/kWh | £1,540 |
| LPG boiler (85% efficient) | 17,650 kWh | 9.50p/kWh | £1,680 |
| Heat pump, efficiency 2.78 (trial median) | 5,400 kWh electricity | 26.61p/kWh | £1,440 |
| Heat pump, efficiency 3.05 (trial upper quartile) | 4,920 kWh electricity | 26.61p/kWh | £1,310 |
| Heat pump, efficiency 3.5 (low-temperature design target) | 4,290 kWh electricity | 26.61p/kWh | £1,140 |
Illustrative 15,000 kWh of heat a year — a larger, older rural house; yours may be more or less, which is what the installer's heat-loss survey finds out. Oil and LPG prices: heating oil 90.01p a litre (DESNZ Quarterly Energy Prices, August 2026, including VAT), about 8.75p/kWh at 10.29 kWh per litre (DESNZ conversion factors 2025); LPG 9.5p/kWh (Energy Saving Trust fuel price assumptions, updated 22 September 2026). Electricity: Eastern direct-debit price cap, 1 October to 31 December 2026. Standing charges and boiler servicing excluded. Heat pump efficiencies: 2.78 is the median measured seasonal performance across 428 homes in the government's Electrification of Heat trial and 3.05 its upper quartile; 3.5 is the kind of figure a system designed to run at 45°C or below is designed to achieve, not a measured average.
Oil costs less per unit of heat than LPG, so the saving over oil is smaller than over LPG, and at the trial's median efficiency a heat pump is only modestly cheaper than oil. A low-temperature design running at an efficiency around 3.5 widens the gap considerably. Oil prices also swing more than capped electricity prices, and there are no deliveries or tank to maintain.
What it costs after the £9,000 grant
| Air source heat pump | |
|---|---|
| Typical installed price under BUS (median, April–June 2026) | £12,900 |
| Boiler Upgrade Scheme grant | −£9,000 |
| What you would pay | about £3,900 |
Median installed cost of an air-to-water heat pump under the Boiler Upgrade Scheme, April–June 2026 (lower quartile £11,128, upper quartile £15,627): DESNZ BUS Statistics: July 2026, published 27 August 2026. This is the middle figure across all installations — a small, well-insulated house can come in well under it; a large, older house needing new radiators and a cylinder can come in well over it.
Off-gas homes are often larger, older and less insulated than average, so expect quotes above the national median: a bigger heat pump, some larger radiators, a new cylinder and removing the oil tank. The extra £1,500 exists precisely because these jobs cost more.
Boiler Upgrade Scheme take-up to June 2026: Fenland 183 grants paid; Peterborough 253 grants paid.
Fenland & Peterborough homes: what to expect from the survey
The open Fen landscape is windy and exposed, which increases heat loss from older detached houses and bungalows. The installer's heat-loss calculation should account for exposure; siting the outdoor unit out of the prevailing wind helps its performance.
Many Fen homes sit on shrinkable peat or clay soils. For the outdoor unit that mostly means a properly founded base; for a ground source system it affects trench and borehole design, so ask how the ground has been assessed.
The 31 March 2027 deadline
The higher rate is time-limited: it covers voucher applications up to 31 March 2027, after which oil and LPG homes return to the standard £7,500 unless the government extends it. A survey, design and voucher application take weeks, and installers get busier as a deadline approaches, so if your boiler is nearing the end of its life, getting a quote this autumn leaves room to decide without rushing.
Planning
In England, an air source heat pump on a house is normally permitted development — no planning application — under rules relaxed on 29 May 2025. The old rule that the unit had to be at least 1 metre from the boundary has gone; the outdoor unit can be up to 1.5 cubic metres (0.6 on a block of flats); a detached house can have two units and other homes one; and the installation must meet the MCS 020(a) noise standard, which your installer checks. It can't go on a pitched roof, and listed buildings always need consent. In a conservation area or World Heritage Site the unit can't go on a wall or roof that fronts a road, or be nearer to a road bounding the property than the house itself — so it normally goes at the side or rear.
Peterborough City Council has 29 conservation areas and 56 Article 4 directions covering 334 homes, some restricting roof changes (council page; Article 4 directions). Fenland District Council lists 10 conservation areas (council page). Outside those and listed buildings, a heat pump on a house is normally permitted development.
For electricity, most of this area — including Peterborough itself — is on the UK Power Networks (Eastern) network and the Eastern price-cap region used above; some villages west of Peterborough are on National Grid Electricity Distribution's East Midlands network, where prices are slightly lower.
Do you qualify?
- £7,500 off an air source or ground source heat pump (£2,500 for air-to-air). From 21 July 2026 to 31 March 2027, an air source or ground source heat pump replacing oil or LPG heating in a home with no mains gas connection gets £9,000 instead (not air-to-air).
- England and Wales only. Owner-occupiers and private landlords can apply, including for second homes and business premises; most new-build homes and social housing can't.
- The heat pump must replace fossil-fuel heating (gas, oil, LPG, coal) or direct electric heating. Since 28 April 2026 an EPC is no longer mandatory — if the home doesn't have a valid one, the installer provides other evidence.
- The installer applies, not you. An MCS-certified installer requests the voucher and takes it off your price; Ofgem contacts you to confirm. It is a discount on the price, not a free installation — you pay the balance.
- There is no income test and no benefits requirement.
Source: GOV.UK, Apply for the Boiler Upgrade Scheme (updated 16 Sep 2026); DESNZ notice of grant values (effective 21 Jul 2026); Ofgem BUS guidance for property owners v5.1 (2 Jul 2026). Full detail: Boiler Upgrade Scheme guide.
Getting a quote in Fenland & Peterborough
Tell us about your home
Postcode, property type and how you'd pay. Two minutes.
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If an accredited (MCS-certified) installer covers your area, we'll pass your enquiry to them, and only them. They can arrange a home survey, including a room-by-room heat-loss calculation.
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Get your heat pump quote in Fenland & Peterborough
One MCS-certified heat pump installer who covers your postcode. They apply for the Boiler Upgrade Scheme on your behalf if you're eligible. Nothing is shared until you submit.
What the quote must contain is set out on the heat pump quotes page. For the national rules on the uplift, see the oil and LPG boiler replacement grant guide.
Questions from Fenland & Peterborough homeowners
Do I qualify for £9,000?
If your home has no mains gas connection and the heat pump replaces oil or LPG heating, yes, for applications up to 31 March 2027. Otherwise £7,500.
Is ground source worth it on a Fen plot?
It is more efficient and gets £7,500 (or £9,000 replacing oil or LPG in a home with no mains gas), but the median installed cost is roughly double an air source system. It makes sense mainly for larger homes with land and high heat demand.
Is a heat pump cheaper than oil to run?
At current prices, modestly at the trial's median efficiency and clearly with a well-designed low-temperature system; more so against LPG. The table uses Eastern electricity prices.
Do I need planning permission?
Usually not for a house. Listed buildings need consent, and conservation areas restrict units facing a road.
Other areas
- Heat pumps in Birmingham
- Heat pumps in Sheffield
- Heat pumps in Bristol
- Heat pumps in Newcastle
- Heat pumps in Doncaster
- Heat pumps in Nottingham
- Oil to heat pump: Cornwall
- Oil to heat pump: Somerset
- Oil to heat pump: Northumberland
- Oil to heat pump: Carmarthenshire & Pembrokeshire
Sources
- GOV.UK, Apply for the Boiler Upgrade Scheme (updated 16 September 2026); DESNZ notice of grant categories and values (effective 21 July 2026); Ofgem, BUS guidance for property owners v5.1 (2 July 2026).
- DESNZ, Boiler Upgrade Scheme statistics: July 2026 (27 August 2026) — median installed cost 2026 Q2; redemptions paid by local authority, May 2022 to June 2026.
- Office for National Statistics, Census 2021 tables TS044 (accommodation type), TS046 (central heating), TS050 (bedrooms) and TS054 (tenure), local authority level, via Nomis.
- Ofgem, Changes to energy price cap between 1 October and 31 December 2026 (26 August 2026) and regional unit rates and standing charges; electricity at 0% VAT from 1 October 2026 to 31 March 2027 (HMRC).
- DESNZ, Quarterly Energy Prices table 4.1.1 (heating oil, August 2026); DESNZ conversion factors 2025 (burning oil energy content); Energy Saving Trust, Our data (LPG, updated 22 September 2026).
- Energy Systems Catapult for DESNZ, Electrification of Heat demonstration project, summary report (December 2024): median measured air source heat pump seasonal performance (SPFH4) 2.78, interquartile range 2.55–3.05, 428 homes.
- General Permitted Development (England) Order 2015, Schedule 2 Part 14 Class G, as amended by SI 2025/560 from 29 May 2025.
- Peterborough City Council, conservation areas and Article 4 directions; Fenland District Council, conservation areas (as published March 2026).