Heat pump grant in the Balearic Islands 2026: how much you get and how to apply

How much: €791 per kW, up to €1,106 with new emitters

The grant is 70% of the eligible cost, which the rules cap at €1,130 per kW of heating output: €791 per kW at most. If you also install new underfloor heating, radiators or fan coils, the rules add up to €450 per kW to the eligible cost, so the grant can reach €1,106 per kW. The limit is €25,000 per home.

If your quote is below those caps, the grant is worked out on your actual cost. For private individuals, VAT counts as an eligible cost because it cannot be recovered.

What else you can add

The FACTOR grant is compatible with other savings that cut the investment further:

• Energy Saving Certificates (CAE): about €250 per kW, up to €3,000, when the heat pump replaces an oil, propane or gas boiler and the unit is a Vaillant.
• Spanish state income-tax deduction: 40% of the investment, up to €3,000, for a main or rented home, with an energy certificate before and after, for work completed by 31/12/2026.
• Balearic income-tax deduction: 50% of the investment, with a maximum base of €10,000 a year, for a main home and subject to an income limit. The two deductions cannot always be combined: ask your tax adviser.

Requirements in the rules

These are the points of FACTOR 2026 programme 2 that matter most for a home:

• Air-to-water heat pumps for heating, cooling or hot water. Air-to-air units (splits) are not eligible for homes.
• The unit must count as renewable, with a seasonal performance factor (SPF) above 2.5.
• The system must monitor the heat it produces daily, monthly and yearly.
• The output that counts is the heating output on the manufacturer’s data sheet, under EN 14511.
• A private individual with no business activity can submit one application per programme.

Deadline: 28 February 2027, first come first served

Applications are open until 28 February 2027, but grants are awarded in order of arrival until the budget runs out. Winter is when most people change their heating, so it is best not to leave it to the last minute.

Before you sign the quote we check the dates and paperwork: invoices and payments must be in the applicant’s name and by bank transfer, and the installation must be registered.

Example: replacing an oil boiler with an 8 kW heat pump

With an 8 kW unit the FACTOR grant is €6,328. If it replaces an oil boiler and is a Vaillant, about €2,000 in CAE is added. For a main home, the state income-tax deduction can return up to €3,000 more. With new underfloor heating as well, the grant can rise to €8,848.