Government heat pump grants in the UK
Heat Pump Grants in the UK: Everything you need to know
Heat pumps can be an incredibly eco-friendly way to heat your home. And once installed, they can save you money on your bills. The only catch? While the price of heat pumps, particularly air source heat pumps, are coming down all the time, they’re still not exactly cheap.
The good news, though, is the government has a range of grants available that make getting a heat pump begin to really make sense. These include the Boiler Upgrade Scheme (BUS), which can provide £7,500 to help with installation.
So if you’re staring at your old oil or gas boiler thinking, there must be a better way… well, there is. Read on for more about heat pump grants, what might work for you, and how to get started.
Learn more about air source heat pumps
First things first, what is a heat pump grant?
The big point here is these are grants not loans… A heat pump grant does not have to be repaid. It’s simply a sum of money homeowners can use to go towards installing a heat pump.
Even better, applying is simple and most of the legwork is done by your installer. They’ll tell you what financial support you’re eligible for and apply for the grant on your behalf. Once approved, they’ll deduct the value of the grant from your final installation bill.
Are heat pumps worth it?
From a cost and environmental perspective, we think so! Of course, it does depend on your situation and the house you’re in (it’s not the answer for small apartments, for example).
Here are the main pros and cons:
Pros:
They’re more energy efficient
Heat pumps produce around three and a half times more heat energy from the electricity they use. That’s 350% efficiency compared to the 85% efficiency of an A-rated gas boiler.
They’re eco-friendly
They produce fewer carbon emissions than traditional heating systems because they only use electricity (and they’re even cleaner if you use renewable energy like solar).
They give more gradual and consistent heat
Your home will maintain a stable temperature without the fluctuations you often get with traditional heating systems.
You save money in the long run
They might be expensive to install – but you can offset the installation costs over time thanks to their higher efficiency and long lifespans. Compared to the 10-15-year lifespan of a gas boiler, air source heat pumps can last over 20 years.
Cons:
High upfront costs
Advanced technology makes heat pumps expensive to install and even with a grant you may still need to contribute to the cost.
They rely on electricity
You need to use electricity from the grid to power your heat pump, so there are still running costs. That said, if you can combine a heat pump with solar panels, you’re really talking. And increasingly, suppliers are offering reduced-rate electricity deals for heat pumps to make running costs significantly lower than old oil or gas boilers.
They need outdoor space
Air source heat pumps need around 1-2 metres of clear space around them for a continuous supply of fresh air.
What are the different types of heat pump grants available in the UK?
The government’s Boiler Upgrade Scheme gives homeowners in England and Wales a £7,500 grant towards the cost of a heat pump. It replaced the Renewable Heat Incentive (RHI) in April 2022 and runs until 2028. For homeowners in Scotland, the Home Energy Scotland grant contributes £7,500 towards the cost – plus a potential £1,500 extra if you live in a rural area.
Then there’s the government’s ECO4 initiative which requires large energy companies to support low-income households. If you qualify, the government could cover the entire cost of making energy-efficient upgrades to your home. This scheme runs until 31st March 2026.
Getting your air source heat pump grant with Hive
Air source heat pumps (ASHP) tend to be popular because they’re cheaper and easier to install. According to Which, air source heat pumps cost the average upgrader around £13,000 to buy and install, but it depends how heat pump-ready your home heating system is – if your heating system doesn’t need upgrades, it could be less than £10,000. So getting a grant of £7500 can make a massive difference. Plus, they’re easier to maintain and fix.
If you choose to get an air source heat pump from Hive, our friends at British Gas will install it for you. Their installers are certified under the Microgeneration Certification Scheme (MCS), and they’ll handle the application.
A government grant for heat pumps: key points to know
You need to meet specific criteria to get a heat pump grant. If in doubt, contact an MCS-certified installer, like British Gas. They’ll do the application for you.
To be eligible for the Boiler Upgrade Scheme, you must:
- Own a home in England or Wales
- Be replacing fossil fuel heating systems such as oil, gas, electric or LPG
- Have a valid Energy Performance Certificate (EPC)
- Choose an MCS-certified installer
- Have heating system with a capacity less than 45 kW, the maximum required by most residential properties
To be eligible for the ECO4 initiative, you must:
- Be a UK homeowner or private tenant (with permission from the landlord) – excluding Northern Ireland
- Have a low EPC rating – usually ‘D’ or under
- Have an existing electric heating system at home
- Receive at least one of the following benefits:
- Child benefit
- Income-based Jobseekers Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support (IS)
- Pension Credit Guarantee Credit (PCGC)
- Working Tax Credit and Child Tax Credit
- Universal Credit
- Housing Benefit
- Pension Credit Savings Credit (PCSC)
To apply for the EC04 scheme, head to the government website or contact an energy supplier that’s included in the ECO4 scheme. This is the ECO4 application portal for British Gas.
For the Home Energy Scotland grant and loan, you must:
- Be a homeowner in Scotland (you cannot apply if you are a private landlord, business or property developer).
- Have lived in your home for at least six months, as your primary residence.
- Have an Energy Performance Certificate or report issued from a Home Energy Scotland advisor recommending a heat pump.
- Be applying to install a new heat pump, not a replacement.
Visit Home Energy Scotland to apply.
Regional variations in heat pump grants in the UK
The following regional schemes for heat pump grants are also available in England and Scotland:
Home Upgrade Grant
This is available if you live in England. It provides energy-efficient upgrades and clean heating systems like heat pumps. Check if your local council is part of this scheme.
Warmer Homes Scotland
You can apply if you live in Scotland and you’re a homeowner or tenant. The Scottish government usually pays for all costs, but if they don’t, you can apply for an interest-free loan to cover them.
Keep an eye out for changes…
It’s always worth looking ahead, as government schemes can change. For example, in 2023, the heat pump grant under the Boiler Upgrade Scheme increased from £5000 to £7500. And with the government phasing out fossil fuel boilers by 2035, the National Audit Office suggests the Boiler Upgrade Scheme will be extended beyond 2028 to 2035.
What heating grants are available in Wales?
Nest Wales is available for homes in Wales and once again, British Gas are there to help. To be eligible you must:
- Own or privately rent your home (not from a local authority or housing association)
- Have an energy-inefficient home that is expensive to heat
- Receive one of the following:
- Child Tax Credit (with an income below £16,105 a year)
- Council Tax Reduction
- Housing Benefit
- Income-based Jobseeker’s Allowance
- Income-related Employment and Support Allowance
- Income Support
- Pension Credit
- Universal Credit
- Working Tax Credit (with an income below £16,105 a year)
To apply, call Nest’s helpline on 0808 808 2244 or complete the form on the Welsh Government website
Heat pump grant eligibility and exclusions
In 2024, Ofgem announced you no longer need to install cavity wall or loft insulation before you can apply for the Boiler Upgrade Scheme, which is good news. If you’ve received funding for other energy-efficiency improvements like insulation, you’ll also still be eligible.
For the Boiler Upgrade Scheme, you won’t be eligible if you:
- already have a heat pump at home
- use a hybrid system – like a combined gas boiler and heat pump
- have installed a non-domestic heat pump system with an output >45 kWh
- own a new-build home – because your boiler will already be efficient – or social housing (self-build homes are still eligible)
- have already received funding from a heat pump grant scheme
How to apply for a heat pump grant in the UK
Check your home meets the eligibility criteria – you can do that here.
Contact a few MCS-certified installers so you can compare installation quotes.
Your installer will confirm your eligibility and apply to Ofgem for the grant on your behalf. You’ll need:
- Proof of home ownership e.g. title deed
- A valid Energy Performance Certificate
- An installer’s quote for your heat pump installation
- Proof of consent for your installer to apply on your behalf
Ofgem typically takes four weeks to review applications. Once approved, your installer then has 120 days to install your heat pump from the date of application, and the grant will be deducted from your installer’s final bill.