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Install a heat pump for less with the BUS grant
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Government Heat Pump Grants in the UK (2024)
- Save up to £290 with an air source heat pump (ASHP) or £550 with a ground source heat pump (GSHP) when replacing an old G-rated boiler.
- Heat pump costs range from £2,400 to £49,000, including installation. However, heat pump grants like the Boiler Upgrade Scheme (BUS) can save you £7,500, covering most of the cost for ASHPs.
- To be eligible for heat pump grants, you must generally own the property you’re applying for, replace a fossil fuel heating system (oil, gas, electric, or LPG) with a heat pump, and have a valid Energy Performance Certificate (EPC).
Homeowners in the UK can access financial help with purchasing and installing a heat pump through wide-ranging government air source or ground source heat pump grants. These schemes cover not only heat pumps, but also other renewable and energy-efficient technologies, such as solar panels and insulation. Homeowners can also pair a heat pump and solar panels, taking advantage of the grants for both.
In this guide, we will give you a rundown of all the available heat pump grants in the UK in 2024 to help you learn how to minimise the costs of a new heat pump installation for your home.
As of 23 October 2023, the Boiler Upgrade Scheme heat pump grant increased to £7,500 for air source heat pumps and ground source heat pumps, up from £5,000 and £6,000, respectively.
This was confirmed in an announcement by the UK Government in September 2023.
However, the best way to keep updated on the latest heat pump grants is to contact air source or ground source heat pump installers near you. By doing this, you can rest assured you're in good hands. They can give you tailored advice and answer any of your questions from "Are heat pumps noisy?" to "How does a heat pump work in winter?"
Once you have a better idea of the financial aspect of getting a heat pump for your home, the next step is to find a reliable installer to work with. Thankfully, we can help you avoid any tedious research and put you in touch with up to 4 local heat pump installers.
Simply click the button below and fill in our 30-second form, then sit back and let installers reach out to you with free, non-binding heat pump quotes!
- Quotes from local engineers
- Payment by finance available
- Save £7,500 with BUS grant
Air source heat pump grants in the UK
An air source heat pump installation can cost anywhere from £2,400 to £14,050, whereas ground source heat pump costs are between £16,200 to £49,000. However, when considering the advantages of heat pumps vs boilers, especially from an environmental perspective, this investment can prove worthwhile for you.
While they are a considerable investment, you can lessen the financial burden of installing a heat pump by applying for one of the multiple government heat pump grants available. The following UK heat pump grants are available in 2024:
- Boiler Upgrade Scheme (BUS): With this grant, homeowners in England or Wales can receive up to £7,500 to install an air or ground source heat pump, including high temperature heat pumps.
- Energy Company Obligation Scheme (ECO4): The ECO4 Scheme provides financial assistance to low income households in England, Scotland, and Wales to install energy systems that reduce carbon emissions.
- 0% VAT: The VAT slash on clean energy solutions will be available in the UK until March 2027. For heat pumps, this means that you can save up to £750 on installation costs. It’s worth mentioning that your installer applies this scheme automatically.
- Warmer Homes Scotland: This interest-free loan allows homeowners in Scotland to receive up to £10,000 to install energy-efficient energy systems.
- Home Energy Scotland Scheme: People living in Scotland can benefit from this loan to install renewable energy sources. With this scheme, you can receive an interest-free loan of up to £15,000.
- Nest Scheme, Wales: The most comprehensive air source heat pump grant in Wales, this scheme offers free, impartial advice to all households in Wales to help reduce energy bills, maximise income, and lower carbon footprints. For eligible low-income households, it can cover the full cost of installing an air source heat pump.
- Home Upgrade Grant (HUG): This grant is for homeowners in England who do not have a gas boiler and have an EPC rating between D and G. If you are eligible for the grant, it will help you make your home more energy efficient, which could include getting a heat pump.
As of August 2024, the Home Energy Scotland Grant and Loan will no longer be accepting applications for heat pump funding if you’re in the process of building your home. If you live in an existing building, you can still apply for the scheme.
The important thing to remember is that since these same government grants also cover other home improvement solutions, heat pump funding is subject to availability. What this means for you is that grants work on a first come first serve basis. The good news is that most UK homeowners are eligible for at least one grant.
This post will be regularly updated in line with the latest government announcements to ensure that environmentally-conscious UK homes don’t miss out on new opportunities.
Am I eligible for an air source heat pump grant?
You may be eligible for a heat pump grant if you meet the following criteria:
- You meet the specific income requirements of each grant or loan. For some grants and schemes, eligibility is not based on income, e.g. the Boiler Upgrade Scheme.
- You own the property where the heat pump will be installed. In some cases, you may also be eligible for a grant or a loan if you live in a rented property.
- Your home is energy inefficient and expensive to heat.
- You’re replacing an existing energy system that runs on fossil fuels with energy sources that can reduce your carbon footprint.
- You have a valid Energy Performance Certificate (EPC) with no outstanding loft or cavity wall insulation recommendations (specifically for the Boiler Upgrade Scheme).
Once you’ve determined whether you’re eligible for a heat pump grant, the next thing you will need to do is apply for it. Additionally, to make the most of the financial assistance you receive, you will want to look for the best deal for a new heat pump installation. Heat pumps for apartments are also eligible for these grants. However, finding suitable options among the countless renewable heating installation companies out there could take you several hours, if not days.
Thankfully, we are here to help you avoid all the hassle. We can put you in touch with up to 4 heat pump installers in your area in no time. All you have to do is fill in our 30-second form and wait to receive free, non-binding quotes for a new heat pump installation. Simply click below to start now!
- Quotes from local engineers
- Payment by finance available
- Save £7,500 with BUS grant
Heat pump grants: Disqualifying criteria
Heat pump grants in the UK are generally available to those planning to switch to low-carbon systems like air source heat pumps. However, certain properties and heat pump types are not covered by these grants. The following situations are excluded:
- Boiler Upgrade Scheme (BUS): This popular scheme offers financial help to support the installation of heat pumps. However, certain exclusions apply, and hybrid heat pumps are currently not eligible.
- Existing low-carbon heating systems: Homeowners cannot receive grants to replace an existing low-carbon heating system since they are mostly designed to transition from high-carbon systems like oil, gas, or coal.
- System capacity: The heating system's capacity must be less than 45kWh.
- Previous government funding: Those properties that have already received government funding for the purchase or installation of a heat pump or biomass boiler are ineligible.
- New builds: New build properties are generally excluded unless you are building your own home.
Nevertheless, if you believe you might qualify for a heat pump grant under these exceptions, we strongly recommend consulting a certified MCS installer who can assist you and assess your specific situation.
Will a heat pump grant cover all of the costs?
A heat pump grant, such as the Boiler Upgrade Scheme (BUS) offering up to £7,500, unfortunately rarely covers the full cost of installation. While air to air heat pumps at the lower end of the price range (£2,400) can be fully funded, higher-end systems costing up to £8,800 require additional payments of around £1,300.
Air to water systems, priced between £8,400 and £14,050, typically leave shortfalls ranging from £900 to £6,550. Ground source heat pumps, with costs as high as £49,000, often leave homeowners with significant expenses exceeding £40,000.
In addition, installation-related costs such as groundworks, heat distribution systems, and necessary energy efficiency upgrades are not covered by the grant, further increasing out-of-pocket expenses. Therefore, while the grant provides substantial financial support, it is unlikely to cover all the costs associated with installing a heat pump.
To provide a clear comparison, the table below outlines how much of the final cost of each type of heat pump can be covered based on the various heat pump grants available in the UK:
| Grant | Maximum funding | Eligible heat pumps | Coverage |
|---|---|---|---|
| Boiler Upgrade Scheme (BUS) | £7,500 | ASHPs, GSHPs | Covers up to 100% of lower-cost air to air heat pumps, leaves shortfalls of £900–£6,550 for air to water, and £5,700–£41,500 for ground source systems. |
| Home Energy Scotland Scheme | £15,000 | ASHPs, GSHPs | Fully covers air to air and air to water systems; for ground source systems, leaves shortfalls of £200–£34,000 for high-end installations. |
| Warmer Homes Scotland | £10,000 | ASHPs | Covers most air to water systems, leaving shortfalls of up to £4,050; for ground source systems, shortfalls range from £3,200–£39,000. |
| ECO4 | Varies | Different energy-saving measures | Coverage depends on property upgrades required; it can include partial or full funding for heat pumps combined with insulation and other measures. |
How to apply for air source heat pump grants?
Whether you opt for an air, ground or hybrid heat pump, the grant application process for a government grant depends on the scheme you’d like to apply for. To start the application for these government grants, you can:
- Boiler Upgrade Scheme: Agree on a quote with an MSC-certified installer. The installer will apply for the grant on your behalf.
- ECO4: Complete the online application form. If eligible, an assessment of your property will be conducted.
- Warmer Homes Scotland: Contact an advisor. If eligible, a surveyor will identify suitable energy efficiency improvements in your home.
- Home Energy Scotland: Complete the online Self-Assessment.
- Nest Scheme, Wales: Contact an advisor or request a call-back. If eligible, your home will be assessed, and you will get energy efficiency improvement recommendations tailored to your home.
- Home Upgrade Grant: Complete the online application form. If eligible, suitable energy efficiency measures will be identified and installed, with the grant covering the costs.
It is worth noting that many of these grants can be regionally dependent, so it's best to understand your area. Our grants page can give a good overview, but we also have resources dedicated to heat pumps in Wales, heat pumps in Scotland and heat pumps in Northern Ireland.
In addition to applying for a grant or scheme, the surest way to minimise your costs is to secure the best deal possible for your heat pump installation. This involves comparing labour costs across different installation companies, which can take hours of painstaking research.
We understand you don’t want to spend your free time looking up heat pump installers. That is why we’re here to help you find the best deal for your home in no time. Simply click below, fill in our form in just 30 seconds, and wait for up to 4 installers we vetted to contact you.
Avoid wasting your time and energy by requesting free, no-obligation quotes today!
- Quotes from local engineers
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- Save £7,500 with BUS grant
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- Quotes from local engineers
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- Save £7,500 with BUS grant