Heat Pump Grants

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Last Updated on 9th December 2024

Air Source Heat Pump Grants in the UK

It's an exciting time for heat pumps in the UK as the government ramps up its commitment to renewable energy solutions through financial support.

With the recent increase in the Boiler Upgrade Scheme (BUS) grant amount to £7,500, homeowners are now better positioned to transition from fossil fuel heating systems to more sustainable air source heat pumps (ASHPs).

This initiative not only aims to reduce carbon emissions but also makes energy-efficient heating more accessible and affordable for households across England and Wales. As interest in ASHP technology grows, so does the opportunity for homeowners to benefit from these grants, paving the way for a greener future.

In this article, we will explore the various heat pump grants available, delve into their specifics and help you determine your eligibility for these exciting opportunities.


What is a Heat Pump Grant?

A Heat Pump Grant is a government financial incentive designed to encourage homeowners to transition from fossil fuel heating systems to more sustainable, low-carbon heating solutions like air source heat pumps.

The most prominent scheme in the UK is the Boiler Upgrade Scheme which provides up to £7,500 towards the installation of air source and ground source heat pumps. These grants aim to make energy-efficient heating more accessible and help households lower their energy bills, as well as their environmental impact.

The grants are typically available for those who are replacing traditional gas, oil or electric heating systems with renewable alternatives and they can significantly offset the upfront costs of installing a heat pump.


Air Source Heat Pump Grants

You'll be pleased to know that there are several grants and schemes available in the UK to help you install an air source heat pump which makes the transition to this eco-friendly heating solution more affordable than ever:

1. Boiler Upgrade Scheme

Under the Boiler Upgrade Scheme, you can receive a substantial grant of £7,500 towards the installation of an air source heat pump in England and Wales. This scheme, which runs until 2028, aims to encourage homeowners to switch from fossil fuel heating systems to low-carbon alternatives.

To be eligible, you must own the property where the heat pump will be installed and your home must have a valid Energy Performance Certificate (EPC) with no outstanding insulation recommendations.

2. ECO4

If you're a homeowner or private tenant with a low household income or receiving certain benefits, you might qualify for the ECO4 scheme. This initiative could provide you with a free air source heat pump installation, along with other energy-efficient upgrades like solar panels and insulation.

The ECO4 scheme is particularly beneficial if your home has never had a central heating system before.

3. 0% VAT

You'll be happy to know that the UK government has removed VAT on the installation of energy-saving materials including air source heat pumps. This 0% VAT rate applies from April 2022 to March 2027, helping you save even more on your heat pump installation.

4. Warmer Homes Scotland

If you're a Scottish resident struggling with energy costs, the Warmer Homes Scotland scheme might be able to help you. This program offers funding for various energy-efficient improvements, including air source heat pumps, to eligible households.

To qualify, you must be a homeowner or private tenant with a low income or receiving certain benefits, and your home should have a poor energy performance rating.

The scheme is designed to alleviate fuel poverty and improve the overall comfort of your living environment by making essential upgrades more accessible.

5. Home Energy Scotland Scheme

As a Scottish homeowner, you can access grants of £7,500 through the Home Energy Scotland scheme, which increases to £9,000 if you live in a remote area and qualify for the rural uplift.

This initiative is designed to help you improve your home's energy efficiency and reduce your carbon footprint.

Also, the scheme supports a wide range of energy-saving measures, ensuring that you can create a more comfortable living environment while contributing to Scotland's sustainability goals.

6. Nest Scheme Wales

If you're a Welsh resident living in a hard-to-heat home or have a low income, the Nest scheme might be able to provide you with a free air source heat pump installation along with other energy-saving measures.

7. The Northern Ireland Sustainable Energy Programme

For Northern Ireland residents, NISEP offers grants for various energy-efficient measures, including air source heat pumps. The amount of funding available depends on your circumstances and the specific measures being installed.


Am I Eligible for a Heat Pump Grant?

Different grants for heat pump installations have varying eligibility criteria.

If you're considering a heat pump, you'll need to carefully assess which schemes you might qualify for based on your specific circumstances.

The Boiler Upgrade Scheme, for instance, is typically available to homeowners, private landlords and small landlords in England and Wales who are looking to replace fossil fuel heating systems with air or ground source heat pumps. Your property must have a valid Energy Performance Certificate (EPC) with no outstanding insulation recommendations.

In contrast, the ECO4 scheme targets low-income households and those receiving specific benefits, offering more comprehensive support for energy efficiency upgrades. Scottish residents have additional options through Home Energy Scotland which provides grants up to £7,500 with more flexible eligibility requirements.

Since each grant has its own set of conditions around property type, income level, current heating system and geographical location, it's crucial to research thoroughly or consult with an energy efficiency advisor to understand which incentives best match your individual situation.


Will Heat Pump Grants Cover all the Costs?

When you're considering a heat pump installation, it's important to understand that while grants can significantly reduce your upfront costs, they typically won't cover all the expenses.

The amount you'll need to contribute depends on various factors, including the size of your property, the type of heat pump you choose and any additional work required to make your home heat pump ready. Grants are designed to make heat pumps more accessible but they usually represent only a portion of the total installation cost.

You'll likely need to budget for some out-of-pocket expenses. However, don't let this discourage you. Remember that heat pumps can lead to long-term energy savings, potentially offsetting your initial investment over time.

To get a clear picture of what you might need to pay, it's best to get heat pump quotes from several certified installers and discuss your options with them. They can provide a more accurate estimate based on your specific situation and help you understand how grants can reduce your overall expenses.


Air Source Heat Pump Grants FAQs

What grants and incentives are available for air source heat pumps in the UK?

There are several grants and incentives available for air source heat pumps in the UK including the Boiler Upgrade Scheme, ECO4 scheme and 0% VAT on installation.


How much is the Boiler Upgrade Scheme grant for air source heat pumps?

The Boiler Upgrade Scheme offers a grant of £7,500 for air source heat pump installations in England and Wales.


Are there any specific grants for Scotland?

Yes, Scotland offers grants of £7,500 through Home Energy Scotland, which increases to £9,000 for people in remote areas.


Who is eligible for these grants and incentives?

Eligibility varies by scheme. For example, the Boiler Upgrade Scheme is available to homeowners, small landlords and private landlords in England and Wales.


How do I apply for these grants and incentives?

For the Boiler Upgrade Scheme, your MCS-certified installer will apply on your behalf. For other schemes like ECO4, you may need to check with your local authority or energy supplier.


Can I combine different grants and incentives?

In some cases, yes. For example, you can benefit from both the Boiler Upgrade Scheme grant and the 0% VAT incentive.


Are there any additional benefits to installing an air source heat pump?

Yes, besides the grants and incentives, air source heat pumps can help reduce energy costs in the long term, especially as electricity prices are expected to become relatively cheaper compared to gas and oil.