Heat Pump Grants UK: Boiler Upgrade Scheme and £7,500 Funding Guide

Installing a heat pump can significantly reduce a home’s carbon emissions, but the upfront cost can be a concern for many homeowners. To encourage the adoption of low-carbon heating technologies, the UK government offers financial incentives that help reduce installation costs.

The main support scheme currently available is the Boiler Upgrade Scheme (BUS), which provides grants for homeowners installing air source or ground source heat pumps.

Under this scheme, eligible households in England and Wales can receive government funding to help cover the cost of installing a low-carbon heating system.

This guide explains how heat pump grants work in the UK, who qualifies for funding and how homeowners can apply.

If you are researching heat pump installation, these guides may also be useful:

• Heat pump installation costs in the UK
• Heat pump running costs explained
• How big a heat pump do I need?
• Are heat pumps worth installing?

Contents

• Quick Answer: UK Heat Pump Grants
• The Boiler Upgrade Scheme
• Heat Pump Grant Amounts
• Eligibility Requirements
• How to Apply
• Heat Pump Grant FAQs

Quick Answer: Heat Pump Grants in the UK

The UK government’s main financial support for heat pumps is the Boiler Upgrade Scheme.

Under this scheme, homeowners can receive grants to help reduce the cost of installing low-carbon heating systems.

Current grant levels include:

• £7,500 for air source heat pumps
• £7,500 for ground source heat pumps

The grant is paid directly to the installer and deducted from the installation cost.

This funding can significantly reduce the upfront cost of switching from a gas or oil heating system to a heat pump.

The Boiler Upgrade Scheme

The main government incentive supporting heat pump installations in England and Wales is the Boiler Upgrade Scheme (BUS). This programme was introduced to encourage homeowners to replace fossil fuel heating systems with low-carbon alternatives such as heat pumps.

The scheme provides financial support towards the installation of heat pumps in existing homes and small non-domestic buildings.

Rather than paying the grant directly to homeowners, the funding is issued to the installer. The installer then applies the grant as a discount on the total installation cost.

This process simplifies the application process for homeowners and ensures that installations are carried out by certified professionals.

The scheme is administered by Ofgem, which oversees the grant payments and ensures that installations meet eligibility requirements.

Heat Pump Grant Amounts

Under the Boiler Upgrade Scheme, eligible households can receive financial support towards the installation of heat pumps.

Current grant levels are:

• £7,500 for air source heat pumps
• £7,500 for ground source heat pumps

These grants significantly reduce the upfront cost of installing a heat pump, which is often one of the biggest barriers for homeowners considering the technology.

The exact installation cost varies depending on property size and system design. Our guide to heat pump installation costs explains typical price ranges in the UK.

Eligibility Requirements

To qualify for the Boiler Upgrade Scheme, several eligibility conditions must be met.

Key requirements include:

• The property must be located in England or Wales
• The installation must be carried out by an MCS-certified installer
• The system must replace an existing fossil fuel heating system such as gas, oil or LPG
• The property must have a valid Energy Performance Certificate (EPC)

In most cases, the EPC must show that the property does not require significant insulation improvements before a heat pump can be installed.

Improving insulation before installation can reduce heating demand and improve system efficiency.

If you are unsure whether a heat pump would work efficiently in your home, our guide to whether heat pumps are worth installing explains the key factors that influence performance.

How to Apply for a Heat Pump Grant

Applying for a heat pump grant through the Boiler Upgrade Scheme is usually handled by the installer rather than the homeowner. This makes the process relatively straightforward.

In most cases the steps involved are:

1. Obtain a heat pump quote

The process normally begins with a survey carried out by an MCS-certified heat pump installer. During this visit the installer assesses the property, calculates heat loss and determines the appropriate system size.

2. Confirm eligibility

The installer checks whether the property meets the eligibility requirements for the Boiler Upgrade Scheme. This includes confirming that the property has a valid Energy Performance Certificate and that the heating system being replaced qualifies under the scheme rules.

3. Installer applies for the grant

If the property qualifies, the installer submits the application to Ofgem on behalf of the homeowner. Once the grant is approved, the funding is reserved for the installation.

4. Grant applied to installation cost

The grant amount is deducted directly from the installation price, reducing the upfront cost paid by the homeowner.

This process means homeowners do not need to submit complex applications themselves.

Heat Pump Grants in Scotland and Northern Ireland

While the Boiler Upgrade Scheme applies to England and Wales, different support programmes are available in other parts of the UK.

Scotland

Homeowners in Scotland may be eligible for financial support through programmes such as Home Energy Scotland grants and loans, which can provide funding for renewable heating systems including heat pumps.

Northern Ireland

Support schemes in Northern Ireland can vary depending on available funding programmes and regional energy policies.

Because support schemes occasionally change, homeowners should check the latest information from official government sources when researching available grants.

Conclusion

Government grants can significantly reduce the cost of installing a heat pump in the UK. The Boiler Upgrade Scheme currently provides grants of up to £7,500 for eligible installations in England and Wales.

Because the grant is applied directly through the installer, the application process is usually simple for homeowners.

Understanding the eligibility requirements and available funding can help make heat pump installations more affordable and accelerate the transition to low-carbon heating systems.

If you are researching installation costs and system performance, the following guides may also be useful:

• Heat pump installation costs in the UK
• heat pump running costs explained
• how big a heat pump do I need
• heat pump electricity usage

Heat Pump Grant FAQs