Heat pump grants guide

An air source heat pump outside of a home

If you’re taking your first steps into the world of heat pumps, reducing the cost of getting one is probably one of the first things on your mind.

In this article, we’ll explain how you can reduce the cost of a heat pump with heat pump grants and how the government’s Boiler Upgrade Scheme can help you save you up to £7500 off a brand new heat pump.


Table of contents

  1. What heat pump grants are available?
  2. The Boiler Upgrade Scheme
  3. ECO4 Scheme
  4. Home Upgrade Grant
  5. Heat pump grants in Scotland and Wales
  6. Will a heat pump grant cover the entire cost of installation?
  7. Heat pump help from HomeServe

What heat pump grants are available?

While the Boiler Upgrade Scheme is by far the most popular heat pump grant, there are plenty alternatives available in the UK:

  • Boiler Upgrade Scheme
  • Eco4 Scheme
  • Home Upgrade Grant
  • Nest (only available in Wales)
  • Warmer Homes Scotland (only available in Scotland)

Sound confusing? We’re here to help. Read on to see a breakdown of each one so you can find the best heat pump grant for you.

The Boiler Upgrade Scheme

Let’s start with the big one. The Boiler Upgrade Scheme is a government-funded grant that covers part of the cost of replacing any fossil fuel heating system.

That means you could get up to £7500 to replace any oil, gas, electric or LPG (liquefied petroleum gas) heating system with an eco-friendlier alternative, such as a heat pump or biomass boiler.

On average an air source heat pump can cost around £4,000 – £10,000 to install (though it could be more or less than this based on your home), so the Boiler Upgrade Scheme could significantly reduce the cost of a new air source heat pump. 

The scheme also has the most open eligibility requirements of any grant on this list.

Am I eligible for the Boiler Upgrade Scheme?

If you’re thinking about applying to the Boiler Upgrade Scheme, you’ll first have to check if you and your home meets the following requirements:

  • You must own the home you’re applying for
  • You’re replacing an existing fossil fuel heating system
  • Your home must have a valid Energy Performance Certificate (EPC)

That’s it! There’s not much more to it, although there are instances where you may not be eligible.

You can’t apply to the Boiler Upgrade Scheme if:

  • You’ve already received government funding to install a heat pump or biomass boiler
  • You live in social housing
  • Have a new build property in which the developer is still building. However, if you move into a new build property with a fossil fuel boiler you may be eligible to get a grant for a heat pump under the scheme

How to apply to the Boiler Upgrade Scheme

You can learn more about how to apply to the Boiler Upgrade Scheme on the .gov website, but the first step is to contact an MCS certified installer so you can get a quote for the installation.

The installer will confirm that you’re eligible and apply on your behalf. This not only makes the process much easier, but also gives you a better idea about the full costs of the heat pump installation before applying to the scheme.

ECO4 Scheme

The ECO4 (Energy Company Obligation) Scheme is a government scheme designed to help households improve their energy efficiency by funding new heating systems or home improvements, such as insulation.

ECO4 also provides gas boiler upgrades for eligible households, which includes covering the cost of heat pump installation.

Funding under the scheme could pay for the entire cost of the heat pump supply and installation, but only if you meet certain criteria.

Am I eligible for the ECO4 Scheme?

Unlike the Boiler Upgrade Scheme, ECO4 has a stricter eligibility criteria aimed at benefiting households with outdated heating systems and homeowners who receive benefits. The full eligibility criteria are detailed below:

1) You live in a privately owned house and receive the following benefits:

  • Income based Jobseekers Allowance (JSA)
  • Income related Employment and Support Allowance (ESA)
  • Income Support (IS)
  • Pension Credit Guarantee Credit (PCGC)
  • Working Tax Credit (WTC)
  • Child Tax Credit (CTC)
  • Universal Credit (UC)
  • Housing Benefit Pension Credit Savings Credit (PCSC)
  • Child Benefit, (within the income caps, see Chapter 5 of the ECO4 Guidance: Delivery)

2) You live in social housing with poor energy efficiency

If you live in social housing with an EPC rating of E-G you could be eligible to get an air source heat pump under the ECO4 Scheme, as long as your home doesn’t have an existing renewable energy heating system.

If you don’t fit into one of the eligibility categories above, you may also be able to apply if you qualify under Local Authority (LA) flex rules. This is where local councils recommend that a homeowner should be given the grant even if they don’t receive the above benefits. More information about LA Flex can be found on the Ofgem website.

How to apply for the ECO4 scheme

Applications for the ECO4 scheme are usually completed by the installer who takes on your home improvement or heat pump installation work. Once you find a heat pump installer make sure you ask them about available grants and eligibility.

For added security and peace of mind, you may want to assess your eligibility first through a third party. If so, the Consumer Rights website is a good source of information and can help you explore your funding options.

Home Upgrade Grant

If you don’t have a gas boiler as your main heating system, then a Home Upgrade Grant is a great opportunity to upgrade your heating or get additional work done to make your home more energy efficient.

The grant can pay for the whole cost of installing an air source heat pump, but what you get from this grant depends on the outcome of a home survey that’s arranged after you've submitted your application.

The home survey might suggest that whilst you're not eligible for a grant for a new air source heat pump, you may be eligible for other improvements offered by the grant.

Am I eligible for the Home Upgrade Grant?

The Home Upgrade Grant is only available to those who own a home that doesn’t use a gas boiler as its main heating system. Other eligibility criteria include:

  • You must own and live in the property you’re applying for
  • Your home must have an EPC rating of G or below
  • You’ll usually need to have a household income of £36,000 or less, though this varies between different postcode areas

How to apply to the Home Upgrade Grant

You can check your eligibility and apply via the government website. Your local council will usually contact you 10 days after you submit your application to arrange a home survey. If you have any questions, you can also speak to an adviser.

Heat pump grants in Scotland and Wales

While the previous grants on this list are available for homeowners across the UK, the grants below are specific to certain regions.

Nest Wales Grant

Only available in Wales, the Nest grant is similar to the Home Upgrade Grant. It offers funding for energy efficiency improvements, including heat pump installation, as long as households meet the following criteria:

  • You own or privately rent your home (not local authority or housing association)
  • You receive a means-tested benefit, or you live in a low-income household
  • Your home has an EPC rating of 54 (E) or less; or an EPC rating of 68 (D) or less where you or a household member have an eligible health condition

To apply, you’ll need to call the Nest helpline (run by the Energy Saving Trust) and they’ll ask you a few questions to work out the best way to use the grant to make your home warmer and more efficient.

The grant can be used to fund the entire installation cost of an air source heat pump, but this will depend on whether Nest recommends heat pump installation for your home. If you need loft or wall insulation, for instance, they may suggest this first.

Warmer Homes Scotland

Warmer Homes Scotland is an initiative helping homeowners in Scotland who are struggling with energy bills or keeping their home warm.

The grant offers up to £10,000 for a raft of home energy efficiency improvements, including the installation of air source heat pumps.

What you get will depend on a Warmworks' assessment of your home and your eligibility. The work is also completed by Warmworks’ installers and in most cases, the Scottish government will meet all the costs.

Eligible households must include either:

  • A person who is over 75 with no central heating
  • A person who has a DS1500 or BASRiS certificate completed by a medical professional
  • A person who receives at least one of the passport benefits listed here

Will a heat pump grant cover the entire cost of installation?

Some heat pump grants will cover the entire cost, whereas others will only cover part of the cost. A full breakdown of what you’ll get for each grant is below:

Grant Amount covered How to apply
Boiler Upgrade Scheme £7500 towards the cost of a heat pump or £5000 towards the cost of a biomass boiler. Contact an MCS approved installer and get a quote for the work. They will confirm your eligibility and apply for the scheme.
ECO4 Covers the entire cost of a range of home efficiency improvements for eligible households, including the supply and installation of an air source heat pump. Contact a heat pump installer and enquire about the scheme or apply through the Consumer Rights website.
Home Upgrade Grant Covers the entire cost of a range of home efficiency improvements for eligible households, including the supply and installation of an air source heat pump. What you’re offered will depend on the results of the survey. You can check your eligibility and apply via the government website.
Nest (only available in Wales) Covers the entire cost of a range of home efficiency improvements for eligible households, including the supply and installation of an air source heat pump. What you’re offered will depend on the results of an interview Call Nest for free on 0808 808 2244 (Monday to Friday from 9am to 6pm).
Warmer Homes Scotland Covers up to £10,000 for a range of home efficiency improvements, including the supply and installation of an air source heat pump. What you’re offered will depend on the results of an interview. Contact Warmer Homes Scotland to start your application.

Heat pump help from HomeServe

Now that you know all about what heat pump grants are available you might be interested to learn more about how much heat pumps cost or what the installation might look like.

Our Knowledge Hub is a great place to find out more about heat pumps before you make your decision to buy one.

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About the author

Paul started his career with a 5 year Plumbing and Heating apprenticeship and became a fully qualified Plumbing and Heating Engineer. He has installed domestic central heating systems for local councils and also installed hot and cold water systems, heating systems and above ground drainage on new build properties.

Paul then moved into the service and repair of gas boilers and systems for larger companies such as npower and The AA before moving to HomeServe.

He continued to work in service and repair for HomeServe before pursuing an opportunity at the HomeServe Training Academy.

In the academy, he is part of the team that delivers training to HomeServe engineers and also to groups of internal and external gas apprentices, and soon to be training a group on Plumbing. The engineer training ranges from Gas ACS, unvented hot water, water regulations, heat pumps and safe electrical isolation.

HomeServe offers a fantastic work environment, and by incorporating air source heat pumps into our products and training, we demonstrate our responsiveness to evolving home heating needs and trends.

Years qualified

29 years in the plumbing and heating industry, 26 years fully qualified.

Read more

Share this post

About the author

Paul started his career with a 5 year Plumbing and Heating apprenticeship and became a fully qualified Plumbing and Heating Engineer. He has installed domestic central heating systems for local councils and also installed hot and cold water systems, heating systems and above ground drainage on new build properties.

Paul then moved into the service and repair of gas boilers and systems for larger companies such as npower and The AA before moving to HomeServe.

He continued to work in service and repair for HomeServe before pursuing an opportunity at the HomeServe Training Academy.

In the academy, he is part of the team that delivers training to HomeServe engineers and also to groups of internal and external gas apprentices, and soon to be training a group on Plumbing. The engineer training ranges from Gas ACS, unvented hot water, water regulations, heat pumps and safe electrical isolation.

HomeServe offers a fantastic work environment, and by incorporating air source heat pumps into our products and training, we demonstrate our responsiveness to evolving home heating needs and trends.

Years qualified

29 years in the plumbing and heating industry, 26 years fully qualified.

Read more

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