Heat Pump Grants: How to Get £7,500 Off Your Installation

If you’re thinking about switching from a gas boiler to a greener heating system, there’s brilliant news. The UK government is offering generous grants of up to £7,500 to help you install an air source heat pump. This could make your new heating system more cost-effective than replacing an old gas boiler.

What is the Boiler Upgrade Scheme?

The Boiler Upgrade Scheme (BUS) is the government’s main programme to help homeowners switch to cleaner heating. It provides you with upfront funding to cover part of the cost of installing a heat pump or other low-carbon heating system.

The scheme runs until April 2028, providing you with ample time to plan your upgrade. The government recently boosted the budget to £295 million for 2025-26 alone, showing they’re serious about helping families make this switch.

How Much Can You Get?

The grant covers a generous £7,500 towards installing an air source heat pump. This is one of the most generous schemes in Europe. When you combine this with competitive prices from suppliers, many families can now get a heat pump installed for less than the cost of a new gas boiler.

Here’s what you can expect to pay after the £7,500 grant, depending on your home size:

As you can see, the grant makes a huge difference to the upfront cost. Plus, you’ll start saving money on your energy bills straight away, which helps pay back your investment over time.

What Are Air Source Heat Pumps?

Air source heat pumps are clever devices that capture heat from outside air and use it to warm your home and water. Think of them as a reverse refrigerator – instead of keeping things cold, they move heat from outside to inside your house.

They’re incredibly efficient because they don’t burn fuel to create heat. Instead, they use electricity to move existing heat around. For every unit of electricity they use, they typically produce three units of heat. This makes them much more efficient than electric heaters and even gas boilers.

These systems work brilliantly in the UK climate. Modern heat pumps work efficiently even when it’s freezing outside, continuing to extract heat from air temperatures as low as -20°C.

Who Can Apply for the Grant?

To qualify for the £7,500 grant, you need to tick these boxes:

You must own your home – This includes if you’re a private landlord or if it’s a second home. Tenants can’t apply, but they can suggest their landlord looks into it.

You must live in England or Wales – Scotland and Northern Ireland have their schemes with different rules.

You must be replacing a fossil fuel system – This means you currently have gas, oil, or electric heating. You can’t get a grant to replace an existing heat pump.

Your installer must be MCS certified – This ensures they meet proper standards. Don’t worry – any reputable installer will have this certification.

You must have a valid Energy Performance Certificate (EPC) – Most homes already have one, but you can check yours online at gov.uk.

How Do You Apply?

Here’s the brilliant bit – you don’t apply yourself. Your installer does all the paperwork for you.

1. Find an MCS-certified installer – Look for companies like Greener Homes that specialise in heat pump installations
2. Get quotes – It’s always wise to get at least three quotes to compare prices and services
3. Choose your installer – They’ll handle the grant application on your behalf
4. Confirm with Ofgem – You’ll get an email asking you to confirm you’ve asked the installer to apply. You must reply within 14 days
5. Get your discount – The £7,500 is taken off your final bill upfront, so you don’t pay it and claim it back later

The whole process is designed to be straightforward, with your installer doing the heavy lifting.

What Else Should You Know?

The grant works on a first-come, first-served basis – While there’s good funding available, it’s worth acting sooner rather than later.

You might save extra with 0% VAT – Heat pump installations currently have zero VAT until March 2027, potentially saving you another £750.

Some energy companies offer additional discounts – Suppliers like Octopus Energy and OVO have special deals that can reduce costs further.

Smart tariffs can cut your running costs – If you have a smart meter, you can take advantage of cheaper electricity rates during off-peak hours, potentially saving around £100 per year compared to running a gas boiler.

Will Your Home Need Changes?

Most UK homes are suitable for air source heat pumps. However, your installer might recommend some changes to help your system work more efficiently:

• Larger radiators – Heat pumps work at lower temperatures than gas boilers, so bigger radiators help spread heat more effectively
• Better insulation – While not always essential, good insulation helps any heating system work more efficiently
• Hot water cylinder – You might need a new or larger hot water tank, as heat pumps heat water differently than gas boilers

Your installer will assess your home and explain any changes needed during their visit.

Why Make the Switch?

Beyond the financial savings, air source heat pumps offer several benefits:

• Lower carbon footprint – They produce around 75% less carbon than gas boilers
• Energy security – Less reliance on gas imports means better energy independence
• Future-proofing – As the electricity grid gets greener, heat pumps become even more environmentally friendly
• Reliability – Modern heat pumps are robust and can last 15-20 years with proper maintenance

Getting Started

Ready to explore whether a heat pump could work for your home? Start by using the government’s online checker at gov.uk/check-heat-pump to get personalised information about costs and savings for your property.

Then, contact experienced installers like those at Greener Homes who can provide detailed assessments and handle your grant application.

With grants of £7,500 available and schemes running until 2028, there’s never been a better time to make the switch to cleaner, more efficient heating. The combination of government support, reduced VAT, and potential energy bill savings means many homeowners can upgrade their heating system whilst actually saving money.

Don’t let this opportunity pass you by – start exploring your options today and join the thousands of UK families already enjoying the benefits of modern, efficient heat pump heating.