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Heat pump grants in the UK

Whether you live in England, Scotland or Wales there are a variety of different government grants available to reduce the cost of installing a heat pump.

In England and Wales, the Boiler Upgrade Scheme provides eligible households with a £7,500 grant to switch from an old fossil-fuel based boiler. While in Scotland, there’s a £7,500 grant and a £7,500 interest free loan individuals can apply for.

How much could you save?

£7,500 heat pump grant available in England and Wales with the Boiler Upgrade Scheme
£

£15,000 funding available to install a heat pump in Scotland with the Home Energy Scotland Grant and Loan
£
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England & Wales: The Boiler Upgrade Scheme

The Boiler Upgrade Scheme (BUS) pays you £7,500 when you switch your fossil fuel boiler for an air source heat pump.

As part of your hassle-free switch, we’ll apply for the grant for you and deduct it from your quote, so all you have to do is enjoy the savings. 

Learn more about the Boiler Upgrade Scheme
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Scotland: Home Energy Scotland Grant & Loan

With the Home Energy Scotland Grant and Loan, residents in Scotland can access up to £15,000 in funding to install a heat pump. This includes a £7,500 grant and a £7,500 interest-free loan.



Individuals in rural areas may me eligible for up to £16,500 in funding, of which £9,000 is a grant and £7,500 is an interest free loan.

There is also additional funding available for other home efficiency improvements like insulation and solar.

Learn more about the Home Energy Scotland Grant & Loan

There’s also 0% VAT to pay

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Need more reasons to switch? Clean energy home improvements, like switching to a heat pump, installing solar panels and insulating your home, are exempt from VAT until 31st March 2027.

 

This translates to a further 20% reduction in the cost of becoming a more energy-efficient home.

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Wondering if you’re eligible for a heat pump grant?

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Heat pump grants in the UK FAQs

To be eligible for the Home Energy Scotland Grant and Loan, you need to…

Own the property

To apply for a grant, you need to own the property where the heat pump would be installed. In Scotland, you must reside at the property where the home energy efficiency improvements are being made to be eligible for the Home Energy Scotland Grant and Loan. Landlords, businesses or property developers are not eligible for the funding.

Replace a fossil-fuel heating system

The heating system being replaced must be a fossil-fuel system, or an electric system that did not include a heat pump. 

Have a valid energy performance certificate
A valid EPC is less than 10 years old. If you need an EPC, we will sort it for you. Contact Aira today. 

Use an MCS-certified installer

To apply your grant and/or funding, you must have your heat pump installed by an MCS-certified installer. At Aira, all our installers are MCS-certified.

The application process depends on the grant you are applying for. In England and Wales, we’ll apply for the Boiler Upgrade Scheme on your behalf and deduct it from your quote. 

In Scotland, individuals must apply for the Home Energy Scotland Grant and Loan themselves through Home Energy Scotland. We are always on hand to guide customers through the process.

ECO4 is the latest iteration of the Energy Company Obligation Scheme (ECO). It is a government energy efficiency scheme in the United Kingdom that aims to tackle fuel poverty and reduce carbon emissions by providing funding for energy efficiency measures in eligible households.

ECO4 focuses on promoting the installation of energy-efficient heating systems like heat pumps and other energy-saving measures like insulation.

To find out if you're eligible for ECO4, contact your energy supplier or a certified ECO provider who can assess your eligibility

The Welsh Government's Warm Homes Nest scheme is a program designed to provide support and assistance to help vulnerable households, including those on low incomes or receiving certain benefits, to make their homes warmer, more comfortable and more affordable to heat. 

Through the scheme, eligible households can receive a range of free energy-saving measures, such as loft and cavity wall insulation and energy-efficient heating systems like heat pumps.

To find out if you're eligible for the Warm Homes Nest scheme in Wales, you can visit the scheme's official website or contact the Nest helpline.
 

Warmer Homes Scotland is designed to help people in Scotland who are struggling to stay warm and keep on top of energy bills make their homes warmer and more comfortable by installing a range of energy saving improvements. 

The Scottish Government is offering assistance to homeowners and private sector tenants struggling to heat their home, who have lived in their home for at least six months and who meet the eligibility criteria.

The improvements offered will depend on an assessment of the home conducted by Warmworks, who will assess your home and will recommend suitable improvements, which could include insulation and heating.

Potential improvements include: 

  • Wall insulation
  • Loft insulation
  • Draught-proofing
  • Central heating (including air source heat pumps)
  • Renewables

In most cases, the Scottish Government will meet all the costs.

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