The UK government is offering £7,500 grants for air source heat pumps and £5,000 for ground source heat pumps through the Boiler Upgrade Scheme (BUS), extended to March 2028. Combined with ECO4 fully-funded installations for eligible households, heat pump grants have never been more generous. Over 35,000 BUS vouchers were issued in 2024 — a 76% increase on 2023.
Boiler Upgrade Scheme (BUS): £7,500 for air source heat pumps, £5,000 for ground source heat pumps. Available to all homeowners in England and Wales regardless of income. No means testing. Applied by your MCS-certified installer — the voucher reduces your bill directly. Average ASHP cost after grant: £3,000–£6,500.
ECO4 (Energy Company Obligation): Fully funded heat pump installations for qualifying households — zero cost to the homeowner. Eligibility: receiving benefits (Universal Credit, Pension Credit, Child Tax Credit, etc.) OR living in a property rated EPC D, E, F, or G in Council Tax bands A–D. Funded by energy suppliers via obligated parties.
Home Energy Scotland (Scotland only): Interest-free loans up to £7,500 for heat pumps, plus potential cashback grants of £7,500–£9,000 depending on rural location. Combined with BUS, Scottish homeowners can receive up to £15,000+ in support.
Warm Homes Nest (Wales only): Free heat pump installation for eligible Welsh households. Income-based eligibility plus property-based criteria. Managed by Energy Saving Trust on behalf of Welsh Government.
Air source heat pump: Total cost £10,000–£14,000. After £7,500 BUS grant: £2,500–£6,500. Running cost: £600–£900/year (vs £1,200–£1,800 for gas boiler). Annual savings: £300–£900.
Ground source heat pump: Total cost £18,000–£35,000. After £5,000 BUS grant: £13,000–£30,000. Running cost: £500–£700/year (COP 4.0–4.5 vs ASHP 3.0–3.5). Highest efficiency but higher upfront cost due to borehole/trench drilling.
You do not apply directly. Your MCS-certified heat pump installer applies on your behalf through the Ofgem portal. They submit your property details, the proposed system, and a quote. Ofgem issues a voucher within 3–5 working days which is valid for 3 months. The grant is deducted from your installation bill — you never handle the money.
Yes, if you qualify for ECO4. Homeowners receiving qualifying benefits or living in energy-inefficient properties (EPC D–G) can receive a fully funded heat pump at zero cost. The scheme covers the complete installation including any required electrical upgrades and radiator modifications. Contact your energy supplier or an ECO4-registered installer to check eligibility.
Yes. The Boiler Upgrade Scheme has been extended to March 2028 with increased funding. The ASHP grant was raised from £5,000 to £7,500 in October 2024. Budget allocation for 2025–2028 is £1.37 billion. There is no cap on the number of vouchers — all eligible homeowners can apply through their MCS-certified installer.
No. The BUS grant requires that the heat pump replaces your existing fossil fuel heating system, but removal of the old boiler can happen as part of the installation. Many homeowners keep the gas boiler as backup during their first winter with a heat pump, then have it removed. Your installer handles the full transition.
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