Heat pump grants – and how to get one

The government is offering heat pump grants worth up £7,500 to help you switch from your existing gas boiler. Here's how to apply

Angela Kerr Director, Editor

What is the Government’s Boiler Upgrade Scheme?

The government’s Boiler Upgrade Scheme offers grant to cover part of the cost of replacing fossil fuel heating systems (including oil, gas and electric) with a heat pump or biomass boiler. These grants will help homeowners with the upfront cost of low carbon heating technologies.

The scheme started in April 2022 and will run until 2025.

Government heat pump grants: How much will I get?

When heat pump grants were first announced, households joining the scheme would receive a £5,000 grant to help cover the cost and installation of an air source heat pump or £6,000 for a ground source heat pump as these are more expensive.

However, in September 2023, the Prime Minister announced the amount offered with government heat pump grants would be increased on 23 October 2023:

• Air source heat pump grants have been increased to £7,500
• Ground source heat pump (including water source heat pumps and those on shared ground loops) have also been increased to £7,500

According to the government, if you applied for heat pump grants before 23 October 2023 and your installer has not fitted your new heat pump yet, you should speak to them about cancelling your grant and reapplying to get the increased amount.

There are also £5,000 grants available for people installing a biomass boiler. However you’ll only be eligible for a grant for biomass boilers in rural locations and if your property isn’t connected to the gas grid. The value of this grant hasn’t changed.

This cash is designed to help cover the cost of the heat pump or biomass boiler, the installation and any required changes to your home such as if you need to have new radiators installed that work with your heat pump.

Will heat pump grants cover all the costs?

It’s unlikely that £7,500 heat pump grants will cover the full costs of installing a heat pump. And if it doesn’t you will need to pay the difference. While costs vary depending on the type of heat pump and the size of your house, installing a new system can cost around £10,000 on average. 

The idea of the heat pump grants is to make the cost of installing a heat pump similar to that of getting a new boiler. Read our guide on How to make your home more energy efficient

Don’t forget to compare energy providers to ensure you are on the best deal available. Use our free tool to compare energy deals.

Am I eligible for the Boiler Upgrade Scheme?

To be eligible for the Boiler Upgrade Scheme and access heat pump grants, you’ll need to meet the following criteria:

• You must own the property, this includes if it’s a second home or Buy to Let property
• You must be replacing a fossil fuel system
• The property must be in England and Wales
• When the scheme was first announced you were required to have a valid Energy Performance Certificate with no outstanding recommendations for loft or cavity wall insulation, except in some exemptions outlined by Ofgem. However, in March 2024 the government announced it would no longer be mandatory to install cavity wall or loft insulation to use the scheme.

Also, heat pump grants won’t be available to those in social housing and new build properties that haven’t been finished yet, unless you’re building your own home.

If you live in Scotland, you might be able to get an interest-free loan or a grant to make your home more energy efficient.

While Northern Ireland has a different energy system.

What are the exclusions to the government heat pump grant?

There are some exclusions to the government’s heat pump grant scheme including:

• You cannot get a government heat pump grant for a hybrid system, such as a combination of a gas boiler and air source heat pump.
• You cannot get a heat pump grant to replace a low carbon heating system.
• The system you install must meet certain standards, such as minimum efficiency levels. Your installer will advise you on this.
• The system’s maximum capacity must be less than 45kWth
• Properties that have already received funding from government or an Energy Company Obligation for the purchase or installation of the heat pump or biomass boiler

New builds and heat pump grants

If you are buying a new build house and it has not yet been finished by the developer it will not be eligible. However, if you move into a finished new build property that has a fossil fuel boiler you may be able to get a heat pump grant under the scheme.

Self build properties and heat pump grants

For self-build properties, you may be eligible for a heat pump grant providing:

• You or the original owner built it yourself or you paid a builder to build it
• It has never been owned by a business or organisation

Heat pump grants: How do I apply?

Your installer will apply for the grant on your behalf. The value of the grant will be discounted off the price you pay.

We recommend you get quotes from more than one installer to make sure you’re getting the best value for money.

1. You find an MCS certified installer that is able to carry out the work. (The MCS quality assurance scheme ensures that installers are competent, and the products they use meet the correct standards.)
2. The installer advises you on whether an installation is eligible for a grant.
3. You agree a quote for the installation.
4. The installer applies for the grant.
5. You confirm that the installer is acting on your behalf when you’re emailed by Ofgem.
6. The firm will then have a set amount of time to complete the installation, typically three months for most installations.
7. And once it’s finished the installer will generate a ‘microgeneration certification certificate’ that confirms eligibility criteria have been met. They’ll then submit this to Ofgem which will pay the grant amount directly to the installer. And you’ll be sent a bill for the outstanding amount.

Bear in mind this scheme will only fund 90,000 pumps over three years so if you’re keen to take advantage of the scheme it’s a good idea to start looking into it sooner rather than later.

What is a heat pump?

Air source heat pumps work a bit like a fridge in reverse; they absorb heat from the outside air into a liquid refrigerant. A pump compresses the liquid to increase the temperature, then condenses the liquid to release heat. This heat is then sent to radiators and the hot water cylinder. While ground source heat pumps draw heat from the ground.

Because they extract heat from the environment, which is possible even at low outside temperatures, heat pumps, which are powered by electricity, produce around three times the energy they use. This makes them much more efficient than a gas boiler.

For tips on getting the most out of your boiler and central heating read our guide Get your heating working for you

Are heat pumps different to run?

The most noticeable difference is you won’t get the quick boost in temperature you get when you’re feeling cold and put the heating on. Heat pumps heat radiators at a lower temperature than gas boilers so your house will warm more slowly.

Also, you’ll need space outside for the external condenser unit, this needs to be close to or attached to your home.

What happens if things go wrong with my heat pump?

If you experience problems with your heat pump or biomass boiler, such as underperforming equipment, repairs or safety issues, speak to your installer first.

However, if you have problems with your installer, find information of what you can do at Microgeneration Certification Scheme (MCS) website.

Heat pumps and VAT

From 1 April 2022 to 31 March 2027, there is 0% VAT on the installation of energy-saving materials including heat pumps and biomass boilers.

Other energy grants

Energy grants can be used to help pay your energy bills and pay for a range of energy efficiency improvements to your home. See our guide for more advice on what energy grants are available, how can you find out if you’re eligible for them and how do you apply. And see our guide for more advice on budget friendly ways to keep your house warm during the colder months.

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