Yes. And honestly? You’d be foolish not to explore it. The UK government is handing out £7,500 per household through the Boiler Upgrade Scheme. That’s real money off a heat pump installation. But here’s what most people get wrong: they assume it’s complicated. It’s not. You just need to know the rules.
That’s why we have compiled this guide for homeowners to simplify things for them. This article explains the availability, eligibility, and application process to avail heat pump grant for their households.
Available Energy Efficiency Grants
Two schemes exist: the Boiler Upgrade Scheme (BUS) and ECO4. BUS is straightforward. ECO4 is for benefit recipients. Let’s focus on BUS first, it’s available until March 2028.
The grant gives you £7,500 for either air source or ground source heat pumps. Simple. But don’t expect this to cover everything.
| System Type | Total Cost | After Grant | Your Bill |
| Air Source Heat Pump | £8,000-£18,000 | -£7,500 | £500-£10,500 |
| Ground Source Heat Pump | £11,500-£27,500 | -£7,500 | £4,000-£20,000 |
Most people end up paying £500 to £10,500 out of pocket for an air source system. That’s less than buying a second-hand car. For something that’ll heat your home for 20+ years.
Can You Actually Qualify?
Here’s where people trip up. The eligibility criteria aren’t suggestions; they’re requirements. Miss one? You’re out.
Do You Own Your Property?
You must own it. Or have written consent from the owner if you’re renting. New-build homes are excluded entirely. Self-builds? You’re fine.
What’s Your Current Heating System?
It must be fossil fuel-based. Gas, oil, LPG, or direct electric heating like storage heaters all qualify. Already have a hybrid system mixing gas with a heat pump? Sorry, you’re ineligible. The government won’t pay for half-measures.
Does Your Home Meet Energy Standards?
This is the dealbreaker for most people. You need an Energy Performance Certificate (EPC) rated D or above. Got an E, F, or G rating? BUS won’t touch you.
Why does this matter? Because installing a heat pump in a poorly insulated home is like pouring water into a leaky bucket. The government knows this. They won’t subsidise inefficiency.
EPC Requirements at a Glance:
- Rating D or above: BUS eligible
- Rating E, F, or G: Consider ECO4 instead (if you qualify)
- No EPC at all: Get one for £60-£150
An EPC lasts 10 years. Get it done by an accredited assessor. Takes one visit. No excuses.
How Does the Application Process Work?
Here’s the part everyone overthinks. You don’t apply for the grant yourself. Your installer does it. That’s right, you’re off the hook for paperwork.
The process goes like this: Get quotes from MCS-certified installers (Microgeneration Certification Scheme, it’s the industry standard). They’ll survey your property for free. Once you choose one, they submit everything to Ofgem.
Ofgem reviews it in 2-4 weeks. Approval comes as a voucher sent directly to your installer. You never touch it. It’s automatically deducted from your final bill.
The voucher expires in three months for air source systems, six months for ground source systems. Miss the deadline? Reapply. But that’s amateur hour; choose an installer who actually knows what they’re doing.
What Happens During Installation?
Air source systems take one day to install. One. But preparation matters.
Your installer will check your existing pipework. Most homes need upgrades from 15mm to 22mm pipes for optimal performance. Got microbore pipework from the 1980s? That’s getting replaced.
Then there’s the radiator question. Heat pumps run cooler than gas boilers, 35-55°C versus 60-80°C. If you have undersized radiators, you’ll need bigger ones or supplementary heating. Budget an extra £2,000-£5,000 if this applies to you.
Electrical capacity is another factor. Heat pumps draw serious power. Your Distribution Network Operator might need to upgrade your supply. This adds 2-4 weeks to the timeline. Plan accordingly.
Does This Actually Save Money?
Let’s do the math. Because feelings don’t heat homes, kilowatts do.
| System | Annual Cost | 15-Year Total | 20-Year Total |
| A-rated Gas Boiler | £760-£1,700 | £11,400-£25,500 | £15,200-£34,000 |
| Air Source Heat Pump | £800-£1,200 | £12,000-£18,000 | £16,000-£24,000 |
Over 15 years, they cost roughly the same. But here’s the kicker: your gas boiler dies at year 15. Then you’re buying another one for £2,700-£7,300. Meanwhile, your heat pump keeps running.
Over 20 years, accounting for boiler replacement grants, you save £2,000-£3,500. And your heat pump still has 5-10 years of life left.
Add the £7,500 grant? Your break-even point hits around year 8-10. Everything after that is pure savings.
What Disqualifies You?
Let’s be blunt. These situations kill your application instantly:
- You’ve already claimed government funding for a heat pump or biomass boiler
- Your new system exceeds 45 kWth capacity (most homes are nowhere near this)
- You’re installing a hybrid system
- You live in social housing
- Your property is a new build
No appeals. No workarounds. If you tick any of these boxes, stop reading and look at ECO4 instead.
What About ECO4?
ECO4 is the alternative for benefit recipients. It can cover 100% of installation costs. But eligibility is stricter.
You must receive Universal Credit, Income Support, Pension Credit, Housing Benefit, Child Tax Credit, Working Tax Credit, or Employment and Support Allowance. Your EPC must be D or lower. Your boiler must pre-date 2005.
The upside? ECO4 bundles everything: insulation, solar panels, smart controls, the works. The downside? You can’t apply directly. You need an approved ECO4 installer or your local authority to process it. ECO4 runs until March 2026. If you qualify, move fast.
Should You Actually Do This?
The decision is simple. If your gas boiler is 10+ years old, your home has decent insulation (EPC D+), and you have outdoor space for the unit, this is a no-brainer.
Planning to stay in your home for 10+ years? Do it. Selling within 5 years? Maybe skip it, you won’t recoup the upfront costs fast enough.
One more thing: the UK is phasing out fossil fuel heating in new builds from 2025 onward. Existing homes will follow. Getting ahead of this now, with a £7,500 subsidy, beats waiting for forced upgrades later when grants might not exist.
The Bottom Line
Contact 2-3 MCS-certified installers. Get free surveys. Compare quotes. Ask about their experience with your property type and any electrical upgrades required.
Get your EPC if you don’t have one. It’s £60-£150 and takes 1-2 weeks. Once you’ve chosen an installer, let them handle the Ofgem application. Their MCS certification guarantees they can claim the grant properly.
That’s it. No mystery. No bureaucracy. Just a straightforward path to cheaper, cleaner heating with thousands of pounds in government money backing you up.
