🌡️ 400% More Energy-Efficient Heating With Heat Pumps

Switching to an air source heat pump (ASHP) can save energy and cut carbon emissions. In fact, ASHPs often deliver 3–4 units of heat for each unit of electricity used, making them roughly 300–400% efficient. As a renewable heating solution, they produce far fewer CO₂ emissions than gas or oil boilers. Best of all, the UK government offers generous grants to help pay for installation. Under the Boiler Upgrade Scheme (England and Wales only), you can get £7,500 towards an air source heat pump installation. This scheme is part of the government’s low-carbon heating initiative, providing grants to replace fossil-fuel heating (gas, oil, LPG or electric boilers) with efficient heat pumps.

✅ Ready to apply? See our step-by-step guide below to check your eligibility and claim your ASHP grant today!

Boiler Upgrade Scheme Grants

The Boiler Upgrade Scheme (BUS) is a UK government heat pump scheme covering England and Wales. Under BUS, you get one grant per property. Current grant levels are:

• £7,500 towards an air source heat pump (ASHP).

• £7,500 towards a ground source heat pump.

• £5,000 towards a biomass boiler.

No grants are given for hybrid systems or replacing an existing low-carbon system. Your heat pump must meet MCS quality standards (your installer will advise on this). Note that BUS only covers England and Wales; if you live in Scotland or Northern Ireland, other schemes (e.g. Home Energy Scotland) offer loans/grants for heat pumps.

In addition to the Boiler Upgrade Scheme, ECO4 (Energy Company Obligation) can provide further support to qualifying households. Low-income or benefit-receiving households may get an ASHP installed for free under ECO4. ECO4 often bundles insulation improvements with the heat pump (e.g. loft or cavity wall insulation) to maximise efficiency.

✅ Why Switch to Heat Pump Technology?

• Save Big: Cut your energy bills by up to 40% annually
• Go Greener: Reduce your carbon footprint and help protect the environment
• Stay Warmer: Enjoy consistent, modern heating — even in extreme cold

🌍 A Government-Backed Mission to Heat Smarter

Did you know that 77% of UK home heating still relies on fossil fuels? The government is tackling this by:

• Targeting a 50% reduction in home heating emissions by 2035
• Aiming to install 600,000 heat pumps every year by 2028

By applying for a heat pump grant, you’re not just upgrading your home — you’re supporting the UK’s net zero goals.

🔁 How Does a Heat Pump Work?

Even when it’s freezing outside (as low as -20°C), an air source heat pump extracts natural heat from the air and transfers it inside your home:

1. Heat Collection: The outdoor unit pulls in cold air and uses a refrigerant to absorb heat.
2. Compression: The refrigerant evaporates and is compressed to raise its temperature.
3. Heat Delivery: Warm air or hot water is circulated inside your home.
4. Cycle Repeats: The cooled refrigerant returns to the outdoor unit to restart the process.

This cycle uses a small amount of electricity to generate a large amount of heat, making it a highly energy-efficient and eco-friendly system.

How to Apply for a Heat Pump Grant

Follow these steps to secure your air source heat pump grant:

1. Find an MCS-certified installer. Use the MCS directory or trusted local companies to get quotes. We recommend obtaining at least 2–3 quotes to compare.

2. Confirm eligibility. Have your chosen installer verify that your property qualifies (you own the home and are replacing a fossil-fuel boiler, with a valid EPC). They will check the scheme rulesgov.ukgov.uk.

3. Finalize the quote. Agree on the installation scope and price. The installer will deduct the £7,500 grant from the cost upfront (so you pay the balance)gov.uk.

4. Installer applies for the grant. Your installer will submit the Boiler Upgrade Scheme application on your behalf via the official Ofgem portalgov.uk.

5. Installation and commissioning. Once approved, the heat pump is installed. Ensure it’s commissioned within 120 days of your application to qualifygov.uk.

6. Enjoy your new heating system! The £7,500 grant will be deducted from your bill. (The scheme may include inspections by Ofgem or MCS to verify the installationgov.uk.)

The £7,500 grant comes off your final installation cost automatically (you don’t receive it as cash). For step-by-step guidance, see our How-to-Apply section or ask our specialists to walk you through the process.

Other Renewable Heating Grants

Besides ASHP-specific grants, the UK has additional renewable heating support:

• ECO4 (Energy Company Obligation): For low-income homes, ECO4 offers boiler and insulation upgrades. Qualifying households (e.g. on certain benefits) can get both loft/cavity insulation and a heat pump, potentially at no cost to yougrs-eco.co.ukgrs-eco.co.uk. If you or someone in your home receives income-based benefits, ask an ECO4 installer if you could have a free ASHP and insulation under the schemegrs-eco.co.uk.

• Home Energy Scotland (for Scotland): Offers up to £7,500 in grant (or £9,000 in rural areas) plus a loan of up to £7,500 for renewable heating installationsenergysavingtrust.org.uk. This means Scottish homeowners can effectively get £15,000 towards heat pumps/biomass.

• Other local grants: Some councils and housing associations offer their own support. Check with your local authority for any free boiler grants, free insulation grants, or first-time central heating grants that might apply in conjunction with a heat pump installation. For example, Carbon Reduction Grants also manages Free Boiler Grants, Free Insulation Grants, and First-Time Central Heating Grants – see those pages for eligibility.

With all these options, upgrading to a renewable heating system is more affordable than ever.

Frequently Asked Questions

Q: Am I eligible for a free heat pump?
A: You can get a government grant towards a heat pump, but “free” depends on your situation. Under the Boiler Upgrade Scheme, if you own your home and are replacing a fossil-fuel boiler, you can claim £7,500 towards an ASHP. If you meet ECO4 income-based criteria (e.g. on certain benefits), ECO4 can cover 100% of the installation cost, effectively a free installation. Note: social housing and most new-build homes are not eligible under BUS

Q: What exactly does the Boiler Upgrade Scheme cover?
A: The BUS is a renewable heating grant program. In England and Wales, it covers part of the cost of installing an ASHP or other low-carbon heat system. Specifically, you can get one grant per property: up to £7,500 for an air source heat pump (or ground-source) and £5,000 for a biomass boiler. Hybrid systems (e.g. part-gas, part-heat pump) are not eligible.

Q: How do I apply for the ASHP grant?
A: The grant application is handled by your installer on the Ofgem portal. Simply hire an MCS-certified installer, confirm eligibility, and agree a quote. The installer will apply for the BUS grant on your behalf and deduct £7,500 from your cost. You don’t apply directly; the installer manages the paperwork.

Q: Do I need an EPC to apply?
A: Yes, your property must have a valid Energy Performance Certificate. If you don’t have one, obtain an EPC first (energy assessors can issue one). An EPC is also useful to show your home’s efficiency level.

Q: Are there other heating grants I can combine with this?
A: Potentially. You cannot double-dip on the same technology (you can’t claim BUS on top of a previous ASHP grant). But you can apply for separate insulation or boiler grants alongside. ECO4 can often be combined with BUS (ECO4 covers insulation/benefits, BUS covers ASHP). Always check with providers for combined offers.

For more answers, see our Other FAQs.

Get Started

Ready to upgrade to an efficient, eco-friendly heat pump? Contact Carbon Reduction Grants to check your heat pump grant eligibility and get a free quote. Our friendly experts will guide you through the government heat pump scheme and can link you to our Free Boiler Grants or Insulation Grants programs as needed. Don’t miss out on up to £7,500 off your new air source heat pump – apply today!