Air source heat pumps (ASHPs) are an environmentally friendly alternative to a traditional gas or oil boiler because they don’t burn fossil fuels, and as a result they release significantly less carbon dioxide. While installing an air source heat pump is a big investment, there are ASHP grants available to reduce the upfront costs.

What types of ASHP grants are available?

The type of grant you choose depends on several factors, including where you live and whether you own your home.

If you’re a homeowner living in England or Wales, there’s the £7,500 Boiler Upgrade Scheme. In Scotland, the £7,500 Home Energy Scotland grant is available, plus £1,500 for those in rural areas.

For homeowners and renters on low incomes, there are the following options:

• England: The ECO scheme
• Wales: The Nest scheme
• Scotland: Warmer Homes Scotland

How do I apply for a heat pump grant?

Heat pump grants are awarded by different organisations, so the application process will depend on the type of grant you’re applying for.

Heat Pump Grants for Homeowners

England and Wales

The Boiler Upgrade Scheme was established in 2022 and replaced previous schemes, including the Renewable Heating Incentive and the Clean Heat Grant. The grant covers up to £7,500 towards the cost of replacing a fossil fuel boiler to a low-carbon alternative, which includes air source heat pumps.

You can check your eligibility for the Boiler Upgrade Scheme through your local MCS registered Heat Pump installer. They will include the grant as a discount in the quote for your heat pump and if you move forward with the purchase, they’ll process the application for you.

You are eligible for the grant if:

• You own the property
• You’re replacing a fossil fuel system, including gas, oil or LPG boilers
• The property has a valid Energy Performance Certificate (EPC)
• You are undertaking a self build

Scotland

Homeowners can apply for the Home Energy Scotland scheme directly for a grant of up to £7,500 (or £9,000 in certain remote areas), and an interest-free loan of up to £7,500 to cover any outstanding costs. However, unlike the Boiler Upgrade System, installers can’t apply for the grant on your behalf. To apply, you can contact Home Energy Scotland to talk to an advisor about your options and they will explain the next steps if you want to proceed.

Heat Pump Grants for Homeowners and Renters on Low Incomes

England

The ECO scheme is the current version of the Energy Company Obligation scheme. This grant is aimed at low-income homeowners and renters who want to improve the energy efficiency of their home and benefit from lower utility bills. In addition to heat pumps, ECO can be used for insulation too.

You are eligible if:

• You live in a home that has an EPC of D or below
• You receive one of the following benefits:
  • Pension Guarantee Credit
  • Income-related Employment and Support Allowance (ESA)
  • Income-based Jobseeker’s Allowance (JSA)
  • Income Support
  • Tax Credits (Child Tax Credits and Working Tax Credits)
  • Universal Credit
  • Housing Benefit
  • Pension Credit Saving Credit

ECO is the responsibility of energy companies and you don’t need to be a customer of an energy supplier in order to benefit from their assistance. You can apply to any of the companies listed on the OFGEM ECO website for their support with your heat pump installation.

Wales

Nest is the Welsh government’s scheme to help reduce the cost of upgrades like central heating systems, insulation, solar panels and heat pumps. Applying for the Nest grant is simple – just call their freephone number and one of their advisors will talk you through the process.

Scotland

In Scotland, the Warmer Homes Scotland is a government programme designed to help keep homes warm and assist people who are struggling to pay their energy bills. It’s open to homeowners and private tenants in Scotland. They will arrange for an expert to visit your property to assess which improvements are right for you, which can include heat pumps. In the majority of cases, all of the costs are covered by the Scottish Government.

How much will a heat pump cost with an ASHP grant?

The cost of installing an air source heat pump ranges depending on factors such as property size, insulation, and your existing set-up. In addition to the heat pump installation itself, a property may need new pipework or larger radiators, for example, to make the pump efficient for the home. For a tailored quote, why not contact us to arrange a quote?

Does a Heat Pump Grant Cover All Costs?

While a heat pump grant will cover a significant portion of the cost of purchasing and installing an ASHP, it doesn’t always cover the full costs, and you will need to pay the difference. ASHP grants make the process of transitioning to energy efficient heating much easier and more accessible.

Contact Us

There are several options when it comes to ASHP grants, depending on your circumstances, to make the cost of installing a heat pump easier to manage. For more information on how you can benefit from energy efficient heating systems, contact Village Heating today.