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Install a heat pump for less with the BUS grant
Increase the value of your home by installing a heat pump
Heat Pump Grants in the UK: The Complete Guide (2025)
- You can get up to £7,500 towards a heat pump in England and Wales in 2025 through the Boiler Upgrade Scheme (BUS). Other grants include ECO4, Home Energy Scotland and NISEP in Northern Ireland.
- You may qualify if you own your home or rental property, have a low Energy Performance Certificate (EPC) rating (D-G), or are replacing an older gas, electric, or oil heating system.
- Grants run until 2026 - 2028, depending on the scheme and where you live, so early application is advised.
You’re likely one of many UK homeowners still relying on costly gas or electric heating. And while you may want to upgrade, the upfront cost (often over £10,000 for a 2-3 bedroom home) can be hard to justify. Thanks to government-backed heat pump grants, you can now reduce or remove the cost of heat pump installation. Whether you’re looking at air source heat pumps or ground source heat pumps, this guide explains in detail what support is available, who qualifies and how to apply.
We take it a step further by connecting you with up to 4 trusted, qualified heat pump installers for accurate quotes, needed for grant applications like BUS or ECO4. And with most grants closing between 2026 and 2028 and demand rising, now is the time to act.
Fill in our 30-second form below to save hours of research, avoid delays, and get the best prices.
- Quotes from local installers
- Payment by finance available
- Save £7,500 with BUS grant
Government grants for heat pumps available in 2025
In 2025, there are five main government grants for heat pumps in the UK. These schemes can help you cover part or all of the cost of switching to a low-carbon system.
- Boiler Upgrade Scheme (England & Wales): Up to £7,500.
- Energy Company Obligation (ECO4): Up to 100% of the installation cost.
- Home Energy Scotland (Scotland only): Up to £15,000 (£7,500 grant + £7,500 loan)
- Warm Homes Local Grants (England): Up to £15,000
- NISEP (Northern Ireland): Up to 100% depending on income and scheme.
Funding applies to different systems, like an air to water heat pump, and hybrid heat pump setups. Some also cover upgrades that include both a heat pump and solar panels, as part of wider energ-saving improvements.
How much you get depends on your location, EPC rating, household income, and whether you're also upgrading insulation or heating controls. For example, air to air heat pumps typically cost around £7,000 for a 9.5 kw system hooked up to a standard 2-3 bedroom home.
The table gives an overview of the grants you can apply for to lower your heat pump installation cost.
| Grant name | Region | Max funding | Eligible installs | Runs until |
|---|---|---|---|---|
| Boiler Upgrade Scheme (BUS) | England & Wales | £7,500 | Air source and ground source heat pumps | March 2028 |
| ECO4 Scheme | England, Wales & Scotland | Up to 100% of the cost | Whole-house retrofits, incl. Heat pumps | March 2026 |
| Warm Homes Local Grant | England | Up to £15,000 | Air source and ground source heat pumps | 2028 |
| Home Energy Scotland Grant and Loan | Scotland | Up to £15,000 (£7,500 grant + £7,500 loan) | Air source, ground source, and water-to-water heat pumps | Ongoing (reviewed yearly) |
Did you know? 0% VAT applies to all domestic heat pump installs until March 2027, even without a grant.
Let’s explore all grants for heat pumps in more detail.
Boiler Upgrade Scheme (BUS)
Available until March 2028, the Boiler Upgrade Scheme (BUS) government-funded heat pump grant offers up to £7,500 to help you replace your old heating system with a modern, energy-efficient heat pump (including options like a water source heat pump).
Benefits of BUS
The BUS grant makes switching to a heat pump far more affordable.
- It covers a flat £7,500 for your installation cost.
- A discount is applied upfront to your quote, so you don’t need to pay in full and claim later.
- BUS can reduce your air source heat pump cost by up to almost 60% or even 100% (for low-cost options). Ground source heat pump cost are generally higher due to the excavation and installation work involved, but grants can still significant lower the upfront cost.
Eligibility for Boiler Upgrade Scheme
To qualify, you must:
- Own your home, be a private landlord, or have built the property yourself (self-built homes qualify, new builds by developer-build new homes do not).
- Be replacing an old heating system running on gas, oil, electric or LPG.
- Have an Energy Performance Certificate (EPC) rated D-G, showing that key insulation (e.g., loft or cavity wall) is already complete. If it isn’t, you’ll need to install it and get an updated EPC before applying.
This is particularly important for older homes, as they’re more likely to have lower EPC ratings and need insulation upgrades, often a must-have for BUS applications to cover cost of heat pumps in Wales.
How to apply for BUS
The Boiler Upgrade Scheme (BUS) application must be submitted through MCS-certified installers, professionals approved to fit renewable heating systems to government standards.
Here’s what to do:
- Request a detailed heat pump quote from an MCS-certified installer (we can connect you with our network of qualified installers).
- The installer then applies for the grant on your behalf.
- Once approved, the £7,500 grant is taken off your quote, immediately cutting your upfront cost.
The BUS grant approval process can take 2-3 weeks but expect longer wait times with high demands. To avoid hold-ups, we can connect you with up to 4 qualified installers across the UK, ready to quote.
Fill in our quick 30-second form below to save hours of research, avoid delays, and get up to 4 free quotes.
- Quotes from local installers
- Payment by finance available
- Save £7,500 with BUS grant
Energy Company Obligation (ECO4)
Available across the UK until March 2026, the Energy Company Obligation (ECO4) can fully cover the cost of your heat pump installation and other upgrades. If your household qualifies, it pays for a full home upgrade, including insulation, heating controls, and a new heat pump, to lower your energy bills and improve your home’s energy rating.
Benefits of ECO4 scheme
The ECO4 fully funds home upgrades for homes that need the most support. It’s ideal for properties with high heat loss, such as heat pumps in old houses or heat pumps for flats.
- Covers 100% of heat pump installation costs (if you qualify).
- May include smart thermostats, insulation, or boiler removal.
- Increase EPC rating and lower energy bills.
- Doesn’t cover stand-alone upgrades like heat pump water heater, as the focus is on whole-home improvements.
Eligibility for ECO4
The ECO4 scheme is available to all residents across the UK, including those looking for support with heat pumps in Northern Ireland. You may qualify if:
- You or someone in your household receives certain means-tested benefits (e.g. Universal Credit, Pension Credit).
- Your home has an EPC rating between D and G.
- You own or privately rent the property (renters need landlord's approval).
How to apply for ECO4
Applying for the ECO4 heat pump scheme is simple but must go through a certified installer.
- Contact a certified ECO4-approved installer
- They’ll assess your home and check if you qualify.
- If approved, they’ll handle everything from paperwork to installation at zero cost to you.
Note: An air to air heat pump isn’t covered by ECO4, but still qualifies for 0% VAT until 2027.
Warm Homes Local Grants
Available until 2028, Warm Homes Local Grants, a council-run programme serving England only. They offer up to £15,000 to help low-income homes upgrade to low-carbon heating, including heat pump installation. If you earn under £36,000 per year or receive benefits, you may qualify for partial or full funding.
Benefits of Warm Homes Local Grants
This grant helps lower the cost of heating upgrades for households with high bills and low EPC ratings.
- Up to £15,000 for a heat pump, including an air to water heat pump, air, or a ground-source system.
- Additional £15,000 per home for upgrades like insulation and other energy-saving improvements.
- Funding caps apply per property, but local councils may average costs across homes in the same project.
Eligibility of Warm Homes Local Grants
You may qualify if:
- You earn under £36,000/year or receive qualifying benefits (i.e. Universal Credit).
- Your home has an EPC rating of D-G, or is considered fuel-poor.
- You live in an area with an active local funding programme (e.g. Local Authority Delivery or Home Upgrade Grant schemes).
How to apply for Warm Homes Local Grants
Check your local council or regional energy service to see if your area is included. An approved installer will:
- Confirm you are qualified and which funding option is suitable for you.
- Assess your home, help answer “What size heat pump do I need, and check if your property meets technical requirements.
- Provide accurate quotes and manage the paperwork for your heat pump grant.
To connect with up to 4 qualified heat pump installers who will provide accurate quotes, fill in our 30-second form below. This will save you hours of research and help you get the best options.
- Quotes from local installers
- Payment by finance available
- Save £7,500 with BUS grant
Home Energy Scotland (HES)
Home Energy Scotland (HES) is a year-round Scottish government-funded scheme for heat pumps. If you’re a Scottish homeowner or private renter, you can get up to £15,000 in combined grants and 0% interest loans to install a heat pump and energy-saving upgrades.
Benefits of HES
HES helps Scottish households lower their energy bills, making it one of the leading schemes for installing heat pumps in Scotland.
- Up to £15,000 in combined funding for your heat pump and related home improvements.
- Covers insulation and upgrades like heat pump underfloor heating.
- Helps cut heating costs and reduce heat loss in older or rural homes.
Eligibility for HES
You may qualify if:
- You live in Scotland and own or privately rent your home (landlord approval needed)
- You must be struggling with heating costs or receiving eligible benefits like Pension Credit or Universal Credit.
- Your home has an EPC rating of D-G and meets insulation or technical standards.
How to apply for HES
The application process is simple and fully supported by the HES team:
- Call 0808 808 2282 or apply online via the Home Energy Scotland website.
- Arrange a home visit by an energy surveyor to assess your eligibility and recommend upgrades.
- Approved contractors carry out the heat pump installation and handle the grant paperwork.
Northern Ireland Sustainable Energy Programme (NISEP)
With the Northern Ireland Sustainable Energy Programme (NISEP), you can receive up to 100% funding to upgrade your energy systems, including heat pump installations across Northern Ireland. Funding is delivered through approved suppliers and may also cover insulation, smart heating controls, or a heat pump and solar panel system.
Low-income earners (with an annual income between £28,000 and £35,000) may qualify for full funding. Households with higher incomes, or those not meeting the full funding criteria, can still receive partial grants, typically covering around 50% of the heat pump installation cost.
- Region: Northern Ireland
- Max funding: Up to 100% for low-income households
- Eligibility: Gross income below 28,000 (single) or 35,000 (couple/single-parent)
- Also covers: Insulation, smart controls, and solar panel setups
- Application: Through approved NISEP suppliers
How to apply for NISEP
You must apply through a NISEP-approved supplier. Homeowners cannot directly apply. So, if you're considering a DIY project or arranging your own heat pump installation, NISEP funding will not apply unless a registered supplier carries out the work. Grant availability and funding levels vary by supplier and are reviewed yearly, so check for active offers before starting your project.
Do you want to get a heat pump with a grant?
Getting a heat pump with grants is possible, but only if you follow the proper steps. Most grants for heat pumps, such as the Boiler Upgrade Scheme (BUS), require a quote from an MCS-certified installer before you can apply. In fact, for the BUS, the installer must apply on your behalf.
They’ll also help determine the system for your home, whether you need a regular system (like an air to water heat pump for well-insulated homes) or a high temperature heat pump for older or poorly insulated properties.
We make the process easier by connecting you with our network of MCS-certified installers across the UK.
✅You’ll receive up to 4 free, non-commitment quotes, saving you hours of research and helping you get started faster.
Fill in the 30-second form to get started now.
- Quotes from local installers
- Payment by finance available
- Save £7,500 with BUS grant
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