If you’re thinking about installing an air source heat pump, you may be able to reduce the cost through a government grant.
The Boiler Upgrade Scheme (BUS) provides grants towards eligible air source heat pump installations in England and Wales, helping homeowners and some landlords replace older heating systems with lower-carbon alternatives.
Eligible households can currently receive a grant of up to £7,500 towards an air source heat pump installation. Some eligible off-gas-grid oil or LPG properties may qualify for up to £9,000 between 21 July 2026 and 31 March 2027.
What Is an Air Source Heat Pump Grant?
An air source heat pump grant helps reduce the upfront cost of replacing an existing heating system with an eligible air source heat pump.
The funding is available through the Boiler Upgrade Scheme and is applied for by an MCS-certified installer on your behalf.
How Much Can You Get?
- Standard grant: Up to £7,500.
- Eligible off-gas-grid oil or LPG properties: Up to £9,000 (between 21 July 2026 and 31 March 2027).
The grant is deducted from your installation costs rather than being paid directly to you.
Who Is Eligible?
You may qualify if:
- Your property is in England or Wales.
- You own the property or are otherwise eligible under the scheme rules.
- The installation is completed by an MCS-certified installer.
- The property and heating system meet the Boiler Upgrade Scheme requirements.
Read our full guide to Boiler Upgrade Scheme Eligibility.
How Do You Apply?
You do not apply directly for the grant.
The process is:
- Choose an MCS-certified installer.
- Receive a property assessment and quotation.
- Your installer submits the Boiler Upgrade Scheme application.
- Ofgem checks the application.
- The installation is completed.
- The grant is deducted from your final invoice.
Read more in How To Apply For The Boiler Upgrade Scheme.
Are Air Source Heat Pumps Worth It?
Whether an air source heat pump is right for your home depends on factors such as:
- Your property’s insulation.
- Your existing heating system.
- Your energy usage.
- The installation cost after the grant.
- The expected running costs.
A properly designed and installed system can reduce carbon emissions and may lower heating costs in suitable properties.
What If the Installation Goes Wrong?
Installing an air source heat pump is a consumer contract for goods and services.
If the installer fails to carry out the work with reasonable care and skill, you may have rights under the Consumer Rights Act 2015.
You may also have additional protection if you paid by credit card or another eligible payment method.
People Also Asked
Can I replace my gas boiler with an air source heat pump?
Yes. Many Boiler Upgrade Scheme installations replace existing gas boilers with eligible air source heat pumps.
Do I receive the grant directly?
No. The grant is deducted from your installation costs by the installer.
Can landlords apply?
Eligible landlords may be able to use the Boiler Upgrade Scheme, provided the property meets the scheme requirements.
ECO4 has now come to an end
If you’re looking for information about grants and funding currently available, please visit our Grant Funding page to explore the latest options.
Additional Reading
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