With rising energy costs and a growing focus on greener heating, more homeowners across the UK are turning to air source heat pumps (ASHPs) as a cleaner alternative to gas or oil boilers. To help with the cost of switching, the UK Government offers generous grants and financial support through national and regional schemes.

Here’s everything you need to know about how these grants work, who can apply, and what to expect when upgrading your heating system.

Find funding you qualify for

See the home and energy grants open right now and check your eligibility.

What is an Air Source Heat Pump?

An air source heat pump extracts heat from the air outside your home, even when it’s cold, and uses it to warm your home and provide hot water. It’s a low-carbon heating system that can help reduce both your energy bills and your home’s carbon footprint.

Unlike traditional boilers, heat pumps don’t burn fuel, they use electricity to move heat, making them far more efficient and environmentally friendly.

The Boiler Upgrade Scheme (England and Wales)

In England and Wales, the main grant available is the Boiler Upgrade Scheme (BUS).

Under this scheme, homeowners can receive up to £7,500 towards the cost of replacing their existing fossil-fuel heating system (such as a gas, oil, or direct-electric boiler) with a low-carbon alternative like an air source heat pump.

Originally capped at £5,000, the grant amount was increased to £7,500 in October 2023 to make the transition to clean heating more affordable for households. The Boiler Upgrade Scheme will run until March 2028, giving homeowners plenty of time to plan their upgrade.

What You Can Get Through the Boiler Upgrade Scheme

Under the Boiler Upgrade Scheme, you can get one grant per property:

  • £7,500 towards an air source heat pump.
  • £7,500 towards a ground source or water source heat pump (including shared ground loops).
  • £5,000 towards a biomass boiler.

You cannot get a grant for hybrid systems, for example, a gas boiler combined with a heat pump. To qualify, the system must meet government efficiency standards and be installed by an MCS-certified installer.

The maximum eligible size for the scheme is:

  • 45kWth for individual systems.
  • 300kWth for shared ground loops.

How to Apply for the Boiler Upgrade Scheme

Applying for the Boiler Upgrade Scheme is simple, but it must be done through your installer.

  1. Contact an MCS-certified installer: They’ll confirm if your property and heating system qualify.
  2. Get a quote: The installer applies for the grant on your behalf through Ofgem.
  3. Confirm your consent: Ofgem will contact you to verify your details and approval.
  4. Grant applied as a discount: The value of the grant (up to £7,500) is deducted directly from your installation cost.

You do not need to apply directly as a homeowner, your installer manages the process.

Support in Scotland

In Scotland, financial help is available through Home Energy Scotland.

You can get up to £7,500 towards the cost of an air source heat pump installation, or £9,000 if you live in a rural or island area (thanks to the rural uplift funding).

In addition, interest-free loans may be available to help cover any remaining costs not covered by the grant.

How Much Does It Cost?

A typical air source heat pump installation can cost between £10,000 and £15,000, depending on the size and condition of your home.

The £7,500 grant can cover a large part of this, but there may still be additional expenses for insulation improvements, new radiators, or a compatible hot water cylinder.

It’s a good idea to get quotes from MCS-certified installers, who can guide you through both the installation process and the grant application.

Who Can Apply?

You may be eligible for a grant if:

  • You own your home (private or rented).
  • You are replacing a fossil-fuel or direct-electric heating system.
  • Your property has a valid Energy Performance Certificate (EPC) with no outstanding recommendations for loft or cavity wall insulation.
  • The installation is carried out by an MCS-certified installer.

You can only claim one grant per property, and new-build homes are usually not eligible (except self-builds).

Performance, Efficiency & Maintenance

Air source heat pumps typically have a Seasonal Coefficient of Performance (SCOP) of 3 to 4. That means for every 1 unit of electricity used, they produce 3–4 units of heat, up to 400% efficient, compared with around 90–95% for a gas boiler.

With regular servicing, air source heat pumps can last 15 to 20 years. Annual maintenance checks by your installer help maintain performance and energy efficiency over time.

Other Benefits and Savings

As well as the grant itself, there are other financial incentives:

  • Zero VAT on heat pump installations under the Boiler Upgrade Scheme.
  • Lower running costs compared with oil or LPG heating.
  • Reduced carbon emissions, helping your home meet future energy standards.

Things to Consider Before Switching

Before making the move to an air source heat pump, it’s worth thinking about:

  • Insulation: Well-insulated homes perform much better with heat pumps.
  • Radiator upgrades: Some systems may need larger radiators or underfloor heating.
  • Noise and space: The outdoor unit needs space with good airflow.
  • Installer availability: Make sure to use a certified and experienced professional.
ECO4 ends on 31 December 2026We can no longer help with ECO4 applications. The Great British Insulation Scheme closed on 31 March 2026. You can apply for a free home battery or see other funding options.

Future Updates and Regional Variations

As part of the UK’s journey to net zero by 2050, new funding rounds and regional incentives may become available. It’s worth checking GOV.UK or your local authority for the latest updates before applying.

The air source heat pump grant is one of the most generous renewable energy incentives ever offered in the UK. With up to £7,500 available (and even more in rural Scotland), now is an excellent time to consider making the switch to low-carbon heating. Not only can it help lower your long-term energy costs, but it also contributes to a cleaner, greener future for everyone.

Air source heat pumps can also be installed through the ECO4 scheme, which helps households on lower incomes or in fuel poverty make their homes more energy efficient. ECO4 runs until 31 December 2026, and Consumer Rights can no longer help with ECO4 applications.

Don’t Forget

Looking to cut your energy bills? You can apply for a free home battery or see other funding options.