Our guide to heat pump grants
Are you looking to cut your energy spend and reduce your carbon footprint? Using a sustainable heat pump could be the solution. Best of all, a generous heat pump grant is available to help you make the switch.
Looking for heat pump grants in the UK?
Energy-efficient air-source or ground-source heat pumps don’t rely on fossil fuels to heat your home. Instead, they capture heat from the air or the ground to power your central heating system. Heat pumps are highly efficient, converting every 1kW of energy into 3kW of heat. Your system is 100% green if powered by renewable electricity. And with minimal maintenance, you won’t have costly call-out fees or an annual service to worry about.
But cutting your carbon footprint comes at a price. Installing a heat pump costs more on average than a conventional gas boiler, with a typical price tag of around £14,000. However, financial help is available to reduce your upfront costs. And the long-term savings to your pocket and the planet are well worth it.
The government has ambitious plans to install 600,000 heat pumps a year by 2028. And there’s been a surge in applications for the Boiler Upgrade Scheme since the grant was increased to £7,500. With proposed changes to planning rules, installing a heat pump could be more accessible than ever before. Read on to find out how to apply for a new heat pump to start heating your home sustainably.
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Finding the right provider needn't be daunting with SpotDif. It's our goal to make it easy to search and compare deals from heat pump providers and installers in your area. We'll help you navigate your options and find the best choices for your budget and heating needs. With SpotDif, you're only a few clicks away from finding the ideal heat pump to kick-start your own green heating revolution.
Ready to make an informed decision about your future-proofed heating options? We’ll guide you towards the ideal heat pump solution.
Are heat pumps the future of green energy?
Heat pumps have rapidly become the system of choice for sustainable heating. Drawing energy from either air or the earth, both abundant resources, heat pumps use heat transfer to warm your home. Heat pumps efficiently draw ambient heat from the air even at low temperatures — no wonder they're so popular across Nordic countries. In Norway, where average winter temperatures hit -7C, over half of all households heat their home with an air-source heat pump.
But heat pumps are more than just an effective way to heat your home. They're also critical to the UK's decarbonisation targets. In 2020, the UK generated more energy through renewables than fossil fuels for the first time. Provided the energy mix is from 100% renewables, you could make significant carbon savings and lower your environmental footprint.
Hyper-efficient, straightforward to operate and maintain and reliant on endless energy supplies — heat pumps really are the future of green energy. And with a generous heat pump grant in the UK, there’s never been a better time to make your home future-ready.
Will my heat pump pay for itself?
In most cases, a heat pump will pay for itself after 10-12 years. However, that depends on your current bills and the lifespan of your heat pump. On average, air-source heat pumps last 10-20 years, while ground-source heat pumps can last up to 30 years. In addition, the better the quality of your heat pump, the longer it should last.
What funding is available for heat pump installation?
If you're a homeowner in the UK, there's plenty of financial help around to help you install a heat pump. And with a 50% boost in the heat pump grant available through the Boiler Upgrade Scheme, now could be the time to switch to sustainable heating.
Home Upgrade Grant
The Home Upgrade Grant (HUG2) provides funding to local authorities for energy-efficient home upgrades. This scheme is only available to households in England.
You could be eligible for a heat pump grant if:
You live in a home that’s off the gas grid.
Your home has an EPC of E or lower,
You have a low income or receive certain benefits, such as Child Tax Credits or a state pension.
If you qualify, your local council will arrange a home survey. As a result, they may recommend improvements like insulation or electric radiators. The council will organise and pay for the work if you're eligible for an air source heat pump grant.
To check whether your local authority provides heat pump grants, visit Gov.UK.
Boiler Upgrade Scheme
The UK’s Boiler Upgrade Scheme can help cover the cost of upgrading your heating system. The heat pump grant rose in October 2023 to £7,500 for an air-source or ground-source heat pump and £5,000 for a biomass boiler. If you applied before October 2023, but the work hasn’t been carried out, talk to your installer about cancelling and reapplying for the higher amount.
The BUS will run until 2025 but there are specific eligibility requirements for the ground and air source heat pump grant. You must be a homeowner replacing a fossil fuel heating system. Moreover, your property must have a valid EPC with no outstanding recommendations for insulation.
A hybrid system is not eligible for the heat pump grant. Additionally, there is no air source heat pump grant for newly built properties.
Applying is a straightforward three-step process:
Find a suitable MSC-certified installer and get a quote.
Confirm you’re eligible for a heat pump grant.
Agree on a quote and let your installer apply through the Ofgem website.
The scheme is open to residents of England and Wales.
Renewable Heat Incentive (RHI) – closed
Sometimes, it’s helpful to see what heat pump schemes and grants have run previously, even if they’re not active any more. They can give an idea of which incentives have been successful and what funding may become available in the future.
The Renewable Heat Incentive (RHI) scheme, for example, ran from 2011 until it was discontinued in 2022. Households were given financial incentives for adopting low and zero-carbon heating initiatives. However, other funding has taken its place. Schemes like HUG2 and the Boiler Upgrade Scheme may better suit your needs and budget.
Can I get heat pump grants in Scotland?
Yes, you can. The Home Energy Scotland (HES) Grant Scheme could give you up to £15,000 to heat your home and make it more energy efficient. You can apply online for one of the grants, loans, or financial incentives available to Scottish homeowners.
Heat pump grants in Scotland total £7,500 to replace your boiler. Homes in rural areas can claim an additional £1,500 towards their green heating. An additional £7,500 interest-free loan is available for zero emissions heating like an air-source heat pump.
There is also Warmer Homes Scotland which provides central heating and air-source heat pump grants for low-income households. You must be a homeowner or private tenant living in a property with a poor energy rating. Additionally, eligible households must contain:
A person over 75 with no central heating, or
A person receiving passport benefits at any rate, or
A person with a valid BASRiS or DS1500 certificate
The criteria are subject to change, so check often to see if you qualify.
Are there heat pump grants in Wales?
Welsh households can get a heat pump grant in the UK through the Boiler Upgrade Scheme. Otherwise, help for home energy efficiency improvements is available through the Nest scheme. Nest takes a whole-home approach to minimising your bills and helping you decarbonise.
To qualify, you must be a homeowner whose home is inefficient and hard to heat. You or a household member will be on means-tested benefits or have a severe respiratory, circulatory or mental health condition.
Choosing between air-source, ground-source, and hybrid heat pumps
Are you considering switching to an air-source or ground-source heat pump? Here's what you need to make an informed choice before you apply for a government heat pump grant.
Air-source heat pumps
Pros:
Typically, an air-source heat pump has an efficiency of 300%. However, the best models can be up to 500% more efficient than a gas boiler.
Units are quick and straightforward to install and are space-efficient. They’re also quiet (expect a hum like a refrigerator) and require minimal maintenance.
An air source heat pump grant of £7,500 is available.
Cons:
You’ll need high levels of insulation for the system to work efficiently.
An air-source heat pump is less efficient in winter and requires more electricity to function at the same level as a ground-source heat pump.
So, what’s the average cost to buy and install an air-source heat pump? You’ll usually be looking at around £7,000 - £13,000.
These heat pumps are generally your best bet for a cheap and flexible system for most well-insulated homes in the UK.
Ground-source heat pumps
Pros:
A ground-force heat pump is typically around three times more efficient than a gas boiler. They’re also quieter than air-source heat pumps.
Typically has a longer lifespan than an air-source heat pump.
Eligible for the £7,500 heat pump grant in the UK.
Ground-source heat pumps are more energy-efficient year-round because the ground’s temperature remains stable. As a result, they’re not affected by a drop in temperature.
Cons:
Ground-source heat pumps are expensive to buy and install. Necessary groundworks add significantly to your installation costs.
You'll need significant outdoor space for your ground array or boreholes.
The average cost to buy and install a ground-source heat pump tends to be higher than air-source pumps. You’re usually likely to pay between £17,000 and £45,000 (including groundworks)
These pumps are best for larger homes with sufficient outdoor space looking for a long-term, highly efficient heating system.
Hybrid heat pumps
A hybrid heating system combines a conventional boiler with a heat pump. A hybrid heat pump can be more efficient than a boiler or heat pump alone. And you'll have backup heating if either system fails. However, they can be expensive to install and maintain and may not be the most cost-effective or energy-efficient way to meet your needs. Additionally, hybrid heat pump systems aren't eligible for the government heat pump grant through the Boiler Upgrade Scheme.
Search and compare air pump providers with SpotDif
Are you a homeowner or private tenant upgrading their heating system? Some attractive grants are available to help you decarbonise and cut your bills. With the UK government committed to making heat pumps more accessible and affordable, there's never been a better time to switch up to a green heating system.
We can help you compare trusted suppliers and heat pump installers in your area. And we’ll find you the best deal on a green electricity tariff so you can reduce your home’s carbon footprint.
Last updated on 16 Apr 2024