UK Guide to Heat Pump Grants and Installation Savings

Want to replace your boiler and save money? Heat pumps are increasingly becoming a top choice across the UK. As energy prices continue to rise and the government launches its plan for greener homes, now is the perfect moment to make the switch—especially with government grants for heat pumps and heating boiler grants to ease the financial blow.

This guide analyzes what grants you can get, who is eligible, how much you can save, and examples to assist you in making the right choice.

Why Heat Pumps Are Worth Considering

Heat pumps are energy-efficient systems that capture warmth from the air or ground to heat your home effectively. They are not gas boilers but operate on electricity and can be as much as 300% more efficient, or you can get three units of heat for one unit of electricity consumed.

Why it matters:

Heating uses over 50% of a UK household’s energy bill (Source: Energy Saving Trust). Swapping a gas boiler for a heat pump can save energy and carbon emissions—and earn you generous government incentives.

What Government Support Is Available for Heat Pump Installations?

As of 2025, the UK government keeps on implementing funding under the Boiler Upgrade Scheme (BUS) in order to advance low-carbon heating.

Key Facts:

• You can get up to £7,500 to help cover the cost of installing an air or ground source heat pump.
  
• Available in England and Wales.
  
• Open to homeowners, private landlords, and self-builders.
  

The Boiler Upgrade Scheme is making clean heating cheaper and is a core component of the UK’s net-zero strategy. It’s easy to apply using an MCS-registered installer, who will sort out most of the forms for you.

Who Qualifies for the Heat Pump Grants?

You could be eligible if:

• You either own the property you live in or rent it out as a private landlord.
  
• Your home must have a valid Energy Performance Certificate (EPC) with all recommended insulation improvements already completed.
  
• You’re replacing a fossil fuel system (like an oil, LPG, or gas boiler).
  
• You’re installing the heat pump through an MCS-certified company.
  

Not eligible?

If you’re not eligible for the Boiler Upgrade Scheme, you may still qualify for alternative heating boiler grants. The ECO4 scheme, for example, provides support to low-income and vulnerable households for energy-efficient upgrades.

How the ECO4 Scheme Supports Low-Income Households

The Energy Company Obligation (ECO4) will fund support for the fuel poor. If you’re in receipt of qualifying benefits or a low-income household, you may qualify to receive a heat pump or boiler replacement on your home free of charge or nearly for free.

Real example:
In Liverpool, a retired couple living on Pension Credit received a 100% grant through ECO4 to replace their old gas boiler with a modern air source heat pump, saving them nearly £600 a year on energy bills.

Case Study: Saving with Government Grants in Manchester

Mark and Lisa, a couple in Manchester, switched from an oil boiler to a ground source heat pump in 2024. With the £7,500 grant from the Boiler Upgrade Scheme, they only had to cover a small portion of the cost. Their installer also helped them apply for an additional local council top-up grant of £2,000.

Results:

• Installation cost after grants: £3,500 (from a £13,000 total).
  
• Annual energy savings: approx. £720.
  
• Carbon reduction: over 2 tonnes per year.
  

“We were hesitant about the upfront cost, but the grants made it doable. It’s quieter, cleaner, and the bills have dropped,” says Lisa.

How Much Can You Save in the Long Run?

Short-term savings:

• Immediate reduction in energy bills (especially if switching from oil or LPG).
  
• Grants can cover up to 60–100% of the installation cost, depending on eligibility.
  

Long-term benefits:

• Lower maintenance costs compared to boilers.
  
• Energy prices are rising, but electricity-based heating systems are future-proof.
  
• Potential to sell your property at a higher value due to better energy ratings.
  

Installation Process: What to Expect

1. Assessment: An energy assessor checks your home’s insulation and heating needs.
   
2. Quote: An MCS-certified installer provides a detailed quote.
   
3. Grant application: The installer applies for the government grant for heat pumps on your behalf.
   
4. Installation: Takes 1–5 days depending on system type.
   
5. Aftercare: Annual servicing ensures long-term efficiency.
   

Tips to Maximize Savings

• Improve insulation first. To qualify for most grants, your home usually needs to meet basic energy efficiency standards.
  
• Compare installers. Get at least 2-3 quotes and check reviews.
  
• Look for local incentives. Some councils and energy providers offer top-up grants.
  
• Ask about heating boiler grants. If a heat pump isn’t right for you, boiler replacement grants under schemes like ECO4 may still help.
  

Common Myths About Heat Pumps (And the Truth)

Myth: Heat pumps don’t work in cold weather.
Truth: Modern models work efficiently even in -15°C.

Myth: They are noisy.
Truth: Most air source heat pumps are quieter than a fridge.

Myth: Too expensive.
Truth: With grants, many households pay less than for a new boiler.

Final Thoughts

Switching to a heat pump is not just a smart move for the planet—it can be a smart move for your wallet too. With government grants for heat pumps and heating boiler grants widely available, the cost of upgrading is lower than ever.