Are There Government Air Source Heat Pump Grants in the UK?

What Air Source Heat Pump Grants Are Available?

There are currently a number of air source heat pump grants available. Most of these schemes provide financial support to cover some of the cost of air source heat pump installation and others will cover all of the cost to help low-income households. Here are some of the air source heat pump grants available:

The Boiler Upgrade Scheme

Originally called the Clean Heat Grant, the Boiler Upgrade Scheme is there to help people replace their boilers with a more eco-friendly alternative, such as heat pumps.

Running between April 2022 until April 2025, the Boiler Upgrade Scheme replaced the Domestic Renewable Heat Incentive (RHI), which closed to new applicants on 31st March 2022. It's probably the best source for heat pump grants.

How Does It Work?

With this scheme, homeowners in England and Wales will be able to get heat pump grants of £7,500 towards the cost of a new air source or ground source heat pump.

These air source heat pump grants operate on a first-come, first-served basis, so customers need to register their interest fast as there's only a limited amount of funding.

This will reduce the general cost of an air source heat pump from £10,500 to £3,000, which works out cheaper than a new gas boiler. However, due to the scheme receiving £450m, a maximum of just 90,000 homes will be able to take advantage of heat pump grants through the Boiler Upgrade Scheme over the next three years.

Who’s Eligible For The Scheme?

Homeowners, landlords and private landlords are all eligible to apply for the Boiler Upgrade Scheme for heat pump grants.

However, to apply for heat pump grants, all applicants must have a valid Energy Performance Certificate (EPC) and one that is has been issued in the last 10 years with no outstanding recommendations for loft or cavity wall insulation.

The government has proposed two stages of application for heat pump grants through the Boiler Upgrade Scheme:

• Applying For The Voucher: Led by the homeowner, taking place before installation
• Redeeming The Voucher: Led by the installer, confirming proof of the installation

Warmer Homes Scotland

Warmer Homes Scotland, run by the Scottish Government, provides financial support to low-income households struggling with their energy bills. Heat pump grants are available through this scheme.

How Does It Work?

Homeowners can access the scheme by calling Home Energy Scotland, which will analyse if any home improvements can be made. Any eligible households will then be put in contact with Warmworks, the managing agent of the Warmer Homes grant.

Warmer Homes Scotland covers the following: wall insulation, loft insulation, draught-proofing, boilers and heating, and renewable and micro-renewable heating systems. Heat pump grants are only a small part of what they cover.

Who’s Eligible For Warmer Homes Scotland?

In order to get an air source heat pump grant through Warmer Homes Scotland, applicants must:

• Be a homeowner or tenant of a private sector landlord
• Live in the home as their main residence
• Have been there for at least 12 months
• Live in a home that is no bigger than 230 square metres, with an energy rating of 67 or lower
• Live in a home that meets the tolerable living standard set out in the Scotland Housing Act 2006
• Not received any support from Warmer Homes Scotland funding in the last five years

The person must also be one of the following:

• A pensioner without a working heating system, who is also in receipt of a passport benefit
• Aged 75 or older, and received a passport benefit
• Pregnant and/or caring for a child under 16, and received a passport benefit
• Someone with a disability, who has also received any level of Personal Independent Payment (PIP)
• Someone with a disability, who has also received a high rate Disability Living Allowance (DLA)
• Someone with a disability, who has also received a low/medium rate Disability Living Allowance (DLA), and in receipt of an income-related benefit
• A carer who has received Carers Allowance
• Someone who has been injured or disabled serving in the Armed Forces, and received Armed Forces Independence Payment/War Disablement Pension
• Someone who has an injury or disability from an accident or disease caused by work, and received Industrial Injuries Disablement Benefit

Nest Wales

Run by the Welsh Government, Nest hopes to reduce the impact of fuel poverty in Wales by making low-income homes more energy efficient. Like the Scottish scheme, the Welsh equivalent also offer heat pump grants.

How Does It Work?

If a home is struggling to pay energy bills, they can contact the Nest helpline, which is run by Energy Saving Trust and analyses whether they’re eligible for support.

If the household meets certain requirements, they will be referred to British Gas, which will then conduct a “whole house assessment”. This is a property survey that analyses which home improvements should be made. At this point, you will be told if you're eligible for heat pump grants.

Here is the benefits available under the Nest scheme include:

• A new central heating system
• A new energy-efficient boiler
• Cavity wall insulation
• External wall insulation
• Internal wall insulation
• Loft insulation
• Room thermostats and heating controls
• Water tank and pipe insulation
• Air source heat pump
• Ground source heat pump
• Draught-proofing

Who Is Eligible For Nest?

If you’d like to receive support from Nest, you must:

• Own or privately rent your home (but not from a local authority or housing association)
• Have an energy inefficient home that is costly to heat up
• Receive a benefit, or have a chronic respiratory, circulatory, or mental health condition

The benefits that qualify are:

• Child Tax Credit (with an income below £16,105 a year)
• Council Tax Reduction
• Housing Benefit
• Income-based Jobseeker’s Allowance
• Income-related Employment and Support Allowance
• Income Support
• Pension Credit
• Universal Credit
• Working Tax Credit (with an income below £16,105 a year)

How Much Do Heat Pumps Cost Without Grants?

Without heat pump grants, a typical system costs around £10,000 – £13,000 for installation.

Which may sound like a lot but when you consider that heat pumps typically last for 20 years (which is twice as long as the average gas boiler), you’ll technically be saving money for years to come.

Running costs depend on a number of factors, which include the size of your home, how well insulated it is, and room temperatures you're aiming to achieve.

How Much Can You Reduce Your Carbon Footprint With Heat Pumps?

Again, the amount of CO₂ you will reduce from heat pumps depends on what system you use now. In the interactive graph below, you can reduce your emissions drastically by switching from every system, whether it's old or new.

Summary

In summary, there are a range of an air source heat pump grants that can help you financially. The Boiler Upgrade Scheme is the main scheme that will help a lot of people afford heat pumps. For a free boiler quote, just enter a few details and we'll take care of the rest.