Energy Grants and Schemes UK 2026/27 — ECO4, GBIS and More

Heat Pump Grants UK 2025 — Boiler Upgrade Scheme & Help Available

Complete guide to heat pump grants UK 2025. Boiler Upgrade Scheme, how much you get, eligibility, installation costs, and other financial help for heat pumps.

Government grants make heat pumps more affordable. Here’s how to get financial help in 2025.

Boiler Upgrade Scheme (BUS)

Grant Amounts (2025-2028)

TechnologyGrant Amount
Air source heat pump£7,500
Ground source heat pump£7,500
Biomass boiler£7,500

How It Works

StepDetails
1Find MCS-certified installer
2Get quote for heat pump
3Installer applies for grant
4Grant deducted from your bill
5You pay the reduced amount

Key Rules

RuleDetail
One voucher per propertyCan’t combine
Must use on quote givenSpecific system
Valid for 3 monthsFrom issue
Through approved installerMCS-certified only

Eligibility

Property Requirements

RequirementDetail
LocationEngland or Wales
OwnershipMust own property
AgeExisting building (not new build)
Current heatingReplace fossil fuel system

EPC Requirements

Your EPCNeeded
Valid EPCRequired
No loft insulation recommendationOr must address it
No cavity wall recommendationOr must address it
ExceptionsFor some property types

Not Eligible

SituationEligible?
New buildNo
Social housing tenantNo (landlord may apply)
Already have heat pumpNo
Property in Scotland/NINo (different schemes)

Heat Pump Costs

Typical Total Costs (Before Grant)

TypeTypical Cost Range
Air source heat pump£12,000 - £20,000
Ground source heat pump£20,000 - £35,000
Installation labourIncluded in above
Additional workMay be extra

After Grant

TypeCost After £7,500 Grant
Air source£4,500 - £12,500
Ground source£12,500 - £27,500

What Affects Cost

FactorImpact on Price
Property sizeBigger = more expensive
Heat pump sizeMatched to property
Radiator upgradesMay need larger radiators
Hot water cylinderUsually needed
Pipework changesCan add cost
Ground works (GSHP)Significant for ground source

Running Costs

Compared to Other Heating

Heating TypeTypical Annual Cost
Gas boiler£1,000 - £1,400
Oil boiler£1,500 - £2,200
LPG boiler£2,000 - £2,500
Electric heating£1,800 - £2,500
Air source heat pump£1,100 - £1,600
Ground source heat pump£900 - £1,400

*Based on average-sized home, typical usage, 2025 prices

Key Factor: Efficiency

Heat Pump PerformanceCOP
Coefficient of Performance3-4 typical
Meaning3-4 units heat per unit electricity
Vs electric heater1 unit heat per unit electricity
In practiceMuch cheaper than resistive heating

Best Value Scenarios

SituationHeat Pump Value
Replacing oil boilerHigh savings
Replacing LPGHigh savings
Replacing electricGood savings
Replacing gasMay be similar cost

Other Financial Help

Home Upgrade Grant (HUG2)

SchemeDetails
WhoLow-income households
WhatInsulation + heating upgrades
AmountUp to £10,000+
Income testYes — EPC based targeting
ApplicationThrough local authority

ECO4 (Energy Company Obligation)

SchemeDetails
WhoBenefits recipients, low income
WhatVarious measures inc. heating
Funded byEnergy companies
ApplicationThrough installer or council

LA Flex

FeatureDetails
WhatLocal authority flexibility
WhoThose in fuel poverty
Varies byCouncil area
Check withYour local authority

Scotland Schemes

Home Energy Scotland

GrantAmount
Air source heat pumpUp to £7,500 grant
Ground source heat pumpUp to £7,500 grant
Rural upliftAdditional support
Interest-free loanAlso available

Eligibility Scotland

RequirementDetail
Own homeRequired
EPC ratingSome requirements
ApplicationThrough Home Energy Scotland

Northern Ireland

Schemes Available

ProgrammeDetails
NISEPVarious energy schemes
Affordable WarmthLow income focus
ContactNI Energy Advice

Finding an Installer

MCS Certification

RequirementWhy
Must be MCS-certifiedFor BUS grant
Quality standardIndustry accreditation
Find viamcscertified.com

Getting Quotes

StepAction
1Get 3 quotes minimum
2Check MCS certification
3Compare like-for-like
4Check what’s included
5Ask about guarantees

Questions to Ask

QuestionWhy
What size heat pump?Must match property
Any radiator upgrades?Affects cost
Hot water system?Usually needed
Noise levels?Location matters
Running cost estimate?Based on your property
Warranties?Parts and labour

Is a Heat Pump Right for You?

Good Candidates

FactorSuitable
Off gas gridOften yes
Well-insulated homeYes
Replacing oil/LPGUsually makes sense
Underfloor heatingIdeal match
New radiators OKFlexibility helps
Space for unitRequired

Challenging Situations

FactorConsideration
Poorly insulatedInsulate first
On mains gasSavings may be marginal
Large radiator upgradesAdd to cost
Listed buildingMay have restrictions
Limited spaceUnit needs location
Very cold climateEfficiency drops

Before You Decide

Get an Assessment

StepWhy
Heat loss calculationSizes system correctly
EPC checkMay need improvements first
Site surveyPractical considerations
Running cost estimateRealistic expectations

Insulation First

PriorityReason
Loft insulationHeat pumps need it
Cavity wallsIf recommended on EPC
Draught proofingReduces heat demand
Better insulation= Smaller, cheaper heat pump

Summary

Grant Overview

GrantAmountWhere
Boiler Upgrade Scheme£7,500England/Wales
Home Energy ScotlandUp to £7,500Scotland
HUG2VariesLow income
ECO4VariesBenefits/low income

Checklist

ActionDone?
Check eligibility
Get EPC if needed
Find MCS installers
Get 3+ quotes
Check what’s included
Consider insulation first
Compare running costs
Decision

Key Contacts

ResourceFor
Simple Energy Advicegov.uk/apply-boiler-upgrade-scheme
MCS directorymcscertified.com
Home Energy Scotlandenergysavingtrust.org.uk/scotland
Your local authorityLow income schemes

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Sources

  1. MoneyHelper — Everyday money