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

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

Boiler Upgrade Scheme (BUS)

Grant Amounts (2025-2028)

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

How It Works

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

Key Rules

Rule	Detail
One voucher per property	Can’t combine
Must use on quote given	Specific system
Valid for 3 months	From issue
Through approved installer	MCS-certified only

Eligibility

Property Requirements

Requirement	Detail
Location	England or Wales
Ownership	Must own property
Age	Existing building (not new build)
Current heating	Replace fossil fuel system

EPC Requirements

Your EPC	Needed
Valid EPC	Required
No loft insulation recommendation	Or must address it
No cavity wall recommendation	Or must address it
Exceptions	For some property types

Not Eligible

Situation	Eligible?
New build	No
Social housing tenant	No (landlord may apply)
Already have heat pump	No
Property in Scotland/NI	No (different schemes)

Heat Pump Costs

Typical Total Costs (Before Grant)

Type	Typical Cost Range
Air source heat pump	£12,000 - £20,000
Ground source heat pump	£20,000 - £35,000
Installation labour	Included in above
Additional work	May be extra

After Grant

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

What Affects Cost

Factor	Impact on Price
Property size	Bigger = more expensive
Heat pump size	Matched to property
Radiator upgrades	May need larger radiators
Hot water cylinder	Usually needed
Pipework changes	Can add cost
Ground works (GSHP)	Significant for ground source

Running Costs

Compared to Other Heating

Heating Type	Typical 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 Performance	COP
Coefficient of Performance	3-4 typical
Meaning	3-4 units heat per unit electricity
Vs electric heater	1 unit heat per unit electricity
In practice	Much cheaper than resistive heating

Best Value Scenarios

Situation	Heat Pump Value
Replacing oil boiler	High savings
Replacing LPG	High savings
Replacing electric	Good savings
Replacing gas	May be similar cost

Other Financial Help

Home Upgrade Grant (HUG2)

Scheme	Details
Who	Low-income households
What	Insulation + heating upgrades
Amount	Up to £10,000+
Income test	Yes — EPC based targeting
Application	Through local authority

ECO4 (Energy Company Obligation)

Scheme	Details
Who	Benefits recipients, low income
What	Various measures inc. heating
Funded by	Energy companies
Application	Through installer or council

LA Flex

Feature	Details
What	Local authority flexibility
Who	Those in fuel poverty
Varies by	Council area
Check with	Your local authority

Scotland Schemes

Home Energy Scotland

Grant	Amount
Air source heat pump	Up to £7,500 grant
Ground source heat pump	Up to £7,500 grant
Rural uplift	Additional support
Interest-free loan	Also available

Eligibility Scotland

Requirement	Detail
Own home	Required
EPC rating	Some requirements
Application	Through Home Energy Scotland

Northern Ireland

Schemes Available

Programme	Details
NISEP	Various energy schemes
Affordable Warmth	Low income focus
Contact	NI Energy Advice

Finding an Installer

MCS Certification

Requirement	Why
Must be MCS-certified	For BUS grant
Quality standard	Industry accreditation
Find via	mcscertified.com

Getting Quotes

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

Questions to Ask

Question	Why
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

Factor	Suitable
Off gas grid	Often yes
Well-insulated home	Yes
Replacing oil/LPG	Usually makes sense
Underfloor heating	Ideal match
New radiators OK	Flexibility helps
Space for unit	Required

Challenging Situations

Factor	Consideration
Poorly insulated	Insulate first
On mains gas	Savings may be marginal
Large radiator upgrades	Add to cost
Listed building	May have restrictions
Limited space	Unit needs location
Very cold climate	Efficiency drops

Before You Decide

Get an Assessment

Step	Why
Heat loss calculation	Sizes system correctly
EPC check	May need improvements first
Site survey	Practical considerations
Running cost estimate	Realistic expectations

Insulation First

Priority	Reason
Loft insulation	Heat pumps need it
Cavity walls	If recommended on EPC
Draught proofing	Reduces heat demand
Better insulation	= Smaller, cheaper heat pump

Summary

Grant Overview

Grant	Amount	Where
Boiler Upgrade Scheme	£7,500	England/Wales
Home Energy Scotland	Up to £7,500	Scotland
HUG2	Varies	Low income
ECO4	Varies	Benefits/low income

Checklist

Action	Done?
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

Resource	For
Simple Energy Advice	gov.uk/apply-boiler-upgrade-scheme
MCS directory	mcscertified.com
Home Energy Scotland	energysavingtrust.org.uk/scotland
Your local authority	Low income schemes