If you’re a homeowner in the UK, then you may already have come across air source heat pumps grants. They’re efficient systems to warm up your home and hot water in an eco-friendly way of Air Source Heat Pump.
They do come at a high price tag, however. That’s why government grants are available to assist with the costs. They could save you a fortune – thousands of pounds.
In this article, we’ll explain what air source heat pump grants are, who can get them, how much you can save, and how to apply.
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Why Are Heat Pump Grants Being Offered?
One of the biggest causes of carbon emissions in UK properties is heating. The government wants to see more families using cleaner heating systems, such as air source heat pumps, to combat climate change. The systems range in price from £10,000 to £14,000. That is far more than most households could afford.
To assist with this, grants are provided by the government to reduce the price. These are included in schemes such as ECO4 and the Boiler Upgrade Scheme (BUS).
Main Grants Available for Air Source Heat Pumps
There are two main grants available to fund air source heat pumps.
- ECO4 Scheme
The ECO4 scheme helps low-income and vulnerable households get 100% free energy upgrades, including air source heat pumps.
Who qualifies?
- Homebuyers or owner-occupiers in properties with low energy ratings (E, F, or G).
- Households receiving certain benefits such as:
- Universal Credit
- Income Support
- Pension credit
- Child Tax Credit
- And others
- You may also qualify under LA Flex rules (where your local council assesses you on low income alone, without benefits).
What does it include?
- Installation of a free air source heat pump
- Free solar panels
- Sometimes includes insulation, thermostats, and smart controls
How much does it save you?
If you’re eligible, the grant will pay the full amount—up to £14,000.
- Boiler Upgrade Scheme (BUS)
The Boiler Upgrade Scheme provides a £7,500 relief in order to assist homeowners in replacing oil, gas, or electric heating with a low-carbon system such as an air source heat pump.
Who qualifies?
- Homeowners in England and Wales
- You own the property (landlords also qualify)
- Your property will need to possess a genuine Energy Performance Certificate (EPC) with no outstanding insulation recommendations
What does it cover?
£7,500 discount on the price and fitting of an air source heat pump
How do I apply?
A certified installer makes a grant application on your behalf
You receive the discount immediately—no waiting to recoup it afterwards
Key Differences Between ECO4 and BUS
| Feature | ECO4 | Boiler Upgrade Scheme |
| Location | UK-wide | England & Wales only |
| Based on income? | Yes | No |
| Max grant | Up to £14,000 | £7,500 |
| Energy rating required | Low EPC (E–G) | Any, but insulation must be in place |
| Free install? | 100% yes | You may need to pay the rest |
Things Homeowners Should Know Before Applying for a Heat Pump Grant
Before applying for a grant, there are a few important things every homeowner should know. Not all homes are suitable for air source heat pump installation, and ensuring the correct conditions reduces delays and disappointment.
Here is what to check first:
- Is Your Home Off the Gas Grid?
Air source heat pump grants are primarily available for properties that aren’t connected to the gas grid. If you have oil, coal, LPG, or electrically-heated property, you’re a prime candidate.
If you still have a functioning gas boiler, you may not be entitled to a heat pump through the ECO4 scheme. You might instead qualify for a free boiler replacement grant.
- Do You Have A Sufficient Outdoor Area?
Air source heat pumps must sit outside your property, typically at the side or back. The unit on the outside resembles a box with a large fan.
You require a smooth, level space with adequate air circulation. The unit needs to be positioned away from neighbouring windows to avoid noise issues.
No garden? No problem, but it does require having some available wall space outside to accommodate the system.
- How Energy Efficient is Your Home?
Your house has to be properly insulated to achieve optimum performance from a heat pump. Walls, loft space, or flooring that lose heat rapidly will cause the pump to work harder to warm the property.
Under ECO4, it is common to add insulation first, then fit the heat pump afterwards. Under the Boiler Upgrade Scheme, your EPC cannot have any outstanding loft or cavity wall insulation recommendations.
- Is Your Heating System Compatible?
They are most compatible with larger radiators or underfloor systems. They heat water to a lower temperature than gas boilers.
If your existing radiators are too small, you might have to replace them. Room controls and smart thermostats also assist with efficiency. You’ll be advised by an installer on the home survey.
- Do You Have Planning Permission?
If you are a private tenant, you will require agreement from your landlord to have the heat pump installed under the ECO4 scheme. Flats and maisonettes could have additional regulations, subject to layout.
How Much Can You Save?
They are very expensive to buy initially, but they save a lot in the long term.
Installation Cost:
- Without a grant: £7,000 to £14,
- With an ECO4 grant: As little as £0
Operating Expenditures
- Less costly to operate than oil or LPG boilers
- May save £300 to £600 annually on heating costs
- Even better with good insulation and smart controls
And don’t forget, one heat pump lasts about 20 years, so the benefits accumulate.
Step-by-Step: How to Apply for a Grant
Here is how you can apply:
- Check eligibility
Are you receiving a qualifying benefit? Does your property have an EPC rating of E, F, or G?
- Call a qualified fitter such as ECO Energy Services
They will examine your EPC and identify what work is required on your property.
- Home survey
The professional surveyors come to your residence to determine your heating and insulation requirements.
- Installation
If you are eligible, the air source heat pump is fitted free, along with solar panels.
The Bottom Line
Air source heat pump grants can save UK homeowners thousands of pounds when they make the change to greener heating. If your property is cold to live in, damp, or costly to warm up, it might be the boost it requires. ECO4 grants pay the full amount if you qualify for the grant.
The sooner you switch, the sooner you start saving. Check if you qualify today—and take the first step towards a warmer, greener home.
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