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Heat Pump Grants and Schemes

Becky Mckay
By: Becky Mckay
Updated: 6th April 2022

Green grants and schemes
Please note, the details of these schemes will be amended following any updates, please check back regularly for the most up to date information.

If you're considering changing the way you heat your home and hot water, you might be thinking about a new renewable, low carbon option. One of the best options on the market at the moment are heat pumps. Not only are they much more beneficial for our environment, but right now they are also eligible for government grant support.

Installing a heat pump, whether it's an air source or ground source pump, can be quite a costly job. The units are currently more expensive than a boiler and the installation can include a lot of work on your property (especially if you choose a ground source heat pump, as a large area of ground needs to be excavated). There may also be additional costs to replace radiators, improve your home's insulation, or simply switch out pipes and connections. These could be necessary to make sure a heat pump will run efficiently.

The government has been forming various grants in the past few years to support and incentivise homeowners to replace their fossil fuel heating systems with renewable energy options. Their wider aim is to reduce carbon emissions in the UK and bring the country to a net-zero output by 2050.

So, what are these government grants? Well, we've done the research, and although the schemes are constantly evolving to adapt to industry and changes in demand, we've broken down what is currently available below.

Open Grants and Schemes

There is currently 1 active scheme you could benefit from:

Boiler Upgrade Scheme (BUS) formerly The Clean Heat Grant

Opening: 23rd May 2022
Closing: 2025

What is it?
The Boiler Upgrade Scheme has been created to fund the installation of renewable heating solutions in place of gas boilers. It's open to all homeowners  and will offer a one-off grant payment to successful applicants.

The scheme has evolved as a replacement for the Renewable Heat Incentive, which closed to new applicants at the end of March. The BUS was originally known as The Clean Heat Grant, but has since undergone changes and has been adapted to account for industry and consumer feedback.

The Boiler Upgrade Scheme will open to applications on 23rd May, but will accept applications for any low carbon heating systems that have been installed on or after the 1st April.

The grant will offer between £5,000 – £6000, to cover the cost of fitting a heat pump, or biomass boiler.

The scheme will fund the following systems as follows:

  • Ground Source Heat Pump £6,000
  • Air Source Heat Pump £5,000
  • Biomass Boiler £5,000

It should be noted, however, that biomass boilers are only eligible if they are installed in rural locations and in properties which are not connected to the gas grid.

To be eligible for this scheme you must:

  • Live in England or Wales.
  • Own your own property.
  • Be replacing a fossil fuel system such an oil, gas or direct electric boiler.
  • Have a valid Energy Performance Certificate (EPC), to prove your home is capable of running a heat pump efficiently. If your certificate shows any recommendation for further works, these must be completed prior to the installation (this includes things like insulation for lofts/cavity walls).

Funding is not available:

  • For new build properties (unless you’re building your own home).
  • To replace an existing low carbon heating system.

If you’re claiming other energy upgrade funding, such as for windows or insulation, you can still apply for this scheme.

How it works
To benefit from this scheme, you must do the following:

  1. Find a certified MCS* installer to carry out your installation. They can quote and advise if the installation at your property will qualify for the grant.
  2. Once you agree a quote for the work, the installer can then apply directly for the grant.
  3. Ofgem will then contact you, to confirm that your installer is acting on your behalf and that the grant can be processed.

How to Apply?
This scheme is a bit different to others, as there is no need for you to apply directly. Applications will be done by the certified contractor that you choose to undertake your installation.

It is this contractor who then deducts the grant amount from the cost of your bill and then claims back the funding directly. Meaning you will benefit from the reduced cost of the installation, without having to apply for the grant or wait to be paid back.

All applications will we dealt with by Ofgem as the official administrators of the scheme. For further details of their processes you can visit their website.

*MCS is an internationally recognised quality assurance scheme supported by the UK government Department for Business, Energy & Industrial Strategy (BEIS). MCS certifies both products and installation companies to help ensure that products are installed to a high standard.

We will be updating our grants page regularly to reflect any changes, or opening of new schemes, as details emerge. Please be sure to check back for further updates.

Recently Closed:

Renewable Heat Incentive (RHI): Closed 31st March 2022.

Existing member of this scheme will not be affected by the closure.
For more details visit the official Ofgem page here.


Becky Mckay

About the author

Becky Mckay

Becky is one of our home heating and renewable energy experts and has a wealth of experience writing about the world of heating.

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