Grants and funding for air source heat pumps and other renewable heating systems

The Boiler Upgrade Scheme will run from April 2022 until April 2025 in England and Wales.  In Scotland you can apply for an interest-free loan or you can look to finance your renewable heating system or even apply for a green mortgage.

Air source heat pump grants in the UK

If you live in England or Wales you can apply for £5,000 towards the costs of your air source heat pump or £6,000 towards a ground source system from 1st April 2022. 

If you live in Scotland, you can apply for an interest-free loan to pay for energy efficiency improvements upfront, including air source heat pumps and more. There are also grants for low-income households in Scotland and in Wales

How does the Boiler Upgrade Scheme work?

The Boiler Upgrade Scheme (BUS) is a government scheme to help reduce our carbon emissions. It's available to homes and businesses in England and Wales upgrading from fossil fuel or electric heating systems to a renewable system, such as heat or ground source pumps, or even bio mass boilers - if they are off the gas grid.

If you've already received assistance through the Renewable Heat Incentive or other government grants, you may not be able to apply.  There'll be a requirement that properties don't t have any recommendations on their EPC for loft or cavity wall insulation to be installed. There are some limited circumstances where this requirement doesn't apply.  Your approved installer will be able to give you more information. 

Grants are offered at a flat rate of £5,000 for air source heat pumps and £6,000 for ground source heat pumps and won't fluctuate on the capacity of the system. Where the grant doesn't cover the full installation cost, you'll need to pay the balance.  Finance may be available to help spread the costs.

How can I check my home is eligible for the Boiler Upgrade Scheme work?

You may be eligible if:

  • live in England or Wales

  • own  your property (whether this is a home or small domestic property)

The property will need to have:

  • an installation capacity of 45kWth (this covers most homes)

  • a valid Energy Performance Certificate (EPC) with no outstanding recommendations for loft or cavity wall insulation (unless you have an insulation exemption)

New build properties will not normally be eligible. The only exception for this is if you're building your own home.


How to apply for the Boiler Upgrade Scheme grant?

Your approved installer will apply for the Boiler Upgrade Scheme on your behalf and your installation will have to happen between 1st April 2022 and 30th March 2023. Here's what happens:

  • Once you get your quote and agree to it, your installer will apply for the BUS grant on your behalf

  • The installer applies to Ofgem for a voucher and provides all necessary information

  • Ofgem contacts you as the property owner and confirms your consent

  • Ofgem assesses the application and issues a voucher to the installer

  • The installer completes the installation 

  • The installer redeems the voucher with Ofgem

  • Ofgem pays grant to the installer

Financing your heat pump

You might want to spread the costs of your heating system upgrades through financing or a loan.  We are working to be able to bring these options to you soon. You could also speak with your mortgage provider as some are offering green mortgages or loans for energy efficiency upgrades to your home.