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. You can apply for £5,000 towards upgrading to a renewable heating system. 

Air source heat pump grants in the UK

If you live in England or Wales you can apply for £5,000 towards your new air source heat pump or £6,000 towards a ground source system. This is not a means-tested grant.

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 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 are a landlord or have a holiday-let you may also apply for the grant to upgrade these properties to a more environmentally friendly heating system and it will help you achieve a better EPC rating. 

Your renewable heating system will need to be installed by an MCS and registered installer. EDF only work with endorsed installers who are already registered for the BUS scheme. Once you have agreed to go ahead with the installer, they will apply for the funding on your behalf. 

If you've already received assistance through previous government grants, you may not be able to apply for that property.  You will also need to have a current EPC, with no recommendations for loft and cavity wall insulation upgrades.  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. Where the grant doesn't cover the full installation cost, you'll need to pay the balance.  Finance may also 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:

  • the property is in England or Wales

  • you own your property (whether this is your home, a holiday let or small commercial property)

  • you are not replacing a heat pump or previous renewable system

 

The property will need to:

  • be replacing the old fossil fuel or electric heating system with a renewable heating system such as heat pump or ground source pump

  • have a new system that uses liquid to distribute heat (air-cons not eligible for grant)

  • have a new system capable of providing full space and hot water requirements for the property

  • have 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 2025. Here's what happens:

  • You agree to your quote with your installer

  • Your installer will apply for the BUS grant on your behalf

  • Ofgem contacts you as the property owner and confirms your consent - you will have 14 days to confirm your consent

  • Ofgem assesses the application and issues a voucher to the installer (voucher expires within 3 months for heat pumps and 6 months for ground source)

  • Your installer completes the installation

  • Your 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.