UK Heat Pump Grants Overview
Several government and local schemes can help fund heat pump installation in the UK. The total available funding can significantly reduce your upfront costs, and in some cases cover the full installation.
1. Boiler Upgrade Scheme (BUS)
The main grant for privately owned homes. Provides £7,500 toward an air source or ground source heat pump for homes in England and Wales. Applied directly by your MCS installer. No income threshold.
2. ECO4 Scheme
The Energy Company Obligation (ECO4) scheme provides free or heavily subsidised heat pump installations for low-income households and those in fuel poverty. Eligibility is based on receipt of means-tested benefits and the property’s EPC rating. Heat pumps are funded alongside insulation measures.
3. Great British Insulation Scheme
While focused on insulation, the GBIS can fund measures that make your home heat-pump-ready (loft, cavity wall, and solid wall insulation), reducing the running costs of a heat pump installation.
4. Home Upgrade Grant (HUG2)
Available in some local authority areas in England for low-income households in properties without gas central heating. Can fund heat pump installation alongside other energy efficiency measures.
5. Scottish Heat Pump Grant (HES)
Home Energy Scotland provides interest-free loans and cashback grants for heat pump installations in Scotland. Up to £9,000 cashback available for air source heat pumps.
6. Warm Homes Programme (Wales)
Nest and Optimised Retrofit programmes in Wales provide funding for heat pump installations in eligible properties.
Stacking Grants
In some cases, you can combine grants. For example, ECO4 insulation improvements can be combined with the BUS grant for a heat pump. Always ask your installer about all available funding before proceeding.
