Money & Budgeting

Heat Pump Grants UK 2025 — Boiler Upgrade Scheme & Help Available

Complete guide to heat pump grants UK 2025. Boiler Upgrade Scheme, how much you get, eligibility, installation costs, and other financial help for heat pumps.

By PocketWise · · 4 min read

Government grants make heat pumps more affordable. Here’s how to get financial help in 2025.

Boiler Upgrade Scheme (BUS)

Grant Amounts (2025-2028)

Technology Grant Amount
Air source heat pump £7,500
Ground source heat pump £7,500
Biomass boiler £7,500

How It Works

Step Details
1 Find MCS-certified installer
2 Get quote for heat pump
3 Installer applies for grant
4 Grant deducted from your bill
5 You pay the reduced amount

Key Rules

Rule Detail
One voucher per property Can’t combine
Must use on quote given Specific system
Valid for 3 months From issue
Through approved installer MCS-certified only

Eligibility

Property Requirements

Requirement Detail
Location England or Wales
Ownership Must own property
Age Existing building (not new build)
Current heating Replace fossil fuel system

EPC Requirements

Your EPC Needed
Valid EPC Required
No loft insulation recommendation Or must address it
No cavity wall recommendation Or must address it
Exceptions For some property types

Not Eligible

Situation Eligible?
New build No
Social housing tenant No (landlord may apply)
Already have heat pump No
Property in Scotland/NI No (different schemes)

Heat Pump Costs

Typical Total Costs (Before Grant)

Type Typical Cost Range
Air source heat pump £12,000 - £20,000
Ground source heat pump £20,000 - £35,000
Installation labour Included in above
Additional work May be extra

After Grant

Type Cost After £7,500 Grant
Air source £4,500 - £12,500
Ground source £12,500 - £27,500

What Affects Cost

Factor Impact on Price
Property size Bigger = more expensive
Heat pump size Matched to property
Radiator upgrades May need larger radiators
Hot water cylinder Usually needed
Pipework changes Can add cost
Ground works (GSHP) Significant for ground source

Running Costs

Compared to Other Heating

Heating Type Typical Annual Cost
Gas boiler £1,000 - £1,400
Oil boiler £1,500 - £2,200
LPG boiler £2,000 - £2,500
Electric heating £1,800 - £2,500
Air source heat pump £1,100 - £1,600
Ground source heat pump £900 - £1,400

*Based on average-sized home, typical usage, 2025 prices

Key Factor: Efficiency

Heat Pump Performance COP
Coefficient of Performance 3-4 typical
Meaning 3-4 units heat per unit electricity
Vs electric heater 1 unit heat per unit electricity
In practice Much cheaper than resistive heating

Best Value Scenarios

Situation Heat Pump Value
Replacing oil boiler High savings
Replacing LPG High savings
Replacing electric Good savings
Replacing gas May be similar cost

Other Financial Help

Home Upgrade Grant (HUG2)

Scheme Details
Who Low-income households
What Insulation + heating upgrades
Amount Up to £10,000+
Income test Yes — EPC based targeting
Application Through local authority

ECO4 (Energy Company Obligation)

Scheme Details
Who Benefits recipients, low income
What Various measures inc. heating
Funded by Energy companies
Application Through installer or council

LA Flex

Feature Details
What Local authority flexibility
Who Those in fuel poverty
Varies by Council area
Check with Your local authority

Scotland Schemes

Home Energy Scotland

Grant Amount
Air source heat pump Up to £7,500 grant
Ground source heat pump Up to £7,500 grant
Rural uplift Additional support
Interest-free loan Also available

Eligibility Scotland

Requirement Detail
Own home Required
EPC rating Some requirements
Application Through Home Energy Scotland

Northern Ireland

Schemes Available

Programme Details
NISEP Various energy schemes
Affordable Warmth Low income focus
Contact NI Energy Advice

Finding an Installer

MCS Certification

Requirement Why
Must be MCS-certified For BUS grant
Quality standard Industry accreditation
Find via mcscertified.com

Getting Quotes

Step Action
1 Get 3 quotes minimum
2 Check MCS certification
3 Compare like-for-like
4 Check what’s included
5 Ask about guarantees

Questions to Ask

Question Why
What size heat pump? Must match property
Any radiator upgrades? Affects cost
Hot water system? Usually needed
Noise levels? Location matters
Running cost estimate? Based on your property
Warranties? Parts and labour

Is a Heat Pump Right for You?

Good Candidates

Factor Suitable
Off gas grid Often yes
Well-insulated home Yes
Replacing oil/LPG Usually makes sense
Underfloor heating Ideal match
New radiators OK Flexibility helps
Space for unit Required

Challenging Situations

Factor Consideration
Poorly insulated Insulate first
On mains gas Savings may be marginal
Large radiator upgrades Add to cost
Listed building May have restrictions
Limited space Unit needs location
Very cold climate Efficiency drops

Before You Decide

Get an Assessment

Step Why
Heat loss calculation Sizes system correctly
EPC check May need improvements first
Site survey Practical considerations
Running cost estimate Realistic expectations

Insulation First

Priority Reason
Loft insulation Heat pumps need it
Cavity walls If recommended on EPC
Draught proofing Reduces heat demand
Better insulation = Smaller, cheaper heat pump

Summary

Grant Overview

Grant Amount Where
Boiler Upgrade Scheme £7,500 England/Wales
Home Energy Scotland Up to £7,500 Scotland
HUG2 Varies Low income
ECO4 Varies Benefits/low income

Checklist

Action Done?
Check eligibility ☐
Get EPC if needed ☐
Find MCS installers ☐
Get 3+ quotes ☐
Check what’s included ☐
Consider insulation first ☐
Compare running costs ☐
Decision ☐

Key Contacts

Resource For
Simple Energy Advice gov.uk/apply-boiler-upgrade-scheme
MCS directory mcscertified.com
Home Energy Scotland energysavingtrust.org.uk/scotland
Your local authority Low income schemes

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Sources

  1. MoneyHelper — Everyday money