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The government is offering heat pump grants worth up £7,500 to help you switch from your existing gas boiler. Here's how to apply
KEY INFORMATION
Homeowners can get grants worth £7,500 to replace fossil fuel heating systems like gas boilers with a heat pump and £5,000 to install a biomass boiler.
To be eligible for a grant you must own the property and it must be in England or Wales.
But the grant is unlikely to cover all the costs. So it’s important to research carefully and shop around for the best deal.
You don’t get the grant directly; your installer will apply for it on your behalf and this will be deducted off your final bill.
The government’s Boiler Upgrade Scheme offers grants to cover part of the cost of replacing fossil fuel heating systems (including oil, gas and electric) with a heat pump or biomass boiler.
These grants help homeowners with the upfront cost of the heat pump or biomass boiler, the installation and any required changes to your home such as if you need to have new radiators installed that work with your heat pump.
The scheme is currently set to end in 2028. It was initially meant to end in 2025 but the previous government extended it in 2023.
The amount of government grant depends on the system you’re installing:
The size of heat pump grants increased in 2023. Prior to this, households joining the scheme would receive a £5,000 grant to help cover the cost and installation of an air source heat pump or £6,000 for a ground source heat pump as these are more expensive.
It’s unlikely that £7,500 heat pump grants will cover the full costs of installing a heat pump. For example, according to British Gas, the average cost of installing a heat pump once the government heat pump grant has been taken off is £5,690.
And if the grant doesn’t cover the full cost you will need to pay the difference. See our guide to heat pump costs.
To be eligible for the Boiler Upgrade Scheme and access heat pump grants, you’ll need to meet the following criteria:
When the scheme was first announced you were required to have a valid Energy Performance Certificate with no outstanding recommendations for loft or cavity wall insulation, except in some exemptions outlined by Ofgem. But, in March 2024 the government announced it would no longer be mandatory to install cavity wall or loft insulation to use the scheme. Read our guide on How to make your home more energy efficient
Get instant quotes and compare prices from Domestic Energy Assessors in your local area.
There are some exclusions to the government’s heat pump grant funding including:
If you are buying a new build house and it has not yet been finished by the developer it will not be eligible for heat pump funding.
But if you move into a finished new build property that has a fossil fuel boiler you may be able to get a heat pump grant under the scheme.
For self-build properties, you may be eligible for a heat pump grant providing:
Find an MCS certified installer that is able to carry out the work. (The MCS quality assurance scheme ensures that installers are competent, and the products they use meet the correct standards.) We recommend getting quotes from more than one installer to make sure you’re getting the best value for money. The installer will advise you on whether an installation is eligible for a grant.
Once you’ve found an installer you want to use and agreed a quote, the next step is for the installer to apply for the heat pump grant on your behalf. You’ll then need to confirm that the installer is acting on your behalf when you’re emailed by Ofgem.
You’ll be informed by Ofgem when you’ve been approved for the £7,500 heat pump grant. You’ll want to check that the grant has been included in the price quoted to you from the installer.
Ofgem will then issue a voucher for the £7,500 grant to the installer. This will be valid for three months for an air source heat pump or six months for a ground source heat pump. If you miss this deadline, you can reapply.
And once it’s finished the installer will generate a ‘microgeneration certification certificate’ that confirms eligibility criteria have been met. They’ll then submit this to Ofgem which will pay the grant amount directly to the installer. And you’ll be sent a bill for the outstanding amount.
Changes announced by the government in November 2024 were aimed at allowing more households in England to install an air source heat pump without the need to submit a planning application from early 2025, by ‘removing the rule requiring them to be installed at least one metre from a property’s boundary’. However, the government said that while this will provide greater flexibility, rules will still be in place around listed buildings.
Air source heat pumps work a bit like a fridge in reverse; they absorb heat from the outside air into a liquid refrigerant. A pump compresses the liquid to increase the temperature, then condenses the liquid to release heat. This heat is then sent to radiators and the hot water cylinder. While ground source heat pumps draw heat from the ground.
Because they extract heat from the environment, which is possible even at low outside temperatures, heat pumps, which are powered by electricity, produce around three times the energy they use. This makes them much more efficient than a gas boiler.
For tips on getting the most out of your boiler and central heating read our guide Get your heating working for you
The most noticeable difference is you won’t get the quick boost in temperature you get when you’re feeling cold and put the heating on. Heat pumps heat radiators at a lower temperature than gas boilers so your house will warm more slowly.
Also, you’ll need space outside for the external condenser unit, this needs to be close to or attached to your home.
If you experience problems with your heat pump or biomass boiler, such as underperforming equipment, repairs or safety issues, speak to your installer first.
However, if you have problems with your installer, find information of what you can do at Microgeneration Certification Scheme (MCS) website.
The average cost of installing an air source heat pump is £5,690, according to British Gas. The typical cost of installation is much higher, often around £14,000. But the government’s £7,500 heat pump grant cuts costs significantly. The costs of installing a heat pump vary considerably depending on the amount of work you need to do to your house to make it suitable for a heat pump, like whether you need new radiators fitted. See our guide to heat pump costs.
From 1 April 2022 to 31 March 2027, there is 0% VAT on the installation of energy-saving materials including heat pumps and biomass boilers.
Energy grants can be used to help pay your energy bills and pay for a range of energy efficiency improvements to your home. See our guide for more advice on what energy grants are available, how can you find out if you’re eligible for them and how do you apply. And see our guide for more advice on budget friendly ways to keep your house warm during the colder months.
No. Heat pump grants aren’t be available to those in social housing.
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