Are There Any Grants for Air Source Heat Pumps in the UK?

Air source heat pumps (ASHPs) are a smart, eco-friendly way to heat your home. They allow you to reduce carbon emissions and energy bills simultaneously. However, the cost of installing them can be a major hurdle for many households.

To help overcome that hurdle, several UK grants and schemes are available to help you reduce upfront expenses, enabling you to upgrade your home without costing a fortune. This guide’ll cover the main grants available, eligibility requirements, and tips to maximise your savings.

Since heat pumps work by transferring hot and cold air around rather than heating or cooling it using fossil fuels or electricity, they save significant money. However, installing one does require an upfront investment.

Fortunately, several UK grants help reduce these costs. You can also lower the cost of running them by utilising solar energy and an EcoFlow Home Battery system for even more savings.

Now, let’s examine the grants available today.

The Boiler Upgrade Scheme (BUS) is a grant available to homeowners in England or Wales. It provides up to £7,500 for the installation of ASHPs or ground source heat pumps (GSHPs), including high-temperature heat pumps.

The Energy Company Obligation Scheme (ECO4) provides financial support to low-income households in England, Scotland, and Wales, helping to make energy systems that reduce carbon emissions more affordable.

You can also use it to help purchase an EcoFlow Power Ocean (Single-Phase) battery storage, especially when paired with solar panels, and use green energy to run your ASHP for even greater carbon emissions reductions.

The 0% VAT on clean energy solutions, including ASHPs and GSHPS, is available throughout the UK until March 2027. Your installer will automatically apply this to your bill.

Warmer Homes Scotland offers interest-free loans of up to £10,000 to homeowners who install energy-efficient systems, including central heating, heat pumps, insulation, and renewable energy solutions.

The Home Energy Scotland Scheme offers an interest-free loan of up to £15,000 to install renewable energy sources. Regarding heat pumps, this can only be used to upgrade an existing home.

The Nest Scheme Wales provides free advice to all Welsh households to help reduce energy bills and lower their carbon footprints. It may also cover the full cost of installing an ASHP for eligible low-income families.

• Your home is considered energy inefficient and expensive to heat.
• You have a valid Energy Performance Certificate (EPC). In the case of the Boiler Upgrade Scheme, you also must have no outstanding loft or cavity wall insulation recommendations to address.
• You’re replacing an existing fossil fuel-based system with alternative energy sources that reduce your carbon footprint.
• Some grants and interest-free loans have income requirements, which vary with each incentive.
• Some grants and schemes, like the Boiler Upgrade Scheme, are not based on income requirements and are eligible to all homeowners upgrading their boiler with more efficient options.
• In most cases, you must own the property where the equipment is installed. Renters can have their landlords apply; in some cases, they may be eligible themselves.

You may not be eligible for these grants and incentives for various reasons.

• Renters are often not eligible; however, their landlords usually are.
• Often, you must replace a fossil fuel heating system, and those who already have low-carbon heating systems are ineligible.
• The heating system’s capacity must be less than 45kWh.
• Those without a valid Energy Performance Certificate may be disqualified.
• Hybrid and mini-split heat pumps are ineligible for the Boiler Upgrade Scheme.
• Those who have already received government funding for an ASHP, GSHP, or biomass boiler are ineligible.
• New builds are often excluded; however, those building their own homes may be eligible.

Without considering grants and schemes, the average cost of an ASHP in the UK can vary widely from £4,000 to £27,500, including installation. However, once you apply for and receive the Boiler Upgrade Scheme (BUS), you can save £7,500, which often covers most of the cost.

Even without these incentives, heat pumps are worth it. However, when you factor in these incentives and the money you save on your energy bills for its entire lifespan, investing in an ASHP becomes an easy decision.

When you power your heat pump using a solar system and a battery system like the EcoFlow Power Ocean (Three-Phase), your costs will be lower than ever.

Yes, there are grants in England for heat pumps, including the Boiler Upgrade Scheme (BUS) and the Energy Company Obligation Scheme (ECO4). You’re also eligible for 0% VAT, which your installer will apply automatically.

Martin Lewis says that heat pumps can be a green heating solution, with options available that make them even more affordable. However, he also cautions that they must be sized and installed correctly, and may not be suitable for all homes.

ECO4 stands for the Energy Company Obligation Scheme, which provides financial assistance to low-income households in England, Scotland, and Wales to install green energy systems that reduce carbon emissions.

Installing an air source heat pump is a long-term investment in energy efficiency and sustainability, and UK grants make it more affordable than ever. These incentives slash thousands off your upfront costs. From the Boiler Upgrade Scheme (BUS) to ECO4, plus 0% VAT on clean energy systems.

Pairing ASHP with a solar system and EcoFlow Power Ocean (Single-Phase) battery storage means even greater savings and energy independence.