The Grant Guys

In this guide, you’ll find the main heat pump grants available across the UK, who they’re aimed at, and the usual steps to apply. We’ll also cover VAT relief, scam-avoidance tips, and alternatives if you don’t qualify for a grant.

What government grants are available for heat pumps?

Which scheme you can use depends mainly on where you live and your household circumstances. Some grants are broadly available, while others focus on low-income or vulnerable households.

UK heat pump grants at a glance

Scheme	Where it applies	What it can help with
Boiler Upgrade Scheme (BUS)	England & Wales	Money off air source / ground source heat pumps (and biomass boilers)
ECO4	England, Scotland & Wales	Low-income household upgrades (can include low‑carbon heating like heat pumps)
Warm Homes: Local Grant	England (delivered via local authorities)	Energy efficiency + low‑carbon heating support (up to £30,000 total in some cases)
Home Energy Scotland Grant & Loan	Scotland	Grant + optional interest‑free loan support (heat pump grant up to £7,500)
Warmer Homes Scotland	Scotland	Support aimed at households struggling with energy bills (often covers costs for eligible homes)
Nest	Wales	Advice + home improvements for eligible households (can include heat pumps)

Am I eligible for a heat pump grant?

Eligibility varies a lot between schemes. Some focus on property type and EPC rating, while others focus on household income, benefits, or health vulnerability.

How do I verify my heat pump installer is MCS certified?

Many grants require an MCS-certified installer. The simplest checks are:

• Use the official MCS “Find an Installer” search tool (postcode or installer name).
• Ask the installer for their MCS number and cross-check it.
• Confirm they follow a recognised consumer code (for example, deposit protection / warranty standards).

What is the Boiler Upgrade Scheme (BUS) and how does it work?

The Boiler Upgrade Scheme is the main, straightforward grant for many homeowners. It’s designed to support the switch from fossil-fuel heating to low‑carbon alternatives such as heat pumps.

How BUS works

• £7,500 off an eligible air source or ground source heat pump.
• Your installer applies on your behalf, and the grant is typically applied as a discount to your installation cost.

BUS eligibility (typical headline requirements)

• You own the property (including landlords / second homes in some cases).
• You’re replacing a fossil‑fuel heating system (for example gas, oil, LPG, or electric resistance heating).
• You have a valid EPC.
• New builds are generally not eligible (with exceptions such as certain self‑build situations).
• It’s not available if the property has already received a government‑funded heat pump/biomass install under certain schemes.

How to apply for BUS

1. Choose an MCS-certified heat pump installer.
2. The installer checks your eligibility and prepares a quote.
3. The installer submits the application (via the scheme administrator), and you may be contacted to confirm they’re acting on your behalf.
4. Once approved, the grant is usually taken off the amount you pay.

Is the Boiler Upgrade Scheme taxable?

For most homeowners using the grant on their own home, it’s typically treated as a cost reduction rather than taxable income. For landlords and businesses, tax treatment can be different in edge cases — if you’re unsure, check with HMRC or a qualified adviser.

ECO4

ECO4 is a major energy-efficiency programme aimed at helping low-income and vulnerable households upgrade their homes and heating systems. One route within the scheme can involve replacing older heating with greener options such as heat pumps (and in some cases other measures like insulation).

How ECO4 works

• You usually start by contacting an energy supplier involved in ECO4.
• You’ll typically complete an initial assessment (income/benefits, EPC/energy efficiency, current heating).
• If you pass initial checks, an installer may arrange a home visit to confirm suitability.
• Funding is not a fixed amount — it depends on the measures needed and the supplier’s approach.

ECO4 eligibility (common requirements)

• Low EPC rating (often D or below).
• An existing electric heating system may be required in some cases.
• If you rent, you’ll usually need landlord permission.
• Often linked to receiving certain benefits and meeting income/household criteria.

How to apply for ECO4

Applications can be made via official channels or directly with obligated suppliers. Expect to provide details for eligibility checks and, if suitable, proceed to a property survey before installation is approved.

Warm Homes: Local Grant

Warm Homes: Local Grant is delivered through local authorities in England and is designed to fund energy efficiency improvements and low-carbon heating for households experiencing (or at risk of) fuel poverty.

How it works

• Delivered by local authorities who identify eligible homes and oversee upgrades.
• Funding can support both energy performance improvements and low‑carbon heating.
• Funding may cover 100% for homeowners and tenants, while some landlord scenarios can require a contribution.

Eligibility pathways (headline)

• Pathway 1: eligible postcodes (often linked to deprivation indices) + other criteria.
• Pathway 2: income proxies (for example, certain means-tested benefits) and/or qualifying low‑income indicators.
• Pathway 3: household income thresholds (for example, gross household income below a set figure) + other criteria.

Property requirements (typical)

• EPC between D and G (or equivalent assessment where EPC isn’t available).
• Usually aimed at owner-occupied and privately rented homes, with conditions for landlords in some cases.

How to apply

Because delivery is local-authority led, the practical route is usually to register interest or apply through your local authority’s scheme pages (or the programme’s official information pages), then follow the council’s eligibility and property assessment process.

Home Energy Scotland Grant and Loan

If you live in Scotland, Home Energy Scotland can offer a grant and an optional interest-free loan for certain upgrades.

• Grants can be available up to a total cap (depending on measures), with a heat pump grant up to £7,500 in the scheme’s headline figures.
• Extra grant support may be available for some rural households (for example, additional funding for energy efficiency improvements and clean heating measures).
• Some applicant types (for example certain landlord/business situations) may not be eligible under the scheme rules.

Warmer Homes Scotland

Warmer Homes Scotland is aimed at low-income households struggling with energy bills, and can cover improvements for eligible homes.

Typical household/home requirements include (headline examples)

• Living in the home for a minimum period (with certain exceptions).
• Household circumstances such as an older resident and lack of central heating, or certain medical criteria.
• Receiving certain benefits.
• Home checks such as council tax band ranges, being your main home, and having a poor energy rating (which can be assessed).

Nest (Wales)

Nest is a Welsh Government scheme designed to reduce fuel poverty by improving the energy efficiency of eligible homes. Households can usually start by contacting the scheme helpline for an assessment.

Examples of measures Nest can support

• Heating upgrades and controls
• Insulation (loft, wall, pipe/tank, draught‑proofing)
• Low‑carbon heating, including air source or ground source heat pumps (where appropriate)

Who’s eligible (headline examples)

• Own or privately rent your home (not from a local authority / housing association).
• Live in an energy-inefficient home that is expensive to heat.
• Receive a qualifying means-tested benefit and/or meet health-related vulnerability criteria (scheme rules apply).

0% VAT

A zero rate of VAT applies to the installation of certain energy-saving materials during the current relief window. This can also include necessary works connected to some heat pump installations (for example, some groundworks for ground and water source heat pumps).

How to get heat pumps for less without a grant or a loan

If you don’t qualify for a grant and you’d rather not take out finance, the best lever you still have is shopping around:

• Compare multiple installer quotes (same heat pump type/spec where possible).
• Ask each installer what’s included: design, commissioning, controls, cylinder upgrades, radiators, etc.
• Consider improving insulation first — a well-insulated home can reduce the size (and cost) of the system you need.

Expired heat pump grants

Over the last few years, several schemes have ended or been replaced. If you see these mentioned online, they may no longer be open to new applicants.

Expired: Home Upgrade Grant

This programme previously provided funding via local authorities for upgrades and clean heating. It ended and has been replaced in structure by newer local-authority delivery (for example, Warm Homes: Local Grant).

Expired: Renewable Heat Incentive (RHI)

The RHI previously paid households for renewable heat generation. It ended and has been replaced by newer support such as the Boiler Upgrade Scheme.

Expired: Green Homes Grant

This scheme ran for a short time and offered vouchers towards certain home improvements, with enhanced support for some benefit-eligible households. It has since closed.

How to avoid heat pump grant scams

Unfortunately, fake “grant help” websites and high-pressure sales tactics exist. A few simple checks can reduce risk:

• Be cautious with cold calls/emails claiming you “automatically qualify”.
• Use official scheme pages and recognised administrators to verify claims.
• Check your installer is MCS-certified before sharing personal details or paying a deposit.
• If in doubt, contact the relevant public body or consumer advice service for guidance.

How much do heat pumps cost without grants?

Installed prices vary widely by system type and property size. A broad rule of thumb is that installed costs can range from around £7,000 to £30,000+.

• Air source heat pumps are often quoted around £10,000 (varies by home).
• Some water source systems can fall in a different range depending on site conditions and complexity.

Heat pumps can have a long lifespan (often cited as much longer than a typical boiler), so many homeowners look at lifetime running costs and future fuel price risk as part of the overall value.

What if I don’t qualify for any heat pump grants?

If you miss out on grants, you still have options to reduce the hit of the upfront cost:

• Consider installer finance or “pay monthly” options (compare APR and terms carefully).
• Look for supplier bundles or partnerships that add bill credits/cashback alongside available grants.
• Reduce demand first (insulation/draught-proofing) so you may need a smaller system.

Octopus Energy and Lloyds Bank heat pump support

Some partnerships (such as Lloyds Bank and Octopus Energy) have offered additional incentives to reduce costs for eligible customers. Depending on the offer terms, examples can include:

• Account credits
• Mortgage-linked cashback (where the customer meets specific product criteria)
• Support alongside (not instead of) core government grants where eligible

Aira’s green energy tariffs

Some heat pump providers also bundle or recommend energy tariffs designed to support low‑carbon heating and reduce running costs. Always compare tariff details and eligibility, and check whether you’re locked into any specific supplier terms.