Heat Pump Grants 2025: Complete UK Funding Guide
Navigate UK heat pump grants in 2025. Get up to £7,500 through the Boiler Upgrade Scheme, ECO4, and regional programs. Complete eligibility guide and application process.
Heat Pump Grants 2025: Your Complete UK Funding Guide
Switching to a heat pump could save you hundreds annually on heating bills, but the upfront cost—often £8,000 to £18,000—puts many homeowners off. Fortunately, the UK government and energy companies offer substantial grants that can slash these costs dramatically. In 2025, you could pocket up to £7,500 toward your heat pump installation, turning an expensive upgrade into an affordable investment.
This comprehensive guide breaks down every heat pump grant available in 2025, from the flagship Boiler Upgrade Scheme to regional funding and energy company programs. We'll show you exactly who qualifies, how much you can claim, and the step-by-step application process to secure your funding.
Quick Grant Summary 2025
- • Air source heat pump: £7,500
- • Ground source heat pump: £6,000
- • Available: England & Wales
- • Up to 100% funding
- • Low-income households only
- • Available: England, Scotland & Wales
The Boiler Upgrade Scheme: Your Main Heat Pump Grant
The Boiler Upgrade Scheme (BUS) is the UK's primary heat pump grant program, offering homeowners substantial upfront discounts on low-carbon heating systems. Launched in 2022 and extended through 2028, the scheme has a confirmed £295 million budget for 2025-26 alone.
What You Can Get
| Heat Pump Type | Grant Amount | Typical Total Cost | Your Cost After Grant |
|---|---|---|---|
| Air Source Heat Pump | £7,500 | £8,000 - £15,000 | £500 - £7,500 |
| Ground Source Heat Pump | £6,000 | £15,000 - £25,000 | £9,000 - £19,000 |
| Water Source Heat Pump | £6,000 | £12,000 - £20,000 | £6,000 - £14,000 |
Who Qualifies for BUS?
The Boiler Upgrade Scheme has clear eligibility criteria that you must meet:
Essential Requirements:
- ✓ Property ownership: You own the property (including buy-to-let and second homes)
- ✓ Location: Property is in England or Wales
- ✓ Current system: Replacing a gas, oil, LPG, or electric heating system
- ✓ EPC required: Valid Energy Performance Certificate from last 10 years
- ✓ MCS installer: Must use certified installer (they handle the application)
How to Apply for BUS
The application process is straightforward, but you can't apply directly. Here's how it works:
- Find an MCS-certified installer - Search the MCS database or get quotes from certified installers in your area
- Property assessment - The installer surveys your home and recommends the right heat pump system
- Quote and grant application - Your installer provides a quote and applies for the BUS grant on your behalf
- Grant approval - OFGEM processes the application (usually within 2-4 weeks)
- Installation - Once approved, your installer completes the work and deducts the grant from your final bill
Important:
BUS funding is allocated on a first-come, first-served basis. With high demand and limited annual budgets, early application is crucial. Over 55,000 applications were submitted by late 2024, so don't delay if you're considering a heat pump.
ECO4: Free Heat Pumps for Low-Income Households
The Energy Company Obligation (ECO4) scheme, running until March 2026, provides free or heavily subsidized heat pumps for eligible low-income households. Funded by major energy suppliers like British Gas, EDF, and Octopus Energy, ECO4 can cover the entire cost of your heat pump installation.
ECO4 Eligibility
ECO4 focuses on fuel poverty and targets households receiving specific benefits:
Qualifying Benefits:
- • Universal Credit
- • Pension Credit
- • Child Tax Credit
- • Working Tax Credit
- • Income Support
- • Housing Benefit
- • Employment & Support Allowance
Property Requirements:
- • EPC rating D, E, F, or G
- • No previous ECO funding
- • England, Scotland, or Wales
- • Private homes or some social housing
- • Renters need landlord permission
ECO4 Flex: Extended Eligibility
ECO4 Flex allows local authorities to nominate households that don't receive qualifying benefits but are still considered vulnerable or low-income. This typically includes households earning under £31,000 annually or facing specific hardships.
Regional Heat Pump Grants
Scotland: Home Energy Scotland
Scotland offers generous heat pump support through Home Energy Scotland, providing both grants and interest-free loans to homeowners replacing fossil fuel heating systems.
| Income Level | Grant Available | Loan Available | Total Support |
|---|---|---|---|
| Under £25,000 | Up to £7,500 | Up to £32,500 | Up to £40,000 |
| £25,000 - £40,000 | Up to £3,750 | Up to £36,250 | Up to £40,000 |
| Over £40,000 | £0 | Up to £40,000 | Up to £40,000 |
Northern Ireland: Challenges and Alternatives
Northern Ireland currently lacks a direct equivalent to the Boiler Upgrade Scheme. The Northern Ireland Sustainable Energy Programme closed in 2023, leaving a funding gap. However, some options remain:
- Individual energy suppliers may offer ECO4-style support
- The Affordable Warmth Scheme provides heating upgrades for qualifying households
- Check with local councils for any regional initiatives
Energy Company Schemes
Major energy suppliers run their own heat pump programs, often leveraging ECO4 funding or company initiatives:
British Gas
Offers ECO4-funded heat pumps for eligible customers, potentially covering full installation costs up to £10,000.
Contact: 0333 202 9802
Octopus Energy
Cosy Heat Pump service with competitive pricing and BUS grant application support included.
Contact: Via website chat
EDF Energy
ECO4 heat pump installations for qualifying customers with full project management.
Contact: 0333 200 5100
EON Next
Heat pump installations through ECO4 with emphasis on rural and hard-to-heat homes.
Contact: 0808 501 5200
Maximizing Your Grant: Combination Strategies
Smart homeowners can sometimes combine grants for maximum saving:
Example: Maximum Grant Scenario
Application Timeline: What to Expect
Understanding the timeline helps you plan your heat pump installation:
Week 1-2: Installer Selection
Research MCS-certified installers, get quotes, choose your preferred contractor
Week 3: Property Survey
Installer assesses your home, recommends system size, prepares detailed quote
Week 4-6: Grant Application
Installer submits BUS application to OFGEM, awaits approval (2-4 weeks typical)
Week 7-9: Installation
Heat pump installation, commissioning, handover (typically 1-3 days on-site)
Common Grant Application Mistakes
Avoid these pitfalls that can delay or derail your grant application:
Top Application Errors:
- ✗ Expired EPC: Ensure your Energy Performance Certificate is less than 10 years old
- ✗ Non-MCS installer: Only MCS-certified installers can apply for BUS grants
- ✗ Property not owned: BUS requires property ownership (rentals need landlord consent)
- ✗ Incomplete paperwork: Missing documentation causes automatic rejections
Is a Heat Pump Grant Worth It?
With grants potentially covering 50-100% of installation costs, the financial case is compelling:
| Scenario | Installation Cost | Grant Value | Your Cost | Annual Saving |
|---|---|---|---|---|
| BUS + Basic Air Source | £8,000 | £7,500 | £500 | £400 |
| ECO4 + Full Funding | £12,000 | £12,000 | £0 | £600 |
| No Grant (Comparison) | £10,000 | £0 | £10,000 | £500 |
The payback period with grants is dramatically reduced—from 15-20 years without support to just 1-10 years with maximum grant funding.
Next Steps: Securing Your Heat Pump Grant
Ready to claim your heat pump grant? Follow this action plan:
- Check your eligibility using our heat pump calculator or contact your energy supplier
- Get your EPC updated if it's over 10 years old (costs around £60-£120)
- Obtain multiple quotes from MCS-certified installers in your area
- Choose your installer based on experience, warranty terms, and customer reviews
- Let them handle the paperwork - your installer manages all grant applications
- Schedule installation once grant approval comes through
Don't Wait:
Heat pump grants operate on first-come, first-served basis with limited annual budgets. The Boiler Upgrade Scheme has already processed over 55,000 applications, and demand continues to grow. Start your application process now to secure your share of the £295 million available in 2025-26.
Heat pump grants in 2025 represent one of the UK's most generous home improvement incentives. Whether you qualify for the full £7,500 BUS grant or 100% ECO4 funding, the opportunity to dramatically reduce your heating costs while cutting carbon emissions has never been better. The question isn't whether you can afford a heat pump—with these grants, it's whether you can afford not to make the switch.