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With energy bills still a concern for many households and the country pushing for low-carbon heating, heat pump are becoming an increasingly popular alternative to gas boilers. To help reduce upfront costs, the UK government is offering heat pump subsidies that can significantly reduce Installation cost.
If you’re interested in upgrading to a heat pump but aren’t sure where to start, here’s a simple guide to how the UK heat pump grant works, who is eligible and how to apply.
What heat pump grants are available in the UK?
The main support programs are Boiler upgrade plan. It provides grants of £7,500 to cover the cost of installing air-source or ground-source heat pumps in England and Wales.
The grant is not paid directly to you, but is applied for by your installer and deducted from the final installation cost.
Who is eligible for the UK Heat Pump Grant?
Most homeowners can apply, as long as they meet some basic requirements:
- you own your own home in England or Wales (including your landlord)
- Your property has a valid Energy Performance Certificate (EPC)
- You are replacing a fossil fuel heating system, such as a gas or oil boiler
- Your home has suitable insulation, such as loft or cavity wall insulation
New-build properties are generally excluded, except for certain self-build projects. Homes that already use heat pumps or other low carbon systems are not eligible.
What types of heat pumps are covered by the Boiler Upgrade Program?
The program supports two types of systems:
- Air source heat pumps are the most common and easiest to install
- Ground source heat pumps, more complex but more efficient
Hybrid systems that combine a heat pump with a gas boiler are currently not eligible.
How the application process works
One of the simpler aspects of the program is that homeowners do not apply directly. Instead, your installer manages the process. In fact, it works like this:
1. Choose an MCS certified installer
Grants are only available to installers certified through the Microgeneration Certification Program.
2. Get your home appraised
The installer will check your EPC, insulation levels and overall suitability.
3. Receive a quote that includes a grant
The grant of £7,500 should be shown as a deduction.
4. The installer submits an application
Once you agree to proceed, they will make the application on your behalf.
5. Installation and payment
Once the installation is complete, the installer will claim the grant and reduce your final bill.
For homeowners, the process is largely hands-off.
How much does a heat pump cost after the grant?
Costs will vary based on the size and layout of your home, but as a rough guide:
- Air source heat pumps typically cost £8,000 to £14,000
- Ground source systems typically cost £18,000 or more
This grant can have a significant impact on upfront costs, especially when combined with potential long-term energy bill savings.
Some suppliers, including Octopus Energy, offer heat pump installation services or work with approved partners, which can help simplify the process for families exploring a more efficient heating system.
Do heat pumps save money?
Heat pumps work best in well-insulated homes with modern heating systems. If installed correctly and matched to the property, they can be cheaper to run than a gas boiler, especially as gas prices fluctuate.
Using smart meters and time-of-use tariffs can also help households better understand and manage their energy usage.
Read more: Are heat pumps worth it?
Are there other grants available?
Support varies across the UK. In Scotland, funding is available through the Scottish Home Energy Scheme, while households on lower incomes may be eligible for additional help through schemes such as the Energy Company Obligation (ECO). Eligibility and availability vary by location.
Is it worth buying a heat pump with subsidies in the UK?
If your boiler is nearing the end of its life, UK heat pump subsidies can make it more affordable to switch to low-carbon, energy-efficient heating. Before you commit, a reputable, MCS-certified installer will be able to advise whether a heat pump is right for your home.