Consider installing a heat pump in 2025? Brilliant idea. They’re cheap to run, good for the planet, and ultimately better value for your pocket in the long term. Best bit? The government is incentivising homeowners by making it simpler with financial backing. Wondering how government grants for heat pump actually work and what it takes to qualify? Don’t worry; this handbook covers all there is to know—in plain and simple terms.
Why the UK Government Is Pushing for Heat Pumps
Heat pumps are one of the UK’s wider strategies to cut carbon emissions and achieve its net-zero goals by 2050. Gas boilers and back boilers are more carbon-polluting and more expensive to operate in the long term. Heat pumps, on the other hand, take heat from the air or ground and use it to heat your home, so they are much more energy-efficient.
The aim? Persuade more individuals to switch and cut emissions in homes throughout the nation. To encourage this, the government is providing a number of grants to make the initial outlay less painful.
What Are Government Grants for Heat Pumps?
Heat pump grants by the government are types of financial aid to assist with paying for air source or ground source heat pumps installation. Most such systems fall in the range of £7,000 to £13,000, depending on size and type of property. A large proportion of that can be paid by grants, particularly when combined with other energy-efficient improvements.
Key Grant Scheme: Boiler Upgrade Scheme (BUS)
The Boiler Upgrade Scheme is one of the UK government’s flagship initiatives for 2025. It offers:
- £7,500 for air source heat pumps
- £7,500 for ground source heat pumps
The grant is available in England and Wales and replaces older schemes like the Green Homes Grant. Your installer handles the application, and the grant amount is deducted directly from your installation price.
Example:
Rebecca, a homeowner in Kent, replaced her ageing gas boiler with an air source heat pump in early 2025. Her installer applied for the BUS grant, and she only paid £2,500 out of pocket. “The savings were instant,” she says. “And my energy bills dropped by 30%.”
What’s the Back Boiler Replacement Grant?
If your home still uses a back boiler, you’re in luck. The government is phasing these out due to their inefficiency and carbon footprint. To help fund this, there is a back boiler replacement grant under some national and local energy schemes.
These can be combined with heat pump grants, particularly if you’re replacing your entire heating system.
Real Example:
Mark and Alison from Manchester had a 30-year-old back boiler in their semi-detached home. In 2025, they applied for an upgrade through their local council’s ECO4 scheme. By combining the back boiler replacement grant with the Boiler Upgrade Scheme, they have saved more than £9,000 on the overall cost of upgrading their heating system to a new air source heat pump.
Who Is Eligible for These Grants?
You might be eligible if:
- You are the homeowner in either England or Wales.
- Your current heating system is old (especially oil, gas, or back boiler)
- You possess an Energy Performance Certificate (EPC) with no significant insulation improvement suggestions.
- You’re replacing your boiler with a low-carbon alternative like a heat pump
If you’re renting or live in Scotland or Northern Ireland, there are separate schemes you can explore (like Warmer Homes Scotland).
What Types of Heat Pumps Can You Get?
Most government grants for heat pumps cover two primary types:
1. Air Source Heat Pumps
- Extract heat from outside air
- Easier and cheaper to install
- Work well in most UK homes
2. Ground Source Heat Pumps
- Pull heat from underground pipes
- More efficient long-term but costlier to install
- Best for homes with large gardens
Both are eligible for the £7,500 grant through the BUS scheme.
Steps to Apply for the Heat Pump Grant
The process is simple, but timing matters.
- Find an MCS-certified installer
Grants can only be applied for by certified installers on your behalf. - Get a quote
They’ll inspect your home and offer the best heat pump solution. - Installer applies for the grant
If approved, you’ll get a discounted installation. - Installation begins
Once the grant is confirmed, your installer can start the work.
Tip: Always compare quotes and check reviews. The installer you choose makes a big difference in your long-term comfort and savings.
Other Support to Know About
If you’re doing a full home energy makeover, check out these too:
- ECO4 Scheme: Helps low-income households upgrade heating and insulation.
- Local Authority Delivery (LAD): Offers funding through your local council.
- Home Upgrade Grant (HUG): Aims to improve energy efficiency in off-gas-grid homes.
These can sometimes be used alongside the main government grants for heat pumps, depending on your eligibility.
Financial Benefits of Switching to a Heat Pump
- Lower monthly bills: Save up to 40% on heating
- Boost property value: Homes with energy efficiency are highly sought after.
- Lower maintenance: Fewer breakdowns than traditional boilers
- You can qualify for the Smart Export Guarantee (SEG) when paired with solar panels.
Case in Point:
Emma, a landlord in Bristol, installed ground source heat pumps in two of her rental properties. Her tenants reported lower bills, and her properties now meet future energy-efficiency standards ahead of time. “It was an investment upfront, but now I attract better tenants and meet EPC rules early,” she explains.
Common Questions
Can I get a grant if I live in a flat?
It depends on the flat’s layout and the building structure. Air source heat pumps are generally more suitable.
Can landlords apply?
Yes. Landlords can apply, especially if improving energy efficiency to meet EPC regulations.
What if I already replaced my boiler?
Unfortunately, grants aren’t offered retroactively. You need to apply before installation.
Final Thoughts
Government heat pump grants in 2025 are making it more convenient than ever to replace your home heating. With the help of programs such as the Boiler Upgrade Scheme and back boiler replacement grants, now is a wise time to change.
Whether you are a homeowner interested in reducing bills or a landlord planning ahead for future legislation, the assistance is available—you need only make that initial step. Contact an MCS-approved installer, assess your entitlement, and investigate what is feasible for your house.
