Heat Pump Grant Eligibility Overview
In England and Wales, the most widely used air source heat pump grant is the Boiler Upgrade Scheme (BUS). Initially, the scheme provided £5,000 per household, but in October 2023, the UK government increased the grant to £7,500. While this grant helps, it doesn’t cover the full cost of an installation, which averages around £11,000. However, financing options are available for the remaining balance.
If you're unsure about your eligibility, you can use a quick eligibility checker to confirm whether you qualify for this grant and others. The Boiler Upgrade Scheme won't cover the total cost of installation, but it's a significant contribution, especially when paired with additional funding options.
Additional Grants for Low-Income Households
For those receiving means-tested benefits, additional funding or even free heat pump installations may be available through various schemes such as:
- Warmer Homes (Scotland)
- ECO4 (England and Wales)
- Nest (Wales)
Each of these grants offers different levels of support depending on the applicant's circumstances.
Using the Eligibility Checker
Eligibility for heat pump grants varies across England, Scotland, Wales, and Northern Ireland, making it difficult to know whether you qualify for funding. Dwellow provides a 30-second eligibility checker that simplifies the process, helping you quickly determine whether you qualify for grants like the Boiler Upgrade Scheme.
Will a Heat Pump Grant Cover Installation Costs?
Most households in England and Wales are eligible for the Boiler Upgrade Scheme, which provides £7,500 in funding toward installation costs. However, the average cost for installing an air source heat pump in a 3-bedroom home is around £11,000, meaning the grant will not cover the full amount. This cost typically includes materials, labour, and a high-quality heat pump, such as the Vaillant R290 aroTHERM. Financing options can help cover the remaining balance.
For those who qualify, the grant offsets a significant portion of the expense, and additional grants like Nest and ECO4 could help further reduce costs.
Current Government Grants for Heat Pumps
Governments across the UK are offering various grants to encourage the installation of air source heat pumps, as part of their effort to reach net-zero emissions. The Boiler Upgrade Scheme is the most popular grant, with loose eligibility criteria.
Other notable grants include:
- VAT Relief Scheme: Automatically applies 0% VAT on materials for air source heat pump installations.
- Warmer Homes (Scotland): Offers up to £10,000 in funding for eligible households.
- Nest (Wales): Provides grants to those receiving means-tested benefits.
- ECO4: Available in England and Wales, this grant can cover most, if not all, installation costs for eligible households.
These grants provide a variety of financial assistance options, and you can learn more by visiting Dwellow’s detailed heat pump grants page.
Boiler Upgrade Scheme Eligibility
The Boiler Upgrade Scheme is accessible to most households in England and Wales, with a few simple eligibility criteria:
- You must own the property (business premises and second homes are eligible).
- You should be replacing a fossil fuel-based heating system (e.g., gas, oil, or LPG).
- The installation must be completed by an MCS-registered installer within 120 days of applying for the grant.
Cavity wall insulation grants won’t affect your eligibility, meaning even if you’ve had past government assistance for other energy efficiency measures, you can still qualify for the BUS grant.
Applying for the Boiler Upgrade Scheme
If you’re eligible for the Boiler Upgrade Scheme, Dwellow offers a heat pump installation tool that allows you to configure the best setup for your home. All installers in their network are MCS-registered, ensuring that your installation qualifies for the £7,500 grant.
FAQs on Heat Pump Grants
1. Who qualifies for a boiler grant in England?
Most homeowners in England and Wales will qualify for the Boiler Upgrade Scheme, which provides £7,500 in funding for air source heat pump installations. Second homes and business premises are also eligible.
2. Who is eligible for the air source heat pump grant in Wales?
The eligibility criteria in Wales are similar to England’s, but for those seeking a free heat pump, stricter qualifications apply. Nest Wales offers additional funding for households receiving means-tested benefits.
3. Am I eligible for a heat pump grant in Scotland?
Unfortunately, Scottish households are not eligible for the Boiler Upgrade Scheme. However, the Warmer Homes Scotland scheme offers up to £10,000 for those meeting specific eligibility criteria, such as receiving means-tested benefits.
4. How much money can I get from the Boiler Upgrade Scheme?
The Boiler Upgrade Scheme provides £7,500 in funding. Initially, it offered £5,000, but this amount was increased in October 2023.
For more detailed information or to check your eligibility, Dwellow can help you determine if you qualify for any of these grants.
