- You might be eligible for an air source heat pump grant through the boiler upgrade scheme if your property has an old heating system installed.
- You must be the owner of the property & using fossil fuels for heating.
- New build properties are not eligible unless they are self-built & meet the eligibility for heat pump installation.
- You can get up to £7,500 to install an air source heat pump at your property.
No doubt, gas boilers are very efficient heating systems with a heating water capability. But when it comes to rural areas or off-gas areas, air source heat pumps are the most suitable option.
In this guide, we will explore the income, property, and system requirements to be eligible for the boiler upgrade scheme. Stick to this article if you are curious whether you are eligible for a heat pump.
What Is the Boiler Upgrade Scheme & How Does It Help Get a Heat Pump Grant?
The Boiler Upgrade Scheme (BUS) is a government initiative to replace old/fossil fuel heating systems with renewable energy alternatives. Those alternatives include heat pumps (air source & ground source) and biomass boilers. BUS covers part of the cost of installing an air source heat pump.
Here are the details of heat pump grants and funding provided:
- £7,500 for the Ground Source Heat Pump installation.
- £7,500 for the air source heat pump installation.
- £5000 for the boimass boiler installation (rural areas).
For heat pump installation in rural areas, you might get additional funding up to £9000. You can contact an MCS-accredited (microgeneration certification scheme) heat pump installer for the grant. But before that, get a valid energy performance certificate right away.
What Are the Eligibility Criteria for the Air Source Heat Pump Grant?
The criteria to get a grant to install a heat pump or biomass boiler are quite simple. We have categorised the property and system requirements for better understanding.
Property Requirements
To be eligible for heat pump grants, your property must be located in England and Wales. Here are the other property requirements.
- Your property must be a non-domestic property (small/medium).
- The maximum installation capacity of your home must not be more than 45 kWth (300 kWth for shared loop systems).
- You must have a valid Energy Performance Certificate (EPC) with no insulation recommendations due.
System Requirements
Remember that the Boiler Upgrade Scheme only supports the replacement of fossil fuel heating systems. The eligible fossil fuel heating systems include:
- Gas, oil, LPG boilers, or electric heating systems like storage heaters are eligible for an upgrade to heat pumps.
- The heat pump installed must heat both the space and the water.
The Boiler Upgrade Scheme do not have a specific income-related requirement as the grants available are partially paid.
Properties Not Eligible for Heat Pump Grants
While the eligibility is quite flexible, social housing and newly built homes still do not make it to the list of properties eligible for a heat pump. Additionally, properties already getting funding from other government grants are also excluded from the eligibility.
How to Apply for the Government Heat Pump Grant?
Find an MCS-Accredited heat pump installer, ask them to apply for the grant on your behalf, and get the approval, seems simple right? Well, it is. The installer will handle everything, apply on your behalf, discount the grant value from your invoice, and install the system following the industry standards.
There are no other lengthy requirements for the qualification Boiler Upgrade Scheme. However, if you want the entire cost of installing a heat pump to be paid through grants, you should consider applying for ECO4 for England, Wales, and Scotland, and the Affordable Warmth Scheme for Northern Ireland.
What Are the Benefits of Replacing Your Fossil Fuel Heating Systems?
There are plenty of benefits to replacing old systems with a heat pump and biomass boilers. Here are a few of these advantages you can experience.
Lower Upfront Costs
By getting the £7,500 funding for heat pump installation, your burden of upfront costs will be reduced, and you’ll be able to upgrade to a renewable energy system earlier.
Increased Property Value
Energy-efficient homes usually have more rental or sale value than homes with no central heating system. As per the Knight Frank research, you might you might see a 20% increase in property value after improving the EPC rating of your home.
Increased Annual Bill Savings
Once you replace your heating system with the boiler upgrade scheme heat pump grant, you would be able to save massively on energy costs every month.
Final Thoughts
Heat pump grants are available to the residents of England & Wales only. If you are living in rural or off-gas areas of Wales or England, you should definitely apply for these heating grants.
For applying, contact local heat pump installers who are MCS approved to help you get hold of a grant for an air source heating system. In this guide, we have covered everything you might need to know to decide whether you are eligible for these grants or not.
FAQs
Homeowners and landlords living in England and Wales who meet the system requirements qualify for the heat pump grant in the UK. To qualify, you must be replacing your fossil fuel heating system with renewable heating systems, including heat pumps and biomass boilers.
In 2025, air source heat pumps, ground source heat pumps, water source heat pumps and hydrogen boilers will replace the old oil boilers. These systems meet the UK’s long-term energy-saving and renewable energy adoption goals.
Heat pumps are usually considered less expensive to run as compared to gas boilers as they are more efficient and give 4-5 COP per unit of electricity used. Despite the electricity prices being on the higher side, heat pumps are the better option if you can afford the upfront costs.
