2025 UK Heat Pump Grants Explained: How to Save Up to £7,500 on Installation

October 10, 2025

2025 UK Heat Pump Grants Explained: How to Save Up to £7,500 on Installation

Thinking about cutting your energy bills, going greener, or futureproofing your home? The government’s heat pump grants for 2025 could be your golden ticket. With the Boiler Upgrade Scheme (BUS) now offering up to £7,500 toward a new air source or ground source heat pump, homeowners and property renovators across the UK are taking notice.

Let’s break down exactly how these grants work, who qualifies, how to apply, and what you could realistically pay for a heat pump after the grant. By the end, you’ll have practical tips for maximising your savings, no matter where you live in England, Scotland, or Wales.

The 2025 Boiler Upgrade Scheme: Bigger and Better

The UK government has put serious momentum behind low-carbon heating. For 2025/2026, the Boiler Upgrade Scheme has a boosted budget of £295 million, with each grant now covering up to £7,500 for an air source or ground source heat pump. Gone are the days of complex, delayed energy incentives. This is a direct, upfront support scheme meant to get efficient technology into homes fast.

Why the change? The goal is to help households move away from fossil fuels, reduce national carbon emissions, and cushion the cost of modern heating systems. Grants are first-come, first-served, so interest is high, especially with installers reporting shorter lead times and applications at record levels.

Who Can Get a Grant? Eligibility Across England, Scotland & Wales

The eligibility rules are clear, but there are some regional differences. Here’s what you need to know:

England and Wales:
- Grants are available for homeowners, small landlords, and self-build properties.
- Your home must be in England or Wales and have a valid Energy Performance Certificate (EPC).
- No hybrid systems (like a combined boiler and heat pump) are allowed.
- Most properties qualify. Even listed buildings and rural homes. As long as the system is replacing old fossil-fuel heating.

Scotland:
- Homeowners are not covered by the BUS, but Scotland has its own scheme: Home Energy Scotland Grant and Loan.
- Grants and interest-free loans. Sometimes even higher than England/Wales. Are available for qualifying Scottish homes. Check the Home Energy Scotland Grant details for specifics.

Shared Criteria:
- You must use an installer who is certified with the Microgeneration Certification Scheme (MCS).
- One grant per property.

Are you wondering if your city home, country cottage, or recent renovation is eligible? The good news: more properties are qualifying every year as guidelines are relaxed and more installers become available.

Regional Examples: How Much Could You Save?

Not sure if the grant is worth the effort? Take a look at three real-world examples from different parts of the UK:

Manchester:
A semi-detached homeowner in Chorlton faced a quote of approximately £12,000 for an air source heat pump. After the £7,500 grant, the out-of-pocket cost dropped to £4,500. With energy bills rising and the system expected to cut heating costs by a third, the payback period looks very attractive.

Bristol:
A family retrofitting their Victorian terrace for eco-living faced a hefty £25,000 ground source heat pump installation cost (including trenching and system setup). Once the BUS grant was applied, their bill came down to £17,500. Still an investment, but one that’s substantially cushioned and adds real property value.

Glasgow:
Homeowners here turn to the Home Energy Scotland Grant and Loan. In 2025, the combined grant and 0% interest loan options can cover much more of the upfront cost for both air and ground source heat pumps, sometimes even exceeding what’s available in other regions. Always check your entitlement and don’t be afraid to ask local installers about all available schemes.

Can you picture how these savings would look against your renovation budget?

Step-By-Step Guide: How to Apply and What You’ll Need

Ready to take the plunge? The application process is refreshingly straightforward:

Check Your EPC: Make sure your property has a recent Energy Performance Certificate. Many homeowners already have one from recent sales or rentals.
Choose an MCS-Certified Installer: Only installers approved by the Microgeneration Certification Scheme can carry out grant-eligible work. They’ll guide you through the application process.
Initial Quote & Assessment: Your installer will survey your home, size your system, and provide an official quote.
Installer Applies on Your Behalf: The installer submits the grant application to Ofgem. You’ll confirm your consent and eligibility details at this stage.
Await Approval: Once approved, the grant amount is paid directly to your installer and taken off your final bill.
Documentation: You’ll need proof of ownership, your EPC, and ID. Your installer may also request floor plans or technical spec sheets if your property is non-standard.

From start to finish, most applications are handled between you and your chosen installer, streamlining the process and minimising paperwork for homeowners.

The Grant’s Real Impact on Installation Costs: Pounds and Pence

Heat pumps aren’t cheap. But with the government’s help, your spend could be far less than you think.

Air Source Heat Pumps:
- Typical installation range: £8,000-£15,000 before the grant
- After the BUS grant: as low as £500 to £7,500

Ground Source Heat Pumps:
- Typical installation range: £16,200-£49,000 (complex systems can be higher)
- After the BUS grant: starting from around £8,700-£41,500, with most typical three-bed homes falling between £10,000-£22,000

Are you weighing the balance between upfront costs and long-term energy savings? The upshot: If you’d usually budget £12,000 for a mid-sized air source heat pump, the grant slices that figure to just £4,500. A new reality for hundreds of UK households in 2025.

Even for ground source systems, the grant makes what was out of reach far more attainable for families determined to ditch gas or oil.

Maximise Your Savings: Expert Tips & Common Pitfalls

Want to keep the whole process as cost-effective as possible? Here’s what works best:

Plan ahead: Demand is rising, and installers get booked up early, especially before winter. Early contact increases your chance of securing approved installers who can handle your grant paperwork efficiently.
Get several quotes: Don’t settle for the first installer. Comparing quotes helps you understand market rates and get a fair price for both parts and labour.
Ask about extras: Older homes often require minor upgrades (like radiator changes or insulation top-ups), but these are usually not covered by the grant.
Check for regional schemes: Especially in Scotland, blending grants and 0% loans may push your upfront cost even lower than under the BUS in England/Wales.
Avoid costly mistakes: Always verify your chosen installer’s MCS accreditation and clarify grant guarantees on paper before work begins. If you’re shopping for underfloor heating, specialist suppliers like ThermRite offer compatible solutions to pair with heat pumps for maximum efficiency.

A bit of research, preparation, and wallet-watching could trim thousands off your final bill.

Frequently Asked Questions

What types of heat pumps are covered by the Boiler Upgrade Scheme?

The scheme provides grants for both air source and ground source heat pumps (including water source systems). Hybrid systems. Those combining a boiler and heat pump. Are not eligible under the current rules.

Can landlords or second-home owners apply?

Yes, as long as the property is located in England or Wales and meets the other basic criteria (such as having an EPC). The property doesn’t have to be your main home, but you can only receive one grant per property.

Is extra insulation required before applying?

No, you are not required to upgrade insulation before applying (unless your property already has a very poor EPC and simple measures are easily addressed). However, good insulation helps you get the most from your heat pump.

What about Scotland. Do the grants work the same way?

Homeowners in Scotland use the Home Energy Scotland Grant and Loan scheme, which has different eligibility rules and may cover even more of the upfront installation cost. Always check the latest details specific to Scotland.

How long does the application process take?

Most grant applications are managed by your chosen installer and, once your documents and property checks are complete, approvals can be swift. Often just a few weeks from start to finish for straightforward cases.

Your Next Step: Make the Most of This Opportunity

Heat pumps are transforming how the UK heats its homes. Cleaner air, lower bills, and a big step away from fossil fuels. The 2025 Boiler Upgrade Scheme is designed to make this change easy and affordable, whether you’re in the heart of Manchester, the hills outside Bristol, or making sustainable upgrades in Glasgow.

With up to £7,500 on the table, you’re looking at a rare chance to futureproof your home and lock in long-term savings.