Heat Pump Grants in the UK (2025): How to Claim £7,500 Towards Installation

Cutting the cost of switching to greener heating is more achievable than ever before in England and Wales. Thanks to the latest increase in government heat pump grants under the Boiler Upgrade Scheme (BUS), homeowners and landlords can now claim up to £7,500 towards installing either an air source or ground source heat pump. This guide walks you through exactly how to access this major saving, explains who's eligible, and highlights how to avoid the most common mistakes that trip up applicants.

Why Heat Pumps?

Switching from a traditional gas boiler to a heat pump isn't just about caring for the environment (though that's a compelling reason by itself). There's real potential for substantial savings on energy bills, especially with the latest generation of highly efficient heat pumps. You might be surprised to learn just how competitive the costs are becoming, particularly when you factor in these new grants.

Let's explore how these grants work, what you need to qualify, and how you could dramatically reduce your upfront costs for a system that not only heats your home efficiently but also prepares you for a low-carbon future.

The Boiler Upgrade Scheme Explained

The BUS, introduced to accelerate the adoption of low-carbon heating, covers both air source and ground source heat pumps. These systems are eligible for a flat-rate grant—£7,500 per installation. The goal? To make greener heating realistic for many more people by slashing the initial purchase hurdle.

What Makes You Eligible?

Understanding eligibility is straightforward. The scheme is open to both homeowners and private landlords across England and Wales. Whether your property is a detached house in central Manchester or a flat in suburban Bristol, if you own your property (or rent it out), you could qualify. Key points include:

• Your property must be in England or Wales (Scotland and Northern Ireland have separate schemes)
• Both air source and ground source heat pumps qualify
• Your system's capacity must not exceed 45kW (covering most residential needs)
• The property must have a valid Energy Performance Certificate (EPC) issued within the last decade
• No requirement for prior insulation upgrades (such as loft or wall cavity insulation)

New build homes (unless self-built) do not qualify, and you cannot claim for a heat pump that has already been commissioned before applying. One of the biggest changes for 2025? Removing the insulation pre-requisite that previously added both time and cost for householders.

How to Apply for the £7,500 BUS Grant in 2025

Securing your grant doesn't have to be daunting. The process is designed to be user-friendly:

1. Speak to a Microgeneration Certification Scheme (MCS) registered installer: They will assess your property and suggest the right type of heat pump for your home.
2. Installer submits the application: You sign a consent form and your installer handles all paperwork with Ofgem (the scheme administrator).
3. Receive a grant voucher: Once accepted, a voucher is issued, reserving funds for your installation.
4. Installation and redemption: After the heat pump is fitted, the installer confirms completion, and the grant is paid to them directly. You pay the balance if any remains.

Missing deadlines is a common error. Applications must be submitted within 120 days of the equipment being commissioned. Make sure to keep communication lines open with your installer throughout to avoid time overruns or documentation delays.

Regional Grants and Expanded Support for 2025

The Boiler Upgrade Scheme isn't the only source of support as we head through 2025. Households with limited income, properties in rural settings, or those aiming for deeper retrofits can access additional pots of funding:

• Warm Homes: Local Grant. This new regional scheme is rolling out from April 2025, offering up to £15,000 specifically towards heat pumps, plus another £15,000 for measures such as insulation or solar panels. Applications open via local councils and energy hubs, targeting whole-home upgrades with an eye on long-term savings.
• ECO4. If you receive qualifying benefits or have a particularly energy-inefficient home, the Energy Company Obligation provides extra financial help for heat pumps and other efficiency improvements.
• Home Energy Scotland Grant (for Scottish homeowners). Scotland runs a separate scheme, but if you're north of the border, it's worth noting the Home Energy Scotland Grant offers up to £7,500 (or up to £9,000 in rural areas) plus a possible further interest-free loan.

Each scheme has its own eligibility criteria, so it's wise to check with your local authority or energy supplier about what may be available alongside the BUS grant. In many cases, you can layer support to shrink installation costs even further.

Common Reasons for Application Rejection. And How to Dodge Them

Nothing's more frustrating than missing out because of a technicality. Here are some of the top pitfalls people face:

• Missing deadlines: Both applications and voucher redemptions are time-sensitive. Set reminders and stay in close contact with your installer.
• Incomplete or incorrect paperwork: Double-check ownership details, EPC validity, and signatures. Missing a consent form or proof of ownership is a common slip.
• System capacity errors: Ensure your installer documents that your heat pump is below the 45kW cap.
• Commissioning too early: Don't pay for or get your heat pump installed before your grant application is accepted. Doing so risks automatic rejection.

By staying organised and working only with reputable MCS-accredited specialists, you can avoid almost all common mistakes.

What Could You Save in 2025? Real-World Examples

You might be weighing whether a heat pump is genuinely worth it on a practical level, especially compared to sticking with a new gas boiler. Understanding real-world heat pump costs helps put things in perspective.

Let's consider two example locations:

Manchester
- Typical gas boiler installation: £3,000-£3,500
- Typical air source heat pump installation: £14,000-£18,000 before the BUS grant
- With the £7,500 BUS grant, the heat pump drops to around £6,500-£10,500
- Annual running cost difference: A heat pump saves an average home in Manchester about £250-£400 each year on energy bills, based on current prices and decent insulation

Bristol
- Typical gas boiler installation: £3,200-£3,800
- Typical air source heat pump installation: £15,000-£17,500 pre-grant
- With grant support, new upfront cost is roughly £7,500-£10,000
- Annual savings: Bristol households can expect savings of about £200-£350 on annual heating bills

Bear in mind that actual running costs are affected by individual energy use, property insulation, and the efficiency of both your old and new systems. Over ten years, many households find that not only does the installation grant offset the initial higher heat pump price, but the yearly savings continue to add up, all while reducing your home's carbon footprint.

Feedback from homeowners across the UK shows growing satisfaction, especially where whole-home upgrades make the most of the technology.

How to Make Your Application a Success

It pays to plan ahead and keep communication lines open. Begin by consulting with a Microgeneration Certification Scheme (MCS) registered expert. Someone with strong experience in heat pumps for UK homes. Once you're matched to the right system, your installer should guide you carefully through every form and step.

Tip: If you're considering adding underfloor heating or smart controls, planning everything as one project usually delivers better value and a more straightforward grant process. Combining heat pump and underfloor heating systems creates optimal efficiency for your investment.

Keep track of every document, double-check your eligibility, and never start installation before approval. Your experience will likely be positive if you follow these steps and avoid shortcuts.

Bringing it All Together

Switching to a heat pump in 2025 is more accessible than ever, both financially and practically. The UK government has widened the scope of support, making the dream of cleaner, cheaper heating possible for many. By arming yourself with the latest information and working with experts every step of the way, you can unlock significant savings, increase your property's value, and reduce your household's impact on the planet.

Ready to take the next step? Find an MCS-accredited heat pump specialist and talk through your options. Whether you're a homeowner or landlord, there's never been a better time to make the switch. And if you want even deeper savings, keep an eye out for local grants rolling out this year.

Frequently Asked Questions

Can I get a grant for a heat pump if I live in a flat or a rental property?

Yes, as long as you own the property or are a private landlord in England or Wales, you are eligible for the Boiler Upgrade Scheme. Permission from the building's freeholder may be required for flats.

Do I need to upgrade my insulation before applying for a heat pump grant?

No, from 2025 there is no longer a requirement for completing insulation work prior to claiming the BUS grant. However, improving insulation can help you get the most out of your new system.

How long does the application process take?

Most successful applications are processed within a few weeks, provided paperwork is accurate and deadlines are met. Delays usually result from missing documentation or incomplete forms.

Can I claim more than one grant if I need extra home upgrades?

You can often combine the BUS grant with regional funding, such as Warm Homes: Local Grants or ECO4 if you are eligible for both. Always check restrictions or eligibility requirements for each scheme.

Is maintenance or servicing included with the BUS grant?

The BUS grant covers installation costs only. Ongoing maintenance of your heat pump is your responsibility, so factor in potential annual servicing costs when planning your budget.