Heat Pump Grants in the UK (2025): How to Claim Your £7,500 Boiler Upgrade

Upgrading your heating system can feel like a daunting prospect, but significant government backing continues to make the change more accessible for UK property owners. The Boiler Upgrade Scheme (BUS) in 2025 stands out as a substantial support initiative, offering grants up to £7,500 to help you transition to cleaner heat sources. Air source and ground source heat pumps topping the list.

With energy prices remaining a topic on everyone's mind, this grant arrives at an ideal moment for households striving for savings and a lighter carbon footprint. The government's goal is straightforward: accelerate the adoption of low-carbon heating, slash emissions, and position the UK at the forefront of climate-friendly living. The 2025 BUS budget provides robust funding, putting greener heating well within reach for homeowners and landlords alike.

If you own a property in England or Wales, whether it's your primary home or a rental, you could qualify for this lucrative grant. Replacing an old gas or oil boiler with a heat pump not only reduces your environmental impact but also provides meaningful relief for your wallet over time.

Who Qualifies for the £7,500 Heat Pump Grant?

Understanding eligibility is key if you're weighing up a switch in your home or investment property. The Boiler Upgrade Scheme focuses on simplicity. Designed for broad accessibility rather than exclusive criteria.

Eligibility Requirements

• Homeowners and Landlords: Both are eligible, including those letting out residential properties, as long as the property is located in England or Wales.
• Property Types: Most privately owned homes qualify, alongside rental properties. Self-build homes may also be eligible, provided the structure was constructed by or for the first owner and hasn't been owned by a business or organisation.
• Current Heating System: The grant is intended to replace an existing fossil fuel heating system (gas, oil, or direct electric). If you have already benefited from government support for your current heating upgrade (such as ECO4 or similar), this may impact eligibility. Check the specifics before proceeding.
• Energy Performance: The property will typically require a recent Energy Performance Certificate (EPC) without unresolved recommendations for loft or cavity wall insulation. A well-insulated home is essential for heat pump efficiency.
• Permission from the Occupier: If you're a landlord, ensure your tenants are onboard.

With these straightforward requirements, many different types of homes. From bungalows to terraced houses. Qualify for support under the 2025 BUS.

How to Apply for the Boiler Upgrade Scheme Grant

Securing your grant is designed to be hassle-free, thanks to an installer-led process managed online through Ofgem. Here's a breakdown of each step, so you know exactly what to expect:

1. Find an Ofgem-Approved Installer
   - Look for a professional certified by the Microgeneration Certification Scheme (MCS). These installers have the expertise to assess your property's suitability, recommend the right system, and handle every aspect of the application.

2. Property Assessment and Quote
   - The installer will visit your property, determine the best heat pump for your needs, and provide a tailored quote. This quote will include the grant as a deduction, giving you a clear picture of your net investment.

3. Application Submission
   - Once you agree to proceed, your installer will submit the application directly via Ofgem's portal. You'll receive an email from Ofgem asking for your consent. Simply confirm, and your installer manages the rest.

4. Installation and Deduction
   - If the grant is approved, installation can begin. The financial support is paid straight to your installer, so you only pay the remaining balance.

Why the Installer Handles the Application

This system reduces administrative stress and speeds up the process for property owners. It also ensures that only qualified installers. Who follow the highest technical standards. Fit your new heat pump.

Working with skilled professionals not only secures your funding but also guarantees safe, efficient work and ongoing support.

Heat Pump Costs: What Will You Really Pay in 2025?

Understanding heat pump installation costs can deter even the most environmentally conscious homeowners, but the Boiler Upgrade Scheme grant transforms the equation. Let's clarify what these systems really cost in the current UK market.

• Air Source Heat Pump: For 2025, the average fully-installed price generally sits between £8,000 and £15,000 depending on home size, insulation, and the system's complexity. With BUS applied, this drops to approximately £500 to £7,500 for most households.
• Ground Source Heat Pump: Installation is more involved and starts at higher levels. Expect to see costs from £16,000 up to £28,000, especially where ground works are extensive. After your £7,500 BUS grant, real-world out-of-pocket costs land closer to £8,500 to £20,500.
• What's Included? The typical quote covers equipment, necessary groundwork or drilling, and professional installation. For highly insulated modern homes, installation can sometimes fall below published averages.

Concrete Examples

A typical three-bedroom semi-detached property in Manchester might require a £12,000 air source heat pump system. After claiming the BUS grant, the owner pays just £4,500 out of pocket. Larger properties or those requiring extensive groundwork for a ground source solution will see bigger numbers but still enjoy a substantial reduction, sometimes over 40% off listed installation costs.

Suppliers such as ThermRite provide valuable support selecting compatible underfloor heating systems that work seamlessly alongside your chosen heat pump, helping you maximise system efficiency and comfort.

The Benefits of Switching in 2025: More Than Just Savings

Given the persistent rise in energy costs, determining whether heat pumps are worth it in 2025 has never been more favourable. These systems tap into renewable energy, meaning every unit of electricity produces multiple units of heat. Resulting in far higher efficiency compared to traditional boilers.

• Ongoing Savings: Many UK households can expect to save around £290 annually on heating bills after replacing an older gas boiler. Well-insulated homes can push savings even further, especially as gas prices fluctuate with little warning.
• Future-Proofing: Government policy continues to back low-carbon heating strongly. There is a clear move toward making clean heat the norm in both new-build and existing homes, with heat pump costs predicted to keep falling as adoption grows.
• Climate Impact: Beyond financial benefits, making the switch means slashing your home's carbon emissions. That's a big win for personal sustainability targets and the collective UK goal of net zero.

These savings, combined with the potential for property value uplift and future eligibility for green incentives, position heat pumps as an attractive, forward-thinking investment.

The Case for Taking Action in 2025

Delaying a heating upgrade comes at a cost, both financially and for the environment. With the Boiler Upgrade Scheme continuing to offer robust funding, property owners in England and Wales have every reason to consider 2025 heat pump adoption trends.

Installers handle the grant application process from start to finish, reducing administrative headaches and ensuring you meet every requirement with minimal fuss. The combination of financial support, ongoing bill reductions, and a cleaner heating solution unlocks long-term peace of mind and future resilience.

If you've been weighing up your options, now stands out as the moment to act. By transitioning early, you secure the largest grants, protect yourself from the unpredictability of fossil fuel prices, and take a proactive role in shaping a sustainable future for your property.

Frequently Asked Questions

What types of properties are eligible for the Boiler Upgrade Scheme in 2025?

Most privately owned and rental homes in England and Wales meet the requirements as long as they use fossil fuel-based systems and carry a current Energy Performance Certificate (EPC) without outstanding insulation recommendations.

Can I receive more than one government grant for the same heat pump installation?

Typically, you cannot combine the BUS with another heating system grant. Always review eligibility criteria if you have benefitted from previous energy efficiency programmes for your property.

How much could I save on energy bills after installing a heat pump?

Savings vary depending on property size, insulation, and usage, but many households see reductions around £290 per year when replacing older gas boilers.

Does my installer need specific accreditation to access the grant?

Yes. Only MCS-certified, Ofgem-approved installers can apply for the grant on your behalf, helping ensure high standards and ongoing support.

Are there extra incentives if I combine a heat pump with other renewable technologies?

While the BUS focuses on heat pumps, some regions and energy suppliers provide additional incentives for broader home decarbonisation, so exploring local schemes or supplier offers can deliver even more value.

How long will the Boiler Upgrade Scheme funding last?

Current government plans fund the scheme through 2025 and beyond, but acting soon allows you to benefit while grants are at their most generous.