How to Claim £7,500 for a Heat Pump Installation in 2025: A Step-by-Step UK Guide

Why Heat Pumps and the Boiler Upgrade Scheme Are Making Headlines in the UK

The push for cleaner, more efficient home heating has never been more prominent across the UK. Government-backed schemes are encouraging homeowners to move away from gas boilers and toward low carbon alternatives, with heat pumps leading the charge. The Boiler Upgrade Scheme (BUS) remains the centrepiece of this movement in 2025. This grant offers up to £7,500 toward the cost of both air source and ground source heat pumps, a significant incentive designed to make the switch affordable for more households than ever before. A record number of applications in 2025 highlights the growing appetite for sustainable living and lower energy bills.

What's Changed in the Boiler Upgrade Scheme for 2025?

The current incarnation of the Boiler Upgrade Scheme has evolved to better support the UK's net zero ambitions. The grant has been maintained at an impressive £7,500 for air source and ground source heat pumps. For the first time, air-to-air heat pumps and heat batteries are eligible for a separate £2,500 grant. The scheme's funding has been increased, allowing a broader pool of applicants and greater certainty that funds will be available throughout the year.

One of the standout updates is the simplified process: the grant is applied directly to your installer's quote. This means you never need to pay the full upfront cost and wait for reimbursement. These adjustments reflect government efforts to align with the Future Homes Standard, making low-carbon heating not only desirable but increasingly mainstream.

Who Can Get the £7,500 Grant? Understanding Eligibility

Eligibility is refreshingly broad in 2025. Homeowners and landlords across England and Wales can apply, whether the property is newly built or existing, as long as it meets basic insulation criteria. Private landlords, including those with multiple properties, are welcome to benefit.

To qualify for the Boiler Upgrade Scheme:
- The property must be in England or Wales (Scotland has separate grants, while Northern Ireland is not included)
- You must either own or act as the landlord for the property
- The home must have a valid EPC (Energy Performance Certificate) issued in the last ten years, with no outstanding insulation recommendations for loft or cavity walls
- The chosen system must be a certified air source or ground source heat pump installed by an approved professional
- Biomass boilers are also covered in rural off-gas grid locations under some circumstances

Tenants cannot apply directly, but they can encourage their landlord to do so. Social housing, commercial sites, and properties not primed for required insulation are outside the scheme's remit.

Step-by-Step Guide: How to Apply for the Boiler Upgrade Scheme in 2025

Navigating the application for a £7,500 heat pump grant is straightforward when you know what to expect. Here's a breakdown of the typical process:

1. Get an Eligibility Check: Start by finding an MCS-certified heat pump installer. These professionals will check if your property meets the requirements before you proceed.
2. Receive a Quote: The installer provides a detailed breakdown of the recommended system and the total cost. The grant is deducted on your quotation, giving real-time clarity on your payments.
3. Installer Applies for You: You won't fill out lengthy government paperwork yourself. Instead, your installer submits the BUS application directly to Ofgem, the scheme administrator.
4. Grant Reservation: Once your installer applies, the grant is reserved in your name.
5. Installation and Evidence Submission: Installation must be completed within 120 days (about four months) of the grant being reserved. After the install, your installer uploads photos and documents for Ofgem's approval.
6. Grant Deduction Finalised: Once Ofgem signs off, the grant is paid directly to the installer, and you only cover the outstanding balance.

On average, from the moment the application is submitted to Ofgem to when your heat pump is up and running, the process can take as little as 4-12 weeks, though timescales vary based on installer availability and property specifics.

Real UK Costs: What Will a Heat Pump Set You Back in 2025?

Cost is usually the first question on any homeowner's mind when considering a switch to a heat pump. Understanding real heat pump costs in 2025 before grants helps homeowners make informed decisions:

• Air Source Heat Pumps: £8,000-£15,000 (supply and install)
• Ground Source Heat Pumps: £13,000-£25,000 (supply and install)

These are average UK figures and can fluctuate depending on property size, insulation, heating requirements, and location. With the Boiler Upgrade Scheme, your outlay drops significantly:

• Typical net cost for an air source heat pump: £500-£7,500 after the £7,500 grant
• Net cost for a ground source heat pump: Often drops below £15,000

For instance, homeowners in Manchester have reported paying around £5,200 for a quality air source heat pump after the grant, while a family in rural Devon managed a ground source system for just under £13,500 post-grant, thanks to minimal groundwork requirements.

Suppliers like ThermRite regularly advise that careful planning and engaging a trusted installer can further optimise your investment, helping to align total spend with expected comfort and savings.

Unpacking the Benefits: Why Switch to a Heat Pump in 2025?

Choosing a heat pump means more than future-proofing your home against rising energy costs; it represents a major step in reducing your carbon footprint as UK energy transitions to cleaner sources. The annual running costs for an air source heat pump hover between £855 and £1,700, depending on usage and system efficiency, often undercutting what's spent on gas or oil heating, especially as those fuels become more expensive.

Switching from an older gas boiler to a modern heat pump can slash heating-related carbon emissions by up to half. Sometimes more, according to 2025 data from ThermRite and other sustainability experts. Ground source systems, with their excellent efficiency, can cut household carbon output by as much as 80% when compared to the least efficient legacy options.

These savings aren't just theoretical. In the field, homes that have upgraded under the scheme report genuinely warmer spaces, more consistent heating, and a feeling of being ahead of the coming Future Homes Standard. Which from 2025 requires all new builds to use low-carbon heating. Many homeowners wonder whether heat pumps are worth the investment when considering both upfront costs and long-term savings.

Lower ongoing bills, cleaner air, and a valuable property boost all add up to a compelling case for joining the thousands of UK households embracing this technology.

Frequently Asked Questions

What types of heat pumps are eligible for the Boiler Upgrade Scheme?

Air source and ground source heat pumps qualify for the £7,500 grant. Air-to-air heat pumps and heat batteries are now eligible for a separate grant of £2,500. Ensure your chosen system is installed by an MCS-certified professional.

Are landlords allowed to apply for the scheme?

Yes, private landlords with properties in England or Wales can apply, provided the property meets EPC and insulation criteria. Tenants should ask their landlord to pursue the grant if interested.

How long does it take for the grant to be approved and installation completed?

Typically, the journey from application to completion spans between four and twelve weeks, depending on property complexity and installer availability. The installer handles the majority of paperwork on your behalf.

Do I need to cover the full heat pump cost upfront and wait for reimbursement?

There's no requirement to pay the total amount and claim later. The grant is deducted directly from your installer's quote, so you only pay the balance not covered by the grant.

Can homes in Scotland or Northern Ireland access the same grant?

The Boiler Upgrade Scheme is specific to homes in England and Wales. Scotland and Northern Ireland have their own support schemes, each with distinct eligibility and funding levels.

Does switching to a heat pump increase home value?

Properties upgraded to modern heat pumps and improved energy performance standards tend to attract higher value and buyer interest, especially under the requirements of the Future Homes Standard.

Ready for Your Heat Pump Grant?

Taking the leap to upgrade your home's heating through detailed UK grant application guidance is more accessible. And rewarding. Than ever in 2025. With up to £7,500 available, lower bills, and impressive carbon savings, your home stands to benefit for decades. Connect with a trusted supplier like ThermRite for practical advice on system selection and next steps, and take full advantage of government support while it lasts. The shift towards cleaner, more affordable warmth starts with a single, well-informed decision. Make sure yours is a smart one.