How to Claim the New £7,500 Heat Pump Grant in the UK (2025 Guide)

How to Claim the New £7,500 Heat Pump Grant in the UK (2025 Guide)

How to Claim the New £7,500 Heat Pump Grant in the UK (2025 Guide)

Are you looking for a way to beat rising energy costs while making your home greener? The UK government's Boiler Upgrade Scheme has made headlines by boosting the heat pump grant to a whopping £7,500 in 2025. If you've been weighing up a switch from gas or oil heating, this might be the perfect moment.

Let's break down the details, discover who's eligible, explain the application steps, and figure out if a heat pump is right for you. I'll walk you through the differences in air source and ground source options and spotlight savings for families in places like Manchester and Bristol.

The £7,500 Boiler Upgrade Scheme: What's New in 2025?

The Boiler Upgrade Scheme (BUS) aims to make low-carbon heating accessible for more UK homes. Thanks to the latest government changes, homeowners in England and Wales can now unlock a £7,500 grant when installing an air source or ground source heat pump. That's a substantial increase, tackling one of the main barriers: upfront cost. The grant is applied directly to your installation by your certified installer, slashing your invoice before you pay a penny.

Why the jump to £7,500? The government has doubled down on its commitment to cut carbon emissions and help households lower their monthly bills. By upping the support, they're hoping more people will ditch fossil fuel heating in favour of sustainable solutions.

Who Qualifies for the Boiler Upgrade Scheme?

If you're considering applying for the heat pump grant, eligibility is key. The scheme covers most owner-occupied homes in England and Wales. So whether you have a semi in Manchester or a townhouse in Bristol, you're in with a shot. Here’s what you need to know:

  • The grant is open to homeowners, small landlords, and private landlords.
  • Holiday lets and second homes are included, but businesses or properties owned by companies qualify as well.
  • The property must be replacing a fossil fuel system. Such as gas, oil, electric, or LPG heating. With a new heat pump.
  • New builds aren’t eligible, except for self-build homes where the owner is actively involved from the ground up.
  • The heat pump must be installed by an MCS certified installer for the grant to apply.

Before moving forward, check if your property has a valid Energy Performance Certificate (EPC). Some homes may need upgrades such as better insulation, as an EPC showing excessive loft or cavity wall insulation issues may slow down your application or require improvement first.

Step-by-Step: How to Apply for the Grant

Applying for the Boiler Upgrade Scheme is refreshingly simple:

  1. Find a certified installer - The government requires you use an MCS-certified installer. They’ll assess your home and recommend the right system for your needs.
  2. Get a quote - Your installer provides a detailed quotation for supply and fit, including details about the grant.
  3. Installer applies for the grant - You won’t have to fill in lengthy government forms. Your installer submits the application and deduction request directly.
  4. Grant deducted upfront - The value of the grant (£7,500) is taken off your total bill, making your payment much more manageable.
  5. System installation - Work gets underway. A typical air source heat pump can be fitted in a week or less, with minimal disruption to your life.

This streamlined process is designed to maximise uptake and reduce hassle. If you want to double-check whether your home meets the mark, your installer can offer guidance and help with the paperwork.

Air Source vs Ground Source Heat Pumps: What's Best After the Grant?

Navigating the world of heat pumps can feel overwhelming. Most UK households choose between air source heat pumps (ASHP) and ground source heat pumps (GSHP). Both options qualify for the £7,500 grant, but how do they compare after that discount is applied?

Air Source Heat Pumps (ASHP)

  • Typical cost before grant: £7,000 to £14,000
  • After £7,500 grant: In some cases, your final bill could drop to around £500 to £6,500
  • Best for: Most homes, especially those without much garden space
  • Installation time: Often completed within a week
  • Efficiency: Modern ASHPs can achieve impressive efficiencies, providing up to three units of heat for every unit of electricity used.

Ground Source Heat Pumps (GSHP)

  • Typical cost before grant: £15,000 to £27,500
  • After £7,500 grant: Around £7,500 to £20,000
  • Best for: Properties with enough land for ground loops, or those tackling bigger retrofit projects
  • Installation time: Can take several weeks due to groundwork
  • Efficiency: Even higher efficiency, drawing heat from the ground’s stable temperature year-round

Both systems can dramatically shrink your carbon footprint. However, ASHPs are usually the go-to for urban or smaller plots, while GSHPs shine for rural or spacious locations.

If you’re weighing your options, ask your installer to walk you through the best fit for your property and budget post-grant.

How Much Could You Save in Manchester or Bristol?

There's no denying the upfront cost of installing a heat pump can be daunting. That’s where the £7,500 grant is a genuine gamechanger. In cities like Manchester and Bristol, where energy bills tend to run high during those chilly months, homeowners stand to save substantially over time.

Example: Air Source Heat Pump in Manchester
- Before grant: £10,000
- After grant: £2,500 out-of-pocket
- Estimated annual savings (switching from an old G-rated gas boiler): up to £290 on energy bills

Example: Ground Source Heat Pump in Bristol
- Before grant: £18,000
- After grant: £10,500
- Estimated annual savings: up to £550 compared to old oil or electric systems

Local feedback shows homeowners appreciate the smoother, more consistent heating offered by heat pumps. No more waiting for radiators to warm up. Professional installers stress the importance of correct sizing and integration to maximise both comfort and cost savings. It’s clear from those who’ve made the switch: the short-term disruption is outweighed by the peace of mind and lower bills that follow.

Remember, the real savings will depend on your specific property, how well insulated your home is, and current energy tariffs. But the grant is designed to make a significant dent in the cost for most families.

Is a Heat Pump Right for Your Home?

Switching to a heat pump certainly isn’t for everyone. The best candidates are homes with a good level of insulation and a heating system ready for low flow temperatures. Think modern radiators or underfloor heating from companies like ThermRite. If your home still leaks heat, you may want to improve insulation first to get the most out of your new setup.

Those living in flats or terraced properties with limited outside space might find an air source system easier to install. For rural homes with a sizeable garden, ground source heat pumps can be transformative. Ultimately, a trusted installer will be able to assess your home and talk you through the potential for long-term savings.

There are plenty of real-life accounts from homeowners who have upgraded, many highlighting quieter operation, consistent warmth, and a welcome drop in monthly costs. Installation is usually much less invasive than expected, and reputable firms are keen to leave everything neat and tidy afterwards.

Wrap-Up: A Smart Move for 2025

Taking advantage of the new £7,500 grant is easier than ever and could be the step that transforms your comfort. And your utility bills. Modern heat pumps are reliable, efficient, and increasingly popular with UK households. While the application process is refreshingly straightforward, choosing the right installer and ensuring your home is well-prepared will make all the difference.

Looking for warmer winters, greener credentials, and lower bills? The Boiler Upgrade Scheme could make your home’s energy upgrade remarkably affordable. Connect with a certified installer today and seize this opportunity to future-proof your property.

Frequently Asked Questions

What is the maximum grant available for heat pump installation in 2025?

The maximum grant is £7,500 for both air source and ground source heat pump installations as part of the Boiler Upgrade Scheme.

Does the grant cover installation costs in full?

Not always. While the grant significantly reduces the price, some homeowners will still have an out-of-pocket expense, especially for ground source heat pumps. However, air source systems can be very close to fully covered in smaller or more straightforward installs.

Are flats and smaller properties eligible for the scheme?

Yes, provided they meet the basic requirements and are replacing a fossil fuel system. The main factor is whether the property can accommodate a heat pump and meets insulation standards.

Is the grant available for new builds?

No. The scheme generally excludes new-build homes, except for self-build projects where the owner is directly involved.

How do I know if my installer is certified?

Check that they are MCS-certified, as only installers with this accreditation can apply for and secure the grant on your behalf.

What ongoing savings can I expect after installation?

Most homeowners report annual savings between £290 and £550, depending on their previous heating system and level of insulation.

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