The Air Source Heat Pump Grant UK: Your Guide to Affordable Green Heating

With rising energy prices and increasing awareness of climate change, more homeowners are exploring sustainable alternatives to traditional heating systems. One of the most efficient and eco-friendly options is the air source heat pump (ASHP). However, the upfront installation costs can be high—leading many to ask: Is there any financial help available?

The answer is yes. Thanks to the Air Source Heat Pump Grant UK, homeowners now have the opportunity to switch to greener heating solutions at a reduced cost. In this comprehensive blog post, we’ll explore everything you need to know about the scheme, from eligibility and benefits to how to apply.

What Is an Air Source Heat Pump?

Before diving into the grant, let’s first understand what an air source heat pump is.

An air source heat pump absorbs heat from the outside air—even in cold weather—and uses it to heat your home and hot water. Unlike gas boilers, they don’t burn fossil fuels, making them a cleaner, more sustainable heating option. ASHPs are highly energy-efficient, using one unit of electricity to generate up to three units of heat.

There are two main types:

• Air-to-water heat pumps – Best suited for central heating systems.
• Air-to-air heat pumps – Used mainly for space heating.

Why Switch to an Air Source Heat Pump?

1. Lower Energy Bills

Heat pumps are incredibly efficient. Over time, they can significantly reduce your heating bills, especially if replacing older, inefficient systems like electric or oil heaters.

2. Reduced Carbon Footprint

Switching to a heat pump can help reduce your home’s carbon emissions by up to 70%, supporting the UK’s goal to become carbon neutral by 2050.

3. Low Maintenance

Once installed, air source heat pumps require minimal maintenance. With regular checks, they can last up to 20 years.

4. Renewable Heat Incentive

Even before the latest grant schemes, homeowners could benefit from incentives for using renewable heat. The latest grant builds on this foundation.

What Is the Air Source Heat Pump Grant UK?

The Air Source Heat Pump Grant UK refers to financial assistance provided by the government under schemes such as the Boiler Upgrade Scheme (BUS), designed to help households install low-carbon heating technologies like heat pumps.

🔹 Boiler Upgrade Scheme (BUS)

Launched in May 2022, the Boiler Upgrade Scheme replaced the Renewable Heat Incentive. Under this scheme:

• Homeowners in England and Wales can receive a £7,500 grant toward the cost and installation of an air source heat pump.
• The grant is available to owner-occupiers, landlords, and small business properties.
• It’s available for air-to-water systems only.
• The system must be installed by an MCS-certified installer.

This initiative is a major part of the UK government’s strategy to decarbonize home heating and make energy-efficient technologies more affordable.

Who Is Eligible for the Air Source Heat Pump Grant UK?

Eligibility criteria for the Air Source Heat Pump Grant UK are fairly straightforward:

✅ Property Type

• Available to homes and small non-domestic properties in England and Wales.
• Not available for new-build homes (unless you're self-building).

✅ Heating System Replacement

• Must be replacing a fossil fuel system such as a gas boiler, oil, or electric heating.
• The property should have adequate insulation (e.g., loft or wall insulation), as heat pumps work best in well-insulated homes.

✅ Installer Requirements

• The installation must be carried out by a Microgeneration Certification Scheme (MCS) certified installer.
• The installer must apply for the grant on your behalf.

What Does the Grant Cover?

The £7,500 grant goes directly toward the cost of purchasing and installing the air source heat pump system. While this won’t always cover 100% of the cost, it substantially reduces the financial burden.

Typical Costs:

• Air source heat pump: £7,000 – £13,000 (before grant)
• After grant: potentially as low as £1,000 – £5,500 depending on your home’s size and needs

Keep in mind: the grant does not cover additional works like installing new radiators, underfloor heating, or upgrading your insulation—though some other schemes (like ECO4) might help with these.

How to Apply for the Air Source Heat Pump Grant UK

Here’s how the process works:

1. Find an MCS-Certified Installer

Start by choosing a certified installer. Only MCS-certified professionals can apply for the grant on your behalf.

2. Get a Property Assessment

The installer will assess your home to confirm it's suitable for a heat pump, and check if you need insulation upgrades.

3. Apply Through the Installer

You won’t apply directly. Instead, your installer submits the application to Ofgem (the scheme’s administrator).

4. Receive the Grant

Once approved, the grant amount is deducted from your final installation bill—making it seamless for you.

Can I Combine the Grant with Other Schemes?

Yes! While the Boiler Upgrade Scheme is the primary option, some households may also qualify for:

🔹 ECO4 Scheme

If you receive certain benefits or are classified as low-income or vulnerable, you may qualify for the ECO4 scheme, which provides broader home energy efficiency upgrades—including insulation, boilers, and heat pumps.

🔹 Local Authority Flex Schemes

These programs are run by local councils to support residents who might not qualify under national rules but still need help reducing energy costs.

Common Questions About the Air Source Heat Pump Grant UK

❓ Is the grant taxable?

No. The grant is not considered taxable income, so you won't owe taxes on the amount received.

❓ What if I rent my home?

Landlords can apply, but tenants cannot. The landlord must agree to the installation and meet the eligibility requirements.

❓ Can I install it myself?

No. The grant is only valid if the heat pump is installed by a registered MCS installer.

❓ Do heat pumps work in cold climates?

Yes. Air source heat pumps can operate effectively even in temperatures as low as -15°C, though performance is better in well-insulated homes.

Final Thoughts

The Air Source Heat Pump Grant UK represents a significant opportunity for homeowners to modernize their heating systems, lower energy bills, and contribute to a greener planet. By reducing the financial barrier to adopting renewable heating, the UK government is making it easier for households to go green—without sacrificing warmth or comfort.