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Home»Home Improvement»What Is an Air Source Heat Pump Grant in the UK?
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What Is an Air Source Heat Pump Grant in the UK?

Posting StaffBy Posting StaffAugust 8, 2025Updated:August 8, 2025No Comments7 Mins Read
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Air Source Heat Pump Grant
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The UK is working hard to reduce carbon emissions. One way the government is doing this is by encouraging people to use cleaner heating systems. An air source heat pump is a popular low-carbon heating option. But switching to one can be expensive. That’s where the Air Source Heat Pump Grant UK comes in.

This blog will explain everything you need to know about air source heat pumps, the grant schemes available, who is eligible, how much money you can get, and how to apply.

What Is an Air Source Heat Pump?

An air source heat pump is a device that heats your home by using the air outside. It works a bit like a fridge, but in reverse. It takes heat from the air—even when it’s cold outside and uses it to warm your home and your water.

There are two types:

  1. Air-to-water heat pumps – These heat water and are used with radiators or underfloor heating.
  2. Air-to-air heat pumps – These heat air and are often used with fans.

They are more energy-efficient than gas or oil boilers and can help lower your carbon footprint.

Why the UK Government Offers Grants

Heating homes is one of the biggest sources of carbon emissions in the UK. Most homes still use gas or oil boilers. The government wants to change this.

To help homeowners make the switch, the government offers grants. These grants are meant to reduce the cost of buying and installing a heat pump. The goal is to help the UK reach net-zero carbon emissions by 2050.

That’s why the Air Source Heat Pump Grant UK has become a key part of the country’s green energy plan.

What Is the Boiler Upgrade Scheme?

The main grant for heat pumps in the UK is the Boiler Upgrade Scheme (BUS). This was launched in May 2022. It replaced the older Renewable Heat Incentive (RHI).

The Boiler Upgrade Scheme provides grants to help cover the cost of installing low-carbon heating systems. This includes air source heat pumps.

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How Much Can You Get?

Under the Boiler Upgrade Scheme, you can get:

  • £7,500 towards the cost of an air source heat pump.

This grant is available in England and Wales. Scotland and Northern Ireland have their own schemes (explained later).

The grant is paid directly to your installer, who will subtract it from your installation cost. You don’t need to claim the money yourself.

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

To qualify for the grant, you must meet certain rules:

  1. You must own the property – This can be a home or a small business property.
  2. Your property must be in England or Wales.
  3. You must be replacing a fossil fuel system – like a gas, oil, or electric boiler.
  4. Your home must have a valid Energy Performance Certificate (EPC) – and no outstanding loft or cavity wall insulation recommendations.
  5. New builds are not usually eligible, unless you’re building your own home.

The property must also meet minimum insulation standards to make sure the heat pump works well. If your EPC says your home needs insulation, you’ll need to install it before applying.

How Do You Apply for the Grant?

Good news: you don’t need to apply yourself. The process is handled by your installer.

Here’s how it works:

  1. Find a certified installer – They must be MCS certified (Microgeneration Certification Scheme).
  2. Get a quote – The installer will check if your home is suitable.
  3. Installer applies for the grant – They will submit the application on your behalf.
  4. Ofgem reviews the application – This is the energy regulator for Great Britain.
  5. Installer gets the money – Once approved, the grant is paid to the installer.

Then you pay the installer the remaining amount.

How Much Does an Air Source Heat Pump Cost?

The cost of an air source heat pump depends on several factors:

  • The size of your home
  • The type of heat pump
  • Installation complexity
  • Insulation levels
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On average, a system costs between £10,000 and £14,000. With the £7,500 grant, your out-of-pocket cost can be much lower—around £2,500 to £6,500.

Though the upfront cost is higher than a boiler, heat pumps have lower running costs. You’ll also save money in the long run with lower energy bills.

What About Scotland and Northern Ireland?

If you live in Scotland or Northern Ireland, different support is available.

Scotland – Home Energy Scotland Grant and Loan

In Scotland, the Home Energy Scotland Grant and Loan scheme offers:

  • Up to £7,500 grant for air source heat pumps
  • Additional loans up to £7,500 for extra work like insulation

Rural homes may qualify for higher amounts.

Northern Ireland – Affordable Warmth Scheme

Northern Ireland offers help through the Affordable Warmth Scheme. This supports low-income households with upgrades like insulation and heating systems. The support varies, and you must meet certain income levels.

Do Heat Pumps Work in Cold Weather?

Yes! Air source heat pumps can work even when temperatures are below zero. They are widely used in countries like Sweden and Norway, which have much colder winters than the UK.

They are less efficient in freezing temperatures but still produce heat. Proper insulation helps keep your home warm and your bills low.

Benefits of Installing an Air Source Heat Pump

There are many reasons to consider switching to an air source heat pump:

1. Lower Carbon Emissions

Heat pumps use renewable energy from the air. This means less CO₂ compared to gas or oil systems.

2. Lower Energy Bills

Heat pumps are highly efficient. You get more heat for every unit of electricity used. This can cut your heating bills.

3. Government Support

The Air Source Heat Pump Grant UK helps reduce the upfront cost, making it easier to switch.

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4. Future-Proofing

Gas boilers may be banned in new homes by 2025. Switching now prepares you for the future.

5. Increased Property Value

Energy-efficient homes are more attractive to buyers and can command higher prices.

Things to Consider Before Switching

Before installing a heat pump, consider the following:

1. Your Insulation

Your home must be well-insulated. Otherwise, the system won’t be efficient.

2. Space for Installation

The unit is placed outside, so you’ll need enough space near your home.

3. Radiators or Underfloor Heating

Your current radiators may not work well with a heat pump. You may need to upgrade them.

4. Noise

Heat pumps make a low humming noise. It’s not loud, but you may want to consider where it will be placed.

Can I Combine the Grant with Other Help?

Yes. You can combine the Boiler Upgrade Scheme with loans or other home improvement funds, especially in Scotland.

Also, if you’re on a low income or receive benefits, you may qualify for other schemes, such as:

  • ECO4 (Energy Company Obligation)
  • Local Authority Flex Schemes

These may offer additional insulation or even free heat pumps in some cases.

What Happens to the Grant If I Sell My Home?

The grant is tied to the installation, not the owner. If you sell your home, the new owner will benefit from the heat pump system. You won’t have to repay the grant.

Final Thoughts

Making the switch to an air source heat pump is a smart investment in your home and the planet. The Air Source Heat Pump Grant UK makes it easier and more affordable to make that change today.

If you’re considering upgrading your heating system, now is the perfect time to explore your options. With government support available, you could cut your carbon footprint and reduce your bills in the process.

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Posting Staff

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