Air Source Heat Pump Grants: Save Energy and Money

Current Heat Pump Grants in 2026

While the original Green Homes Grant scheme has ended, the UK government continues to support heat pump adoption through the Boiler Upgrade Scheme (BUS). This provides a £7,500 grant towards the cost of installing an air source heat pump, significantly reducing the upfront investment required.

The scheme has been extended until 2030 and the EPC insulation requirement has been removed from 2026, making it easier than ever for homeowners to qualify. Combined with 0% VAT on heat pump installations, the financial case for switching has never been stronger.

How Much Can You Save?

An air source heat pump can reduce your heating bills by 30-50% compared to a gas boiler, saving £300-£600 per year. When replacing oil or LPG systems, savings can be even greater at £500-£1,000 per year.

With the £7,500 BUS grant reducing your upfront costs to around £4,000-£6,000, most homeowners see a payback period of just 6-10 years, after which the system provides virtually free heating for the remainder of its 20-25 year lifespan.

Eligibility and How to Apply

To qualify for the Boiler Upgrade Scheme, you need to own the property, be replacing a fossil fuel heating system (gas, oil, or LPG), and use an MCS-certified installer. The property must be in England or Wales.

The application process is straightforward — your MCS-certified installer handles everything on your behalf. They'll apply for the voucher, and the grant amount is deducted from your quote, so you only pay the reduced price.