⚡ Key Takeaways
- Boiler Upgrade Scheme: £7,500 towards an air source heat pump in England & Wales
- ECO4: May cover full heat pump cost if you receive qualifying benefits
- Home Energy Scotland: Interest-free loans + cashback grants in Scotland
- Air source heat pumps cost £8,000-£15,000 before grants
- Running costs are 30-50% lower than a gas boiler with good insulation
- Always get quotes from 3+ MCS-certified installers before committing
All UK heat pump grants at a glance
| Grant/Scheme | Amount | Who Can Apply | Deadline |
|---|---|---|---|
| Boiler Upgrade Scheme (BUS) | £7,500 | All homeowners (England & Wales) | 2028 |
| ECO4 | Full cost (free) | Benefits recipients | December 2026 |
| Home Energy Scotland | Loan + £6-7.5k cashback | Scottish homeowners | Ongoing |
| Nest (Wales) | Free or subsidised | Welsh residents on benefits | Ongoing |
| Local Authority Grants | Varies (£1,000-£5,000) | Varies by council | Varies |
| Home Upgrade Grant (HUG2) | Up to £25,000 | Off-gas homes, low income | March 2025 (may extend) |
1. Boiler Upgrade Scheme (BUS) — £7,500
The Boiler Upgrade Scheme is the main heat pump grant for homeowners in England and Wales. Key facts:
- £7,500 towards air source or ground source heat pumps
- Available to all homeowners — no income or benefits test
- Your MCS-certified installer applies on your behalf
- Extended to 2028
- You must be replacing an existing fossil fuel heating system
- One grant per property
After the grant: A typical air source heat pump costs £2,500-£7,500 out of pocket after the £7,500 BUS grant. Read our full BUS guide →
2. ECO4 — Free heat pumps
If you receive qualifying benefits (Universal Credit energy grants, Pension Credit, etc.) and your home has an EPC rating requirements of D-G, ECO4 can cover the entire cost of a heat pump installation — you pay nothing. ECO4 runs until December 2026 and funding is first-come, first-served.
3. Home Energy Scotland — Loans + cashback
Scottish homeowners can access interest-free loans of up to £7,500 plus cashback grants:
- Rural/island properties: Up to £7,500 cashback + £7,500 interest-free loan
- Urban properties: Up to £6,000 cashback + £7,500 interest-free loan
- Loans repayable over 10 years at 0% interest
- Combined, this can exceed the BUS grant value
4. Nest scheme — Wales
Welsh residents receiving means-tested benefits can access free or heavily subsidised heat pump installations through the Nest scheme, funded by the Welsh Government and delivered by local installers.
5. Local authority grants
Many local councils offer additional heat pump funding, particularly for:
- Properties in fuel poverty areas
- Off-gas grid properties (no mains gas connection)
- Conservation areas where additional insulation work is needed
- Council-led net-zero pilot schemes
Check with your local council's energy efficiency team for available grants. These can sometimes be combined with BUS for even greater savings.
6. Home Upgrade Grant (HUG2)
For properties off the gas grid with low-income occupants, HUG2 can provide up to £25,000 of improvements including heat pumps, insulation, and other measures. This is one of the most generous schemes but has strict eligibility criteria and limited geographical availability.
Combining grants for maximum savings
The smartest approach is often to combine multiple schemes:
- Get free insulation first through ECO4 or GBIS
- Apply for BUS for £7,500 towards your heat pump
- Add solar panels (from £5,000) to power your heat pump cheaply
- Check local authority grants for additional top-up funding
This combination can transform your home's energy efficiency at minimal personal cost — sometimes for less than £5,000 total out of pocket.
Heat pump costs after grants
| Scenario | Heat Pump Cost | Grants | You Pay |
|---|---|---|---|
| BUS only | £12,000 | £7,500 (BUS) | £4,500 |
| BUS + ECO4 insulation | £12,000 + £0 insulation | £7,500 + free insulation | £4,500 |
| ECO4 heat pump | £12,000 | £12,000 (ECO4) | £0 |
| Scotland (HES) | £12,000 | £6,000 cashback | £6,000 (0% loan available) |
How to get started
- Check your eligibility with Great British Energy eligibility checker — Enter your postcode above to see which grants you qualify for
- Insulate first — If your home needs insulation, arrange this before the heat pump installation
- Get MCS installer quotes — We match you with certified local installers
- Apply through your installer — For BUS, your installer handles the application