The Complete Guide to Heat Pump Grants in the UK (2025 Edition)

Heating is the single biggest contributor to household energy bills in the UK, with around 60% of the average home’s energy spend going on warmth and hot water. As gas and oil prices continue to fluctuate, many households are looking for cleaner, more efficient alternatives. Heat pumps are emerging as one of the best solutions, but with installation costs ranging anywhere from £7,000 to over £20,000, they can feel out of reach.

That is why heat pump grants are so important. In 2025, there are several schemes that make heat pumps much more affordable, and in some cases completely free. These grants are designed to encourage homeowners to switch away from fossil fuels, reduce carbon emissions, and improve the efficiency of the UK’s housing stock. In this guide we will explain all the options available, who is eligible, and how to apply.

Why Heat Pump Grants Matter in 2025

The UK government has committed billions of pounds to help households transition to renewable heating technologies. Heat pumps are central to this plan because they use electricity and natural energy sources like air or the ground, rather than burning fossil fuels. Without financial help, uptake would remain slow because of the high upfront investment. Grants bridge that gap by either covering part of the cost or, under certain schemes, paying for the entire system.

For homeowners, this can mean the difference between struggling with an outdated boiler and moving into a home that is warmer, greener, and far cheaper to run. For the country, it means significant progress towards the net zero carbon target.

The Main Heat Pump Grants Available in 2025

There are five main support routes available to households depending on where they live and their circumstances.

The first and most widely known is the Boiler Upgrade Scheme (BUS), which covers properties in England and Wales. This provides a grant of up to £7,500 towards the installation of an air source, ground source, or water-source heat pump. The scheme is straightforward to use: the discount is applied directly to your installer’s quote, so you do not need to claim money back later. To qualify, you must be replacing an existing fossil fuel system such as gas, oil, or LPG.

The second option is the ECO4 scheme, which is available across the UK and is aimed at households on low incomes or those who are considered fuel poor. ECO4 can be particularly generous, as it often covers 100% of the costs, including not just the heat pump but also insulation and other associated works that improve energy efficiency. To qualify, your property usually needs to have an EPC rating of D, E, F, or G, and you may need to meet certain income or benefits criteria.

In Scotland, residents benefit from the Home Energy Scotland grant and loan scheme. This can provide up to £15,000 in a mixture of grants and interest-free loans to help cover the cost of renewable heating installations such as heat pumps, alongside insulation and efficiency improvements.

England also has some regional schemes, often referred to as Warm Homes Local Grants. These are administered by local councils and can be worth up to £15,000 depending on the authority and the project. The focus is typically on low-income households, though eligibility varies from region to region.

Finally, in Northern Ireland, support is available through the Northern Ireland Sustainable Energy Programme (NISEP). This scheme funds a range of renewable energy improvements, including heat pumps, with grants varying depending on property type and household income.

What the Grants Will and Won’t Cover

Most grants are designed to cover the essentials: the heat pump unit itself, installation labour, connection to your heating system, and often smart controls or thermostats. In many cases, insulation improvements are also included, especially under ECO4, as efficiency upgrades are required to make the heat pump work at its best.

However, these schemes do not usually cover decorative or aesthetic work, such as redecorating after installation, nor do they support hybrid systems where a heat pump is paired with a gas boiler. Grants are targeted at measures that directly improve a property’s energy performance.

How Much Can You Save with a Grant?

The savings available depend on both the scheme and your property. For example, an air source heat pump with a full installation cost of around £10,500 could be reduced to just £3,000 under the Boiler Upgrade Scheme. A ground source system, which might cost £18,000, would be reduced to £10,500 with the same support. Under ECO4, many households will pay nothing at all if they are fully eligible, while Scottish households could receive up to £15,000 in mixed grant and loan support.

Once installed, a heat pump typically saves between £500 and £1,200 per year on heating bills, with the highest savings seen in homes currently using oil, LPG, or electric heating. When you combine this with a generous grant, the payback period can be less than ten years, making a heat pump a smart long-term investment.

How to Apply for a Heat Pump Grant

Applying for a grant is simpler than many people expect. The first step is to check your eligibility, either online through official channels or by speaking with an accredited installer. For ECO4, you may need to provide details of your household income, benefits, or EPC rating.

Once eligibility is confirmed, an installer will carry out a property survey to determine what type of system is suitable and whether additional works such as insulation upgrades are needed. They will then provide a quote which already includes the grant discount. If you are applying under the Boiler Upgrade Scheme, the installer will apply for the grant on your behalf, so you never have to handle the paperwork.

From survey to installation usually takes between four and twelve weeks depending on demand and property type. Once the work is complete, you will receive the necessary certification and can begin enjoying lower energy bills immediately.

Who Benefits the Most from Heat Pump Grants?

Heat pump grants are particularly valuable for certain households. Those living off the gas grid who currently rely on oil or electric heating often see the biggest savings because their current energy costs are high. Properties with poor EPC ratings stand to benefit too, as the grant schemes are designed to target the least efficient homes. Low-income households may qualify for full funding under ECO4, meaning they can have a brand-new system installed at no cost.

Even middle-income households benefit from schemes like the Boiler Upgrade Scheme, where the grant brings the price of a heat pump into a far more affordable range. For many, the combination of reduced installation cost and long-term bill savings makes 2025 the right time to make the switch.

Common Questions About Heat Pump Grants

One of the most frequent questions is whether these grants will run out. The answer is yes: funding is limited, and although schemes like BUS are scheduled to run until 2028, budgets can be used up quickly in high-demand areas. Another common question is whether landlords can apply, and the answer is yes, particularly under ECO4 and in Scotland, though certain conditions apply.

Some homeowners ask about hybrid systems that combine a gas boiler with a heat pump. Unfortunately, these are not eligible under the Boiler Upgrade Scheme, as the grants are designed to support a full switch to renewable heating. There is also concern about planning permission, but in most cases heat pump installations fall under permitted development and do not require special approval, provided the unit is sited correctly.

Conclusion

Heat pump grants in 2025 make renewable heating more accessible than ever. Whether you qualify for the £7,500 Boiler Upgrade Scheme, a fully funded ECO4 installation, or up to £15,000 of support in Scotland, there are generous opportunities to cut the cost of going green.

The sooner you act, the better, as demand is high and funding is limited. With government backing, accredited installers, and the chance to reduce your bills by up to £1,200 a year, there has never been a better time to apply.

Check your eligibility today and see how much you could save with a heat pump grant in 2025.

Frequently Asked Questions About Heat Pump Grants in the UK (2025)

Are heat pump grants still available in 2025?
Yes. The Boiler Upgrade Scheme is open until at least March 2028, ECO4 runs until March 2026, and regional programmes in Scotland and Northern Ireland remain active. Funding is limited, though, so applying early is recommended.

How much money can I get towards a heat pump?
In England and Wales, the Boiler Upgrade Scheme offers up to £7,500. In Scotland, support can reach £15,000 through a mix of grants and loans. Under ECO4, some households can have the full cost covered, meaning a heat pump may be installed for free.

Who qualifies for ECO4 heat pump grants?
ECO4 is mainly aimed at low-income and fuel-poor households. Eligibility is usually based on receiving certain benefits, having a household income under a threshold (often £31,000), or living in a property with a poor EPC rating. Local councils can also use “LA Flex” rules to extend eligibility.

Can landlords apply for heat pump grants?
Yes, landlords can benefit under certain schemes, especially ECO4 and Scotland’s Home Energy Scotland funding. The property must meet the scheme’s eligibility criteria, and in some cases landlord consent forms are required.

Can I get both BUS and ECO4 funding?
In most cases you cannot combine the two for the same property. ECO4 usually takes precedence for low-income households, while BUS is designed for households not covered by ECO4.

Do I need planning permission for a heat pump?
In most situations, no. Air source heat pumps are classed as permitted development as long as they meet noise and placement rules. Ground source systems also rarely need permission. However, listed buildings or conservation areas may have different requirements.

Will heat pump grants cover insulation too?
ECO4 often covers insulation upgrades alongside a heat pump installation because efficiency improvements are required to make the system work effectively. The Boiler Upgrade Scheme does not usually include insulation, but homeowners are encouraged to improve insulation first.

What happens if I sell my home after getting a grant?
Once a heat pump is installed under a grant, it belongs to the property. The new buyer benefits from lower bills and improved EPC ratings, and the seller can often command a higher property value.