Heat Pump Grants: Where to Access Financial Support

baxi hybrid heat pump
(Image credit: Baxi Heating)

Heat pump grants are available across the UK to help homeowners afford the upfront costs of installation and can make a big difference to those looking to switch to renewable energy.

Heat pumps and other low-carbon heating systems such as biomass boilers and solar thermal panels can help to lower long-term energy bills, compared with natural gas boilers, but they tend to cost more to install. 

Air source heat pumps can cost up to £14,000 to install, while ground source heat pumps cost up to £15,000 depending on size and brand.

Most homeowners will be eligible for at least one type of heat pump grant. Financial assistance in the form of grants and loans can therefore help homeowners make the switch, lower their carbon emissions, and it also helps the government in its push towards net zero emissions by 2050. 

Take a look at which grants are currently available, or will be available soon, to see how much funding you could be eligible for.

Boiler Upgrade Scheme Now Offers Heat Pump Grants

The Boiler Upgrade Scheme officially opened for applications this month, which will provide eligible homeowners with grants up to £6,000 for heat pumps. 

A renaming of the Clean Heat Grant, the Boiler Upgrade Scheme enables homeowners to apply for grants of £5,000 for the purchase of air source heat pumps and biomass boilers, and grants of £6,000 for ground source heat pumps.

The scheme has the capacity to offer 90,000 heat pumps to homeowners in England and Wales.

The Green Homes Grant

The Green Homes Grant, which ran from September 2020 to March 2021, is no longer accepting new applications from homeowners, but you can still apply for funding for improvements such as heat pumps via your local authority. 

Local authorities will grant funding up to £10,000 for air source heat pumps to those in social housing where a home has an Energy Performance Certificate (EPC) rating of D or below, and an annual income below £30,000.

You may also be eligible if you do not possess an up-to-date EPC or earn more than £30,000 a year but are on certain benefits.

To apply, follow the instructions on your local council’s website.

heat pump grants can help with the installation of a ground source heat pump

(Image credit: Kensa Heat Pumps)

Renewable Heat Incentive

Now no longer accepting new applications, the Renewable Heat Incentive was a government scheme which ran from 2014-2022, and rewarded homeowners who generate and use renewable heating systems to heat their homes.

The RHI paid back the difference in capital cost to install your renewable heating system (against a conventional heating technology) with quarterly payments over a seven-year period.

The amount of payment was calculated according to the heat requirements of your home and the efficiency of the heating system.

The RHI ended earlier this year, when it was replaced by the Boiler Upgrade Scheme. 

Heat the Street

A UK first renewable heating project, Heat the Street will encourage people in Stithians Village in Cornwall to switch to ground source heat pumps. 

Kensa Utilities, which has been awarded a £6m grant by the European Regional Development Fund (ERDF) to part-fund the project, is now looking for 175 private households in Stithians who want to be part of the project. 

Successful applications will switch to a new renewable heating system worth around £20,000 per household, complete with a ground source heat pump, radiators, hot water cylinder and smart thermostat. You can register your interest here.

What About Outside of England?

There are alternative sources of support available across the UK:

Live in Northern Ireland?

In Northern Ireland we'd recommend contacting NI Energy Advice for advice on heat pump grants

Home Energy Scotland

Scottish homeowners can use Home Energy Scotland to get an interest-free loan from the Scottish government to pay the upfront costs of air source heat pumps and ground source heat pumps.

Warmer Homes Scotland

A similar scheme, Warmer Homes Scotland is designed for low-income households and vulnerable people who can apply for grants for heat pumps and other energy-efficient home improvements.

Wales: Nest

Low-income households in Wales and people with certain health conditions can apply to the Nest scheme to get help with heat pump installation costs.

Jack Woodfield
News Editor

Jack has worked in journalism for 11 years and is the News Editor for Homebuilding & Renovating, a role he has had since 2019. He strives to break the most relevant and beneficial stories for self builders, extenders and renovators, including the latest news on the construction materials shortage and hydrogen heating. In 2021 he appeared on BBC's The World at One to discuss the government's planning reforms. 

He enjoys testing new tools and gadgets, and having bought his first home in 2013, he has renovated every room and recently finished a garden renovation.