ECO Scheme Heating and Insulation Grants

Air Source Heat Pump Grants from ECO4 and the Boiler Upgrade Scheme

Click HERE to apply for an ECO4 Grant to install an Air Source Heat Pump in your home
Click HERE to apply for a Boiler Upgrade Grant to help install an Air Source Heat Pump in your home

ECO4 Air Source Heat Pump Grants

Air Source Heat Pump Grants are available under ECO4 which started on 1st April 2022.  If your home has NEVER had a central heating system fitted before, homeowners and private tenants can apply for a grant to install an air source heat pump. This part of ECO4 is referred to as the ‘First Time Central Heating Grants Scheme‘.

One of the main changes from ECO3 (which ended on 31/03/2022) and ECO4 (which started on 01/04/2022) is that homes must have had an existing mains gas supply prior to 31st March 2022 to qualify for a First Time Central Heating grant to install a new mains gas central heating system.

If your home did not have a mains gas supply prior to 31st March 2022 you may qualify for a First Time Central Heating grant to install an air source heat pump and radiators.

Obviously being a Government scheme there are conditions attached.

Qualifying Criteria for ECO4 Air Source Heat Pump Grants

1. You must be a home owner, or a tenant in a privately rented home.

For homeowners, homes must have an EPC rating of D, E, F or G to be eligible for Central Heating Grants.  However, some homes in the higher part of band D may not qualify.

For private tenants, homes must have an EPC rating of E, F or G to be eligible for ECO4 Air Source Heat Pump Grants.

You can see the EPC rating of your home by clicking HERE for England and Wales or HERE for Scotland.

Householders who rent their home from a local council or a housing association, and those in shared ownership homes do not qualify for the first time air source heat pump grants scheme.

2. Your home must have either no heating at all or one of the following heating systems:

  1. Electric room heaters, including direct acting room heaters, fan heaters or inefficient electric storage heaters
  2. Gas room heaters; including fixed mains gas room heaters; or
  3. Gas fire with back boiler; or
  4. Solid fossil fuel fire with back boiler, or
  5. Mains gas warm air heating system, or
  6. Electric underfloor or ceiling heating (not part of an electric boiler); or
  7. Bottled LPG room heating; or
  8. Solid fossil fuel room heaters; or
  9. Wood/biomass room heating; or
  10. Oil room heaters

The relevant heating system used to assess your eligibility for First Time Central Heating Grants is that which appears as the ‘Main Heating’ system on the Energy Performance Certificate (EPC) for your home. You can see your EPC (if one has been prepared) HERE if you live in England or Wales and HERE if you live in Scotland.

3. You must receive at least one of the Qualifying Benefits, or qualify under ECO Flex Rules

To qualify for First Time Central Heating Grants, either you or someone living permanently with you, must receive at least one of the following State Benefits, Tax Credits or Other Allowances unless you qualify under ECO Flex Rules:

  • Pension Credit – Guarantee Credit
  • Pension Credit – Savings Credit
  • Universal Credit
  • Child Tax Credit
  • Working Tax Credit
  • Income Support
  • Income-Related Employment and Support Allowance (ESA)
  • Income-Based Job Seeker’s Allowance (JSA)
  • Child Benefit (subject to maximum household income
  • Housing benefit

ECO Flex Rules allow local councils to recommend that a householder qualifies for a grant even if they don’t receive one of the qualifying benefits.

Boiler Upgrade Grants

Air Source Heat Pump Grants – The Boiler Upgrade Scheme provides grants to help install

  • air source heat pumps
  • ground source heat pumps
  • biomass boilers (must be for properties not connected to mains gas in rural areas)

The scheme started on 1st April 2022 is expected to run until April 2025 but is only available in England and Wales.

Eligibility for the Boiler Upgrade Scheme

You may be eligible if you:

  • live in England or Wales
  • own your property (either a home or a small non-domestic property)

The property will need to:

  • have an installation capacity up to 45kWth (this would apply to most homes)
  • have a valid Energy Performance Certificate with no outstanding recommendations for cavity wall insulation or loft insulation
  • be an existing property, not a new-build

You can see the EPC for your home HERE if you live in England or Wales

How will the Boiler Upgrade Scheme work?

  1. You find an MCS* certified installer able to carry out the work (we help you to do that).
  2. The installer advises you whether an installation is eligible for a grant.
  3. The agree a quote for the installation.
  4. The installer applies for the grant from Ofgem.
  5. You confirm that the installer is acting on your behalf when you are contacted by Ofgem.
  6. The installer completes the installation.
  7. Ofgem pays the grant to your installer.

* MCS stands for Microgeneration Certification Scheme

As an organisation the MCS creates and maintains standards relating to low-carbon products, installers and installations.  MCS accreditation is a sign of excellence in a renewable installer.

It demonstrates that a company or its employees are competent to install a range of small-scale renewable and low-carbon technologies, including solar PV, solar thermal, biomass boilers, air source heat pumps, ground source heat pumps and battery storage.

How much are Boiler Upgrade Grants?

  • £7,500 towards the cost and installation of an air source heat pump
  • £5,000 towards the cost and installation of a biomass boiler
  • £7,500 towards the cost and installation of a ground source heat pump

In addition, from 1st April 2022 for a period of five years, the installation of certain energy saving materials – including air source heat pumps – will attract zero-rate VAT.

Air Source Heat Pump Grants in Scotland, England and Wales

Boiler Upgrade Grants help to install an Air Source Heat Pump in your home

How do Air Source Heat Pumps Work?

Air source heat pumps absorb heat from the air outside your home. This can be transferred inside to heat central heating radiators and to provide hot water.

They can even work when the temperature outside is below zero.

Inside an air source heat pump there are several important components which extract heat from the air and use to to heat your home.

  • A fan sucks air from outside into the air source heat pump.
  • An evaporator transfers heat from this air to a liquid in a sealed network of pipes, which similar to that in your refrigerator. The heat causes the refrigerant liquid to evaporate and turn into a gas.
  • This gas is directed into a compressor, which compresses it, causing the temperature of the gas to increase substantially.
  • The heated gas is transferred to a condenser where it is cooled and condenses back to a liquid. The act of cooling this hot gas releases the heat which is used to heat water which travels through your central heating radiators and to provide hot water at your taps.
  • Now that the hot refrigerant gas has converted to a cool refrigerant liquid, an expansion valve releases it to start the process all over again. In essence the whole process is continuous.

Air Source Heat Pump Grants in England and Wales from the Boiler Upgrade Scheme

Benefits of Air Source Heat Pumps
  • Very little maintenance required. An annual check of the main components, cleaning the filters and a safety check is all that is needed.
  • Air source heat pumps are highly controllable and maintain a stable temperature inside your home rather than causing swings in temperature as with boiler run heating systems.
  • No more oil, LPG or coal deliveries required if you currently use an oil, LPG or solid fuel boiler.
  • Air source heat pumps will reduce your heating bills.
  • Because of the way that air source heat pumps operate, the component parts last a long time and long warranties are normal.
  • Switching to an air source heat pump will reduce your carbon footprint.
  • RHI incentives are available for 7 years after installation.

Boiler Upgrade Grants help to install an Air Source Heat Pump in your home

Air Source Heat Pump Grants
Air Source Heat Pumps FAQs

How much space do I need for an air source heat pump?

Air source heat pumps are about the same size and shape of an air conditioning unit and you will need space outside where the unit can be installed. This should be either against a wall or on the ground.

Your air source heat pump will also need space around it to provide a good air flow but should be within 1 metre of your boundary due to restrictions regarding planning permission.

Air Source Heat Pump Grants in England and Wales from the Boiler Upgrade Scheme

Will an air source heat pump help to cut my energy bills?

In most cases, yes.

The less efficient your current heating system is, the more you will have to gain by installing a air source heat pump.

If your boiler uses coal or LPG, or you have an electrical heating system at the moment, you will achieve a greater saving by switching to an air source heat pump than if your boiler uses mains gas.

Air Source Heat Pump Grants in England and Wales from the Boiler Upgrade Scheme

Are grants available to help install air source heat pumps?

From 1st April 2022 grants may be available from the Boiler Upgrade Scheme to help pay for the installation of an air source heat pump or other renewable heating systems in your home.

Air Source Heat Pump Grants in  England and Wales from the Boiler Upgrade Scheme

How important is the insulation in my home to air source heat pumps?

It is very important.

Air source heat pumps produce heat at a lower temperature over a longer period of time than similar oil or gas heating systems. Consequently, your home will need to be very well insulated so that you can take full advantage of your new air source heat pump.

Air Source Heat Pump Grants in  England and Wales from the Boiler Upgrade Scheme

Boiler Upgrade Grants help to install an Air Source Heat Pump in your home

How Much Do Air Source Heat Pumps Cost?

Air Source Heat Pumps cost between £9,000 and £15,000 to supply and install but costs are falling

The reason for the wide range of prices is mainly down to the size of air source heat pump you require to provide adequate heating and hot water to your home.

Also, because air source heat pumps operate at a lower temperature (but for a longer period of time) than conventional central heating boilers, you may need to increase the size of some of your radiators.

When investing in an air source heat pump, you need to take into account the savings in your heating bills over its lifetime. And also the fact that most properly maintained air source heat pumps should last 20 to 25 years; more than twice the lifetime of a conventional boiler. Annual servicing costs for air source heat pumps should also be lower than for boilers.

Renewable Heat Incentive

The Renewable Heat Incentive ended on 31st March 2022

Boiler Upgrade Grants help to install an Air Source Heat Pump in your home

Who are the main manufacturers of Air Source Heat Pumps?

Dimplex Air Source Heat Pump Grants in Scotland
Dimplex Air Source Heat Pumps
Mitsubishi Air Source Heat Pump Grants in Scotland
Mitsubishi Air Source Heat Pumps
NIBE Air Source Heat Pump Grants in Scotland
NIBE Air Source Heat Pumps
Samsung Air Source Heat Pump Grants in Scotland
Samsung Air Source Heat Pumps

Boiler Upgrade Grants help to install an Air Source Heat Pump in your home