ECO Scheme Heating and Insulation Grants

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

Boiler Upgrade Grants help you to install:

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

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

Boiler Upgrade Grants – Eligibility

You may be eligible for a boiler upgrade grant 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 an existing fossil fuel heating system such as oil, gas or electric which you intend to replace with an air source heat pump
  • 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

Boiler Upgrade Grants – How does the 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 air source heat pump installation is eligible for a grant.
  3. You agree a quote for the installation.
  4. The installer applies for the grant from Ofgem on your behalf.
  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?

For applications submitted after 23rd October 2023 the increased grants amounts are:

  • £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

Air Source Heat Pump Boiler Upgrade Grant Application Form

Step 1 of 2

  • 1. Your Details:

  • Boiler Upgrade Grants are only available in England and Wales
  • 2. Your Home

  • Boiler Upgrade Grants are only available to owners of domestic properties and small non-domestic properties.
  • Only required if the grant is for your own home
  • Only required if the grant is for your own home
  • Only required if the grant is for your own home

Boiler Upgrade Grants help you 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.

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

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 you 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.

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

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.

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

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.

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

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.

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

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

Boiler Upgrade Grants page 1
Boiler Upgrade Grants page 2

Click HERE to view OFGEM’s ‘Boiler Upgrade Scheme: Guidance for Property Owners v2.3