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Heat Pump Grants – What You Need To Know

A heat pump is a mechanical device or system that is used for heating or cooling spaces by transferring heat from one location to another. It moves heat from a source to a destination rather than generating heat directly, which makes it an energy-efficient heating and cooling solution.

If you want to install a heat pump in your home, Warmable can connect you to a qualified local engineer for free. There a number of grants and schemes you could be eligible for – check out the options below. Then simply fill in our quick form and a member of our team will be in touch shortly.

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Heat Pump Grants

How to Get a Heat Pump Quote Online

1. Apply Online

Fill out our quick online form with essential details, including your property specifications and heat pump preferences.

2. Receive a Call:

A member of the Warmable team will contact you to arrange a visit from a certified air to water heat pump engineer.

3. Engineer Quote:

After a thorough assessment of your heating system, you'll receive a free quote from an accredited heat pump specialist.

4. Installation:

Choose the best offer and schedule the installation at your convenience. We hope to get your new heating system up and running as soon as possible!

UK Government Grants For Heat Pumps 

 

  • Energy Company Obligation Scheme: This program provides support for energy-efficient home improvements, which may include heat pump installations.
  • Boiler Upgrade Scheme: This scheme offers financial assistance for the installation of air source and ground source heat pumps, with increased grant amounts as of October 23, 2023.
  • Warmer Homes Scotland: Through this scheme, eligible homeowners may have the opportunity to receive a free heat pump, among other home energy improvements.
  • Home Energy Scotland Scheme: This scheme offers support for various energy-saving measures, which could include heat pump installations.
  • Nest Scheme (Wales): In Wales, the Nest Scheme provides financial aid for home energy improvements, and this may include heat pump installations.

These government grants also cover other home improvement solutions. Therefore, the availability of funds for heat pumps can be limited and works on a first-come, first-served basis. 

Some incentives, such as Warmer Homes Scotland and the Nest Scheme in Wales, may offer free heat pumps to eligible homeowners. However, it’s essential to meet the eligibility criteria for these grants.

FAQ About UK Heat Pump Grants

How can I get a free heat pump?

How do heat pump grants work?

Can I receive multiple grants for heat pumps?

Can I get a heat pump grant for a new build or self-build home?

How much money can I receive through a heat pump grant?

How long do heat pump grants typically take to process?

Can I apply for a heat pump grant for a second home or holiday home?

Where can I get a heat pump grant near me?

ECO4

 

ECO4, or the Energy Company Obligation Phase 4, is the latest phase of the UK government’s initiative aimed at reducing household carbon emissions and improving energy efficiency in homes. ECO4 commenced on April 1, 2022, and is expected to continue until March 2026.

The extent and type of home improvements you can receive under ECO4 will depend on your household’s specific needs and the energy supplier you collaborate with. The program is designed to make energy-efficient upgrades more accessible to a wider range of households and contribute to the UK’s goals for reducing carbon emissions and improving overall energy efficiency in homes.

Under ECO4, various energy-saving measures are covered, including:

  • Boiler Repairs: This may involve repairing or upgrading existing heating systems to improve their efficiency and reduce emissions.
  • Insulation: The program supports the installation of insulation in homes to reduce heat loss and improve energy efficiency.
  • Replacing Inefficient Heating Systems: Inefficient heating systems, such as those powered by fossil fuels, can be replaced with low-carbon heating systems, like air source heat pumps and biomass boilers. These alternatives are more eco-friendly and energy-efficient.

Am I Eligible for ECO4?

To be eligible for ECO4, you typically need to meet the following criteria:

  • Inefficient Heating System: Your home should have an inefficient heating system that falls within the D-G energy efficiency band. This means that your current heating system is less energy-efficient, and it needs an upgrade to improve energy efficiency and reduce carbon emissions.
  • Homeownership or Private Rented Accommodation: You must either own your home and live in it or live in private rented accommodation. ECO4 is generally available to both homeowners and tenants in private rented properties.
  • All-Electric Homes: ECO4 eligibility often extends to all-electric homes, both those connected to the gas supply and those off-gas. In cases where biomass boilers or District Heat Networks are not viable options, you may qualify for energy efficiency improvements.
  • Receiving Government Benefits: Being in receipt of certain government benefits, such as child benefits or income support, can also be a factor that determines eligibility. This is often used to target assistance to households with lower incomes or in vulnerable situations.

How to Apply For ECO4 

Complete the online application form to apply for the ECO4 scheme.

Boiler Upgrade Scheme

 

The Boiler Upgrade Scheme is a government initiative introduced as part of a larger £3.9 billion funding package unveiled in the Heat and Buildings Strategy. This program is aimed at reducing the carbon footprint of homes in the UK. The scheme was officially launched in April 2022 and is set to remain in effect until 2028.

The primary objective of the Boiler Upgrade Scheme is to incentivize homeowners in England and Wales to transition to more energy-efficient and eco-friendly heating systems, such as air source heat pumps and ground source heat pumps. Under this scheme, eligible homeowners can receive financial support of up to £7,500 for the installation of these heat pump systems.

This scheme is a successor to the Domestic Renewable Heat Incentive (RHI) Scheme, which closed to new applications on March 31, 2022. The financial assistance offered by the Boiler Upgrade Scheme is substantial, as it can cover a significant portion of the supply and installation costs. 

Specifically, the scheme can contribute to approximately 60% of the total expenses for an air source heat pump installation and approximately 25% of the cost for a ground source heat pump installation. This means that, in practice, the scheme can make the cost of installing a £10,000 air source heat pump equivalent to the cost of installing a new boiler.

Am I Eligible for the Boiler Upgrade Scheme ?

The eligibility criteria for the Boiler Upgrade Scheme are as follows:

  • Homeownership or Landlord Status: You must be a homeowner, small landlord, or private landlord in England or Wales.
  • Valid Energy Performance Certificate (EPC): You need to have a valid Energy Performance Certificate (EPC) that does not have any outstanding loft or cavity wall insulation recommendations.
  • Heating System Replacement: You should not be replacing an existing low-carbon heating system. The scheme is specifically for replacing fossil fuel heating systems, such as those powered by oil, gas, or direct electric heating.
  • Installation Capacity: Your heating system must have an installation capacity up to 45kWth, which is the case for the majority of properties in the UK.

How to Apply for the Boiler Upgrade Scheme

The boiler upgrade scheme is applied for on behalf of your chosen installer through Ofgem. Explore the government site for more information.

Types of Heat Pump

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Warmer Homes Scotland

 

Warmer Homes Scotland is a Scottish government-funded scheme designed to improve the energy efficiency of homes and make them more comfortable and affordable to heat. 

The program aims to help lower-income households and vulnerable individuals in Scotland by providing energy efficiency upgrades to their homes. People can get up to £10,000 through this scheme. 

Key features of the Warmer Homes Scotland program include:

  • Energy Efficiency Improvements: The scheme offers a range of energy efficiency measures, including insulation, boiler replacements, draught-proofing, and other improvements aimed at reducing heat loss and energy consumption.
  • Free Home Energy Improvements: For eligible households, many of the energy efficiency upgrades provided under Warmer Homes Scotland are free of charge.
  • Eligibility Criteria: Eligibility is typically based on various factors, including income and vulnerability. The program targets households with lower incomes, those living in fuel poverty, and those with health issues that may be exacerbated by living in a cold or damp home.
  • Local Authorities and Approved Installers: Warmer Homes Scotland is typically administered through local authorities or their appointed delivery partners, including approved installers and contractors.
  • Long-Term Goals: The program contributes to the Scottish government’s broader goals of reducing fuel poverty, lowering carbon emissions, and making homes in Scotland more energy-efficient.

Am I Eligible for Warmer Homes Scotland?

To be eligible for this program, you typically need to meet the following criteria:

  • Residency in Scotland: You must either be a homeowner or a tenant of a private-sector landlord in Scotland.
  • Primary Residence: The home for which you are seeking an air source heat pump must be your primary residence.
  • Residency Duration: You should have lived in the said home for at least 1 year, unless you can provide a DS1500 certificate. This certificate may be accepted as an exception to the residency requirement.
  • Energy Rating and Floor Area: Your home should have an energy rating of 67 or lower, and its floor area should not exceed 230 square meters. These criteria typically indicate a less energy-efficient home that would benefit from energy-saving measures.
  • Tolerable Living Standard: Your home should meet the tolerable living standard as defined in the Housing (Scotland) Act 2006. In cases where it doesn’t meet this criterion, it should not impact the effectiveness of the recommended energy-efficiency measures.
  • Benefit History: You should not have received funding for energy efficiency measures under this program in the last 5 years.

How to Apply For Warmer Homes Scotland

You must call one of their advisors using this link in order to apply. 

Home Energy Scotland Scheme 

 

The Home Energy Scotland Scheme is a government initiative designed to help homeowners and tenants in Scotland make their homes more energy-efficient and reduce their energy costs. This program is aimed at providing advice, support, and financial incentives for energy-saving improvements in residential properties. You can get up to £17,000 interest free.

Key features and services of the Home Energy Scotland Scheme typically include:

  • Energy Advice: The scheme offers free and impartial energy advice to homeowners and tenants. This advice can help individuals identify ways to reduce energy consumption and lower energy bills.
  • Energy Efficiency Grants: Financial support may be available to help cover the cost of energy efficiency upgrades, such as insulation, heating system improvements, and other home energy improvements.
  • Green Deal Assessments: The scheme can provide access to Green Deal assessments, which help homeowners and tenants identify energy-saving measures that are suitable for their homes.
  • Renewable Energy Advice: Home Energy Scotland can provide information and guidance on renewable energy technologies, such as solar panels and heat pumps.
  • Fuel Poverty Assistance: The scheme may offer assistance to households at risk of fuel poverty, including low-income households, to make their homes more affordable to heat.
  • Carbon Reduction: By supporting energy-efficient improvements, the program contributes to carbon reduction efforts and environmental sustainability.

Am I Eligible for the Home Energy Scotland Scheme?

  • Loan Coverage: The loan can cover the cost of up to two renewable energy systems per home. The maximum loan amount is £17,500, which includes up to £7,500 in cash-back financing. Cash-back financing is a rebate or cash incentive.
  • Heat Pump: If you are installing a heat pump, you have the option to apply for an extra £500 to cover the cost of a heat meter. This meter is used to measure heat consumption.
  • Energy Storage System: Financing is available for energy storage systems, and the loan can cover the cost of these systems up to a maximum of £6,000.
  • Cashback Grants: For qualifying renewable heating technologies, cashback financing is available. These grants can cover up to 75% of the total cost of the improvement or the requested amount, whichever is less. The grant amount will not exceed the maximum amount indicated in the terms.
  • Whole-House Heating System: It’s important to note that only one whole-house heating system can be funded with the loan. This means that if you have an existing heating system and are looking to install a new one, the loan can typically cover the cost of the new heating system.

How to Apply For Home Energy Scotland Scheme

Complete the online Self-Assessment in order to apply for the scheme online.

NEST Scheme

 

The Nest Scheme in Wales is a government-funded initiative aimed at improving the energy efficiency of homes and reducing fuel poverty in Wales. This program is designed to help homeowners and tenants make their homes more energy-efficient, comfortable, and cost-effective to heat.

Key features of the Nest Scheme in Wales include:

  • Energy Advice: The program provides free and impartial energy advice to help individuals understand how they can reduce their energy consumption and lower energy bills.
  • Energy Efficiency Measures: Nest offers financial support and incentives for a range of energy efficiency measures, including insulation, heating system upgrades, and other energy-saving improvements.
  • Home Assessments: Nest can arrange for home assessments to identify energy-saving opportunities and provide recommendations tailored to each home’s specific needs.
  • Eligibility Criteria: The program may have specific eligibility criteria based on factors such as income, home type, and energy efficiency needs. It often targets lower-income households and those at risk of fuel poverty.
  • Installation and Support: Nest helps facilitate the installation of energy-saving measures through approved contractors and suppliers, ensuring that work is carried out to high standards.
  • Fuel Poverty Reduction: The Nest Scheme is part of the broader effort in Wales to reduce fuel poverty and improve the living conditions of vulnerable and low-income households.

Am I Eligible for the Nest Scheme?

The eligibility criteria for the NEST Scheme in Wales typically include the following factors:

  • Energy Inefficiency: Your home should be energy inefficient and expensive to heat. This typically means that your home has poor energy efficiency and would benefit from energy-saving improvements. This criterion applies whether you own your home or rent it from a private landlord (not a council or housing association).
  • Means-Tested Benefit: You or someone you live with should receive a means-tested benefit. Means-tested benefits are financial aid programs based on your income and financial circumstances.
  • Chronic Health Condition and Low Income: You or someone you live with should have a chronic respiratory, circulatory, or mental health condition, and you should also have a low income. This combination of a health condition and low income is often considered for eligibility.

How to Apply For the Nest Scheme

Contact an advisor or request a call-back on the official government website.

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