Air Source Heat Pump Grants: Could You Get £9,000 Towards your Installation?
If you’re considering an air source heat pump, there’s currently some significant Government funding available that is well worth knowing about.
Through the Boiler Upgrade Scheme (BUS), eligible property owners in England and Wales can receive £7,500 towards the cost of an air source heat pump and from last month, that increases to £9,000 for eligible off-gas-grid properties currently heated by oil or LPG
The photos show a recent air source heat pump installation completed locally by our team where we also managed the Government grant process as part of the installation.
How does the grant work, who can qualify and, more importantly, is an air source heat pump actually right for your property?
The Government’s Boiler Upgrade Scheme currently provides £7,500 towards an eligible air-to-water heat pump installation.
Until 31 March 2027, an additional £1,500 is available where a qualifying property:
- is currently heated by oil or LPG; and
- doesn’t have a mains gas connection.
That takes the total potential grant to £9,000.
It’s a significant contribution towards a new heating system and could make switching from oil or LPG considerably more achievable for some property owners.
What is the Boiler Upgrade Scheme?
The Boiler Upgrade Scheme is a Government scheme designed to reduce the upfront cost of installing lower-carbon heating systems. It isn’t restricted to homeowners either, eigible buildings used for business can also qualify, subject to the requirements of the scheme.
There are exclusions, including most new-build properties and social housing, so eligibility always needs to be checked for the individual property.
Do I have to apply for the £7,500 or £9,000 grant myself?
No. The Boiler Upgrade Scheme is installer-led, which makes the process considerably simpler for the property owner. As an MCS-certified installer, we apply for the grant on your behalf and if the installation is eligible, the value of the grant is deducted from the amount you pay and shown on your quotation and invoice.
Can I get the £9,000 heat pump grant if my house currently uses oil?
Potentially yes, if your property is off the mains gas grid and you’re replacing an oil heating system with an eligible air-to-water heat pump, you may qualify for the increased £9,000 Boiler Upgrade Scheme grant.
The same increased grant can also apply to qualifying off-grid properties currently heated by LPG – this is particularly relevant to rural properties where oil-fired heating remains common.
Is an air source heat pump suitable for every house?
Not necessarily and this is where we would always recommend looking beyond the grant itself. A £7,500 or £9,000 contribution is attractive, but the starting point should still be whether a heat pump is the right heating solution for your property.
An air source heat pump isn’t simply a case of removing an existing boiler and replacing it with another piece of equipment – the heating system needs to be considered as a whole.
We look at things including the property’s heat loss, insulation, radiator sizes, underfloor heating, hot water demand, cylinder requirements, electrical supply and the location of the external unit as all of these can influence the design, size and performance of the finished system.
Do air source heat pumps work with radiatiors?
Yes air source heat pumps can work with radiators, but the existing radiators may not necessarily be the right size for the new system. Heat pumps typically operate at lower flow temperatures than traditional fossil-fuel boilers, the heating emitters therefore need to be capable of providing the required amount of heat at those temperatures – that might mean existing radiators are suitable, or it could mean some need to be resized or replaced. It’s something that should be established as part of the system design rather than after the heat pump has been installed.
Are air source heat pumps good with underfloor heating?
Air source heat pumps and underfloor heating can work particularly well together because underfloor heating is designed to distribute heat over a large surface area and can operate effectively at lower water temperatures.
What size air source heat pump do I need?
There isn’t one standard answer as the correct heat pump size should be based on the heating requirements and calculated heat loss of the individual property.
Is there VAT on an air source heat pump installation?
Qualifying installations of energy-saving materials, including air source heat pumps, currently benefit from 0% VAT and the current temporary zero rate runs until 31 March 2027, subject to the relevant eligibility requirements. Combined with the Boiler Upgrade Scheme, this can make a considerable difference to the upfront cost of changing your heating system.
How do I find out if I’m eligible for an air source heat pump grant?
The first step is to establish whether the property and proposed installation meet the Boiler Upgrade Scheme requirements, we can advise on eligibility and make the application on your behalf. You can also check the latest eligibility criteria directly through the GOV.UK Boiler Upgrade Scheme guidance.
At JATA Connections we can assess, design and install air source heat pump systems and, for eligible installations, manage the Boiler Upgrade Scheme application as part of the process.
If you’re considering an air source heat pump, replacing an existing oil or LPG system, or planning an extension or renovation where the heating system needs to be reconsidered, get in touch with us to discuss your property.
Discuss with the team on 01208 798 46
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