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Accessing funding for heat pumps

The UK government is offering grants to encourage homeowners to install low carbon heating systems. These grants will help with the upfront cost of low carbon heating technologies 

There is plenty of funding available from the Government and in February 2023, two thirds of the funds remain unused.

If you live in England or Wales, you can apply for £5,000 towards your new air source heat pump or £6,000 towards a ground source system. This is not a means-tested grant. 

If you live in Scotland, you can apply for an interest-free loan to pay for energy efficiency improvements upfront, including air source heat pumps and more. There are also grants for low-income households in Scotland and in Wales.  

Have a look at the heat pump funding and grants that could support your project. Additionally, you can also save more than £6,300 with the VAT cut on clean energy technologies announced in 2022. This reduces the 5% VAT down to 0%.

The Government has demonstrated its commitment to decarbonising heat and buildings through policy and billions of pounds of funding.

Grant funding is available for the installation of heat pumps of up to £7,500, or £9,000 for households that qualify for a rural uplift.

The ECO is a Government grant for retrofitting ground source heat pumps into social housing properties.

This scheme intends to help new and existing heat networks to move to low and zero-carbon technologies.

Boiler Upgrade Scheme

The Boiler Upgrade Scheme (BUS) also known as the Clean Health Grant launched in 2022 provides financial support to homeowners in England and Wales who install air-source heat pumps and ground-source heat pumps at their property.

UK Government will fund a grant of £5,000 for the installation of an air source heat pump, and £6,000 for a ground source heat pump. Both air and ground-source heat pumps are an extremely efficient way to heat your home and produce hot water and will reduce the size of your carbon footprint and energy bills.

The PSDS is a £1billion fund dedicated to heat decarbonisation and capital energy efficiency projects in non-domestic public sector buildings across England.