Upgrading to a heat pump: Your guide to heat pump grants and funding

Upgrading your traditional heating system to a smart, energy-efficient technology like a heat pump may sound complicated, but there's a few different funding options available across the UK to help make the switch a bit more wallet-friendly.

In this guide, we’ll walk you through the types of funding on offer and how you can apply for each one, so you can get started on your heat pump journey.

What is a heat pump and why upgrade to one?

Heat pumps are one of the most energy-efficient ways to heat a home, using natural energy sources like the air, water or the ground outside a house to keep a home warm and comfortable.

Air source heat pumps, like the Glow-worm GeniaAir, work by taking heat from the outside air to provide heating and hot water in your home, even in cold weather. And, while they do need some electricity to run, it’s only about 25% of the overall energy used with about 75% of their energy coming from natural sources, like the air around them.

They’re also popular across the UK because they work well in many types of homes, from terraced houses to apartments and flats above ground level. This is because air source heat pumps are often the easiest type of heat pump to install in comparison to ground source and water source heat pumps.

In fact, they’re so effective and efficient, the Government is offering property owners across England, Wales, and Scotland, grants to encourage more people to upgrade from traditional fossil fuel boilers to low carbon heat pumps.

If you’d like to find out more about the benefits of heat pumps for you, your home, and the environment, take a look here.

What Government grants and subsidies are available?

As the UK works towards Net Zero targets by 2050, the Government is offering homeowners across England, Wales, and Scotland money off the installation of low-carbon heating systems, like heat pumps, to help decrease the use of traditional fossil fuels for heating. 

There are two types of Government grants on offer:

• If you live in England or Wales, you can apply for the Boiler Upgrade Scheme, also known as BUS

• If you live in Scotland, you can apply for the Home Energy Scotland Grant and Loan Scheme

Self-funding your heat pump

Outside of Government funding, you may also choose to self-fund your new heat pump. With rising energy prices, the upfront cost of upgrading your heating system to a heat pump might feel like a big step, but with their high efficiency, long service life, and relatively low maintenance needs, they could be a great option for long term value.

Chat to a friendly Glow-worm installer to find out more about installing a heat pump in your home.

What is the Boiler Upgrade Scheme (BUS)?

BUS is the Government's funding program, designed to make installing low-carbon heating technologies, like heat pumps, more affordable. It’s open to property owners in England and Wales and will run until 2030 making it a great opportunity for those looking to upgrade their heating systems.

Government funding if you live in the England or Wales: The Boiler Upgrade Scheme

If you live in England or Wales, you could receive up to £7,500 with the Government's Boiler Upgrade Scheme (BUS) to help reduce the upfront cost of upgrading to a heat pump from your traditional gas heating system. Below, we’ll guide you through how it works and how you can apply.

Who can apply?

You can apply for the Boiler Upgrade Scheme if:

• You live in England or Wales

• You own your property (whether this is a home or a small non-domestic property)

• Your property has a valid Energy Performance Certificate (EPC) generated in the last 10 years

If you’re unsure about whether your home has an EPC, you can take a look on the Gov.uk website to check

What does BUS provide funding for?

The Boiler Upgrade Scheme provides funding for both air source and ground source heat pumps, as well as biomass boilers for off-grid properties.

Learn more about our Glow-worm GeniaAir air source heat pump here, which is eligible for £7,500 BUS grant towards the cost and installation.

How does the BUS scheme work?

Your installer will apply for BUS on your behalf so you don’t need to worry about any paperwork! Once it’s approved, the BUS scheme works in the form of a grant voucher, with the expected amount being taken off the upfront cost after your heat pump has been installed.

How to apply for the BUS scheme

If you’re thinking about applying for the BUS scheme, the first step is to contact your MCS accredited Glow-worm installer. From there, they’ll help you decide if a heat pump is right for your home and if it is, they’ll apply for the grant on your behalf.

Simplifying the Boiler Upgrade Scheme: Which technologies qualify?

✔ The technology must not have been installed or activated recently (in the last 120 days)

✔ It must fully replace an existing fossil fuel system (such as oil, gas, or direct electric)

✔ Have an installation capacity that meets the home’s needs (currently 45kW, which covers most homes) or have shared group loop capacity of 300kW (only applicable for ground source heat pump installs)

✔ Provide all of the heating and hot water your home needs

Find out more about the BUS scheme on the ofgem website here

Who’s not eligible for the Boiler Upgrade Scheme?

Currently, new-build properties and social housing are not eligible for the Boiler Upgrade Scheme, except for custom-build properties (such as if you are building your own home).

Custom new builds don’t require an EPC but must be built with the labour and resources of the first owner and must be owned by an individual.

Ready to start your heat pump journey? Chat to one of our friendly Glow-worm installers to find out more or take a look at our new GenaiAir heat pump.

Government funding if you live in Scotland: The Home Energy Scotland Grant and Loan Scheme

If you live in Scotland and you’re looking for support funding your heat pump, the Home Energy Scotland (HES) Grant and Loan Scheme could offer you up to £7,500 for your heat pump installation, along with an optional interest-free loan of up to £7,500. We’ll be breaking down what you can get and how, below.

What is Home Energy Scotland?

Home Energy Scotland is a Government partnership with the Energy Saving Trust, offering energy-saving advice and financial support to help people meet their energy goals.

What is the Home Energy Scotland Grant and Loan Scheme?

When it comes to funding a heat pump, the HES scheme offers up to £7,500, along with an optional interest-free loan of an additional £7,500. This includes air source, ground source, and water source heat pumps and is the same amount for each energy source. If you live in a remote, rural or island home you could also get an additional £1,500 uplift to both the heating and energy efficiency grants, taking the total up to £18,000 in grant funding.

Who can apply?

To apply for the Home Energy Scotland Grant and Loan Scheme, you must:

• Own the property you’re applying for

• Funding is only available for your main residence, not second or holiday homes