How This Government Grant Can Make Air Source Heat Pumps Affordable

With rising energy costs and a growing push towards sustainability, many UK homeowners are considering air source heat pump installation as an alternative to gas or oil-based heating systems. However, the upfront cost of heat pumps can be a barrier for some households. To address this, the UK government has introduced financial support through the Boiler Upgrade Scheme (BUS), making air source heat pumps more affordable.

This guide explores how the government grant works, the savings it offers, and whether an air source heat pump installation is a cost-effective choice for your home.

What is the Boiler Upgrade Scheme (BUS)?

The Boiler Upgrade Scheme (BUS) is a government incentive designed to help homeowners transition to low-carbon heating systems, including air source heat pumps. Under this scheme, eligible households can receive a £7,500 grant to offset the cost of installing a heat pump.

This financial support makes air source heat pump installation significantly more affordable, reducing the initial investment and encouraging more households to switch to renewable heating solutions.

How Much Does an Air Source Heat Pump Cost?

The cost of an air source heat pump installation varies based on factors such as system size, home insulation, and installation complexity. On average:

• Air source heat pumps cost between £8,000 – £14,000, depending on property size and heating requirements.
• Installation costs may vary based on existing heating system compatibility.
• With the £7,500 Boiler Upgrade Scheme grant, homeowners could pay as little as £500 – £6,500 for an installation.

While heat pumps require an upfront investment, they offer long-term energy savings that help offset costs over time.

Why Choose an Air Source Heat Pump?

Lower Heating Bills

Air source heat pumps operate 3 to 4 times more efficiently than gas boilers, meaning they provide more heat output for every unit of electricity consumed. While electricity costs more than gas per unit, heat pumps still reduce overall energy bills due to their efficiency.

Reduced Carbon Emissions

Unlike gas or oil boilers, heat pumps do not burn fossil fuels, making them an environmentally friendly heating option. Switching to a heat pump can cut household carbon emissions by up to 60%.

Eligibility for Future Energy Tariffs

As the UK moves towards smart energy solutions, heat pump owners may benefit from cheaper off-peak tariffs, further lowering running costs. Some energy providers already offer heat pump-specific tariffs to encourage adoption.

Who is Eligible for the £7,500 Heat Pump Grant?

To qualify for the Boiler Upgrade Scheme grant, homeowners must meet the following criteria:

• The property must be in England or Wales.
• The existing heating system must be a gas, oil, electric boiler or an eligible self-build property.
• The home must have a valid Energy Performance Certificate (EPC) with no outstanding insulation recommendations.
• The grant applies to air source and ground source heat pump installations.

Properties in Scotland can explore Home Energy Scotland loans and grants, which offer similar incentives.

Heat pumps perform best in well-insulated homes and are ideal for new builds or recent renovations. If you live in an older property, it’s important to assess insulation levels and system compatibility before installing and that’s something ESS can help you evaluate

How to Apply for the Boiler Upgrade Scheme

Applying for the grant is straightforward, with most of the process handled by your chosen installer. Here’s how it works:

1. Find an MCS-Certified Installer – Homeowners must work with an accredited installer like ESS Group to ensure compliance with scheme regulations.
2. Confirm Eligibility – The installer will assess your property and confirm eligibility for the grant.
3. Installation and Grant Application – The installer applies for the £7,500 grant on your behalf, reducing your upfront costs.
4. System Commissioning – Once installed, your heat pump system is tested and connected to your home’s heating system.

With an expert installer, the entire process is seamless, making the transition to renewable heating stress-free.

This grant can be particularly valuable if you’re managing a self-build project or upgrading a family home for long-term efficiency.

Are Air Source Heat Pumps Worth the Investment?

Even with the Boiler Upgrade Scheme, homeowners may still have concerns about long-term savings. Here’s how a heat pump can provide financial benefits:

• Lower lifetime heating costs – While installation is an investment, heat pumps have longer lifespans (15-20 years) than gas boilers.
• Protection from rising gas prices – As the UK moves away from gas heating, households with heat pumps are shielded from future energy price hikes.
• Increased property value – Homes with energy-efficient heating systems may attract higher valuations, making them more desirable to buyers.

While gas boilers remain cheaper to install, they are expected to be phased out in future regulations. Switching to low-carbon heating now could provide long-term financial and environmental benefits.

Frequently Asked Questions (FAQ)

Do air source heat pumps work in cold weather?

Yes, modern heat pumps can extract heat from the air even in temperatures as low as -15°C. They remain effective in UK winters.

Can I keep my existing radiators?

In most cases, yes. However, older properties with small radiators may need larger or upgraded radiators to maximise efficiency.

Are heat pumps noisy?

Heat pumps generate some noise, but modern models are designed to be quieter than a gas boiler. Most produce around 40-50 decibels, similar to a fridge.

How long does installation take?

A typical air source heat pump installation takes 2-5 days, depending on system complexity and property size.

Does an air source heat pump need maintenance?

Heat pumps require minimal maintenance, mainly annual servicing to check refrigerant levels and system performance.

Why Choose ESS Group for Your Heat Pump Installation?

Switching to an air source heat pump is an excellent way to cut energy bills and reduce carbon emissions, but choosing the right installer is just as important as selecting the system itself. ESS Group offers expert heat pump installation services, ensuring you get the best performance and value from your investment.

With years of experience in renewable heating, ESS Group provides:

• Tailored heat pump solutions designed to maximise efficiency in your home.
• MCS-certified installers who handle the entire grant application process.
• Expert support in selecting the right heat pump model for your needs.
• Ongoing maintenance and servicing to keep your system running efficiently.

With the £7,500 Boiler Upgrade Scheme, there has never been a better time to switch to low-carbon heating. Contact ESS Group today to discuss your options and make your home more energy-efficient.

Final Thoughts

As an MCS-certified installer, ESS provides honest, data-led advice on the real-world performance of heat pumps in UK homes.

Government grants like the Boiler Upgrade Scheme are making air source heat pump installation more affordable than ever. With lower running costs, reduced carbon emissions, and long-term savings, heat pumps are becoming a viable alternative to gas boilers.

If you’re ready to upgrade to a low-carbon heating solution, take advantage of the £7,500 grant and get expert advice from ESS Group.