Grants Available for Air Source Heat Pumps in the UK

Installing an air source heat pump is one of the most effective ways to reduce your home’s reliance on fossil fuels, but the upfront cost puts many homeowners off. That is where government support comes in. Air source heat pump grants are available to eligible properties across the UK, helping to bring installation costs down to a level that makes the switch genuinely worthwhile.

The main route for homes in England and Wales is the Boiler Upgrade Scheme, which provides an upfront grant deducted directly from your installation cost. Scotland operates a separate route through Home Energy Scotland, with higher amounts available in some rural areas.

This page covers what funding is available, who qualifies, how the process works, and what you can expect when you get in touch with SESC Solutions.

What Grants Are Available for Air Source Heat Pumps?

Government support for heat pump installations in the UK varies depending on where you live. The main routes available are outlined below.

Boiler Upgrade Scheme (England and Wales)

The Boiler Upgrade Scheme is the main government heat pump scheme for eligible homes in England and Wales. It reduces the upfront cost of replacing a fossil-fuel heating system with a heat pump by providing a grant deducted directly at the point of installation. Your MCS-certified installer handles the application on your behalf.

Home Energy Scotland (Scotland)

Scotland operates its own funding route through Home Energy Scotland, separate from the Boiler Upgrade Scheme. Grants and interest-free loans are available to eligible households, with higher support for those in rural or remote areas. Eligibility and amounts differ from the England and Wales scheme.

Air Source Heat Pump Grants: How They Work

A government grant for air source heat pump installations is not paid directly to the homeowner. Instead, your installer applies for the funding and deducts it from your final invoice. This keeps the process straightforward and means you benefit from the support without managing a separate claim.

How Much Can You Get?

In England and Wales, the Boiler Upgrade Scheme provides a £7,500 grant for eligible air source heat pump installations. This covers gas boiler replacement grant and oil boiler replacement grant scenarios alike and is deducted directly from your invoice by the installer. Air source heat pump funding at this level applies to existing properties replacing fossil-fuel or certain electric heating systems. New builds and social housing are excluded.

In Scotland, renewable heating grants are available through Home Energy Scotland, with rural households potentially qualifying for up to £9,000 through a rural uplift, plus an interest-free loan subject to eligibility.

Who Is Eligible for an Air Source Heat Pump Grant?

Eligibility for air source heat pump grants under the Boiler Upgrade Scheme is determined by a set of property and homeowner requirements. To qualify, the property must be located in England or Wales, hold a valid Energy Performance Certificate issued within the last ten years, and replace an existing fossil-fuel heating system or certain electric systems.

New-build homes and social housing are excluded from the scheme. The installation must be carried out by an MCS-certified installer, and any outstanding energy-efficiency grant recommendations in the EPC relating to loft or cavity wall insulation must have been addressed or formally exempted before the application can proceed.

As part of the government heat pump scheme, the property must not have previously received a grant under the same scheme for the same technology. Owner-occupiers are the primary eligible applicant group, and the following criteria must be met:

The property must be in England or Wales
A valid EPC must be in place, issued within the last ten years
The existing system being replaced must be fossil-fuel based or an eligible electric heating system
New-build homes and social housing do not qualify
Installation must be completed by an MCS-certified installer
Outstanding loft or cavity wall insulation recommendations on the EPC must be resolved or formally exempted

Benefits of Installing an Air Source Heat Pump

Switching to a heat pump reduces your home’s reliance on fossil fuels and lowers its carbon emissions compared to a conventional gas or oil boiler. Heat pumps extract energy from the outside air rather than burning fuel, which means they produce significantly less carbon per unit of heat delivered.

Renewable heating grants exist precisely because of this environmental benefit, making it easier for households to make the transition. Beyond carbon reduction, installing a heat pump can improve your property’s energy performance rating, which may be relevant if you are planning to sell or rent.

Energy efficiency grants, such as the Boiler Upgrade Scheme, are part of a long-term government strategy to decarbonise home heating ahead of future regulatory changes. Running costs depend on factors such as your property’s insulation levels, the system’s design, and electricity prices, so any financial benefit will vary by home.

A smart energy monitor on a windowsill showing £1.28 spent and 4.51 kWh used today

How Does the Application Process Work?

The process for accessing air-source heat pump funding is installer-led, which keeps the administrative burden on homeowners relatively low.

The process works as follows:

Initial Enquiry and Eligibility Check: Contact SESC Solutions to discuss your property and current heating system. We will confirm whether your home is likely to qualify before taking any further steps.
Property Survey and Heat Loss Assessment: An engineer visits to assess the property, calculate heat loss, and confirm the right system size for your home.
Quote and System Design: We provide a full written quote including system design, so you know exactly what is involved before committing.
Grant Application Submitted by the Installer: Once you are happy to proceed, SESC Solutions submits the Boiler Upgrade Scheme application on your behalf.
Installation and commissioning: Our qualified engineers install and commission the system to MCS standards.
Grant Deducted from the Final Cost: The £7,500 grant is applied directly to your invoice, reducing the amount you pay.

Why Replace Your Gas or Oil Boiler?

Regulatory direction is pushing heating away from fossil fuels, and government incentives are making the transition more financially accessible. A gas boiler replacement grant and an oil boiler replacement grant are both available through the Boiler Upgrade Scheme, covering the most common heating systems across Dorset, Hampshire, Somerset, and Wiltshire.

Beyond the grant, replacing a fossil-fuel boiler reduces your carbon footprint and positions your home better for future energy regulations. Gas and oil prices have proven volatile, and a heat pump running on electricity offers a more predictable long-term cost profile for well-insulated properties.

How Much Could You Save?

A typical air source heat pump installation costs between £10,000 and £15,000 before support is applied. With a government grant for air source heat pump installations worth £7,500 deducted at the point of sale, the net cost falls between £2,500 and £7,500, depending on the property and system specification.

Running cost savings are harder to state as a fixed figure because they depend on insulation levels, system sizing, and usage patterns. We will give you an honest picture of expected performance during the survey stage rather than quoting figures that may not apply to your home.

An air source heat pump unit mounted on brick wall pipework outside a house

Why Choose SESC Solutions?

SESC Solutions is MCS-registered, qualifying us to install heat pumps under the Boiler Upgrade Scheme and submit grant applications on your behalf. As a family-run business with over 30 years of experience, we handle every stage in-house, from survey and heat loss assessment through to installation, commissioning, and aftercare.

All engineers are fully vetted, DBS-checked, carry ID, and work across Dorset, Hampshire, Somerset, and Wiltshire. We will give you an honest assessment of whether your property qualifies, and if a heat pump is not the right fit, we will tell you clearly and talk you through the alternatives.

Get a Free Air Source Heat Pump Grant Assessment

To find out whether your property qualifies for the Boiler Upgrade Scheme, contact SESC Solutions to arrange a free assessment. We will confirm your eligibility, carry out a property survey, and provide a clear quote with the grant already factored in. Call us on 01747 445 509 or use the contact form to book your survey.

Jonathan Powell

Dorian and his team and office staff have been excellent. While others who quoted for the work fail to show up or didn’t understand the requirement, or simply incorrectly specified solutions, SESC came up with a bespoke design that exceeded my expectations at a fair price. Always a pleasure to deal with. They have a great range of skills. I would highly recommend them. Great heat pump install, cylinder, UFH install and refit of existing solar thermal, and all in a super tight space.

Joe Higgins

Thank you Dorian and the team for a great Vaillant heat pump and new central heating installation. The installation took about 2.5 weeks to have everything wrapped up, as there was a slight delay in the stock of the specific radiators we wanted, but the team worked very hard indeed to successfully take on some of the challenges of the install. They were extremely tidy (the house has never been so clean!) and conscientious with their work. Dorian is a real stickler for the small details, guiding us through the install and checking exactly how we wanted everything. Since then, the system has been running really well. Very efficient, pushing over 400% for heating and hot water since the installation in September 2025, and performing very well during cold snaps. House stays a nice consistent temperature without costing a lot on our electricity bill. Having previously had electric and night storage heaters, the new system is a massive improvement. Where there have been a couple of snags, Dorian has been more than happy to check, fix, and advise in a very prompt manner. Overall, definitely recommend when considering a heat pump installation.

Lesley Mason

I am happy to recommend SESC solutions to anyone considering a solar energy system. I have been very impressed by the fantastic customer service and advice that SESC provided throughout our large domestic solar panel and battery storage installation project. The team were available day and evening to answer my many questions, and updated the quotation several times to fit our specific requirements. The SESC quotation included everything right from the start, such as scaffolding and bird guards, that were usually left out of other companies quotes, and a pre-installation assessment checked everything was in order. The installation day was even sooner than expected and the roofer and electricians were very professional and helpful, with everything arriving on site smoothly and all rubbish taken away. Following the installation, we have quickly received all the documentation to help us switch supplier and take up the SEG for exporting our excess electricity. I have every confidence that the SESC team will continue to be there on the end of the phone if I need any further advice or support in the future.

Chloe Coffen

A huge thanks to Steve, Scott & the team for transforming our home with a new solar & EV charging system. Super efficient service and expert advice with an abundance of help and guidance along the way for making the most of saving and storing energy. Within 24 hours we saw a significant saving on electricity and a positive impact on our monthly bills long term. Nothing ever feels too much trouble - thanks team!

Mike Parks

Great experience, the team are amazing and give great advice all the way through. Fantastic people always with a smile.

Andrew Oliver

I was very happy with the service from start to finish. Very prompt on the responses, knowledgeable and helpful at every step. The guys who came to the house for the service and then the installation were very professional and very nice...!! Definite 10/10 and would highly recommend, Andrew

Owen and Libby Gower

Could not recomend these guys more highly. Our house rennovation was far from straight forward. We're extremely happy with the level of work and communication throughout the process.

Oliver Solar Service

Scott and Steve completed a faultless install, punctual with very good communication. Would definitely recommend for any solar, electrical and plumbing jobs.

Jack Mogridge

I could not recommend Steve and his team at SESC Solutions more highly and wouldn't hesitate to work with them again for future projects. SESC Solutions have helped us for both London and country projects. The work has always been completed to a high standard and the work has always been well managed with clear communication throughout. We look forward to working with SESC again soon.

Government-Backed Air Source Heat Pump Grants Available