What Air Source Heat Pump Grants Are Available in 2026?

The upfront cost of an air source heat pump is usually the first thing that puts homeowners off. This is understandable, considering that heat pumps cost more to install than a standard boiler, and nobody wants to commit thousands of pounds without knowing the full picture.

What often gets missed is the extent of the available support. Demand for renewable heating has grown across the South of England, and funding has grown with it. Airsource heat pump grants can be worth up to £7,000 for gas-heated homes and up to £9,000 for oil-heated homes. This guide covers what’s on offer, how air source heat pump financing works, and whether you qualify.

What Is an Air Source Heat Pump?

First, let’s begin by answering the most obvious question: what is an air source heat pump? An air source heat pump draws heat from the outside air, even on cold days, and uses it to warm your home and provide hot water. It runs a compressor on electricity, working on a similar principle to a fridge in reverse, rather than burning fuel to generate heat directly.

This is what makes it renewable: the heat comes from the air, not from gas or oil combustion. For homeowners weighing up air-source heat pump financing against a boiler replacement, the real differences are running costs and environmental impact, not comfort. A well-installed heat pump heats a home just as effectively as a boiler, provided the property suits it.

Why Is the Government Offering Heat Pump Grants?

The UK has committed to reaching Net Zero by 2050 [1], and home heating is one of the biggest contributors to national carbon emissions. Gas and oil boilers burn fossil fuels directly inside the home and are harder to decarbonise than electricity generation. That’s part of the reason renewable heating grants exist: they’re designed to make low-carbon alternatives like air source heat pumps financially realistic for ordinary households, not just early adopters with money to spare.

A government heat pump grant narrows the gap between the cost of installing a heat pump and a boiler, encouraging more homeowners to make the switch. Fewer fossil fuel boilers being installed each year means a faster route towards the country’s climate targets, and less long-term reliance on imported gas and oil.

What Air Source Heat Pump Grants Are Available?

The main scheme available to homeowners in England and Wales is the Boiler Upgrade Scheme [2], a government grant designed to bring the cost of installing a heat pump closer to that of a new gas boiler. It’s currently the most significant of the UK heat pump grants on offer, and it applies whether you’re replacing a gas system or an oil one. The funding is paid directly to your installer and deducted from your final quote, so you never need to claim the money back yourself.

For homes with an existing gas boiler, this effectively serves as a gas boiler replacement grant, reducing the total installation cost by a substantial amount. The scheme is reviewed periodically, so the exact figures can change, but the purpose remains the same: to remove cost as the main barrier to homeowners choosing a renewable heating system.

How Much Funding Could You Receive?

The amount of financing available for air source heat pump systems depends on your current heating system. Here’s how the government grant for air source heat pump installations breaks down.

Funding for Homes with Gas Boilers

Homes currently heated by a gas boiler can receive up to £7,000 through the Boiler Upgrade Scheme. Installation costs for an air source heat pump typically range from £10,000 to £14,000, depending on property size and system specification, so this gas boiler replacement grant can cover a significant share of the total. Most homeowners are left with a contribution broadly similar to, or sometimes less than, the cost of a high-end gas boiler replacement.

Funding for Homes with Oil Boilers

Homes with an oil boiler can receive up to £9,000, the higher of the two available amounts. Oil boiler replacement grants reflect the fact that off-grid properties often face higher running costs and fewer heating alternatives than those connected to mains gas. The government grant for air source heat pump installations recognises that oil-heated homes stand to gain the most from switching, both in comfort and in long-term running costs.

Who Can Apply for an Air Source Heat Pump Grant?

Air source heat pump grant eligibility is broader than many homeowners expect. You’ll usually need to own the property, or have the landlord’s permission if you’re a tenant, and the home must be in England or Wales with an installer registered under the scheme. There’s no income threshold, so who qualifies for a heat pump grant isn’t determined by earnings. What matters more is your current heating setup: the property needs to be moving away from a fossil fuel system, such as a gas or oil boiler, rather than already using electric heating.

If you’re weighing up an oil boiler replacement grant, a property survey will confirm your home is suitable for a heat pump before any funding is applied.

What Are the Benefits of Installing an Air Source Heat Pump?

Beyond the financial support on offer, there are practical reasons homeowners choose to make the switch. With air source heat pump funding reducing the upfront cost, the long-term advantages become easier to justify:

Lower Carbon Emissions: Heat pumps produce less carbon than gas or oil boilers, since they use electricity rather than burning fuel directly.
Reduced Reliance on Fossil Fuels: No dependency on oil deliveries or gas price volatility.
Lower Running Costs in Well-Insulated Homes: Efficient systems can reduce energy bills compared with older boilers.
Improved EPC Rating: A heat pump can boost your Energy Performance Certificate score.
A Future-Ready System: With air source heat pump financing reducing the outlay, you’re investing in tomorrow’s heating method, not yesterday’s.

Are Air Source Heat Pumps Worth It?

For most homeowners, the answer comes down to three things: how well insulated your home is, how long you plan to stay there, and how much of the installation cost the available grant funding can offset. Over a ten-to-fifteen-year period, a well-installed heat pump in a suitably insulated home often works out cheaper to run than a gas boiler, and considerably cheaper than an oil boiler.

The environmental case is straightforward too, since you’re cutting direct carbon emissions from your home. With air source heat pump financing options reducing the initial outlay, the upfront gap that once made heat pumps feel like a luxury has narrowed considerably. Whether air source heat pump funding fully closes that gap depends on your specific property and current heating system.

How to Apply for an Air Source Heat Pump Grant

Applying is simpler than most homeowners expect once you’ve confirmed air source heat pump grant eligibility with a registered installer:

Check Eligibility: Confirm your property and current heating system qualify under the scheme.
Arrange a Survey: A qualified installer assesses your home’s insulation, size, and suitability for a heat pump.
Receive a Quotation: This covers the installation cost and how much of the UK heat pump grant’s funding applies.
Apply for Funding: Your installer submits the grant application on your behalf, so there’s no separate paperwork for you to manage.
Complete Installation: Once approved, air source heat pump financing is deducted directly from your final bill.

Find Out If You’re Eligible

If you’re weighing up whether a heat pump is right for your home, the best next step is a proper assessment rather than guesswork. Our team can check your eligibility, talk you through the figures for your specific property, and explain what to expect from installation to completion.

Call us on 01747 445 509 or use our contact form to arrange a survey and find out what you could receive.

External Sources

[1] UK Parliament, “The UK has committed to reaching Net Zero by 2050”: https://commonslibrary.parliament.uk/research-briefings/cbp-9888/

[2] GOV.UK, “The main scheme available to homeowners in England and Wales is the Boiler Upgrade Scheme”: https://www.gov.uk/apply-boiler-upgrade-scheme

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.

How Much Can You Get Towards an Air Source Heat Pump in 2026?