As the UK transitions to low-carbon energy solutions, air source heat pumps (ASHPs) are taking centre stage as a cleaner, more efficient alternative to traditional gas boilers. However, many homeowners still worry about the upfront cost of switching. That’s where the Air Source Heat Pump Grant UK comes in.

Thanks to government funding through the Boiler Upgrade Scheme and other initiatives like ECO4, eligible households can now receive grants worth thousands of pounds to help cover the installation of an air source heat pump.

In this guide, we’ll break down everything you need to know: how air source heat pumps work, the grants available in 2025, who qualifies, and how to apply.

What Is an Air Source Heat Pump?

An air source heat pump is a low-carbon heating system that extracts heat from the outside air—even in cold weather—and uses it to warm your home and hot water. Think of it like a reverse fridge, pumping warmth into your house instead of out.

🔧 Key Benefits:

• ✅ Highly energy-efficient (up to 400% efficiency)

• ✅ Lower carbon emissions compared to gas or oil boilers

• ✅ Can provide heating and cooling

• ✅ Long lifespan (up to 20 years)

• ✅ Works well with underfloor heating or radiators

While installation costs can range between £7,000 and £14,000, heat pump grants in the UK can reduce this significantly—or even cover it entirely for eligible applicants.

Air Source Heat Pump Grant UK – What’s Available in 2025?

There are several UK government schemes offering financial help for heat pump installation in 2025:

1. 🔥 Boiler Upgrade Scheme (BUS)

• Grant amount: £7,500 towards the cost of an air source heat pump

• Eligibility:

  • Own your property (homeowner or landlord)

  • Located in England or Wales

  • EPC rating with no outstanding insulation recommendations (unless exempt)

• How to apply: Through an MCS-certified installer

2. 🌍 ECO4 Scheme

• Designed for low-income households

• Can fully fund air source heat pump installation

• Must receive qualifying benefits (e.g., Universal Credit, Pension Credit)

• Available in England, Scotland, and Wales

• Also includes insulation and other home efficiency measures

3. 🏘️ LA Flex (Local Authority Flexible Eligibility)

• Helps households who don’t qualify under ECO4 but are still on low incomes

• Eligibility set by local councils

• Can cover part or all of the heat pump installation costs

4. 🏡 Home Upgrade Grant (HUG)

• For off-gas grid homes with low EPC ratings

• Available in England

• Offers heat pump funding alongside insulation, solar panels, and more

Who Can Get an Air Source Heat Pump Grant?

Your eligibility depends on the grant type, your household income, and your property type. Here’s a quick overview:

✅ You May Qualify If:

• You’re a homeowner or private landlord

• Your property has a low EPC rating (D-G) and is not connected to the gas grid

• Someone in your household receives means-tested benefits

• You live in a fuel-poor or energy-inefficient home

• You meet your local council’s criteria under LA Flex

Not sure where you stand? Many approved installers offer free eligibility checks and can handle the grant paperwork for you.

How Much Does an Air Source Heat Pump Cost With a Grant?

Here’s a rough breakdown of potential costs with grants applied:

Note: With ECO4 and LA Flex, eligible low-income households can get a free heat pump installation, often bundled with insulation upgrades.

Benefits of Switching to an Air Source Heat Pump

Heat pumps offer more than just energy savings. Here’s why they’re one of the best heating options in 2025:

💷 Lower Energy Bills

While electricity costs more per unit than gas, ASHPs use far less energy. Most homeowners save between £300 and £700 a year, especially if they’re moving away from oil, LPG, or electric heating.

🌱 Eco-Friendly

ASHPs emit up to 70% less CO₂ than gas boilers. If powered by renewable electricity, they’re virtually carbon-neutral.

🔄 Year-Round Comfort

Some air source heat pumps offer cooling in the summer, acting like an air conditioner.

🏠 Increased Property Value

Homes with heat pumps and good EPC ratings are more attractive to eco-conscious buyers and renters.

How to Apply for an Air Source Heat Pump Grant

Step 1: Check Your Eligibility

• Use government tools or contact an MCS-certified heat pump installer

• Provide EPC details, benefit status, and household income

Step 2: Book a Home Assessment

• Installers will assess whether your home is suitable (insulation, space, radiators, etc.)

• They’ll also ensure you meet grant criteria

Step 3: Grant Application

• For BUS: The installer applies on your behalf after the assessment

• For ECO4/LA Flex: The installer submits all the paperwork to the relevant scheme or energy supplier

Step 4: Installation

• Once approved, your installer will arrange the installation

• Completion certificates and guarantees are provided post-installation

Can You Combine a Heat Pump Grant With Other Upgrades?

Yes! Under schemes like ECO4 and HUG, heat pump installation is often combined with:

• Loft insulation

• Cavity wall insulation

• External wall insulation

• Solar panels

• Smart heating controls

• Double glazing

This holistic approach improves your home’s EPC rating and can dramatically cut your energy bills.

Heat Pump Grants for Landlords

If you’re a private landlord, you can access the Boiler Upgrade Scheme or ECO4 funding if your tenants meet the criteria.

Upgrading to a heat pump can help you:

• Comply with MEES regulations (Minimum Energy Efficiency Standards)

• Avoid future penalties

• Reduce maintenance costs over time

Your installer can handle the grant process, but you’ll need to provide permission and property details.

Common Questions About Heat Pump Grants

❓ Is an air source heat pump suitable for all homes?

Most modern homes are suitable, especially with good insulation. However, a survey is required to confirm compatibility.

❓ What’s the difference between BUS and ECO4?

• BUS: For property owners, regardless of income, partial funding

• ECO4: For low-income households, full funding for heat pumps and other upgrades

❓ Do I need to insulate before installing a heat pump?

Yes. Your home needs to be well insulated to qualify. Loft or cavity wall insulation may be installed first.

Final Thoughts – Apply for Your Air Source Heat Pump Grant in 2025

Heat pumps are the future of home heating in the UK—and with generous grants available in 2025, there’s never been a better time to switch.

✅ Slash your heating bills
✅ Reduce your carbon footprint
✅ Increase your home's value
✅ Future-proof your heating system

Whether you qualify for the Boiler Upgrade Scheme, ECO4, or LA Flex, thousands of UK homeowners are already upgrading their homes for a greener future.

Start Your Application Today

Find a certified air source heat pump installer near you and check if you're eligible for a £7,500+ government grant.