ASHP Grants

Free Air Source Heat Pumps

A free air source heat pump may be available through government funding, with local installers covering the North East and North Yorkshire.

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ASHP Grants through ECO4 or BUS

If you’re dealing with high heating costs or an older system that’s no longer efficient, a free air source heat pump may be available through a government-backed grant.

At Elite Energy, we deliver air source heat pump grants across the North East and North Yorkshire, helping homeowners upgrade their heating through the ECO4 scheme. If your home meets the criteria, the full installation can be covered with no upfront cost, including any required insulation upgrades.

If you don’t qualify for ECO4, there is a secondary option through the Boiler Upgrade Scheme (BUS). This provides funding of up to £9,000 towards the cost of installing a heat pump, subject to property requirements such as a valid EPC with no outstanding insulation recommendations.

If your home is suitable, we manage the full process in-house, from eligibility checks and survey through to installation and sign-off, so you’re not left dealing with multiple contractors or unclear next steps.

Who Qualifies for a Free Air Source Heat Pump Grant?

There are two government-backed routes to securing a free or supported air source heat pump: the ECO4 scheme and the Boiler Upgrade Scheme (BUS). Each works differently, and we’ll identify the right option based on your home and circumstances.

ECO4 Scheme Eligibility

ECO4 is the main route for fully funded installations, supporting homes where improving heating and energy performance will have the biggest impact.

You may qualify if:

  • You own your home or privately rent (with landlord consent)

  • Your home has a lower EPC rating (typically D, E, F or G)

  • Your current heating system is inefficient (such as electric, oil, coal, LPG, or an older gas boiler)

  • You receive qualifying benefits such as Universal Credit, Pension Credit, or Housing Benefit

If approved, ECO4 can cover the full installation, including any required insulation upgrades to ensure the system works effectively.

Eligibility Checker

No Supplier Tie-In or Tariff Lock

Both ECO4 and BUS provide a fully independent heating system. Once installed, the heat pump is yours. You’re not tied to any supplier, contract, or repayment plan.

Boiler Upgrade Scheme Eligibility

If you don’t qualify for ECO4, the Boiler Upgrade Scheme offers a government grant of up to £9,000 towards the cost of installing a heat pump.

To qualify:

  • You must own your home

  • Your current heating system uses gas, oil, electric, or another fossil fuel

  • Your property must have a valid EPC with no outstanding insulation recommendations

  • You’ll contribute the remaining cost after the grant

While BUS isn’t fully funded, it significantly reduces the upfront cost of switching to a heat pump.

Eligibility Checker

No Supplier Tie-In or Tariff Lock

Both ECO4 and BUS provide a fully independent heating system. Once installed, the heat pump is yours. You’re not tied to any supplier, contract, or repayment plan.

ECO4 vs Boiler Upgrade Scheme - What’s the Difference?

Both ECO4 and the Boiler Upgrade Scheme (BUS) support the installation of air source heat pumps, but they work differently and serve different households. Our comparison helps you understand how each scheme works and what it includes.

ECO4 Scheme

Funding level: Fully funded, including installation and any required upgrades
Cost to you: £0 if approved
Eligibility: Based on income, benefits, and property efficiency
Property type: Owner-occupied or privately rented (landlord consent required)
EPC requirements: Typically D, E, F or G, with improvements included as part of the scheme
Heating system: Must be inefficient or outdated
Additional upgrades: Can include insulation, ventilation, or solar panels
Best suited for: Homes needing full upgrades with no upfront cost

Boiler Upgrade Scheme (BUS)

Funding level: Up to £9,000 towards installation
Cost to you: Remaining balance paid after grant is applied
Eligibility: Not means-tested, based on property criteria
Property type: Owner-occupied homes only
EPC requirements: Must have a valid EPC with no outstanding insulation recommendations
Heating system: Must replace an existing fossil fuel system (e.g. gas or oil)
Additional upgrades: Covers heat pump installation only
Best suited for: Homeowners not eligible for ECO4 who still want financial support

What Makes a Property Eligible?

Eligibility isn’t just based on household circumstances. Your property also needs to be suitable for a heat pump, so the system can operate efficiently and meet grant requirements.

Most Grants Are Awarded to Homes That

  • Have an EPC rating of D, E, F or G

  • Use an older or less efficient heating system such as electric, oil, coal, or an ageing gas boiler

  • Would benefit from insulation or ventilation improvements to support heat retention

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When a Home Might Not Qualify

Some properties may not meet the criteria for ECO4 or BUS funding. This is more likely if:

  • Your EPC is already rated A, B or C with no improvements required

  • The property is newer and already meets higher efficiency standards

  • There isn’t suitable space for an external heat pump unit

If your home doesn’t qualify for a grant, we’ll explain your options clearly. Heat pumps can still be installed through alternative routes, such as our finance plans, and we can guide you on what’s suitable for your property.

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No Pressure | No Upfront Costs

Free Heat Pump Grant: Check in 60 Seconds

We’ll assess your home, confirm which grant applies, and guide you through the next steps without delay. If you qualify under ECO4, the full installation is covered.

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

A heat pump changes how your home uses energy, giving you more consistent performance and lower reliance on expensive fuels.

  • Lower Day-to-Day Running Costs: Heat pumps produce more heat energy than the electricity they use, making them more efficient than oil, LPG, or electric heating systems. This reduces the amount you need to spend to keep your home warm.

  • More Consistent Heating Throughout the Home: Instead of short bursts of high heat like traditional boilers, heat pumps provide steady, controlled warmth, helping maintain a more even temperature across all rooms.

  • Reduced Reliance on Fossil

  •  Fuels: By using heat from the outside air, your home becomes less dependent on gas, oil, or other fuels, helping protect against future energy price changes.

  • Lower Carbon Emissions: Air source heat pumps generate renewable heat, reducing the overall carbon output of your home and supporting wider environmental targets.

  • Improved EPC Rating: Installing a heat pump, along with any required insulation, can improve your EPC rating, helping your property meet current and future efficiency standards.

  • Additional Upgrades May Be Included: Under ECO4, insulation upgrades are often installed alongside the heat pump to ensure it performs effectively. In some cases, free solar panels may also be included, depending on your property.

What to Expect During Your Heat Pump Installation

We manage the full process from initial assessment through to installation and handover, so you know exactly what happens at each stage.

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  • 1

    Initial Assessment

    We review your property, current heating system, and eligibility for ECO4 or BUS to confirm the most suitable route.

  • 2

    Application & Approval

    Our team handles the full application process on your behalf, including all required documentation and checks.

  • 3

    Home Survey

    A detailed survey is carried out to confirm system sizing, insulation requirements, and overall suitability for installation.

  • 4

    Installation

    Your heat pump system is installed by our in-house engineers, typically over 2–3 days, depending on the property.

  • 5

    Sign-Off & Aftercare

    We complete final checks to ensure the system is operating correctly and provide ongoing support if needed.

Why Choose Elite Energy for Your ASHP Grant?

Once approved, the installation needs to be done properly. With Elite Energy, everything is handled in-house, from eligibility and survey through to installation, so you’re dealing with one team throughout and not chasing multiple contractors.

  • In-House Installation, No Subcontractors: All surveys and installations are carried out by our own engineers, giving us full control over quality, timelines, and system performance.

  • Proven Experience with Funded Installations: With over 5,000 installations completed and 15+ years in the energy sector, we’ve delivered heating upgrades across a wide range of properties, including full ECO4 and grant-supported projects.

  • Accredited to Deliver Heat Pump Grants: We hold recognised accreditations including MCS, TrustMark, and Gas Safe, allowing us to deliver installations that meet both technical standards and grant requirements.

  • End-to-End Grant Management: From eligibility checks and applications through to surveys, insulation upgrades, and final installation, everything is handled by one team, so you’re not dealing with multiple companies or unclear responsibilities.

  • Recognised for Quality and Delivery: Awarded Regional Boiler & Heating Installer and Contractor of the Year (2026) at the North East Energy Efficiency Awards, based on workmanship, customer feedback, and delivery standards.

ASHP Grants Across the North East & Yorkshire

We deliver air source heat pump grants across the North East and North Yorkshire, with local teams handling surveys, applications, and installations throughout the region.

Our coverage includes:

  • Teesside (Middlesbrough, Stockton, Hartlepool, Thornaby, Redcar)

  • Newcastle (Newcastle upon Tyne, Ashington, Wallsend, Blyth, Cramlington)

  • Sunderland (Sunderland, Gateshead, Washington, Seaham, Chester-le-Street)

  • Durham (Durham, Darlington, Northallerton, Shildon, Sedgefield)

  • Yorkshire (Leeds, Bradford, Thirsk, Huddersfield, York, plus surrounding areas)

Working locally means shorter lead times for surveys and installations, along with easier follow-up if anything is needed after your system is installed.

If you’re unsure whether your area is covered, contact our team and we’ll confirm straight away.

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Secure Your Air Source Heat Pump Grant​

If your current heating is expensive to run or struggling to keep your home warm, this is your chance to upgrade.

With ECO4, you may qualify for a heat pump with no upfront cost. If not, BUS can offer a grant of up to £9,000, helping reduce the cost of installation.

Check your eligibility in under a minute and get a clear answer based on your home. If funding is available, we’ll handle everything through to installation.

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Frequently Asked Questions

We have tried to answer most questions here but if you have any other queries please feel free to contact us!

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Can I still apply for a heat pump grant if my boiler is working?

Yes, a working boiler doesn’t disqualify you. Many properties with functioning but inefficient systems, such as electric storage heaters, old oil boilers, or LPG systems, are eligible under ECO4 or BUS. We'll assess your system during the survey.

Can I choose the brand or model of heat pump that’s installed?

We’ll recommend a system based on your property’s heating demands and grant requirements. All units come from trusted, MCS-approved manufacturers, and we’ll explain your options during the survey so you know exactly what’s being installed.

Do I need to upgrade my radiators for a heat pump system?

Not always. In some cases, existing radiators are sufficient. If upgrades are needed for efficiency, we’ll let you know during your survey and include them in your proposal.

Will my home be disrupted during the installation?

Installation is typically completed in 2-3 days. Our in-house engineers work cleanly and efficiently to minimise disruption, and we always leave your property tidy and safe.

Can landlords apply for ECO4 on behalf of their tenants?

Yes, landlords can apply for ECO4 funding if their tenants meet the eligibility criteria. We’ll just need consent and confirmation of tenancy during the application.

What kind of maintenance does a heat pump require after installation?

Air source heat pumps are low maintenance. We recommend an annual check-up to keep the system efficient, but they don’t require the frequent servicing that gas boilers do.

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