Air source heat pump installed outside a UK home

ASHP Grants

Government Air Source Heat Pump Grant UK 2026-27 | Get up to £9,000 off

Installed by our own MCS-certified engineers across the North East and Yorkshire. We handle your grant application from start to finish.

Check eligibility in 60 seconds Call 0800 246 1676

Is there a government grant for air source heat pumps in the UK?

Yes. The Boiler Upgrade Scheme (BUS) gives homeowners and landlords in England and Wales £7,500 off an air source heat pump, rising to £9,000 for off-gas-grid homes heated by oil or LPG until 31 March 2027. It isn't means-tested, and we apply to Ofgem for you.

Last updated: October 2026

How Much Is the Government Air Source Heat Pump Grant in 2026?

The Boiler Upgrade Scheme is a government grant run by Ofgem that takes money off the cost of a new heat pump. The grant is taken off your quote upfront, so you never pay the full price, and it doesn't need to be paid back.

Heating system

Grant amount

Air source heat pump

£7,500

Air source heat pump (off-gas-grid homes heated by oil or LPG, until 31 March 2027)

£9,000

Ground source heat pump

£7,500

Air-to-air heat pump

£2,500

Example: a typical air source heat pump installation costs £11,500. With the £7,500 grant, you pay around £3,500.

Your exact price depends on your home survey.

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Who Is Eligible for the 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.

Boiler Upgrade Scheme Eligibility

The Boiler Upgrade Scheme offers a government grant of up to £9,000 towards the cost of installing a heat pump.

To qualify:

  • You own the property, as a homeowner, private landlord or small business

  • The property is in England or Wales

  • It's not social housing (council or housing association). Ex-Right to Buy homes are fine.

  • It's currently heated by gas, oil, LPG, coal or direct electric heating (such as storage heaters or an electric boiler)

  • It doesn't already have a heat pump for heating

  • It hasn't had a Boiler Upgrade Scheme grant before

  • The heat pump isn't also being funded by ECO4 or another government grant

  • You must fully replace your old heating system. Hybrid (heat pump + boiler) systems don't qualify.

  • If your home has a valid EPC (under 10 years old), its number is used in the application. If not, there's another way to apply.

  • The £9,000 rate is only for homes with no mains gas connection (including capped meters) that currently use oil or LPG.

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

Read full eligibility

Check My Eligibility in 60s

ECO4 Scheme (No Longer Available)

Elite Energy is no longer taking ECO4 applications. You may still get £7,500 off a heat pump, or £9,000 if your home is off the gas grid and uses oil or LPG, through the Boiler Upgrade Scheme.

Check My BUS Eligibility in 60s

Can I Get a Free Air Source Heat Pump?

The ECO4 scheme, which funded free heat pumps for some low-income households, closes on 31 December 2026, and Elite Energy is no longer taking ECO4 applications. From 2027, free upgrades for low-income homes will move to the government's Warm Homes Plan, delivered through local councils. For most homeowners, the Boiler Upgrade Scheme is now the main government grant for a heat pump.

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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 Might a Home Not Qualify?

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

  • The property is in Scotland or Northern Ireland. Scotland has its own Home Energy Scotland grant.

  • It's council or housing association property

  • It already has a heat pump or has had a previous heat pump grant

  • It's a new-build home from a developer (self-builds can qualify for £7,500)

  • There's no suitable outdoor space for the heat pump unit

  • You want to keep your boiler alongside the heat pump (hybrid system)

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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Air source heat pump unit installed by Elite Energy

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Not sure if your home qualifies?

Answer a few quick questions and we’ll tell you in 60 seconds. No obligation.

✓ MCS certified ✓ We handle your Ofgem application

Check My Eligibility in 60s

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 Running Costs Than Oil, LPG or Electric Heating: A heat pump produces around 3 units of heat or more for every unit of electricity it uses.
    .

  • 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 can improve your EPC rating, helping your property meet current and future efficiency standards.

  • No Supplier Tie-In or Tariff Lock: Once installed, the heat pump is yours, with no energy supplier contract and no tariff lock.

How to Apply for the Government Heat Pump Grant

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

Book Your Free Home Survey
  • 1

    Initial Assessment

    We review your property and current heating and confirm your Boiler Upgrade Scheme eligibility.

  • 2

    Home Survey

    A detailed survey, including a heat loss calculation, to confirm the right system size and that your home is suitable.

  • 3

    Quote with Grant Deducted

    Your quote shows the full price, the grant, and what you pay. You never pay the grant amount, not even as a deposit.

  • 4

    Grant Application

    We apply to Ofgem for you. Ofgem will then email you to confirm. Please reply within 14 days, and check your spam folder.

  • 5

    Installation

     Your heat pump is installed by our in-house engineers, typically over 2–3 days.

  • 6

    Sign-Off & Aftercare

    We test the system, register it with MCS, give you your MCS certificate and provide ongoing support.

Why Choose Elite Energy for Your Heat Pump 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.

  • Accredited to Deliver: We're an MCS-certified heat pump installer (MCS No. SICI22816) and a member of the Renewable Energy Consumer Code (RECC 00071244). We're also TrustMark registered and Gas Safe registered (No. 639596).

  • 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 5,000+ installations completed and 15+ years in the energy sector, we’ve delivered heating upgrades across a wide range of properties, including ECO4 and Boiler Upgrade Scheme projects.

  • End-to-End Grant Management: From your eligibility check and home survey to your grant application and 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.

Map showing Elite Energy’s heat pump installation coverage across the North East and Yorkshire

Government Heat Pump Grants Across the North East & Yorkshire

We deliver air source heat pump grants across the North East and 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, Shildon, Sedgefield)

  • Yorkshire (Leeds, Bradford, Thirsk, Huddersfield, Northallerton, 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.

Not sure if we cover your postcode? Get in touch and we'll let you know straight away.

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Air source heat pump installed at a modern UK home

Secure Your Air Source Heat Pump Grant

Get up to £9,000 off your new air source heat pump with the government’s Boiler Upgrade Scheme.

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

Check My Eligibility in 60s

Air Source Heat Pump Grant FAQs

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 if my boiler is working?

Yes. A working gas, oil or LPG boiler doesn't stop you qualifying for the Boiler Upgrade Scheme. You can replace it with a heat pump and still get the £7,500 grant.

Do I need an EPC or insulation to get the grant?

You don't need a specific EPC rating or any insulation work. If your home has a valid EPC, we'll use its number in your application. If it doesn't, we can use a recent energy bill or fuel receipt and photos of your current heating instead. We handle all of this for you.

Do I have to pay the grant back?

 No. It's a grant, not a loan, and it's taken off your installation quote upfront.

How long will the Boiler Upgrade Scheme run?

The scheme is currently set to run until 2030. The £9,000 rate for off-gas-grid oil and LPG homes is only available for applications made until 31 March 2027.

Can landlords get the Boiler Upgrade Scheme grant?

Yes. Private landlords in England and Wales can claim the £7,500 grant for rental properties they own. You'll need to let your tenants know about the installation.

Can I get a free air source heat pump?

Not through Elite Energy at the moment. ECO4, which funded free heat pumps for some low-income households, closes on 31 December 2026 and we're no longer taking applications. Most homeowners can instead get £7,500 off (or £9,000 for off-gas-grid oil or LPG homes) through the Boiler Upgrade Scheme.

Is the grant available in Scotland?

No. The grant is only for homes in England and Wales. If you live in Scotland, you can get support through Home Energy Scotland instead.

Can I get the grant if I have solar panels?

Yes. Heat pumps that work with solar panels are eligible for the Boiler Upgrade Scheme.

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

Not always. Your existing radiators, pipework and hot water cylinder can often be reused if they're suitable. If any upgrades are needed, we'll let you know during your survey and include them in your proposal.

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.

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.

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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