Air source heat pump grant: £7,500

The Boiler Upgrade Scheme (BUS) offers £7,500 towards air source heat pump installations in England and Wales, making low-carbon heating more accessible. This guide details how the grant works, who is eligible, and the application process, before explaining how Fuse Energy can help optimise your heat pump's running costs for long-term savings.

Understanding air source heat pump grants

What is an air source heat pump grant?

An air source heat pump grant is a government-backed financial incentive designed to reduce the upfront cost of installing a heat pump. These grants aim to make renewable heating more accessible and affordable for homeowners, supporting the transition away from fossil fuel boilers.

The Boiler Upgrade Scheme explained

The BUS is the main government grant for air source heat pumps in England and Wales. It provides a grant of £7,500 towards the cost of installing an air source heat pump1. Administered by Ofgem, this scheme is a key initiative to encourage the adoption of low-carbon heating systems in England and Wales.

Boiler Upgrade Scheme eligibility

Eligibility for the BUS depends on several factors related to your property, your current heating system, and the installer you choose.

Property requirements

To qualify for the BUS, your property must be located in England or Wales. It must also be an existing domestic property or a self-build property. The grant is not available for social housing or new-build properties (unless they are self-builds). You must own the property, or be a private landlord.

Heating system requirements

The BUS supports the installation of new air source heat pumps. Your property must have a valid Energy Performance Certificate (EPC) with no outstanding recommendations for loft or cavity wall insulation. If your EPC recommends these, you must complete them before applying for the grant, unless you have an insulation exemption. The grant is designed to replace fossil fuel heating systems, such as oil, gas, or electric boilers.

Installer requirements

A critical eligibility criterion is that your air source heat pump must be installed by an MCS-certified installer. The Microgeneration Certification Scheme (MCS) ensures that installers meet high standards of quality and competence for renewable energy technologies. Without an MCS-certified installer, your installation will not be eligible for the grant.

The Boiler Upgrade Scheme application process

The application process for the BUS is handled by your chosen installer, not directly by the homeowner.

Homeowner's role in the application

As the homeowner, your primary role is to select an MCS-certified installer and agree on a quote for the heat pump installation. This quote should clearly show the £7,500 grant deduction. Once your installer applies for the grant on your behalf, Ofgem will contact you directly to confirm your consent to the application. This consent is a vital step, ensuring you are aware of and approve the grant application linked to your property.

Installer's role in the application

Your MCS-certified installer is responsible for applying for the BUS grant. They will submit the application to Ofgem, providing all necessary documentation, including details of your property, the proposed heat pump, and their MCS certification. The grant value is then deducted from your installation cost by the installer.

Receiving your grant

The grant amount is not paid directly to you. Instead, the £7,500 grant is deducted from your total installation cost by your installer. This means you only pay the remaining balance after the grant has been applied, simplifying the financial process.

Costs and savings with an air source heat pump

Understanding the financial aspects of an air source heat pump, including installation costs and potential savings, is crucial for homeowners.

Typical installation costs

Before any grants, typical air source heat pump installation costs in the UK range from £7,000 to £15,000. This cost can vary based on factors such as the size of your property, the complexity of the installation, and any necessary upgrades to your existing heating system or insulation. With the £7,500 BUS grant, the upfront cost for homeowners is significantly reduced.

Heat pump efficiency and running costs

Air source heat pumps are highly efficient, converting 1 kWh of electricity into 3 kWh or more of heat for your home. This means they can achieve efficiencies of 300% or more, making them a cost-effective heating solution in the long term. Running costs are influenced by the heat pump's efficiency, your home's insulation, and your electricity tariff. Proper insulation is key to maximising efficiency and keeping running costs low.

Long-term financial benefits

Beyond the initial grant, an air source heat pump can lead to long-term financial benefits through reduced energy bills, especially when paired with smart energy management and appropriate tariffs. The high efficiency of these systems means less energy is consumed to achieve the same level of heating, contributing to ongoing savings.

Maximising your heat pump's efficiency with Fuse Energy

Once your air source heat pump is installed, optimising its operation is key to realising its full potential for efficiency and savings. Fuse Energy helps homeowners manage their energy consumption effectively.

Smart energy management for heat pumps

Fuse Energy provides tools for heat pump owners to monitor energy usage and optimise running costs post-installation. Our app offers transparent control, allowing you to track your energy consumption and make informed decisions about when and how you use your heat pump. This smart management helps you take advantage of lower electricity prices during off-peak hours.

Optimising with Fuse tariffs

Fuse Energy supports the transition to low-carbon heating by helping heat pump owners manage their energy consumption efficiently. Our tariffs are designed to complement energy-intensive appliances like heat pumps, enabling you to maximise comfort and energy use without fear of excessive bills. By aligning your heat pump's operation with smart tariffs, you can significantly reduce your running costs.

Fuse Energy's support for heat pump owners

Fuse Energy helps homeowners with air source heat pumps maximise their investment by optimising running costs through smart energy management and tariffs. While Fuse Energy does not install air source heat pumps or apply for the BUS grant, we provide the support and technology to help you make the most of your energy-efficient heating system. Our 24/7 human customer support is also available for energy management queries.