Property guides

What is the Boiler Upgrade Scheme?

Last updated: May 8, 2024

If you’re considering replacing your home’s gas boiler, you might be looking at installing a heat pump. The Boiler Upgrade grant is a government scheme that encourages households to swap gas boilers with lower-carbon heating options, including heat pumps.

Currently, around 86% of homes are heated by gas boilers. The government says it wants no new gas boilers to be sold after 2035.

Under the Boiler Upgrade Scheme, homeowners are able to claim up to £7,500 towards the cost of installing a heat pump. This grant amount was raised from October 2023 – increasing from £5,000 available for an air source heat pump, and £6,000 towards a ground source heat pump.

You can read more about heat pumps here, including average costs, whether they work in freezing temperatures, and find out the difference between air source and ground source versions.

How can I claim the heat pump grant?

The process of claiming the grant will be handled by your heat pump installer. To give homeowners confidence in the quality of their new heating systems, all installers who’re able to apply for the grant will be certified under a nationally recognised standards organisation – the Microgeneration Certification System.

When the installer visits to complete your heat pump assessment, the quote you’re provided with after this visit will factor in the £7,500 discount. Installers who are MCS-certified will be able to apply for the grant on behalf of home-owners.

You can read more about how to apply and eligibility criteria on the government website. You can also check whether your home is likely to be suitable for a heat pump using the government’s heat pump checker.

Who is eligible for the heat pump grant?

You’ll need to meet certain criteria to be eligible for the government grant. You’ll need to be the owner of the property you’ll be installing your new heating system in, and it must be a replacement for a fossil fuel heating system, such as oil or gas.

Before any grant application is approved, your property will need to have a valid Energy Performance Certificate in place, that was issued in the last 10 years. Applications for the heat pump grant made before 8 May 2024 were required to provide an EPC with no recommendations for loft and cavity wall insulation. There are no minimum insulation requirements for applications made after 8 May 2024.

There are certain properties that aren’t eligible for the boiler grant. These include new build homes, social housing properties, or a home that’s already received government funding for a heat pump or biomass boiler.

How much will I need to pay?

The government estimates that an air source heat pump will cost around £12,000 – that’s for the system itself, and the installation. So, once the grant amount has been deducted, you can expect to pay around £4,500 towards the cost of a new heat pump for your home.

It’s worth noting that this is an average, and the final cost you’ll pay will be dependent on factors like the size of heat pump required to heat your home, and whether you decide to make any other green improvements to your home, to help your heat pump run as efficiently as possible. You can check whether your home has any required recommendations on your Energy Performance Certificate.

READ MORE: A beginners’ guide to heat pumps

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