Government grants for heat pumps | A complete guide to the Boiler Upgrade Scheme (BUS) and the Home Energy Scotland Grant and Loan Scheme (HES)
26 November 2024 | OVO
If you’re thinking about installing a heat pump and making the switch to greener heating, you could be eligible for financial help towards the set up costs.
For homeowners in England and Wales, the UK Government’s Boiler Upgrade Scheme (BUS) offers a grant of up to £7,500 towards the cost of your install.
Homeowners in Scotland may be eligible for funding through the Home Energy Scotland Grant and Loan Scheme funded by the Scottish Government.
What is the Boiler Upgrade Scheme (BUS)?
The Boiler Upgrade Scheme (BUS) was launched by the UK Government to make it more affordable to install low carbon heating systems. The scheme offers a grant of up to £7,500 to cover the cost of replacing heating systems that run on fossil fuels. This includes air source and ground source heat pumps, as well as biomass boilers for some off-grid properties.
The government used to offer support through the Renewable Heat Incentive, which ended in 2022.
Who’s eligible for the BUS grant?
You might be eligible for the grant if:
- You’re replacing a fossil fuelled heating system with a renewable one. For example, a gas boiler replaced by a heat pump.
- You own the home you’re applying for. This also includes some business properties, second homes, or properties you rent out.
- You’re applying for a property in England or Wales.
If you’re based in Northern Ireland, check the Energy Saving Trust for more information on what funding is available to you.
Your home must also have a valid Energy Performance Certificate (EPC). You can check if it has an EPC here. If your home doesn’t have an EPC, you might be able to get one through an OVO Energy Expert visit.
Good to know: The Boiler Upgrade Scheme was expanded in May 2024 to include more homes. From May, homes with an Energy Performance Certificate (EPC) that recommends insulation are also eligible.
Some homes aren’t eligible for funding, including:
- Homes that have already had government funding for a heat pump or biomass boiler.
- Social housing.
- Most new build properties. But if you move into a finished new build with a fossil fuel heating system, you might be able to get the BUS grant.
For full eligibility criteria, check the government website.
How do I get the BUS grant?
If you get a heat pump installed through OVO, your Heat Geek installer will apply for the Boiler Upgrade Scheme on your behalf. If you’re eligible, a grant voucher will be given to your installer when the heat pump’s up and running. The amount gets taken off your total costs.
Is the Boiler Upgrade Scheme (BUS) grant still available in 2025?
Yes. The Boiler Upgrade Scheme is available until 2028.
What is the Home Energy Scotland Grant and Loan Scheme (HES)?
The Home Energy Scotland Grant and Loan Scheme was launched by the Scottish Government to give financial support for homeowners to install low carbon heating systems. The scheme offers a grant of up to £7,500 to cover the cost of installing air source, ground source and water source heat pumps. . An additional £7,500 of funding is also available as an optional interest free loan. An additional £1,500 is available for rural and island homes.
Who’s eligible for the HES grant?
You might be eligible for the grant if:
- You own the home you’re applying for and it is your only primary private residence.
- You’re applying for an existing property in Scotland.
Your home must also have a valid Energy Performance Certificate (EPC). You can check if it has an EPC here. If your home doesn’t have an EPC, you might be able to get one through an Energy Expert visit.
For full terms and eligibility criteria, check the Home Energy Scotland website.
How do I get the HES grant?
To apply, you’ll need to contact Home Energy Scotland and then complete an online application form. Find out more information and check the terms and eligibility criteria here.
Is the Home Energy Scotland Grant and Loan scheme still available in 2025?
Yes, you can still apply for funding in 2025.
Interested in saying goodbye to gas? Get your heat pump through OVO.
You can now get your heat pump installed through our exclusive partnership with Heat Geek. You’ll also unlock our free add-on, Heat Pump Plus, which gives you a better electricity rate for powering your heat pump. With a heat pump, you can save an average of £399 a year on your heating bills compared to a gas boiler.1
Sources and references:
1 Actual sum is £399.71. Savings of £399 are based on the following comparison: a G-rated gas boiler running at 70% efficiency with an average annual consumption of 10,436 kWh at 6.33p per kWh used for heating and hot water, versus an air source heat pump with a Seasonal Coefficient of Performance (or efficiency rating) of 4.2 and an annual consumption of 1826 kWh at 15p/kWh with the Heat Pump Plus add-on. Terms and eligibility criteria apply.