Available Funding

Department for Energy Security and Net Zero

The Government is offering grants to encourage property owners to install low carbon heating systems, such as heat pumps, through the Boiler Upgrade Scheme (BUS). The scheme covers three low carbon heating systems, with different amounts of funding available. If you’re eligible, you can get one grant per property for either: 

• £7,500 off the cost and installation of an air source heat pump 

• £7,500 off the cost and installation of a ground source heat pump, including water source heat pumps 

• £5,000 off the cost and installation of a biomass boiler 

DESNZ recently announced a further £25million of funding will be made available for the 2024/2025 financial year, increasing the total BUS budget to £205million. In addition to this, from 1 April 2022 to 31 March 2027, there is 0% VAT on the installation of energy-saving materials including heat pumps and biomass boilers.Your heating installer must be certified by the Microgeneration Certification Scheme (MCS) and can claim for the grant on your behalf. 

These grants will help property owners overcome the upfront cost of low carbon heating technologies. The scheme is open to domestic and small non-domestic properties in England and Wales. New build properties are not eligible for the scheme. 

Find out more on the Government Boiler Upgrade Scheme website and on Ofgem’s  guidance for property owners.

For more information on heat pumps and other renewable energy systems, visit our measures page.

For further trusted advice, see the Energy Saving Trust and the Government’s Heat Pumps page.