Thermotec
grantsboiler upgrade schemeECO4UK

Heat pump grants UK 2025: every scheme explained

Published 15 May 2025

The UK government has committed to phasing out gas boilers in new homes from 2025 and wants 600,000 heat pumps installed per year by 2028. Several grants and funding schemes are available.

1. Boiler Upgrade Scheme (BUS) — £7,500

The biggest and most accessible grant. The Boiler Upgrade Scheme pays £7,500 towards an air-source heat pump installation. Available to homeowners and landlords in England, Scotland and Wales.

Key points:

  • Grant is paid directly to your MCS-certified installer — you pay the net amount
  • Requires a valid EPC with no outstanding loft or cavity insulation recommendations
  • Available until at least March 2028
  • All Thermotec Home series units are MCS eligible

2. ECO4 — free measures for lower-income households

The Energy Company Obligation (ECO4) scheme funds energy efficiency improvements for lower-income households. Unlike the BUS, ECO4 can cover the full cost including heat pumps, insulation, and new heating systems for eligible households.

3. Scotland: Home Energy Scotland

Scottish homeowners can access interest-free loans of up to £15,000 for renewable heating, alongside a cashback grant of up to £7,500. This can be stacked with the BUS for a total of up to £15,000 in support.

Can I stack grants?

In some cases yes. A Scottish homeowner can use BUS (£7,500) + Home Energy Scotland loan (£15,000) together. Contact our team to discuss which grants apply to your situation.