Switching to a low carbon heating system is a great way to make your home more sustainable — and thanks to government support, it could cost less than you think.
Through the Boiler Upgrade Scheme (BUS), homeowners in England and Wales could receive a grant of up to £7,500 towards the cost of installing an air-to-water heat pump.
We’re here to help you understand how the scheme works and how it could apply to your home.
Heat Pump VAT relief
To support you with energy saving home improvements, the government has removed VAT on heat pumps, solar panels and insulation for the next 5 years (starting April 2022). Prior to that there was a 5% VAT tax relief on these products.
Your installer will be responsible for charging you the correct VAT.
Understanding Heat Pump Grants
In the UK, heat pump grants offer financial assistance to homeowners and tenants looking to replace outdated, inefficient boilers with advanced, energy-efficient models. These grants can dramatically lower the initial costs associated with purchasing and installing a new heat pump, facilitating easier upgrades to household heating systems.
Who is eligible?
Eligibility criteria for heat pump grants can vary depending on the specific programme, such as the free boiler grant, but they typically target low-income households, individuals receiving certain benefits, or those experiencing energy poverty.
To determine your eligibility, you may need to provide proof of income, details of your current boiler/heat pumps condition, and relevant documentation regarding your living situation. It's crucial to review the specific requirements of the scheme you are considering, as some grants may only cover particular types of boiler/heat pump or installations.
The scheme is not available for most new-build homes, except those that are self-built.
Find out more
ECO Scheme
You might be eligible for a free boiler via the ECO boiler scheme.
This scheme requires larger energy suppliers to provide financial assistance to help eligible households improve their energy efficiency. Under the ECO boiler scheme, you may qualify for grants for central heating that cover part or all of the cost of a new boiler, especially if your current heating system is outdated or inefficient.
BUS funding
If you’re looking to electrify your heating system, the Boiler Upgrade Scheme (BUS) provides grants for low-carbon heating systems such as heat pumps. Homeowners can receive a grant of up to £7,500 towards a air source heat pump . You cannot currently get a grant for a hybrid heat pump system.
You can check your eligibility here. Your installer will need to apply for the grant on your behalf. To speak to your local Worcester Bosch Accredited installer, use our directory below.
How does the process work?
- Find a Worcester Bosch Accredited Installer.
Your installer will assess your home and confirm whether you meet the Boiler Upgrade Scheme criteria.
- Receive a tailored quote.
The installer will provide a full quotation, clearly showing the potential grant amount.
- Installer applies for the grant.
Your installer submits the application to Ofgem and manages the process for you.
- Installation and confirmation.
Once the grant is approved, your installer completes the installation and deducts the grant amount from your final invoice.
