Energy Saving Grants | Government Grants for Energy Efficiency


Government Boiler Grants For Oil, LPG and Solid Fuel Boilers

If you have an LPG, Oil, or solid fuel boiler, you could be entitled to one of the government boiler grants currently available to homeowners in England, Scotland, and Wales. If you qualify, you could get up to 100% funding to replace your boiler with a renewable energy system, such as a heat pump with solar panels, to improve your comfort and reduces your energy costs. At Energy Saving Grants, we help homeowners in England, Scotland, and Wales to take advantage of government boiler grants. From the Energy Company Obligation (ECO) scheme to the Boiler Upgrade Scheme, our experts will find the best funding route for you.  By encouraging the replacement of old, inefficient fossil fuel boilers with modern, more efficient heating systems, boiler replacement grants aim to improve comfort, save you money, and reduce your carbon footprint. 
  • Government grants of up to 100% are available for heating upgrades
  • Quick decision and turnaround
  • Trustmark approved installers
  • Energy-saving funding experts

Why are Oil boilers and LPG boilers being banned? 

The UK has a legal obligation to become Net Zero by 2050. As part of this commitment, the government announced a ban on the installation of Oil, LPG or gas boilers being fitted in new homes in the UK from 2025 and all homes by 2035. 

This initiative is part of a move away from fossil fuel heating as it creates a lot of harmful carbon emissions. To help homeowners transfer away from fossil fuels, there are several government boiler grants available to replace Oil, LPG, and solid fuel boilers with renewable energy systems, such as heat pumps. 

Why upgrade to a heat pump?

Air source heat pumps are a proven renewable technology which have been in use worldwide for over 60 years. In many countries including Norway, Finland and Sweden they are the primary source of heating for most homes, as they offer a cost-effective and eco-friendly choice of heating and hot water. Another benefit of replacing an Oil or LPG boiler is that there will no longer be any need for a large, unsightly fuel tank in the garden and there will be no more expensive Oil or LPG bills to pay.

Government boiler grants help offset the upgrade cost, enhancing the appeal of switching to a more sustainable heating solution.

Government oil boiler replacement grants give you access to more efficient and environmentally friendly heating systems that offer so many benefits over old and inefficient boiler systems. For example:

Lower Running Costs: Heat pumps are the most efficient heating systems available and can deliver 3 to 4 kilowatts (kW) of heat for every 1 kW of electricity it consumes (offering an efficiency of 300% to 400%). By delivering 3 to 4 times more heat energy than the electricity used to power the unit, a heat pump can substantially reduce a property’s heating costs by around two-thirds compared to direct electric heating such as convector heaters.

Reduced Carbon Footprint: Most heat pumps are installed in conjunction with solar panels which produce the electricity to power the heat pump. When installed alongside solar, a heat pump is classed as a renewable energy technology and it does not produce the emissions that are associated with LPG or Oil boilers; or solid fuel systems such as AGAs and Rayburns. Additionally, some homeowners who have a Heat Pump installed alongside solar panels can become completely ‘off grid’ without having to rely on purchasing oil, gas or electricity.

Compatible with Renewable Systems: Heat pumps can be easily integrated with solar PV systems for even greater savings and eco-friendliness.

Future-Proofing: As energy prices increase and environmental regulations evolve, having an efficient heating system ensures your home heating is cost-effective and compliant with future standards.

How do air source heat pumps work?

Air source heat pumps work by extracting heat from the outside air, even in cold temperatures, and using it to warm up your home. They operate like a refrigerator in reverse: a refrigerant fluid absorbs external heat, compresses it to increase its temperature, and then transfers it inside to heat your home and provide hot water. This process is highly efficient, as it uses less electrical energy than the heat it delivers, making air source heat pumps an energy-efficient method for heating and cooling your home.

Thanks to the various government boiler grants, you could reap the many benefits that heat pumps have to offer. 

Can I get a grant if I have a range cooker? 

Yes, if your home is heated by a range cooker such as an AGA or Rayburn that uses Oil, LPG, or solid fuel (eg coal or wood) to heat your home, there are funding schemes available to install an energy-efficient central heating system (subject to meeting the qualifying criteria for the relevant scheme). 

In most circumstances, you will be able to keep the range cooker, but the new central heating system (eg an Air Source Heat Pump) will provide the hot water and central heating for the property.

Can I keep my existing Oil or LPG boiler and have a hybrid heat pump system?

A hybrid heat pump system combines a heat pump with another heat source, such as an oil or LPG boiler, to meet heating and hot water needs. Although a well-sized heat pump can typically handle these needs for most homes, properties with high heat demands or those that cannot be insulated (eg Listed buildings) might benefit from such a system. 

In a hybrid setup, there are two main configurations: the heat pump primarily provides heating and hot water, with the boiler acting as a backup during extremely cold periods; or alternatively, the heat pump could handle all space heating, while the boiler exclusively supplies hot water.

How much will I save on my fuel bills by replacing an Oil boiler, LPG boiler or Solid fuel boiler with a heat pump?

Let’s examine the costs of using heat pumps for home heating. Heat pumps are notably efficient, producing three to four units of heat for every unit of electricity consumed. With electricity priced at £0.27 per kWh for example, the yearly expense for heating and hot water via a heat pump for a typical UK home would amount to £879.66. This estimate does not include any standing electricity charges, assuming they are accounted for separately. In comparison, the same property would have an annual Oil bill of approx £1300, or an LPG bill of £1250. Please see the graph below for a comparison of annual running costs. Please  note that the annual electricity bill for a property with an Air Source Heat Pump will be considerably lower if the property has solar PV installed.

Do I qualify for a government boiler grant? 

There are various Government funding schemes available which are designed to help cut carbon dioxide emissions and also reduce fuel poverty in the UK. The Oil boiler grant scheme and LPG boiler grant scheme provide funding of up to 100% to replace inefficient fossil fuel boilers with an energy-efficient heating system. 

If you have an existing LPG or Oil boiler, grants are not available to replace with another LPG or Oil boiler as these fuel systems are very expensive and bad for the environment. Instead, you can apply to have your boiler replaced with a heat pump. Unfortunately, we are unable to help people in social housing, so please speak to your housing provider in this instance.

Government boiler grants can be confusing as there are various funding schemes available. We cut through the jargon and red tape and help you to get the funding you are entitled to. 

Our energy grants specialists are waiting to help you

Energy Saving Grants offer free no-obligation advice on the Government Energy Company Obligation (ECO) Scheme and other government heating grants including the Boiler Upgrade Scheme. Apply now by entering your property details in the Grant checker form below and an accredited energy assessor will contact you to discuss your enquiry. 

  • Free expert advice and application assistance
  • OFGEM backed energy saving grants schemes
  • No obligation
  • Quick and simple application

Applying for government boiler grants is as easy as

  1. Eligibility Check: Complete our form to see if you qualify for ECO or other government heating grants.
  2. Free Assessment: An accredited energy assessor will provide a free evaluation and tailored advice on enhancing your heating efficiency.
  3. Installation: Our Trustmark-certified professionals will install your new energy efficient central heating system.

Take the Next Step Towards a Warmer Home With Government Boiler Grants

Unlock energy savings and warmth with government grants for boilers and Air Source heat pumps. Energy Saving Grants is here to guide you through the process, from checking your eligibility to securing your grant. Don’t miss out on the opportunity to upgrade your home’s heating efficiently and sustainably. Fill in our eligibility form today and take the first step towards a warmer, greener home. 

FAQ for Government Boiler Grants

A: There are various Government funding schemes available to replace Oil boilers, LPG boilers and Solid fuel boilers – thereby reducing carbon dioxide emissions and helping to reduce heating bills.

A: Homeowners and private tenants can apply for Oil Boiler replacement grants. The funding for Oil boilers is dependent on scheme requirements such as household income levels or property characteristics such as the type of heating in the property.

A: Savings vary, but replacing an old Oil or LPG boiler with an energy efficient heat pump can significantly lower energy bills; and if solar panels are installed in conjunction with a heat pump then savings of hundreds of pounds per year are experienced.

A: If you have an LPG boiler, an Oil boiler or a Solid Fuel boiler we may be able to obtain funding of up to 100% for a new central heating system to be installed (subject to meeting the eligibility criteria for the relevant scheme).

Check Your Eligibility Using Our Grant Checker

Please ensure that all information provided below is 100% accurate. Any errors in your personal information could delay or prevent you qualifying for a government funded grant 

Please note that you do not necessarily need to be in receipt of tax credits or benefits as we still may be able to obtain funding for you via your Council or through other funding schemes.  

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