Energy Saving Grants | Government Grants for Energy Efficiency

Heat Pump Funds Guide | Air Source Grant Aid

Air source heat pumps (ASHPs) are an eco-friendly and efficient solution for heating homes, utilizing the heat from outdoor air. In the face of escalating energy prices and growing environmental concerns, initiatives like the Air Source Heat Pump Incentive, particularly within government energy support schemes like the ECO4, are gaining prominence. 

This article provides an in-depth guide to understanding ASHP technology and the procedure for securing financial assistance through the Air Source Heat Pump Grant.

Understanding Air Source Heat Pumps

An Air Source Heat Pump is a high-efficiency heating system that utilizes ambient air to regulate temperature. It’s a greener alternative to traditional gas boilers and electric heaters and can be combined with a ground source heat pump in a hybrid system for a better EPC rating.

These systems are well-suited for residential and commercial properties considering a new heating setup. Our blog provides detailed insights into the workings, advantages, and maintenance guidelines of air-source heat pumps.

Advantages of Air Source Heat Pumps

Energy Efficiency: ASHPs excel in energy efficiency, delivering up to three times more thermal energy than the electrical energy they use.

Reduced Environmental Impact: Offering a sustainable substitute for fossil-fuel-based systems, they significantly cut down on carbon emissions.

Cost Benefits: Financial assistance is available for households with lower incomes, covering the costs associated with installation.

What Air Source Heat Pump Grants Are Available In The UK?

Several government grants are aimed at reducing the initial costs of air-source heat pumps:

Boiler Upgrade Scheme: This program offers £5,000 to assist homeowners in England and Wales install a new air source heat pump.

Home Energy Scotland: Scottish homeowners, including tenants in the private sector, can access potential funding for heat pumps and other energy-efficient measures. In most instances, the Scottish government covers the full cost.

Nest Scheme Wales: Households in Wales can avail themselves of grants for air-source heat pumps. These grants are part of a broader range of energy efficiency improvements offered through the Scheme.

Is The Grant For the Air Source Heat Pump Available Under ECO4?

Yes, the Air Source Heat Pump grant may be available under the ECO4 scheme. The Energy Company Obligation (ECO) scheme, now in its fourth iteration (ECO4), is designed to help reduce carbon emissions and tackle fuel poverty. 

It often includes grants or financial assistance for installing energy-efficient measures like air source heat pumps in eligible homes. The availability of such a grant under ECO4 depends on various factors, including your home’s eligibility, your personal circumstances, and the specific criteria set by the Scheme. 

It’s advisable to check the latest details of the ECO4 scheme or contact an approved installer to understand if you can benefit from an air source heat pump grant.

How Do You Apply For The Air Source Heat Pump Grant?

The process of applying for a government heat pump grant varies based on the specific program. Here’s how you can begin your application for different grants:

ECO4: Fill out the online application form.

Warmer Homes Scotland: Get in touch with an advisor for guidance.

Home Energy Scotland: Start with an online Self-Assessment.

Nest Scheme in Wales: Reach out to an advisor or request a callback.

Boiler Upgrade Scheme: First, obtain a quote from an MSC-certified installer.

For the Boiler Upgrade Scheme, for instance, you need to find a certified installer and agree on a quote for the installation. The installer will then apply for the grant on your behalf.

To ensure you receive the best possible value for your heat pump installation, consider obtaining quotes from several certified installers in your area. This will allow you to compare the offers and choose the one with the most savings.

Who is Eligible For A Heat Pump Grant?

The qualification criteria for an air source heat pump grant can vary depending on the specific grant program. However, some common factors that typically determine eligibility include:

  1. Income and Benefits: Many grants are aimed at low-income households or those receiving certain government benefits.
  2. Property Type: Some grants may be specific to certain properties, such as older homes, homes without central heating, or properties in particular areas.
  3. Energy Supplier: For schemes like the Energy Company Obligation (ECO), eligibility might depend on whether your energy supplier participates in the scheme.
  4. Location: Different regions or countries, like England, Wales, Scotland, and Northern Ireland, have specific grant programs with unique eligibility criteria.
  5. Energy Performance: Some programs require assessing your home’s energy performance and may prioritize homes that can achieve significant energy savings with a heat pump.
  6. Previous Improvements: Homes that haven’t benefited from specific energy efficiency improvements might be prioritized.

While the specific criteria can vary between different grant programs, common qualifying benefits often include:

  1. Universal Credit: Typically, eligibility is determined by additional criteria like income level.
  2. Pension Credit: Both the Guarantee Credit and Savings Credit elements can be considered.
  3. Income Support: Additional qualifying conditions, such as having a child under a certain age or specific disability-related elements, may apply.
  4. Income-based Jobseeker’s Allowance (JSA): Eligibility often depends on additional factors related to income and family composition.
  5. Income-related Employment and Support Allowance (ESA): Additional specific criteria could be applicable.
  6. Child Tax Credits: Qualification may depend on the household income threshold.
  7. Working Tax Credit: Like with Child Tax Credits, household income plays a role in eligibility.
  8. Disability Benefits: Disability Living Allowance (DLA), Personal Independence Payment (PIP), Attendance Allowance, or Severe Disablement Allowance.
  9. Housing Benefit: This can be a qualifying factor, often in combination with other income-related conditions.
  10. Support under Part VI of the Immigration and Asylum Act 1999: Specific additional conditions may apply.
  11. Child Benefit: Eligibility may be subject to an income threshold which varies based on the number of children and whether the claimant is a single parent or part of a couple

Benefits of Securing a Grant for Air Source Heat Pumps

Choosing an air-source heat pump as an alternative to traditional gas boilers or electric heating systems comes with multiple benefits:

  • Lower Utility Expenses: Heat pumps are known for their higher energy efficiency, which translates into lower energy bills.
  • Eco-Friendly Heating: Air source heat pumps have a significantly smaller carbon footprint than gas boilers, aiding in reducing greenhouse gas emissions.
  • No Cost Installation: Government grants often cover the entire cost of installing heat pumps, making this eco-friendly option financially feasible, especially for low-income households needing support.
  • Enhanced Insulation Efficiency: Many grants, such as the Energy Company Obligation (ECO4), also provide energy-saving measures like cavity wall insulation, further improving your home’s energy efficiency.
  • Diverse Sustainable Solutions: If a heat pump is not the right fit for your home, these grants may also include alternatives like solar panels, storage heaters, grants for removing back boilers, or improving loft and cavity wall insulation, among other options.


In conclusion, air-source heat pumps offer a sustainable, cost-effective solution for home heating. With government grants like ECO4, homeowners can access financial support to install these eco-friendly systems, reducing energy bills and carbon footprints. These grants are a step towards greener living and long-term energy savings.

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