Thinking about swapping your old heating system for a modern heat pump? You’re not alone. With energy costs rising and sustainability climbing everyone’s priority list, more UK homeowners are turning to heat pumps for efficient, low-carbon heating. But did you know there’s a range of heat pump rebates and incentives to make that switch more affordable than you might think?
In this guide, we’ll break down what financial help is available, how to claim it and tips to squeeze the most value from every pound. Let’s get your savings started!
Why incentives matter for heat pumps
Heat pumps are an excellent long-term investment. They cut your energy bills, reduce carbon emissions and help future-proof your home. That said, the upfront installation costs can be higher than replacing a traditional gas boiler. This is where government rebates and incentives come in to ease the initial spend and reward you for choosing a cleaner, greener system.
The key rebates and incentives surrounding heat pumps
Here’s an overview of the main schemes available to UK homeowners right now.
The Boiler Upgrade Scheme
What is it?
The Boiler Upgrade Scheme is the government’s flagship grant for low-carbon heating. It offers homeowners up to £7,500 towards the cost of installing an air source or ground source heat pump.
Who can apply?
Homeowners in England and Wales with a valid Energy Performance Certificate (EPC) that has no outstanding loft or cavity wall insulation recommendations. It’s designed to help those switching from fossil fuel systems like gas, oil or LPG.
How to claim it
You don’t apply directly. Instead, your chosen MCS-certified heat pump installer applies on your behalf and deducts the grant from your final installation bill. Easy!
The Warm Homes: Local Grant
What is it?
The Warm Homes: Local Grant is a new initiative running in England from April 2025, aimed at supporting low-income households with energy efficiency and low‑carbon heating upgrades including heat pumps.
Who can apply?
- A privately-owned or privately-rented home in England,
- A property with an EPC rating of D, E, F or G,
- A household income under £36,000 per year or receipt of means-tested benefits, or live in a qualifying postcode area
How to apply
Start by checking eligibility on the GOV.UK site or through your local council’s scheme. If you qualify, the council will arrange a free home survey to assess which upgrades make sense, then manage the installation for you at no cost.
ECO4 (Energy Company Obligation)
What is it?
The ECO4 scheme is a government-backed initiative requiring large energy suppliers to fund energy-saving improvements (including heat pumps) for low-income and vulnerable households. In essence, it's a focused support programme aimed at making clean, low-carbon heating affordable for those who need it most.
Who can apply?
- Homeowners or private renters in England, Scotland, or Wales
- Properties with a low Energy Performance Certificate (EPC), typically grade D or below
- Households on low incomes or receiving certain means-tested benefits
How to claim it
Eligible households should contact energy suppliers participating in ECO4 to undergo a telephone and in-home assessment. If approved, the supplier or an approved installer will manage the installation and associated paperwork. The best bit? There's little or no upfront cost to the homeowner.
Ready to make the switch to sustainability?
Switching to a heat pump doesn’t have to break the bank. With the right heat pump rebates and incentives, you could enjoy big savings upfront and even bigger ones over the system’s lifetime.
At Oakray, we help homeowners navigate every step, from choosing the best system and applying for grants to seamless installation and aftercare. If you’re ready to unlock the savings and future-proof your home, download our brochure below to find out how.
Get in touch today to see how a heat pump could work for you, and join the growing community choosing cleaner, smarter home heating. To find out more about our offerings, download our brochure below.
