'Free' Air Source Heat Pumps (Guide)

Below we’ll be discussing whether or not you can get a free air source heat pump.Whilst there are some options, they’re limited.

Typically, you’d need to be from a low income household (60% below median household income), as well as receiving a means tested benefit.

Options that could lead to a free air source heat pump for those households include the likes of ECO4, Warmer Homes (Scotland) and Nest (Wales).

Whilst the majority of homes won’t qualify for a free air source heat pump, there is an option that helps to cover the majority of the cost.

The UK government has set up the Boiler Upgrade Scheme (BUS). The majority of UK homeowners will be eligible and for those that are, they’ll receive £7,500 towards their heat pump. 

With a typical heat pump costing £10,000-£13,000, this £7,500 government grant could cover up to 75% of the installation cost. 

Want to check if you qualify? Use our 30-second clickable grant eligibility checker here. 

Can I Get A Free Air Source Heat Pump?

It’s extremely unlikely you’ll be able to get a free air source heat pump. There are various grants available, but they tend to cover the majority of the cost, rather than the total cost. 

As the UK government pushes towards its net-zero emissions target, it’s likely there will be options for free air source heat pumps, but those options just aren’t available at the moment. 

For the majority of households, the closest you’ll get to a free air source heat pump, is a £7,500 government grant. This comes from the government’s Boiler Upgrade Scheme and could reduce the overall cost of your installation by up to 75%.

You can get quotes on your air source heat pump here. Our prices have a 0% VAT rate applied. And as our installers are certified by MCS, you’ll qualify for the £7,500 government grant mentioned above. 

How Much is A Heat Pump With A Government Grant?

The cost of fitting an air source heat pump will vary from property to property. Variables that affect the cost include: 

That said, for a 2-4 bedroom house, you should expect the gross cost of an air source heat pump to be £10,000-£13,000, not including a government grant. 

The most popular government grant (which we’ll detail below), entitles you to £7,500 in funding. So, whilst you won’t get a free air source heat pump, you’ll see installation prices drop to £2,500-£5,500.

Here is a perfect example. For £4,139 (after taking into account 0% VAT and £7,500 in funding), you’d get a high quality Vaillant aroTHERM Plus, inclusive of a 7 year parts and labour warranty.

You can read more about exactly what affects the cost of an air source heat pump installation here. 

Get free air source heat pump quotes using our clickable tool here. 

Types of Heat Pump Grants

There are various grants available in the UK. Although none are likely to lead to a free air source heat pump, they certainly help to offset the majority of the cost.

0% VAT Scheme

The first is the 0% VAT rate applied to energy saving materials. This became effective in 2019, and will last until 2027. In 2027 the rate increases to 5%; still considerably less than the normal 20% VAT rate. 

However, with the UK pushing for net-zero, it’s likely this 0% VAT scheme will be extended. 

Materials included in this scheme include the likes of insulation, smart heating controls and of course, air source heat pumps.

There are more details on the .GOV.UK website here.

Boiler Upgrade Scheme

The most common heat pump grant our customers apply for, is the Boiler Upgrade Scheme. This scheme allows homeowners upgrading from a gas boiler to an air source heat pump, to get up to £7,500 in funding. 

With the average air source heat pump installation costing in the region of £10,000-£13,000, this helps to offset the majority of the cost.

The best thing is, most households in the UK are eligible.

Energy Obligation Scheme (ECO4)

It’s worth chatting to your current energy supplier. They’re required by the government to offer funding where possible to improve both insulation and heating for their customers via the ECO4 scheme. 

If you're not able to get a free heat pump via the ECO4 scheme, you can also check out the Home Upgrade Grant or LA Flex. Both schemes cover air source heat pumps, as well as a range of other energy saving improvements such as insulation and solar panels. 

Alternatively, if you want advice on exactly what you qualify for, you can speak to one of our experts here. 

Nest (Wales)

Free air source heat pumps, whilst uncommon, can sometimes be obtained via Nest (Wales). However, to qualify you’ll need to be considered a low income household, or, be receiving specific means tested benefits.

Benefits that are eligible under Nest (Wales) include the likes of: Housing Benefit, Pension Credit and Universal Credit. Alongside this, low income households (60% below median income) are also likely to qualify for support.

There are other factors that affect eligibility. For instance, EPC ratings have a huge bearing on who qualifies for benefits. Most properties that are D rated (68) or lower are eligible, as long as the inhabitants also qualify personally (receiving means tested benefits or considered a low income household).

Read more about Nest here. ‍

Warmer Homes (Scotland)

Another scheme designed to help people with free air source heat pumps is Warmer Homes (Scotland). 

The eligibility criteria is complex, but if you are eligible, you’ll be able to claim up to £10,000 for energy efficient home improvements. If you’re only installing a small unit (a 4kW for instance), this could lead to a free air source heat pump.

You can read more about Warmer Homes (Scotland) here.

Heat Pump Grant Eligibility

The most common way to offset the cost of an air source heat pump, is to apply for the Boiler Upgrade Scheme. This scheme allows eligible households to claim up to £7,500 in funding, dropping the price of a heat pump to a similar installation cost of a gas boiler. 

To be eligible for the Boiler Upgrade Scheme's £7,500 in funding, you'll need to:

• Own the property that you'll be installing the system in
• Replacing a heating system that works using fossil fuels (oil, gas, electric and LPG all qualify)
• Have a valid EPC certificate; these are easy to obtain and last for 10 years
• Get your system installed and certified by an MCS installer

If you've already obtained grants for funding to improve your property (such as insulation), you'll still qualify.

There are a few instances where funding won't be offered: 

• New build properties that are currently being built (you may still apply if you've moved into a finished new build)
• Self build properties that have been owned by a business or organisation

Our heat pump installers are all registered with MCS and we can help with an EPC certificate if needed. As long as your property meets the basic eligibility criteria, we’ll be able to apply for the £7,500 government grant on your behalf.

Not sure if you’re eligible? We’ve created a quick and simple heat pump grant eligibility checker here.

And if you have any questions about eligibility for the £7,500 government grant for heat pumps, you can contact our experts here.