Air Source Heat Pump Grant 2025: What You Can Claim and How to Apply
Making the switch over to renewable heating for your home or business has never been easier and accessible, largely due to grants that are available from the government. In the UK, the government offers a Boiler Upgrade Scheme, which continues to financially support both homeowners and businesses that are looking to move to air source heat pumps.
Current Grant Availability and Funding Amounts
The Boiler Upgrade Scheme remains the primary source of funding for air source heat pump installations in 2025. Under this scheme, both business owners and homeowners are able to receive up to £7,500 towards the cost of installing an air source heat pump system.
This grant amount represents a substantial contribution towards the total installation cost, making renewable heating solutions significantly more accessible to UK households. The funding is designed to bridge the gap between traditional boiler costs and heat pump technology, encouraging widespread adoption of sustainable heating systems.
Who Qualifies for Air Source Heat Pump Grants?
Eligibility for the air source heat pump grant extends to various property types and ownership structures:
Domestic homeowners form the primary eligible group, including those who own their property outright or are purchasing through a mortgage.
Certain commercial property owners may also qualify, particularly small businesses and landlords with eligible properties. The scheme recognises that renewable heating benefits extend beyond residential applications.
Properties must meet specific criteria, including having adequate insulation standards and being suitable for heat pump installation. The existing heating system being replaced must typically be a fossil fuel system rather than an existing renewable technology.
Qualifying Heat Pump Systems
Not all air source heat pump systems qualify for grant funding. To be eligible, systems must meet strict certification requirements:
MCS-certified air source heat pump systems are mandatory for grant applications. The Microgeneration Certification Scheme ensures that both the technology and installers meet rigorous quality and performance standards.
Systems must be appropriately sized for the property and demonstrate sufficient efficiency ratings. The heat pump must be capable of providing both space heating and, where required, domestic hot water for the property.
Installation must be carried out by MCS-certified installers who will guarantee proper system design, installation quality, and ongoing performance. This certification requirement protects both the grant funding and ensures homeowners receive reliable, efficient heating systems.
Step-by-Step Application Process
The application process for air source heat pump grants follows a structured approach designed to ensure proper system specification and installation:
Initial assessment and quotation: Your chosen installer will assess your property’s suitability and provide a detailed quotation including grant deductions.
Grant application submission: Typically, the MCS-certified installer handles the grant application on your behalf, submitting all necessary documentation and technical specifications.
Application review and approval: The scheme administrators review applications, usually providing decisions within several weeks of submission.
Installation scheduling: Once approved, installation can proceed according to the agreed timeline, with grant funding applied directly to reduce your final costs.
Final certification: Post-installation, the system receives final certification, completing both the installation and grant process.
Applications require specific documentation including property details, existing heating system information, and technical specifications for the proposed heat pump system.
Benefits Beyond the Grant
Whilst the grant significantly reduces upfront costs, air source heat pumps deliver ongoing benefits that extend well beyond the initial installation:
A number of savings come into play with heat pump installation. Firstly, energy bills are almost always slashed in half. A 300 to 400% efficiency of heat pumps usually means energy output is greater than energy input.
Enhanced sustainability credentials help properties contribute to national carbon reduction targets whilst potentially increasing property values. Many buyers now specifically seek properties with renewable heating systems.
Improved heating control and consistency often surprise new heat pump owners, with many systems providing superior comfort compared to traditional boilers.
Expert Support Throughout Your Journey
Navigating grant applications and heat pump installations requires specialist knowledge and experience. Terra Therma provides comprehensive support from initial property assessment through to final system commissioning and grant claim completion.
Our team handles the technical complexities of system specification, ensures all certification requirements are met, and manages grant applications to maximise your chances of approval. This full-service approach removes the uncertainty from upgrading to renewable heating whilst ensuring you receive optimal system performance.
Make Your Move to Renewable Heating
Getting a grant for air source heat pumps is an excellent step to take in 2025, upgrading your heating system whilst also significantly reducing the cost. Not only is there funding available, you also receive expert support, meaning there has never been a better time to make the switch than now.
We at Terra Therma are here to assist you in offering personalised guidance on whether your property qualifies for grant funding. Our team of industry experts can assess your current situation, recommend suitable system configuration, and can guide you through the entire process from application to installation.