The heat pump grant has just jumped to £9,500, the biggest single subsidy ever offered to UK households for low-carbon heating. Applications open this week, and the money will not last long.
Devon Live reported the launch of the scheme, which replaces the previous £7,500 Boiler Upgrade Scheme grant with a higher cap for certain households. As reported by Devon Live, the extra £2,000 targets households in rural areas or with poor energy performance, where heat pump installation costs tend to be higher.
Who qualifies, and who doesn’t
The scheme is not open to everyone. To get the full £9,500, your home must meet one of two criteria: an Energy Performance Certificate (EPC) rating of D, E, or F; or an existing heating system that runs on oil, LPG, or electric storage heaters. Households on mains gas with a decent EPC rating get the standard £7,500.
Income is not a factor, the grant is property-based, not means-tested. But there is a catch: the scheme is capped at 50,000 vouchers across England and Wales. Given that the previous £7,500 grant ran out within months in some regions, the extra £2,000 will likely accelerate demand. Ofgem, which administers the scheme, has not confirmed how many vouchers remain after the first week.
What it costs a typical 3-bed semi
An air source heat pump installation typically costs between £10,000 and £14,000, according to Energy Saving Trust figures. With the £9,500 grant, a household in the eligible group would pay £500–£4,500 upfront. That is comparable to a new gas boiler, which runs £2,500–£4,000 installed.
Running costs depend on the heat pump’s efficiency and your electricity tariff. A typical 3-bed semi using 12,000 kWh of gas per year for heating would see annual costs of roughly £800–£1,000 on a standard variable tariff. A heat pump with a Seasonal Coefficient of Performance (SCOP) of 3.5 would use about 3,430 kWh of electricity, costing £1,030 at current price cap rates. But if you switch to a heat-pump-specific tariff (offered by Octopus, EDF, and others), that figure drops to around £600–£700, a saving of £100–£300 a year versus gas.
EPC impact and resale value
Heat pumps improve EPC ratings by one or two bands in most homes, particularly those switching from oil or electric heating. A move from band E to D can add 1–3% to a property’s value, estate agents report. More importantly, the 2025 Future Homes Standard will require all new builds to use heat pumps or similar low-carbon heating. Existing homes with gas boilers may face lower demand from buyers by 2030, when the government aims to phase out new gas boiler installations.
But the grant alone does not solve the insulation problem. Heat pumps work best in well-insulated homes. If your loft has less than 270 mm of insulation or your walls are uninsulated, you will lose much of the efficiency gain. The Energy Company Obligation (ECO4) scheme can cover cavity wall and loft insulation for low-income households, and the Great British Insulation Scheme offers grants for others. Pairing the heat pump grant with free or subsidised insulation makes financial sense.
How to apply, and when
Applications open via the gov.uk website from 4 November 2024. You need a quote from an MCS-certified installer, who will submit the application on your behalf. The voucher is valid for 12 weeks, after which the installation must be completed and commissioned.
Households on standard variable tariffs should act quickly. The 50,000-cap could be reached within weeks, especially in rural areas where oil heating is common. If you miss out, the standard £7,500 grant remains available until March 2027, but the extra £2,000 will not return.
Frequently Asked Questions
Yes, but only if your home has an EPC rating of D or below. Homes with mains gas and an EPC of C or above qualify for the standard £7,500 grant instead.
Not a requirement, but strongly recommended. A heat pump in a poorly insulated home will cost more to run and may not achieve the expected efficiency. Check if you qualify for free insulation under ECO4 or the Great British Insulation Scheme first.
