British Gas will install heat pumps for as little as £2,999 after the government grant, a fixed price that undercuts many independent quotes by at least £1,000. The announcement, as reported by Solar Power Portal, marks the energy giant’s most aggressive push yet into the domestic heat pump market. For the 23 million UK homes still on gas boilers, the question is no longer whether heat pumps work, it is whether the sums add up.
Who qualifies, and who does not
British Gas is targeting owner-occupiers with a current gas boiler, a minimum EPC rating of D, and a garden or external space for the outdoor unit. The scheme covers air-source heat pumps only, not ground-source. Renters and flats without outdoor space are excluded. Ofgem data shows that 68% of homes in England have an EPC of D or above, so the pool is large, but not universal.
What it costs a typical 3-bed semi
The headline £2,999 price assumes the property qualifies for the full £7,500 Boiler Upgrade Scheme grant, which British Gas will claim on the homeowner’s behalf. Without the grant, the same installation would cost around £10,500, roughly the same as a mid-range kitchen refit. A typical 3-bed semi using 12,000 kWh of gas per year for heating currently pays about £1,100 annually on a standard variable tariff. Switching to a heat pump with a seasonal coefficient of performance of 3.5 could cut that to roughly £450, saving £650 a year. But electricity is still three times the price of gas per kWh, so the actual saving depends on the property’s insulation and the heat pump’s efficiency.
The catch, and the caveats
But the fixed price is not the whole story. British Gas requires a home survey first, and the £2,999 figure assumes no major upgrades such as new radiators or pipework. Many older homes need larger radiators or underfloor heating to run efficiently at lower flow temperatures. Those extras can add £1,500–£3,000. The Energy Saving Trust notes that well-insulated homes see the biggest savings; a draughty Victorian terrace may still save money but will not reach the headline efficiency. Also, the scheme is limited to one installation per household, and British Gas has not capped the total number of installations, so demand may outstrip installer capacity.
EPC impact and resale value
Installing a heat pump typically lifts an EPC rating by 5–10 points, moving a D-rated home to a C. That matters because from 2025, landlords cannot let properties below an EPC C. For owner-occupiers, a higher EPC can add 2–5% to resale value, according to estate agent data. The grant is not repayable if you sell within five years, unlike some other schemes, a practical detail many homeowners overlook.
Households considering the switch should book a free survey via British Gas’s website before 31 March 2025, when the current Boiler Upgrade Scheme funding is guaranteed. After that, the grant may be reduced or replaced. The best time to act is now, while the subsidy is full and installer lead times are still under eight weeks in most regions.
Frequently Asked Questions
No. The Boiler Upgrade Scheme grant cannot be stacked with local authority or ECO4 funding. British Gas will handle the BUS application for you, but you cannot claim additional public subsidies for the same installation.
It can, but efficiency drops significantly if the home is not well insulated. British Gas's survey will check loft insulation (minimum 270mm) and cavity wall fill. If those are missing, you may need to upgrade them first, which could add £1,000–£2,000 to the total cost.
