Nesta, a research and innovation foundation, published a data-driven FAQ on heat pump grant eligibility on 21 January 20251. The report collates the grants and loans available for installing a heat pump, drawing on community discussions from Money Saving Expert between January 2016 and June 2024 to identify the questions homeowners ask most often1.
For heat pump grants and funding across the UK, the report sets out the following position as of January 20252:
| Support | Nation | Amount |
|---|---|---|
| Boiler Upgrade Scheme | England and Wales | £7,500 grant for most homeowners and landlords |
| Home Energy Scotland Grant | Scotland | £7,500 grant, up to £9,000 in rural areas |
| Mortgage rewards | UK | Up to £2,000 cash reward from some banks, on top of the £7,500 grant |
| Home Energy Scotland Loan | Scotland | Interest-free loan of up to £7,500, in addition to the grant |
| Commercial loans | UK | Discounted-rate loans or mortgages from many banks and building societies |
The Boiler Upgrade Scheme grant is available "provided they haven’t already received a grant for a heat pump or biomass boiler in that home"2. On mortgage rewards, Nesta states that "Banks who offer this will have their own eligibility criteria"2. The Home Energy Scotland Loan can also cover other energy efficiency measures, and "many banks and building societies offer loans or mortgages with discounted rates to support low-carbon, energy-efficient home improvements"2.
"We have a collated list of grants and loans currently available for installing a heat pump."
The report also addresses running costs. It states that heat pumps "run on electricity and are three to four times more efficient than other heating systems, including other electric heating systems such as storage heaters, electric radiators and electric boilers"4. Daily electricity consumption by an 8kW heat pump is given as around 6-10 kWh on average, which "can translate to a monthly usage ranging from 180-300 kWh", against "about 600-1000 kWh of gas per month" for a gas boiler in the same homes4. On bills, Nesta says there are "likely to be savings on the heating bill if the current system is an oil, LPG or electric boiler, electric radiators or storage heaters", while "When switching to a heat pump from a gas boiler, bills will likely stay similar under current tariff caps"4. It adds that "using a heat pump flexibly in conjunction with a smart tariff could save up to £600 per year compared to using a standard electricity tariff"4.
On radiator requirements, the report states that "homes with high-temperature heat pumps, which operate at around 60 ℃, are less likely to need radiator upgrades", though "These heat pumps are generally less efficient than low-temperature heat pumps"5. It notes that the £7,500 grants "do not cover radiator replacements", and that underfloor heating installation typically costs between £2,000 and £10,000 depending on the size of the home5.
Why it matters for households
The figures set out here determine how much of a heat pump installation a household may have to fund itself, and how much support is available depending on where in the UK the home is. The grant position differs by nation: the £7,500 Boiler Upgrade Scheme grant covers England and Wales, while Scotland has its own grant and loan arrangements through Home Energy Scotland2. Eligibility for the Boiler Upgrade Scheme is also conditional on the home not having previously received a grant for a heat pump or biomass boiler2.
For a home's energy independence, the running-cost figures matter as much as the upfront grant. A heat pump shifts heating from gas, oil or LPG onto electricity, and Nesta's figures indicate that the size of any saving depends on the system being replaced and the tariff used4. Households switching from oil, LPG or electric heating are described as likely to see savings, while those moving from a gas boiler are told bills will likely stay similar under current tariff caps4. The report also points to solar panels, battery storage and pre-heating during off-peak times as ways to lower costs further4. For homes considering wider measures, the site's guides cover grants and funding for solar panels and grants and funding for home battery storage, alongside the broader picture in grants, schemes and household energy independence.
What happens next
No dated next steps are set out in the report. Nesta describes the list as reflecting grants and loans "currently available" as of publication on 21 January 20252. No further announcement or update date has been reported.
Sources5 cited
- What homeowners want to know about heat pumps: data-driven FAQs | Nesta, nesta.org.uk
- Am I eligible for a grant to get a heat pump installed? | Nesta, nesta.org.uk
- Am I eligible for a grant to get a heat pump installed? | Nesta, nesta.org.uk
- What will my energy costs look like with a heat pump? | Nesta, nesta.org.uk
- Will I need bigger radiators or underfloor heating? | Nesta, nesta.org.uk