Get a government grant for a free heat pump

Free heat pump grants through the Government backed Energy Company Obligation Scheme

ECO is a government-backed energy efficiency grant scheme designed to reduce energy bills and lower carbon levels. Eligible households can claim 100% grant funding for free solar panels, heat pumps and home insulation.

Government heat pump grant scotland

ECO Government Heat pump grant scheme

Free heat pump grant scheme

The government backed Energy Company Obligation provides funding for heating grants for low income households who live in rural areas.

The scheme provides access to 100% insulation and heat pump grants for properties in England, Scotland and Wales that are off the gas grid and which are subsequently heated by oil, electric or LPG heating.

Government heating grants for rural properties

Thousands of rural properties have thus far not benefited from previous grant schemes as they are stone built and many have oil or LPG central heating. Earlier versions of the government grant scheme focused on energy efficiency measures like cavity wall and loft insulation. Government grant funding has also been available in previous years to replace gas boilers.

From July 2022 until March 2026 ECO will focus on off gas rural properties which are currently heated by oil or LPG central heating. There will also be limited funding for first time central heating systems for electric and solid fuel heated properties.

Grants are also available for some properties which have non-condensing gas boilers which are over 20 years old.

If your home falls into one of these categories and you live in a rural area, you may be eligible to have a new air source heat pump installed completely free of charge.

As with other heat pump schemes like the Renewable Heat Incentive (RHI), your property must meet the minimum insulation requirements before a new central heating system is installed with a grant.

If your property needs solid wall insulation and roof insulation this will also need to be installed for free along with a heat pump. All heating syetems will inslude smart controls and room thermostats to improve the overall energy efficiency of your home.

Goovernment grants for heat pumps – eligibility

Homeowners and private tenants in rural areas who live in off gas properties are considered eligible for an ECO grant if a member of the household claims one of the following benefits –

  • Working Tax Credits
  • Child Tax Credits
  • Child Benefit
  • Income Support
  • Universal Credit
  • Housing Benefit
  • Income based ESA
  • Income based JSA
  • Pension savings Credit
  • Pension Guarantee Credit
  • Warm Homes Discount

It must be noted that in addition to occupant grant eligibility a property meet the minimum insulation requirements for heat pump installation and must fall within a postcode area determined as rural.

Government heating grants in England & Wales

The Boiler Upgrade Scheme

Government grants for heating upgrades are available from 2022 until 2025. The grants are in place to  encourage homeowners to install lower carbon heating systems such as heat pumps. These grants can help property owners with the cost of low carbon heating technologies.

The scheme is open to domestic and smaller non-domestic properties in England and Wales. It runs from 2022 to 2025

How do the grants work?

You can get:

  • £5k off the cost and installation of an air source heat pump
  • £5k off the cost and installation of a biomass boiler
  • £6k off the cost and installation of a ground source heat pump

You can only get on BUS grant per property, although you may still be eligible if you have already had a government grant for insulation or windows.


Owner eligibility

You may be eligible for a heating grant if you:

  • live in England or Wales
  • own your property (whether this is a home or a small non-domestic property)

Private landlords and second-home owners are eligible.

Property eligibility

The scheme is open to domestic and small non-domestic properties with:

  • an installation capacity up to 45kWth (this covers most homes)
  • a current energy performance certificate, with no outstanding recommendations for loft or cavity wall insulation

Excluded properties

Grants are not available for:

  • social housing
  • new build properties (apart from certain self-builds)
  • properties that have already had government funding or support for a heat pump or biomass boiler

Grants are only available for:

  • air source heat pumps
  • biomass boilers
  • ground source heat pumps (including water source heat pumps and those on shared ground loops)

Hybrid heat pump systems, for example a combination of a gas boiler and air source heat pump, are not eligible.

Your installer will advise which heating system is suitable for your property and help you to understand the different options.

The new heating system must:

  • have been commissioned (that is, installed and fully checked by your installer) on or after 1 April 2022
  • be capable of meeting the full space heating and hot water requirements of your property
  • replace an existing fossil fuel heating system (such as oil, gas or electric)
  • meet certain technical standards, such as minimum efficiency requirements (your installer can advise you on these)

Biomass boilers

The grant will only cover biomass boilers:

  • if you live in a rural property
  • in properties which are off the gas grid
  • with an emissions certificate showing that polluting emissions are kept to a minimum

See the Ofgem guidance if you’re not sure if your property is in a rural location.

Apply for a free heat pump and insulation

All properties must be fully insulated before an air source heat pump is installed for free.  If your home insulation needs upgraded this will also be covered by a government grant. However it is a prerequisite to getting a new heat pump.



About Us a resource for accessing energy grants. We have been at the forefront of providing Scottish and UK households with access to insulation and heating grants for over 10 years. Our network of heat pump installers are fully accredited and part of the new Government Trustmark Scheme. is part of ECO GEN LIMITED
Company Registration Number:  SC657568
VAT Registration Number: 374954454

0800 002 9528

13 Glensax Road Peebles Scottish Borders EH45 9AP

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Trustmark Heat pump installers

Trustmark Heat Pump Installers

Our network of heat pump installers and insulation contractors are Trustmark registered. Trustmark is a new body set up by the government to ensure quality of workmanship amongst contractors and installers for the ECO Grant scheme. Find out more about Trustmark heating installers.

Government ECO Grants

The Energy Company Obligation is a government-backed scheme which aims to help meet Net Zero targets. 30% of carbon emissions in the UK are caused by domestic boilers and heating systems. Grants for free heat pumps, insulation and solar panels are seen as a major contributor to reducing harmful emissions and helping lower income families escape fuel poverty.