Heat Pumps Grant Scotland

Get 100% grant funding for an air source  heat pump and solar panels in Scotland through the ECO 4 Scheme

Eligible Scottish households can now claim 100% grant funding for free heat pumps and solar panels. ECO is a government-backed energy efficiency grants scheme in Scotland designed to help reduce energy bills and lower carbon levels.

Free heat pump grant scotland

Free Heat Pump Grants in Scotland

Government grants for free heat pumps in Scotland are now available through the updated Energy Company Obligation (ECO) scheme.

Households who claim specific benefits in rural areas can now claim 100% grant funding to install new a new heat pump and insulation free of charge.

Energy efficient heating

With domestic heating being responsible for up to 33% of carbon emissions in Scotland, the new ECO4 grant scheme is designed to make these homes more energy efficient by providing effective wall insulation and upgrading their heating systems to a free air source heat pump.

Heat pumps are a new type of  energy efficient heating system that use heat from the outside air or ground to provide hot water for your central heating and taps inside your home.

Generally, heat pumps can be split into two categories: ground source – where heat is drawn from the ground, and air source – where heat is collected from the ambient air and compressed to provide heating for your home. Currently government grants are only available for free air source heat pumps in Scotland.

Grants for free heat pump in Scotland
Rural heating grants scotland

Fuel Poverty In Rural Scotland

The Scottish Government estimates that 67% of rural properties in Scotland are off the gas grid. The majority of these homes are heated by oil, LPG or electric heating. A large percentage of these properties are also stone built and have inadequate insulation. Historically properties which fall into this category are amongst the worst in terms of carbon dioxide emissions.

Fuel poverty in rural Scotland

The Scottish Government’s Scottish Fuel and Poverty Statement (2002) determines that a family is living in fuel poverty if more than 10% of household income is spent on heating their home to an acceptable and comfortable level. Citizens Advice Scotland.

In addition to increasing fuel costs, rural areas are more typically more succeptible to extreme weather and lower average earnings. All of this contributes to a necessary action plan to provide cheaper and lower carbon heating systems in Rural Scottish homes. 

Heat pumps are a low carbon alternative to traditional fossil fuel boilers. They are cheap to run and can substantially reduce heating costs in all property types.


Introduction Of Heat Pump Grants

Heat pumps are a low carbon heating system that absorb heat from the outside air or ground to provide hot water for your central heating and taps inside your home.

Generally, heat pumps can be split into two categories: ground source – where heat is drawn from the ground, and air source – where heat is collected from the ambient air and compressed to provide heating for your home. Currently government grants are only available for free air source heat pumps in Scotland.

How do air source heat pumps work?

Air to water heating is more energy efficient than traditional fossil fuel because no fuel source is required. Traditional boilers require a combustible fuel source which is passed through a burner and heat exchanger to provide hot water for your system. When fuel such as oil, gas or LPG is burnt it releases harmful emissions into the environment,

Heat pumps do not requre a fuel source. They absorb moisture from the outside air and compress it to provide heat. The heat energy they provide is up to 4 or 5 times the energy they use to power the system.

Typically an air source heat pump generates four times more energy than it uses, so it is 400% energy efficient. Most gas boilers, for example are between 70% and 90% efficient. 


How much can I save on energy bills with a free heat pump grant?

Potential annual savings of installing an air source heat pump in an 4 bedroom detached house, with radiator upgrades if needed.

Heating TypeElectric Storage HeatersOil BoilerLPG BoilerCoalOlder Gas Boiler
Annual SavingsUp to £1900Up to £2200Up to £3400£415£910
CO2 Savings kg/yearUp to 3400Up to 8500Up to 6500120006000

Figures are based on domestic energy prices as of April 2022. Any savings made depend on your existing fuel type and age of your heating system. Energy Savings Trust

How do heat pump grants in Scotland Work?

Property eligibility

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 ECO focused on energy efficiency measures like cavity wall and loft insulation. Some funding has been available in previous years to replace gas boilers.

From July 2022 until March 2026 ECO will focus on 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. Funding is also available for 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.

Insulation and heat pumps

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.

New occupant eligibility for heating and insulation grants

Homeowners and private tenants in rural areas wh live in properties that meet the criteria 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
  • Income Support
  • Universal Credit
  • Housing Benefit
  • Income based ESA
  • Income based JSA
  • Pension savings Credit
  • Pension Guarantee Credit
  • Warm Homes Discount
  • Child Benefit (Family Allowance Payments)*

Families who claim child benefit must meet the maximum income per household limits in the table below to be eligible for ECO4 grant funding

Number of childrenSingle claimantMember of a couple
4 +£34,500£42,000

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.


How do I apply for a free heat pump in Scotland?

Contact Us

If you live in a rural Scottish postcode and a member of your household claims one of the qualifying benefits you may be eligible for a free heat pump. 

Fill out our contact form below or on our main contact us page and provide us with a few details to get started.

Arrange a free survey

If you meet the eligibility criteria we will contact you to arrange a free heat pump survey and home energy assessment. We still need to carry out a few checks at your property to determine if it has adequate insulation and ventilation to see if it is suitable for a heat pump.

If  your home needs any improvements these can also be installed for free through the grant scheme.

Heat Pump Grant Scotland FAQ
Is there government support to install a heat pump in Scotland?

The Scottish Government provides interest free loans of up to £10,000 for homeowners to help with the cost of installing an air source heat pump. The loans can be accessed through the Home Energy Scotland web portal.

Are there grants for free heat pumps in Scotland?

The Energy Company Obligation scheme provides 100% funding for homeowners and private tenants in England, Scotland and Wales. If your property is suitable and you meet the benefit eligibility criteria you can replace your existing boiler and central heating system free of charge with no repayment required.

Will an air source heating reduce my energy bills?

The savings you will make by installing a heat pump depends on your existing heating type and age.  If you already have a condensing gas boiler the switch may not be worthwhile. However homes that are off the gas network and are heated by electric heaters, oil and LPG radiators should notice a substantial reduction domestic energy bills. You will also greatly reduce your carbon footprint.

Is my home suitable for a heat pump?

Air source heat pumps are sutable for most properties as they don’t take up much space. They can easily be fitted in most gardens. To qualify for a non-repayable grant your property must be fully insulated to prevent heat loss, as your water will not be heated to the same temperature as it would by a traditional boiler.

Why are heat pumps more energy efficient than most boilers?

Traditional fossil fuel boilers have an energy efficiency rating of between approximately 70% – 90%. Air source heat pumps can generate 4-5x the heat energy (kw) that they use in electricity. Therefore they are up to 400%-500% efficient.

Additionally a heat pump is a sustainable form of heating your home and is much more environmentally-friendly They don’t burn a fuel source. They absorb heat from the air which is replaced by the sun and is therefore totally renewable.

Can I get a first time central heating grant?

If your home is currently heated by electric storage or panel heaters you may be eligible for a first time central heating grant. Providing you meet the eligibility criteria this grant would cover the cost of air source central heating. This would include the price of new radiators and heating controls.



About Us

Heat-pump.org.uk 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.

Heat-pump.org.uk 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

M-F: 8am-5pm, S-S: Closed

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.

Free Heat Pump Grant Scheme in Scotland

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 in Scotland escape fuel poverty.