Air Source Heat Pump Funding in 2025: Eligibility & Key Requirements

 Air Source Heat Pump Funding in 2025: Eligibility & Key Requirements

As the UK works towards achieving its net zero targets, the demand for cleaner, more energy-efficient heating systems is rising. One of the most accessible solutions for homeowners today is the air source heat pump, which offers lower carbon emissions and reduced energy costs.

To encourage widespread adoption, the government is offering a substantial financial incentive through the Boiler Upgrade Scheme. But to make the most of this opportunity, it is important to understand the key requirements around air source heat pump grant eligibility. In this informative and comprehensive guide, we will explain who qualifies, which systems are supported, and how to apply successfully in 2025.

What Is the Air Source Heat Pump Grant?

The air source heat pump grant is part of the Boiler Upgrade Scheme (BUS), launched in April 2022 and now extended through 2028. It offers you upfront financial support to homeowners who are replacing fossil fuel systems with low-carbon alternatives. The grant provides £7,500 towards the installation of an air source heat pump.

Unlike reimbursement schemes, this grant is paid directly to your installer and subtracted from your final bill. This helps reduce the cost and simplifies the upgrade process.

Who Is Eligible?

Before considering the installation, it is important to understand the core eligibility rules. This applies to both homeowners and private landlords. Your property must be located in England or Wales and have a valid Energy Performance Certificate (EPC) that’s no more than 10 years old.

Your home should be well insulated, especially with cavity wall and loft insulation, to help your heat pump work efficiently and lower energy bills. 

The new heat pump must be replacing a fossil fuel or electric-only heating system. Installations must be carried out by an installer who is certified under the Microgeneration Certification Scheme or MCS.

New-build homes are excluded unless you have built the property yourself. If you are a landlord, you must notify your tenants about the heating upgrade.

What Heating Systems Qualify?

ASHP systems must be hydronic (air-to-water) to be eligible under BUS. Air-to-air systems are not eligible. Systems that use a single heating appliance to supply multiple homes are not eligible.In terms of eligible technologies, the scheme prioritises established, low-carbon heating solutions that demonstrably reduce greenhouse gas emissions.

Air Source Heat Pumps (ASHPs)
Air source heat pumps operate by extracting thermal energy from the outside air and converting it into usable heat for domestic space and water heating. Under the current criteria of the Boiler Upgrade Scheme (BUS), only air-to-water heat pump systems are eligible for funding. These systems integrate with a property’s central heating infrastructure, such as radiators or underfloor heating. Air-to-air heat pump systems, which distribute warm air via internal fan units, do not meet the eligibility requirements of the scheme at this time.

What Are the Property Requirements?

Your property must be located in England or Wales and must not be part of a social housing programme. New developments built by property developers are not eligible unless they fall under the self-build category.

Properties undergoing renovation or conversion can be eligible, but they must hold an EPC certificate and meet the same standards as other retrofit projects.

Installer Requirements and Process

The grant application must be made by your MCS-certified installer. They are responsible for creating a BUS account, preparing the paperwork, and submitting the grant application. Once the voucher is issued, it is valid for three months in the case of air source or biomass installations, and six months for ground source systems.

Your installer must apply the grant value upfront, ensuring it is deducted from your quote before any payment is made.

How the Application Works

Once you have selected a certified installer like Infinity, they will assess your home and prepare a quote. If successful, a grant voucher will be issued and the installation can begin. After completion, the installer redeems the voucher and you pay only the reduced balance.

This structure has been designed to make the process as efficient and straightforward as possible for property owners.

Key Changes to Eligibility in 2025

With several policy improvements introduced in 2025, the scheme is now easier to access and more homeowner-friendly than ever. For example, the one-metre boundary rule has been removed, making it easier to install units in smaller gardens or tighter urban plots.

The allowable size for heat pump units has been expanded from 0.6 to 1.5 cubic metres, enabling the installation of larger and more efficient systems. Detached homes are now allowed to install two units where necessary, helping to meet greater heating demand.

Placement rules have also been relaxed, allowing for more installation locations, including properties that face directly onto a highway. These changes reflect the government’s aim to reduce barriers to adoption and support more households in transitioning to low-carbon heating.

Infinity: Helping You Maximise Your Grant

At Infinity, we help homeowners across England and Wales take advantage of the Boiler Upgrade Scheme with confidence and ease. We are fully MCS-certified and have extensive experience in assessing properties, recommending the best systems, and managing the full application process from start to finish.

Our team works with leading manufacturers to install high-performance air source heat pumps that deliver both comfort and long-term savings. We ensure that every aspect of the installation meets the grant’s technical standards and we handle the paperwork so that you don’t have to.

Conclusion

The air source heat pump grant provides a valuable opportunity for homeowners to reduce energy bills and future-proof their heating systems. With a grant of £7,500 available and updated rules that remove common obstacles, it’s now easier than ever to make the switch.

Understanding the current air source heat pump grant eligibility is the first step.