Heat pump financing: What’s available for homeowners?

Keeping your home warm is essential – but it can also be expensive. If you’re looking for a way to cut heating bills, upgrading to a heat pump could be the solution.

Heat pumps are typically cheaper to run than older gas or oil boilers, and there’s good news for homeowners: you don’t have to cover the upfront cost of installation alone. Across the UK, there are government grants and funding schemes to help. Here’s what’s available in your area.

England and Wales: Grants up to £7,500 for heat pumps

Homeowners in England and Wales can get up to £7,500 towards a heat pump installation through the Boiler Upgrade Scheme. This government-backed scheme is designed to help households switch from fossil fuel heating to cleaner, more efficient alternatives. The scheme runs until April 2028, so there’s still time to apply.

How do I know if I’m eligible for the Boiler Upgrade Scheme?

To apply for the Boiler Upgrade Scheme, you must:

• own your own home
• currently have a fossil fuel heating system (like a gas boiler) or an electric heating system without a heat pump
• have a valid Energy Performance Certificate (EPC) issued in the last 10 years
• use an approved installer who is certified by the Microgeneration Certification Scheme (MCS)

If you live in a rural area and are considering a biomass boiler, there are extra eligibility rules.

How do I apply for the Boiler Upgrade Scheme?

Your installer applies for the grant on your behalf, so you don’t need to worry about paperwork. The grant is automatically deducted from your bill, making the process simple.

Scotland: What heating support is available?

The Home Energy Scotland Grant and Loan can provide you with up to £15,000 in financial support.

Heat pump funding

• up to £7,500 as a grant
• an additional £7,500 interest-free loan available
• rural and island homes can receive an extra £1,500 grant
• up to £15,000 available for biomass boilers

Energy saving funding

Further funding is available for other energy saving measures, like insulation.

• Funding covers 75% of the cost of upgrades, with up to £7,500 as a grant.
• The remaining cost could be covered with an interest-free loan for eligible homeowners.

For homeowners in rural areas, total grant funding could reach £18,000, making it easier to install energy-saving upgrades.

Funding in Northern Ireland

While the same schemes don’t run in Northern Ireland, there are various energy saving grants depending on your area. Visit NIDirect, the official government website for Northern Ireland citizens, to find out more about what’s available.

Need extra support? Lendology can help

If you’re thinking about upgrading your home’s heating but need extra financial support, a local council funded could help.  At Lendology, we work with local councils to provide affordable home improvement loans—helping homeowners like you make energy-saving upgrades without the financial stress.

Why choose Lendology?

We offer:

• Low rate, fixed-interest loans 
• Support from a trusted social enterprise lender

Switching to a heat pump could cut your energy bills and make your home more comfortable year-round. If you’re a homeowner in England or Wales and are ready to understand your options, explore our energy efficiency loans or speak to your local council about available funding.

Representative Example (4% fixed interest rate, Representative 4.2% APR).

Loans are subject to status and are typically protected by a Title Restriction.

Borrow £5,000 over 60 months, £92.08 monthly repayments. Total amount repayable = £5,544.96, including £20 fee for registering the Title Restriction against your property at the Land Registry. The £20.00 fee is only payable if a loan is agreed by Lendology and you decide to proceed with a loan. We do not charge interest on the fee. A Title Restriction means that you may not be able to sell your home without our permission unless the loan is fully repaid. This is a financial promotion approved by Lendology CIC. Missing payments could affect your credit rating and ability to obtain credit in the future.