Funding

Government boiler upgrade scheme - Heat pumps

The government has pledged over £50 million of targeted financial support, helping low-income households in rural communities with the cost of heating their homes.

If you rely on heating oil and think you might qualify for this support. The government also confirmed that households using heating oil or liquefied petroleum gas (LPG) would be eligible for a new £9,000 grant to upgrade to a heat pump.

A heat pump heats your home using electricity. It works like a fridge in reverse, taking heat from the air or ground, increasing it to a higher temperature and transferring it to your home to provide heating and hot water. And because they run on electricity, there is potential to make bill savings by using smart energy tariffs with cheaper off-peak rates.

Heat pumps are increasingly popular in the UK, with over 80,000 sold in 2024, a record year and an increase of 51% on the year before. This new £9,000 grant is available through the government's Boiler Upgrade Scheme .

Eligibility

You will need to meet the following criteria:

  • You must own the property, whether it is your main home or a property you rent out.
  • Your property must not be connected to the gas grid.
  • You must use heating oil or liquefied petroleum gas (LPG) to heat your home.
  • Your property must be located in England or Wales.

How to get the £9,000

You will need a quote from a Microgeneration Certification Scheme (MCS) installer.

If you decide to go ahead, the installer will then apply for the grant on your behalf.

Whether a heat pump is right for you

Try the government's heat pump checker tool to see if a heat pump could be a good option for your next heating system. Most UK homes are suitable - your best option depends on your space and home layout.

You could also visit a heat pump. Connect with local heat pump owners near you with Nesta and hear about people's experiences directly.

Great British Energy's Community Fund

The Community Fund is worth £20 million. You can apply if you are a community organisation set up to run energy projects for local benefit. You must be a legally constituted, incorporated community organisation based in England, Wales or Northern Ireland. Your project must be designed to be at least 50% community owned when operational.

The application window is open for 8 weeks, the deadline is 12 November.

Funding is available at three stages:
  • Stage 1: Feasibility. Up to £40,000 to test whether your project idea is viable.
  • Stage 2: Development. Up to £100,000 to turn a viable idea into an investment-ready project.
  • Stage 3: Capital. Up to £3 million, or 50% of total project value, to help a construction ready project bridge the remaining funding gaps.

Please visit the Great British Energy Community Fund for more information, including their guidance document.