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Government Boiler Upgrade Scheme (BUS Grant): How Air Source Heat Pumps Can Save You Money

  • Olivia Paget
  • Oct 16
  • 2 min read
Grant Black Air Source Heat Pump

If you're a homeowner in Bristol considering an air source heat pump, now is an ideal time to make the switch. With the UK Government's Boiler Upgrade Scheme (BUS) offering grants, a 0% VAT rate on installations, and mortgage lenders providing additional incentives, upgrading to a renewable heating system has never been more affordable.


1. Boiler Upgrade Scheme (BUS): £7,500 Grant


The Boiler Upgrade Scheme provides upfront capital grants to encourage property owners to replace existing fossil fuel heating with more efficient, low-carbon heating systems, including air source heat pumps.


  • Grant Amount: £7,500 towards the cost and installation of an air source heat pump.

  • Eligibility: Homeowners and landlords in England and Wales.

  • How It Works: The grant is applied directly through your installer, reducing the amount you pay upfront.


For more information and to apply, visit the official Boiler Upgrade Scheme page on GOV.UK.


How the BUS Grant Works

  1. Check eligibility: Ensure your home qualifies for the scheme and that you’re installing a government-approved heat pump.

  2. Get a quote: Work with a certified installer like Bristol Renewable Heat to get a full installation quote.

  3. Apply for the grant: The grant is applied directly through your installer, reducing the amount you pay upfront.

  4. Installation and payment: Once installed, the grant covers £7,500 of the total cost, meaning your investment is significantly lower.



2. 0% VAT on Air Source Heat Pump Installations

From 1 May 2023 to 31 March 2027, the UK Government has introduced a 0% VAT rate on the installation of certain energy-saving materials, including air source heat pumps, in domestic properties.


  • Benefit: No VAT is charged on the installation costs, reducing the overall expense.

  • Note: This applies to the installation service; the equipment itself may still be subject to VAT.


For detailed information, refer to the VAT Notice 708/6 on GOV.UK.


3. Mortgage Lender Incentives: Up to £2,000 Cashback

Several mortgage lenders are offering incentives to encourage homeowners to install energy-efficient systems like air source heat pumps.


Lloyds Bank and Halifax

  • Offer: £2,000 cashback for qualifying mortgage customers who install a heat pump.

  • Additional Benefit: Free Energy Performance Certificate (EPC) upon installation.

  • Eligibility: Available to mortgage, savings, investment, or insurance customers.


For more details, visit the Lloyds Bank Eco Home Hub or the Halifax Green Living Offers.


Other Lender Offers

  • HSBC: Up to £500 cashback for homes with an EPC rating of A or B.

  • NatWest: Discounted mortgage rates for homes with an EPC rating of A or B.


Why Choose Bristol Renewable Heat

At Bristol Renewable Heat, we specialise in air source heat pump installations. Here's how we can assist you:


  • Eligibility Assessment: We help determine if you qualify for the BUS grant.

  • Application Submission: We apply for your application on your behalf

  • Expert Advice: We will design a system for maximum efficiency, ensuring your home gets the best performance and energy savings from your heat pump.

  • Seamless Installation: Our team ensures a smooth installation process, adhering to all regulations.


Let's Chat!

With the combination of the £7,500 BUS grant, 0% VAT on installations, upgrading to an air source heat pump in Bristol is more affordable than ever. Contact us today to explore your options and start your journey toward a more energy-efficient home.



 
 
 

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