Heat Pump Grants 2025: Complete Guide to BUS Funding & Installation
12 February 2025
7 min read
CRG Direct Team

Heat Pump Grants 2025: Complete Guide to BUS Funding & Installation

Everything you need to know about heat pump grants in 2025. Get up to £7,500 towards your air source heat pump installation through the Boiler Upgrade Scheme.

Heat Pump Grants 2025: Your Complete Guide

The UK government's commitment to net-zero by 2050 has made 2025 an exceptional year for heat pump adoption. With enhanced grant funding and simplified application processes, there's never been a better time to switch from gas boilers to efficient heat pump technology.

What's New for Heat Pump Grants in 2025?

Increased Grant Amounts

The Boiler Upgrade Scheme (BUS) now offers:

  • £7,500 for air source heat pumps (increased from £5,000)
  • £7,500 for ground source heat pumps
  • £5,000 for biomass boilers

Extended Scheme Duration

  • BUS extended until 2028 (originally ending 2025)
  • Increased annual budget to meet growing demand
  • Simplified application process with faster approvals

Understanding the Boiler Upgrade Scheme (BUS)

The BUS is the primary government grant for heat pump installations in England and Wales. Here's everything you need to know:

Eligibility Requirements

Property Requirements:

  • Must be in England or Wales
  • Existing heating system (not new builds)
  • Valid Energy Performance Certificate (EPC)
  • No outstanding EPC recommendations for loft or cavity wall insulation

Applicant Requirements:

  • Property owner (not tenants)
  • Replacing fossil fuel heating systems
  • Using MCS certified installer (like CRG Direct)

What's Covered?

The grant contributes towards:

  • Heat pump unit cost
  • Installation labor
  • Necessary system modifications
  • Hot water cylinder upgrades
  • Radiator replacements (if needed)

Types of Heat Pumps Available

Air Source Heat Pumps (ASHP)

Most Popular Choice for 2025

  • Efficiency: 300-400% (COP 3-4)
  • Installation time: 2-3 days
  • Running costs: 50-70% lower than gas
  • Best for: Most UK homes with outdoor space

Ground Source Heat Pumps (GSHP)

Maximum Efficiency Option

  • Efficiency: 400-500% (COP 4-5)
  • Installation time: 1-2 weeks
  • Running costs: 60-80% lower than gas
  • Best for: Properties with large gardens

Hybrid Heat Pumps

Flexible Solution

  • Combines heat pump with existing boiler
  • Automatically switches between systems
  • Lower upfront costs
  • Ideal for older properties

The Application Process: Step by Step

1. Property Assessment (Free with CRG Direct)

  • Heat loss calculation
  • Insulation check
  • Radiator sizing assessment
  • EPC verification

2. Quote and System Design

  • Detailed system specification
  • Total cost breakdown
  • Grant value confirmation
  • Expected savings calculation

3. Grant Application

  • We handle the entire process
  • Voucher typically approved within 2-4 weeks
  • Valid for 3 months from issue

4. Installation

  • Professional MCS certified installation
  • Full system commissioning
  • User training provided
  • Warranty registration

5. Grant Redemption

  • We submit completion documents
  • Grant paid directly to installer
  • You only pay the difference

Real Cost Examples for 2025

Typical 3-Bed Semi-Detached Home

  • Total installation cost: £12,000
  • BUS grant: -£7,500
  • Your cost: £4,500
  • Annual savings: £600-800
  • Payback period: 6-8 years

4-Bed Detached Property

  • Total installation cost: £15,000
  • BUS grant: -£7,500
  • Your cost: £7,500
  • Annual savings: £800-1,200
  • Payback period: 7-9 years

Additional Funding Options

ECO4 Scheme

For low-income households:

  • Up to 100% funding available
  • Includes insulation measures
  • Income-based eligibility

Local Authority Grants

Many councils offer additional support:

  • Hampshire County Council Green Homes Grant
  • Portsmouth City Council retrofit scheme
  • Southampton sustainability fund

0% Finance Options

  • Spread cost over 2-7 years
  • No deposit required
  • Quick approval process

Common Myths Debunked

"Heat pumps don't work in cold weather"

Reality: Modern heat pumps work efficiently down to -20°C. Scandinavia has the highest adoption rates globally.

"They're too noisy"

Reality: Modern units are quieter than a fridge (40-60 dB). Planning permission rarely required.

"You need underfloor heating"

Reality: 80% of installations work with existing radiators. Some may need upgrading to larger sizes.

"They're too expensive to run"

Reality: With current electricity/gas prices, heat pumps are 20-40% cheaper to run than gas boilers.

Maximizing Your Heat Pump Efficiency

Pre-Installation Improvements

  1. Insulation upgrades - Reduce heat demand
  2. Draft proofing - Eliminate heat loss
  3. Smart controls - Optimize operation
  4. Solar panels - Generate free electricity

Post-Installation Tips

  • Set consistent temperatures (20-21°C)
  • Use weather compensation
  • Regular filter cleaning
  • Annual servicing

Why Choose CRG Direct?

Our Credentials

  • MCS Certified installer
  • TrustMark registered
  • Which? Trusted Trader
  • 5-star reviews (500+ installations)

Our Process

  • Free property survey
  • No-obligation quotes
  • Grant application handling
  • Professional installation
  • Aftercare support

Frequently Asked Questions

Q: How long does installation take? A: Typically 2-3 days for air source, 1-2 weeks for ground source.

Q: Will I need planning permission? A: Usually not, but we'll check and advise if needed.

Q: Can I keep my existing boiler? A: Yes, hybrid systems are available, though full replacement maximizes grants.

Q: What about hot water? A: Heat pumps provide heating and hot water. We'll ensure cylinder capacity meets your needs.

Act Now: Limited Grant Funding

While the BUS runs until 2028, annual budgets are limited. Last year saw:

  • 40% increase in applications
  • Some months reaching capacity
  • Average 3-week processing times

Next Steps

Ready to secure your £7,500 heat pump grant? Here's how to start:

  1. Free Eligibility Check - Call +44 330 133 2497
  2. Property Survey - Our experts assess your home
  3. Grant Application - We handle everything
  4. Professional Installation - By our certified team
  5. Start Saving - Lower bills from day one

Don't miss out on 2025's enhanced grant funding. With energy prices remaining high and grants at record levels, there's never been a better time to switch to a heat pump.

Get Your Free Heat Pump Assessment or call our team today on +44 330 133 2497 to start your journey to cheaper, greener heating.

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