What are heat pumps?
Heat pumps are innovative, energy-efficient systems that extract thermal energy from the environment-air, ground, or water-and convert it into heating for your home and hot water. Unlike conventional heating systems that generate heat by burning fuel, heat pumps transfer existing heat, making them far more sustainable. Air source heat pumps are the most common type, especially suited to the Welsh climate, while ground source heat pumps are an excellent option for properties with ample outdoor space.
Why are heat pumps gaining popularity in Wales?
In recent years, there has been a significant push across Wales to reduce carbon emissions and promote sustainable living. With heating accounting for a substantial portion of household emissions, replacing old systems with low-carbon alternatives like heat pumps has become a key priority. The Welsh Government’s commitment to achieving net-zero carbon emissions by 2050 has accelerated this movement, leading to an increase in public awareness, government support, and funding opportunities.
The importance of grants and financial support
While heat pumps are cost-effective in the long term-often reducing energy bills by 25–40%-the upfront cost can be daunting. Installation can range from £7,000 to £14,000 depending on the type and property requirements. Fortunately, government grants and schemes are in place to help homeowners cover these initial expenses, making sustainable heating a realistic goal for more people across Wales.
Overview of Heat Pump Grants in Wales
What are heat pump grants?
Heat pump grants are financial incentives designed to make it easier for homeowners to adopt low-carbon heating solutions. These grants can come in the form of lump-sum payments, installation subsidies, or full funding in specific cases. By lowering financial barriers, these grants support the UK’s broader climate goals while helping households save money.
Who provides these grants?
In Wales, heat pump grants are available through several channels:
- The UK Government (e.g. via Ofgem or DESNZ)
- The Welsh Government (e.g. the Nest scheme)
- Local authorities and councils
- Energy suppliers (e.g. British Gas, Octopus Energy)
- Partner organisations and charities working on energy efficiency
Types of grants and financial incentives available
The most common grants include:
- Boiler Upgrade Scheme (BUS): Replaces fossil fuel systems with low-carbon alternatives.
- Nest (Welsh Government): Focuses on supporting low-income households.
- ECO4 Scheme: Provided by energy suppliers, aimed at vulnerable households.
- Local authority schemes: Often run limited-time programmes for specific regions or demographics.
- Private and supplier-led promotions: Sometimes offer cashback, discounts, or financing options.
Government Support and National Schemes
The Boiler Upgrade Scheme (BUS)
What is the BUS?
The Boiler Upgrade Scheme is a UK-wide initiative managed by Ofgem and backed by the Department for Energy Security and Net Zero (DESNZ). It helps property owners in England and Wales switch from fossil fuel systems to greener alternatives like air and ground source heat pumps.
How much funding is available?
The scheme offers:
- £7,500 towards the cost of an air source heat pump
- £7,500 towards a ground source heat pump. This funding is paid directly to your installer, reducing the amount you pay upfront.
Eligibility criteria for homeowners in Wales
To be eligible, you must:
- Own the property (private homeowners or landlords)
- Replace an existing gas, oil, LPG, or electric heating system
- Have a valid EPC with no outstanding loft or cavity wall insulation recommendations
- Use an MCS-certified installer. New builds (except self-builds) are not eligible.
The Nest Scheme (Welsh Government)
Overview and aims
Nest is the Welsh Government’s flagship energy efficiency programme. It offers free energy-saving home improvements, including heat pumps, for eligible households. The scheme aims to reduce fuel poverty and lower energy bills.
Who qualifies?
You may be eligible if:
- You own or privately rent your home
- Your home is energy inefficient
- You or someone in your household receives a means-tested benefit (e.g. Universal Credit, Pension Credit)
- Your annual household income is below a certain threshold
How to apply
You can apply by:
- Calling the Nest helpline (0808 808 2244)
- Visiting the Nest website to fill out a short application
- Booking a home energy assessment to determine eligibility and appropriate upgrades
Local Authority and Council-Specific Schemes
Examples of local incentives
Some councils in Wales run local energy efficiency schemes or participate in UK-wide projects. For example:
- Cardiff Council has partnered on renewable pilot programmes.
- Carmarthenshire and Gwynedd have run community energy projects offering additional grants.
How to check what’s available in your area
Visit your council’s website or contact their energy efficiency officer. Schemes may change based on funding cycles and local priorities.
Private and Energy Supplier Heat Pump Grants In Wales
ECO4 Scheme (Energy Company Obligation)
How it works
ECO4 is a government-mandated scheme requiring large energy suppliers to improve the energy efficiency of homes. It focuses on supporting low-income and vulnerable households through fully or partially funded improvements, including the installation of heat pumps.
Eligibility in Wales
Eligibility is based on:
- Receiving qualifying benefits (e.g. Income Support, Housing Benefit)
- Living in social housing or private homes with low EPC ratings (E, F, or G)
- Being referred through the LA Flex route (local authority flexible eligibility)
Energy supplier contributions and offers
British Gas, Octopus Energy, etc.
Some suppliers run their own heat pump programmes, offering subsidies, free surveys, or flexible finance plans. Octopus Energy, for example, has gained attention for offering discounted heat pump installations to eligible customers.
Compatibility with other schemes
While it’s possible to combine some incentives, many grant schemes prohibit double funding. It’s essential to confirm compatibility before applying. Green Homes Group can help you navigate this.
Who Can Apply for a Heat Pump Grant in Wales?
Homeowners vs tenants
Most grant schemes target homeowners and private landlords. Tenants are generally ineligible unless their landlord agrees to apply on their behalf.
Income and benefit-based eligibility
Schemes like Nest and ECO4 focus on households receiving income-related benefits or with limited financial means. You may need to provide documentation, such as benefit letters or bank statements.
Property type and EPC considerations
A property’s suitability is assessed by looking at:
- Insulation levels (walls, loft, floor)
- Existing heating system
- EPC rating (D or lower is often preferred for funding). If upgrades are required, schemes may offer support for those improvements before installing a heat pump.
Step-by-Step Guide to Applying for a Heat Pump Grant
- Step 1 – Check your eligibility: Begin by reviewing the eligibility criteria for schemes like BUS, Nest, and ECO4. This can be done via their official websites or by consulting with a grant advisor.
- Step 2 – Book a home survey: A home survey is essential. It provides:
- An assessment of your current heating system
- An evaluation of your EPC and insulation status
- Advice on which schemes you qualify for. Green Homes Group offers free home surveys to help you get started.
- Step 3 – Choose a certified installer: Choose an MCS-accredited installer. This ensures:
- The system meets technical standards
- The installer is experienced with grant applications. Green Homes Group can introduce you to reliable installers in our trusted network.
- Step 4 – Submit your application: Depending on the scheme, you or your installer may submit the application. Ensure:
- All documents are accurate and complete
- You include your EPC certificate
- You get confirmation of application receipt
- Step 5 – Installation and claiming the grant. Once approved:
- Installation will be scheduled
- The grant will usually be paid directly to the installer
- You may receive documentation for warranty and maintenance
Book Your Free Home Survey with Green Homes Group
How a home survey helps determine eligibility
A detailed home survey identifies whether your home is suitable for a heat pump and whether you qualify for available grants. It also highlights any necessary insulation upgrades that may be required before installation.
Why choose Green Homes Group?
Green Homes Group is a trusted advisor specialising in helping homeowners unlock energy efficiency funding.
- Independent advisors, not installers: We offer impartial, personalised advice. We don’t install heat pumps ourselves, so our only goal is to help you find the best option for your home.
- Access to a trusted installer network: We’ve vetted a network of certified, reputable installers across Wales. This gives you peace of mind and ensures quality workmanship.
- Help with paperwork and applications: From checking eligibility to guiding you through complex application forms, we offer hands-on support every step of the way.
How to book your free survey
You can book a free survey by:
- Visiting our website and filling out the booking form
- Calling our customer support line
- Emailing us directly with your contact details
There is no obligation-just helpful, friendly advice to start your journey.
Common Questions About Heat Pump Grants in Wales (FAQ)
Can I get a heat pump grant if I live in a rural area?
Yes. In fact, homes in off-grid rural areas are often prioritised for grants like BUS and Nest because they typically rely on more expensive fuels like oil or LPG.
Are air source and ground source heat pumps both covered?
Yes. Most schemes cover both, but the level of funding may differ. Ground source heat pumps tend to be more expensive and may require additional eligibility checks.
How long do applications take to process?
It varies:
- BUS: Usually 2–4 weeks
- Nest: Typically within 4–6 weeks from assessment
- ECO4: May take up to 2–3 months due to referrals and approvals
Can I combine different grants?
You usually cannot combine major schemes like BUS and ECO4. However, some smaller local grants or supplier offers may be used in conjunction with national funding. Always confirm before proceeding.
What if I’ve already installed a heat pump?
Most schemes require pre-approval. Retroactive claims are rarely allowed, so it’s best to apply before starting any work. If you’ve already installed one, check with an advisor to explore any post-installation incentives.
Benefits of Installing a Heat Pump in Wales
- Lower energy bills: Switching to a heat pump can significantly cut heating costs, especially if you’re currently using oil, LPG, or electric systems.
- Reduced carbon emissions: Heat pumps emit significantly less CO2 than gas or oil boilers. Switching helps Wales move closer to its carbon reduction targets.
- Increased home value: Energy-efficient homes are increasingly in demand. Installing a heat pump, along with improving insulation, can boost your home’s resale value.
- Long-term savings with grants: By reducing upfront costs, grants shorten the payback period, making the investment more attractive and financially viable.
Potential Barriers and How to Overcome Them
Upfront costs (even with grants)
Even with a grant, some cost remains. To manage this:
- Consider finance options
- Apply for insulation grants first
- Work with advisors to reduce costs wherever possible
Property suitability
Some properties, especially older homes, may need insulation or radiator upgrades. A survey can identify cost-effective fixes to make your home heat pump-ready.
Misinformation and confusion around eligibility
Rules can be complex and differ by scheme. Green Homes Group offers clear, no-jargon advice to help you navigate the process.
Finding trustworthy installers
We connect you with reliable, MCS-accredited professionals who meet high standards of quality and service.
Final Thoughts: Take Advantage of Heat Pump Grants in Wales
Why act now?
With climate targets looming and generous grants available, now is the perfect time to invest in greener heating. Funding won’t last forever, and early adopters will benefit most.
Green Homes Group can help simplify the process
We’re here to guide you from your first question to final installation. Our free surveys, eligibility advice, and installer network make the process smooth and hassle-free.
Ready to make your home warmer and greener? Book your free home survey with Green Homes Group today and take the first step towards securing your heat pump grant.
