How the Heat Pump Grant Works Step by Step

the government heat pump grant provides a government grant (currently up to £7,500, subject to eligibility) towards the cost of an air source heat pump or ground source heat pump to replace your existing fossil fuel heating system. The grant is available to all homeowners in England and Wales – there is no means test, no income threshold and no benefits requirement. You do not apply for the grant yourself; your qualified installer applies on your behalf as part of the installation process. The scheme runs until at least March 2028 and has been one of the most successful heat pump incentives in the UK.

Despite the grant being worth a significant amount, many Lancashire homeowners find the process confusing or worry about hidden complications. The reality is straightforward, but there are specific steps and requirements you need to follow. Here is the complete process from start to finish.

Am I Eligible?

The eligibility criteria are simpler than most people expect:

• You own the property (owner-occupier or landlord). The scheme does not cover social housing – that has separate funding routes.
• The property is in England or Wales.
• You are replacing a fossil fuel heating system – gas boiler, oil boiler, LPG boiler, coal or electric storage heaters. You cannot use the grant for a new-build property or to replace an existing heat pump.
• The property has a valid EPC with no outstanding loft or cavity wall insulation recommendations. If your EPC recommends loft insulation, you need to install it before or at the same time as the heat pump. If it recommends cavity wall insulation, the same applies – unless a surveyor deems the insulation unsuitable for your property.
• The property has not previously received a government grant scheme voucher.

Notably, there is no income or savings threshold. Whether you earn £20,000 or £200,000, you qualify. The grant amount is the same for everyone: £7,500 for an air source or ground source heat pump.

Step 1: Get an EPC (If You Do Not Have One)

Check whether your property has a valid EPC by searching the government EPC register with your postcode. EPCs are valid for 10 years. If you do not have one, or it has expired, you need to get a new one. An EPC assessment costs £60-£120 and takes about an hour.

Look carefully at the recommendations section of your EPC. If it recommends loft or cavity wall insulation, you need to address these before a government grant scheme voucher can be issued. In Lancashire, many older homes have EPC recommendations for loft top-up or cavity wall insulation that can be done cheaply (£300-£800 for loft insulation, £800-£2,500 for cavity wall insulation) or for free through government energy efficiency schemes if you are on qualifying benefits.

Step 2: Find a qualified installer

The installer must be qualified (installer certification scheme) to apply for the government grant on your behalf. Only qualified installers can access the voucher system. You can search for qualified installers in your area on installer directories.

Get at least three quotes from different installers. In Lancashire, there is a growing number of qualified heat pump installers, but demand is high so book early. Expect to wait 4-12 weeks between initial contact and installation, depending on the installer’s schedule.

A good installer will:

• Visit your property to assess suitability
• Calculate your heat loss and recommend an appropriately sized heat pump
• Advise on any radiator upgrades or insulation needed
• Provide a detailed written quote showing the total cost, the government grant deduction and your net cost
• Explain the running costs you can expect

Step 3: Accept a Quote and Sign the Contract

Once you have chosen an installer and accepted their quote, you sign a contract. The quote should clearly show:

• Total installation cost (e.g. £12,000)
• government grant amount (£7,500)
• Your contribution (e.g. £4,500)
• What is included (heat pump unit, installation, radiator upgrades, hot water cylinder, controls, commissioning)
• Timeline for installation
• Warranty terms

You should never be asked to pay the full amount upfront. A reasonable deposit (10-20% of your contribution) is normal, with the balance due on completion.

Step 4: The Installer Applies for the Voucher

After you sign the contract, your installer applies for a government grant scheme voucher through the government grant portal. They provide details about your property, the proposed heat pump system and confirmation that the EPC requirements are met.

Voucher approval typically takes 1-3 weeks. You will receive email confirmation from the government when the voucher is issued. The voucher is valid for 3 months from the date of issue, during which time the installation must be completed.

If the voucher application is rejected, it is usually because of an EPC issue (outstanding insulation recommendations) or a documentation error. Your installer should resolve any issues and resubmit.

Step 5: Installation

The installation itself typically takes 2-5 days depending on the complexity. Here is what to expect:

Day 1: The outdoor unit is positioned and mounted on its base. Pipework connections are made between the outdoor unit and the indoor components. If scaffolding is needed, it goes up on day 1.

Day 2-3: The hot water cylinder is installed (if new or replacement). Radiator upgrades are carried out if needed. Internal pipework modifications are completed. The heat pump control system is installed.

Day 3-5: Electrical connections are made. The system is filled, pressurised and tested. The installer commissions the system, sets up weather compensation controls and walks you through how to use the heating controls. Your old boiler is disconnected and removed.

Step 6: Completion and Payment

After installation, the installer completes the installer certification paperwork and submits the voucher redemption to the energy regulator. the government pays the £7,500 directly to the installer. You pay the remaining balance to the installer (your contribution).

You should receive:

• certification installation certificate
• Commissioning certificate
• Manufacturer warranty documents
• User manual for your heat pump system
• Building control notification (the installer handles this)
• DNO notification confirmation

Common Questions and Concerns

Can I combine government grant scheme with other grants? You cannot combine government grant scheme with government energy efficiency schemes for the same heat pump installation. However, you can use government energy efficiency schemes for insulation improvements and then use government grant scheme for the heat pump – they fund different measures.

What if my quote is less than £7,500? The grant covers up to £7,500 but will not exceed the installation cost. If the installation costs £6,000, the grant is £6,000 and you pay nothing.

Can landlords apply? Yes. Landlords can apply for government grant scheme on their rental properties. The property must have a valid EPC and the existing heating must be fossil fuel.

Is there a deadline? The scheme currently runs until March 2028. Budget is allocated annually, and the government has been increasing funding each year as demand grows. There is no indication the scheme will be withdrawn before 2028.

How much will I pay after the government grant?

A typical air source heat pump installation in Lancashire costs £10,000-£14,000. After up to £7,500 in government grants, you pay £2,500-£6,500. The exact amount depends on the heat pump model, complexity of the installation and whether you need radiator upgrades or a new hot water cylinder.

What if I need loft insulation to qualify?

If your EPC recommends loft insulation, you need to get it done before or at the same time as the heat pump installation. Loft insulation costs £300-£800 privately, or may be free through government energy efficiency schemes or the government insulation scheme. Many heat pump installers can arrange loft insulation as part of the project or recommend a specialist.

Can I choose any heat pump brand?

Yes, as long as the heat pump is qualified. Most major brands qualify, including Vaillant, Daikin, Mitsubishi, Samsung, Grant and others. Your installer may recommend specific models based on your property’s needs, but the choice is ultimately yours. Compare quotes and models from different installers to ensure you get the right system at a fair price.