Heat Pump Grants for London Homeowners: The Boiler Upgrade Scheme Explained
The Boiler Upgrade Scheme provides a government grant of up to seven thousand and five hundred pounds to help London homeowners replace a gas boiler with a heat pump. This guide explains who is eligible, how to apply, and what the grant covers.
What Is the Boiler Upgrade Scheme?
The Boiler Upgrade Scheme, administered by Ofgem on behalf of the UK Government, provides capital grants to help homeowners and small businesses in England and Wales replace fossil fuel heating systems with low-carbon alternatives. For London homeowners, the most relevant grants are seven thousand five hundred pounds for an air source heat pump and seven thousand five hundred pounds for a ground source heat pump. The scheme was originally introduced in 2022 with a grant of five thousand pounds for air source heat pumps, and the grant level was increased in 2023 to accelerate uptake. The scheme is funded by levies on energy suppliers and has a finite annual budget, though the government has committed to maintaining the scheme through to 2028.
The grant is paid directly to the installer, who deducts it from the invoice presented to the homeowner. The homeowner therefore receives the benefit of the grant immediately at the point of installation rather than having to apply for a rebate after the fact. The installer must be Microgeneration Certification Scheme accredited to be eligible to apply for the grant on behalf of the homeowner. This accreditation requirement ensures that the installation meets the technical standards required for a well-performing heat pump system.
Eligibility for the Boiler Upgrade Scheme in London
To be eligible for the Boiler Upgrade Scheme, the property must be in England or Wales. The property must have a valid Energy Performance Certificate dated within the last ten years that does not contain a recommendation to install loft insulation or cavity wall insulation. This requirement ensures that the basic insulation measures that affect heat pump performance have already been addressed. For a London Victorian terrace with solid walls and no cavity, the absence of a cavity wall insulation recommendation on the EPC is not a barrier, as cavity wall insulation cannot be installed in a solid wall property.
The scheme is available to homeowners and to landlords who own residential properties. Social housing is not eligible. The property must be a domestic dwelling and must be connected to the mains electricity supply. There is no income threshold for the Boiler Upgrade Scheme: it is available to all eligible homeowners regardless of income. However, the scheme cannot be combined with certain other government energy efficiency grants for the same installation, so it is worth checking the current rules before applying.
What the Grant Covers and What It Does Not Cover
The Boiler Upgrade Scheme grant of seven thousand five hundred pounds covers the cost of the heat pump unit, the installation of the heat pump, and the associated pipework and controls work. It does not cover the cost of additional works that may be required to prepare the property for heat pump installation, such as radiator upgrades, the installation of a hot water cylinder to replace a combi boiler, or improvements to the building fabric such as insulation. These preparatory works are the homeowner responsibility and can add significantly to the total cost of transitioning from a gas boiler to a heat pump.
A typical air source heat pump installation in a London home, including the heat pump unit, the hot water cylinder, the radiator upgrades required to operate at lower flow temperatures, and all associated pipework and electrical work, costs between fifteen thousand and twenty-five thousand pounds before the grant. After the grant of seven thousand five hundred pounds, the net cost to the homeowner is typically between seven thousand five hundred and seventeen thousand five hundred pounds. The wide range reflects the significant differences between properties in terms of size, existing system configuration, and the extent of radiator and fabric works required. Prestige Engineers can survey your London property and provide a detailed quotation for a heat pump installation including all associated works, and can manage the Boiler Upgrade Scheme application on your behalf.
How to Apply for the Boiler Upgrade Scheme in London
The application process for the Boiler Upgrade Scheme is managed by the installer, not the homeowner. Once you have obtained a quotation from an MCS-accredited heat pump installer, the installer will check your EPC and apply for a voucher on your behalf through the Ofgem portal. The voucher is valid for three months and must be redeemed by the installer completing the installation and submitting the redemption claim within that period. If you need to extend the voucher because the installation is delayed, an extension can be applied for in advance of the expiry date.