Do Air Source Heat Pump Grants Cover Replacement Units?

Got a heat pump that’s seen better days? Wondering if the government will help you replace it? Here’s the truth that might surprise you.

UK heat pump grants generally don’t cover replacement units if you already have one installed. Why? The government wants to help people ditch gas boilers, not upgrade existing green heating.

Sounds unfair? Let’s dig into why this rule exists and what options you actually have.

The “No Double Dipping” Rule Explained

Both major grant schemes follow the same principle: they’re designed to move homes away from fossil fuels, not to upgrade renewable systems. Think of it as a one-time transition fund rather than ongoing maintenance support.

This creates two very different funding landscapes depending on what heating you currently have.

Boiler Upgrade Scheme Says No

The Boiler Upgrade Scheme (BUS) is crystal clear about this. Already have a heat pump? You’re out of luck for another grant.

The rules are strict:

• Your new system can’t replace an existing heat pump
• It can’t replace a biomass boiler either
• Previous government funding disqualifies you too

Why such harsh rules? The £7,500 grant is meant to encourage first-time switchers. The government argues that if you’ve already made the jump to renewable heating, the scheme has done its job.

ECO4’s Similar Stance

ECO4 takes the same approach but with slightly softer language. This scheme targets outdated heating systems that waste energy and money.

What does ECO4 typically replace?

• Old gas boilers from the stone age
• Oil boilers that guzzle fuel
• Electric storage heaters that cost a fortune
• Ancient solid fuel systems

Notice what’s missing? Heat pumps. Even old, inefficient ones rarely make the replacement list.

What Heating Systems Actually Get Grant Money

Let’s be clear about what qualifies. Both schemes have their favorites when it comes to what they’ll help you replace.

The “Wanted” List

These heating systems are grant scheme gold:

• Gas boilers of any age
• Oil heating systems
• LPG boilers
• Electric heating (storage heaters, panel heaters)
• Solid fuel systems (coal, wood)

Why these systems? They’re either fossil fuel-based or electricity guzzlers. Replacing them creates immediate environmental benefits.

Grant Amounts You Can Get

If you qualify, here’s what’s on the table:

BUS offers £7,500 for air source heat pumps and the same for ground source versions. The scheme runs until March 2028, so there’s time to plan.

ECO4 varies wildly. Some households get full funding worth £10,000+. Others get partial help. It depends on your benefits, income, and property condition. This scheme ends in March 2026.

The Rare Exceptions That Might Work

While the rules seem set in stone, there are a few scenarios where replacement funding might be possible. These situations require careful navigation and the right installer.

When Your Heat Pump Dies Completely

What if your heat pump has given up entirely? Some argue this changes the situation. You’re not replacing a working renewable system – you’re installing heating where none exists.

This grey area requires documentation:

• Proof the system is beyond repair
• Professional assessment of repair costs
• Evidence that replacement is the only option

Will this work? Maybe. Different installers interpret rules differently. It’s worth discussing with MCS-certified professionals.

System Upgrades vs Full Replacements

Here’s another potential loophole. What if you keep the distribution system but replace the heat pump unit itself?

Some schemes might view this as maintenance rather than replacement. However, this interpretation isn’t guaranteed. Always check with your installer first.

Your Alternatives When Grants Say No

Feeling frustrated by grant restrictions? You’re not alone. Fortunately, other options exist for heat pump owners needing replacements.

Private Financing Options

The finance market for heat pumps is growing. Many installers offer payment plans. Some manufacturers provide low-interest loans. Green energy financing companies specialize in renewable heating.

Typical options include:

• 0% finance for 12-24 months
• Low-interest loans up to 10 years
• Lease-to-own arrangements
• Manufacturer warranty plus finance deals

Energy Efficiency First

Can’t afford a new heat pump right now? Focus on making your current one work better. Many energy efficiency grants still apply to heat pump homes.

Consider these upgrades:

• Better insulation (often grant-funded)
• Smart heating controls
• Improved windows and doors
• Solar panels to reduce running costs

These improvements might extend your heat pump’s life and reduce your energy bills.

Future Grant Possibilities

Government policy changes constantly. As heat pumps become more common, air source heat pump grant might become available.

What might change?

• New schemes specifically for heat pump upgrades
• Expanded definitions of qualifying systems
• Regional pilots for replacement funding
• Technology-specific upgrade programs

Keep watching for policy announcements, especially as current schemes approach their end dates.

Smart Application Strategies

If you think you might have a case for replacement funding, approach applications carefully. The wrong move could disqualify you unnecessarily.

Document Everything

Before contacting installers:

• Gather proof of your current system installation date
• Check if you received previous government funding
• Ensure your Energy Performance Certificate is current
• Document any system failures or efficiency issues

Choose Installers Wisely

Not all MCS-certified installers interpret rules the same way. Some are more creative with applications. Others stick rigidly to guidelines.

Shop around. Ask specifically about replacement scenarios. Get multiple opinions before deciding.

Timing Matters

BUS runs until March 2028. ECO4 ends in March 2026. Don’t rush applications, but don’t wait too long either. Grant budgets can run out before official deadlines.

The Reality Check

Let’s be honest about your chances. If you have a working heat pump, traditional grants probably won’t help with replacement. The schemes weren’t designed for this situation.

Does this seem unfair? Many homeowners think so. Early heat pump adopters feel penalized for being environmentally conscious. The government argues that resources should target first-time switchers.

The Bottom Line

Heat pump replacement grants are rare under current schemes. The government prioritizes moving homes away from fossil fuels rather than upgrading renewable systems.

This policy might change as heat pumps become mainstream. Until then, replacement usually means private financing or creative interpretation of existing rules.

Don’t let grant restrictions stop you from getting efficient heating. Whether through exceptions, future schemes, or private options, solutions exist. The key is understanding your options and working with knowledgeable installers who can navigate the complex funding landscape.