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Government grants of £7,500 available for heat pumps

6th November 2023 by John Munro

Categories: What's New?

The government is promoting the installation of heat pumps in homes to replace boilers, with vouchers being offered to homeowners who wish to make the switch.

The Department for Energy Security and Net Zero has announced that qualifying for a heat pump grant will be simplified and financial assistance made more widely available. The vouchers offer £7,500 off of the cost of heat pump installation or £5,000 for biomass boilers, with over £81 million having been issued.

The need to install loft or cavity wall insulation before applying for a grant has been removed, to make the vouchers more easily obtainable.

How do heat pumps work?

Heat pumps take heat from outside or in the ground and convert it to useable heat for your home. This can be for central heating, space heating or water heating. The pumps require electricity to function but the amount needed is substantially less than using electricity directly to heat a property.

Because the heat pump uses warmth from the environment, it is not burning any fuel and so no carbon dioxide is emitted by the pump.

The system is similar to the process used by a fridge, except in reverse so that warmth is provided. The source heat is moved over a heat exchanger on the outside of the heat pump. The word ‘heat’ is slightly misleading, as the refrigerant can work with air as cold as -20°C.

The warmth taken from the air or ground is enough to evaporate the refrigerant liquid contained in the pump. The resulting gas is compressed and its temperature rises because of the increase in pressure. This is passed over the heat exchange surface inside of the heat pump and the heat is transferred out into a central heating system or hot water system.

The gas then cools and liquifies and is returned to the outside heat exchange surface, where the process starts again.

Government funding

The government has a £450 million Boiler Upgrade Scheme, which is due to run until 2028. Grants of £7,500 are offered towards the installation costs of air source and ground source heat pumps. Grants of £5,000 are offered for biomass boilers. No VAT is charged on the installation.

The paperwork will be dealt with by the heat pump installer. At their initial assessment, they will provide a quote showing the £7,500 voucher. If they are certified under the Microgeneration Certification System they can apply for the voucher as part of their service.

The government estimates that an air source heat pump could cost around £12,000. This could vary depending on the size of heat pump needed for your property.

Figures have shown that customers are happy with the results, with 92% of heat pump owners surveyed saying that they were highly satisfied after two winters.

Contact us

To speak to one of our property experts, please contact Kelly Howe on or 01202 377800.

John Munro

Partner — Commercial and Residential Property

Direct dial: 01202 377839


John Munro, head of Property, Laceys Solicitors
  • “John Munro was friendly and very approachable, advising me with a clear depth of knowledge and experience. I have since recommended him and will do so if asked in the future.”

    N. Pitts-Crick

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    Malcolm Tice, Director - Tice & Son Ltd

John joined Laceys in 2001 on a training contract, having completed a Post Graduate Diploma in Law in 2000, and qualified as a solicitor in 2003. He is now the Head of the Commercial and Residential Property Departments.

He is also the firm’s Senior Responsible Officer under the Law Society Conveyancing Quality Scheme (CQS) with overall responsibility for the management of the property team and their delivery of the excellent service that our clients have come to expect.

John acts in his own capacity for a number of commercial property owners, developers and investors, but also allocates time to ensure his team are up to speed with changing law and professional regulations and clients are provided with members of the team who possess the right skills to deal with their individual requirements, delivering projects in the most time and cost-efficient manner.

Outside of work John seems to spend a great deal of time ferrying his children around but occasionally gets to put his feet up and listen to his eclectic collection of vinyl. He is also not averse to a good cheeseboard and a glass of IPA.

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