How to get a free heat pump and cut your energy bills by up to £380 a year
HEAT pumps are an environmentally friendly way to keep your home warm and can reduce your heating bills significantly
And best of all, you might be able to get one installed for free.
Air source heat pumps take in cold air, raise its temperature and use this to heat a home, potentially saving billpayers £380 a year on their energy costs.
While heat pumps use electricity to heat the cold air, which normally comes from outside, they produce far more energy than they use and are around four times more efficient than a traditional gas or oil boiler.
And they last around five years longer than your standard gas boiler.
Ground source heat pumps are also available, which work in a similar way using the natural heat from the ground.
Exactly how much a heat pump could save you, depends on the heating system you’re upgrading from.
The Energy Saving Trust has estimated that replacing a G-rated heating system with a high performing heat pump in a semi-detached house could result in savings of £380 a year,
Even replacing a G-rated system with a low performing heat pump would save you around £200 a year.
Replacing an average heating system with a high performing heat pump in a semi-detached house could save you £210 a year.
An air source heat pump costs significantly more than a gas boiler on average, according to the National Infrastructure Commission (NIC).
But costs are coming down all the time and energy companies are offering some heat pumps for £500, with a government grant.
If you’re on a low income, you might even be able to get all costs covered as you upgrade.
These are the schemes available to get a free or discounted heat pump installed in your home:
Energy Company Obligation
The Energy Company Obligation is a government scheme that helps hard-up households install home upgrades that will tackle fuel poverty and reduce carbon emissions.
It requires medium and large energy suppliers to help low-income, fuel-poor and vulnerable households to heat their homes.
Energy suppliers can choose how they fulfil their obligations but many offer to cover the cost of installing heat pumps.
Some will even also install solar panels at homes to power the pumps, leading to further reductions to energy bills.
You might qualify for the help if you live in private housing and get one of the following benefits:
- Child Tax Credit
- Working Tax Credit
- Universal Credit
- Pension Guarantee Credit
- Pension Savings Credit
- Income Support
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Child Benefit
- Housing Benefit
If you own your home and are seeking help, it must have an energy efficiency rating of D, E, F or G.
Whereas if you rent from a private landlord, you can access support if your house has an energy efficiency rating of E, F or G.
You can check the energy rating of your home on the government website.
There is no cap on the funding that households can get, which means you may be able to get a grant to cover the total cost of installing a heat pump at your home.
The scheme also offers help with covering the cost of other energy efficient measures, like insulation.
To apply for the scheme you can contact your local authority or your energy supplier.
Different suppliers will offer funding for different projects, so you need to check with your provider.
The following suppliers all take part in the scheme:
- British Gas
- E (Gas & Electricity)
- E.ON
- Ecotricity
- EDF
- Octopus Energy
- Outfox the Market
- OVO
- Scottish Power
- So Energy
- Utility Warehouse
- Utilita
What is a heat pump?
A heat pump is a type of renewable energy technology that enables you to heat your home in an environmentally friendly way.
They deliver heat at a lower temperature than gas and oil boilers so they have to be run for much longer periods at a time.
There are also ground source heat pumps that take the heat from underground by pumping water through it in pipes.
Heat pumps take the available heat from the ground or air and increase it to a higher temperature using a compressor.
It then transfers the heat to the heating system in your home.
The pump uses electricity to run but it takes less energy than the heat it produces, making it an efficient way to warm your home.
Boiler upgrade scheme
The Boiler Upgrade Scheme offers households grants up to £7,500 to install heat pumps in their homes.
You can apply for the grant, which aims to cut carbon emissions, whatever your financial situation.
To get the help you must:
- live in England or Wales
- own the property you’re applying for
- be using the grant money to replace a fossil fuel heating system (such as oil, gas, electric or liquefied petroleum gas)
- have a valid Energy Performance Certificate (EPC)
An MCS certified installer will be able to give you a quote for installation and tell you if you are eligible for one of the grants.
You can find a list of MCS-certified installers by going on the msccertified.com website.
Once you’ve agreed a quote with the installer, they will normally apply for the grant on your behalf.
The value of the grant is then be deducted off the cost of installation.
So if the work costs £12,500, you would pay £5,000.
Other savings
Many energy firms also have special tariffs and offers for those installing heat pumps in their homes.
EDF offers customers with heat pumps access to a special tariff to enhance their savings.
It is also pledging to give free electricity throughout December 2025 to those that install the technology.
Octopus also has a tariff specially designed for heat pump users.
The provider said the Cosy Octopus tariff could save households £264 a year, compared to using a gas boiler.
Installing a heat pump through British Gas would make you eligible for its heat pump energy offer, which caps the price of energy used by the device at 14p per kWh for 12 months, potentially saving customers £456.
Before you look to have a pump installed it’s worth checking what your provider will offer and whether you need to install through them to claim.
4 ways to keep your energy bills low
Laura Court-Jones, Small Business Editor at Bionic shared her tips.
1. Turn your heating down by one degree
You probably won’t even notice this tiny temperature difference, but what you will notice is a saving on your energy bills as a result. Just taking your thermostat down a notch is a quick way to start saving fast. This one small action only takes seconds to carry out and could potentially slash your heating bills by £171.70.
2. Switch appliances and lights off
It sounds simple, but fully turning off appliances and lights that are not in use can reduce your energy bills, especially in winter. Turning off lights and appliances when they are not in use, can save you up to £20 a year on your energy bills
3. Install a smart meter
Smart meters are a great way to keep control over your energy use, largely because they allow you to see where and when your gas and electricity is being used.
4. Consider switching energy supplier
No matter how happy you are with your current energy supplier, they may not be providing you with the best deals, especially if you’ve let a fixed-rate contract expire without arranging a new one. If you haven’t browsed any alternative tariffs lately, then you may not be aware that there are better options out there.
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