Air Source Heat Pump Grants

You can access grants for Air Source Heat Pumps via the ECO4 Grant Scheme. Eligibility through ECO4 might even entitle you to receive it at no cost!
All new air source heat pump installations are carried out by qualified heating engineers.
Verify your eligibility today.

Apply for an air source heat pump grant

Complete our fast, simple and free online application form to check if you can apply for a ECO4 air source heat pump grant.

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How do I know if I qualify for a ECO4 air source heat pump installation grant

The ECO4 scheme targets low-income, fuel-poor, and vulnerable households receiving specific benefits from the UK government. To qualify for an ECO4 air source heat pump grant, applicants must meet the criteria provided below:

You must be claiming one of the qualifying UK Government Benefits to apply for an air source heat pump grant:

Be a homeowner or a tenant in a privately rented home

Both homeowners and private tenants have the opportunity to apply for an air source heat pump grant.

Homeowners air source heat pump grant


Homeowners must have an EPC rating of E, F or G to be eligible for air source heat pump grant.

Private Tenants air source heat pump grant

Private Tenants

A tenant in a privately rented home applying for an air source heat pump grant must have a home with an EPC rating of D, E, F, or G.

Types of existing heating system which are eligible for an air source heat pump grant

Your home must have either no existing heating system or one of the following heating systems to qualify for ECO4 grant:

The heating system in your home which is considered for eligibility for an Air Source Heat Pump Grant is the one identified as the ‘Main Heating’ system on your Energy Performance Certificate (EPC).

How do I know if my house is suitable for an air source hear pump installation?

Determining whether your home is suitable for an air source heat pump involves several factors:
Adequate insulation is essential for the efficient operation of an air source heat pump. Well-insulated homes retain heat better, reducing the workload on the heat pump.
You need enough outdoor space for the installation of the heat pump unit. This may involve a ground-mounted unit or sufficient space for an outdoor unit to be attached to a wall.
Heating Distribution System
Air source heat pumps work best with underfloor heating systems or larger radiators. If you have smaller radiators, you might need to upgrade them to ensure compatibility.
Energy Efficiency
The heat pump's efficiency can be affected by the age and energy efficiency of your home. Older homes may require additional upgrades to improve efficiency before installing a heat pump.
Planning Permission
In some cases, planning permission may be required for the installation of an air source heat pump, particularly if it involves significant alterations to the exterior of your property
Noise Consideration
Air source heat pumps generate some noise during operation, so you should consider the proximity of your neighbours and any local noise ordinances.

Feel free to contact Stellar Insultations Ltd if you need advice or support with your ECO4 grant application.

How much can I expect to save on energy bills after installing solar panels?

The table below is an estimate of how much you could save on your energy bills after the installation of an air source heat pump compared to other heating systems like a gas central heating system.

Existing heating system Potential fuel bill saving (£/year) CO2 savings (kg/year)
Old (G-rated) gas boiler
New (A-rated) gas boiler
Old electric storage heaters
New electric storage heaters
Old (G-rated) oil boiler
New (A-rated) oil boiler
Old (G-rated) LPG boiler
New (A-rated) LPG boiler
Savings based on fuel prices as of January 2024. (Source: Energy Saving Trust)

How do air source heat pumps work?

An air source heat pump works by extracting heat from the outside air and transferring it inside to heat a building or provide hot water.

Here’s a simplified explanation of how it operates:

Absorption of Heat: The heat pump contains a refrigerant fluid that circulates through a closed loop system. Even when the outside air temperature is cold, it still contains heat energy.

The outdoor unit of the heat pump absorbs this heat energy from the air.

Compression: The absorbed heat causes the refrigerant to evaporate into a gas. This gas is then compressed by a compressor within the heat pump. Compression increases the temperature of the gas, making it even hotter.

Absorption of Heat
Heat Exchange

Heat Exchange: The hot gas passes through a heat exchanger, where it transfers its heat to a separate water circuit within your home and heats up water for domestic use.

Condensation: After releasing its heat, the refrigerant returns to a liquid state as it cools down. The liquid refrigerant then passes through an expansion valve, which reduces its pressure and temperature in preparation for the next cycle.

Repetition: The cycle repeats as long as heating or hot water is required, continuously extracting heat from the outside air and transferring it indoors.

During warmer months, many air source heat pumps can also operate in reverse to provide cooling by extracting heat from inside a home and releasing it outside, acting as an air conditioner.

It is important that your property has insulation installed such as cavity wall insulation or external wall insulation to ensure your air source heat pump is working efficiently.


Overall, air source heat pumps provide an efficient and environmentally friendly way to heat your home and provide hot water, as they rely on renewable heat sources from the air and use electricity to power the compressor rather than burning fossil fuels directly. Air source heat pumps are a great alternative to replacing an out dated gas boiler.

Complete our application form to find out if you can apply for an Air Source Heat Pump Grant.

Start a claim for a air source heat pump installation grant.
Air Source Heat Pump Installation Grants FAQs
Listed below are some of the common questions and answers for the UK Government ECO4 air source heat pump grant. If you cannot find the answer to your question, then simply contact us for a free consultation.

Yes, air source heat pumps can still work efficiently in cold winter conditions. While it’s true that the air temperature drops during winter, even very cold air still contains heat energy. Here’s how air source heat pumps cope with cold weather:

Cold Weather Performance: Air source heat pumps are designed to operate effectively in a wide range of temperatures, including below freezing. Modern heat pump models can continue to extract heat from the outdoor air even when temperatures are as low as -15°C to -25°C (-5°F to -13°F), although their efficiency might decrease slightly as the temperature drops.

Defrost Cycle: During cold weather, frost can accumulate on the outdoor unit’s heat exchanger coils as moisture in the air condenses and freezes. To prevent reduced performance, most air source heat pumps are equipped with a defrost cycle. This cycle temporarily reverses the heat pump’s operation, allowing it to warm up the outdoor coil and melt any accumulated frost. This ensures that the heat pump continues to operate efficiently in cold conditions.

Efficiency Considerations: While air source heat pumps can still extract heat from cold air, their efficiency might decrease as the outdoor temperature drops. This means that the heat pump might need to work harder or run for longer periods to meet the heating demand of a home. However, despite this decrease in efficiency, air source heat pumps can still provide cost-effective heating compared to traditional heating systems, especially if your home is well-insulated and the heat pump is sized correctly for the heating load.

Overall, while air source heat pumps may experience some reduction in efficiency in very cold weather, they can still provide effective and efficient heating for homes throughout the winter months. Proper installation, sizing, and maintenance are key factors in ensuring optimal performance in cold climates.

In many cases, installing an air source heat pump may not require planning permission, especially if the installation meets certain criteria.
Grants for air source heat pumps are accessible to property owners and individuals renting from private landlords.

Yes, air source heat pump grants are available under the UK Energy Company Obligation (ECO) scheme, specifically under ECO4. The ECO scheme aims to improve the energy efficiency of homes in the UK, particularly for low-income, fuel-poor, and vulnerable households. ECO4 includes provisions for grants to help cover the costs of installing energy-efficient measures, including air source heat pumps.

Eligibility for air source heat pump grants under ECO4 is typically based on criteria such as income level, receipt of certain benefits, and the energy efficiency of the home. Low-income households and those receiving specific benefits from the UK government may qualify for grants to help cover the upfront costs of installing an air source heat pump.

It’s important for homeowners and tenants to check their eligibility and understand the requirements of the ECO4 scheme. The availability of grants and specific eligibility criteria may vary depending on factors such as location, housing type, and funding availability.

Individuals interested in accessing air source heat pump grants under the ECO4 should contact us for further information and assistance with the application process.

You could be eligible for an ECO grant if you receive at least one of the following benefits:

  • Income Support
  • Child Benefit
  • Universal Credit
  • Housing Benefit
  • Income-related Employment and
  • Support Allowance (ESA)
  • Income-based Jobseeker’s Allowance (JSA)
  • Tax Credits (Child Tax Credits and
  • Working Tax Credits)
  • Pension Guarantee Credit
  • Pension Savings Credit
  • Warm Home Discount Scheme
  • Live in a property with an Energy

The time it takes to install an air source heat pump can vary depending on several factors, including the complexity of the installation, the size of the property, and any additional work required. On average, the installation process typically takes between 1 to 3 days. Here’s a breakdown of the installation timeline:

Site Survey and Planning: Before the installation begins, we will conduct a site survey to assess your home’s suitability for an air source heat pump and to determine the most suitable location for the outdoor unit and any associated components.

Preparation: On the day of installation, our installation team will arrive at your property and begin preparing the site. This may involve clearing the area where the outdoor unit will be located, as well as preparing any necessary electrical connections and pipework.

Installation of Outdoor Unit: The outdoor unit of the air source heat pump, which contains the compressor and heat exchanger, is typically installed first. This unit is usually mounted on a concrete pad or fixed to an exterior wall, depending on the specific requirements of the installation.

Installation of Indoor Components: Once the outdoor unit is in place, our installation team will proceed to install the indoor components of the air source heat pump system. This may include the installation of the indoor unit, which contains the heat exchanger and circulation pump, as well as any associated pipework and electrical connections.

Testing and Commissioning: After the installation is complete, the system will be thoroughly tested to ensure that it is functioning correctly and efficiently. This may involve checking for any leaks or faults, adjusting settings, and verifying that the system is providing adequate heating and hot water.

Handover and Demonstration: Once testing is complete, our installation team will provide a handover, explaining how to operate and maintain the air source heat pump system. They will also provide a demonstration of the system’s features and controls.

Overall, the installation process for an air source heat pump is relatively straightforward and can usually be completed within a few days, depending on the specific circumstances of the installation. It’s essential to work with a qualified and experienced installer to ensure that the installation is carried out safely and to the highest standards.

Switching from an outdated G-rated gas boiler to an air-source heat pump can save you £340 on your annual heating bills.