News > Air Source Heat Pumps Explained — and How the Boiler Upgrade Scheme Grant Works

Air Source Heat Pumps Explained — and How the Boiler Upgrade Scheme Grant Works

Thinking about ditching the gas boiler?

If you have been reading about heat pumps and government grants but come away more confused than when you started, you are not alone. Air source heat pumps are one of the most talked-about ways to heat a home in 2026, and there is real money on the table to help you install one. Here is how they actually work, and how the Boiler Upgrade Scheme (BUS) grant fits in.

What is an air source heat pump?

An air source heat pump (ASHP) is a unit that sits outside your home, roughly the size of an air conditioning box. Rather than burning gas or oil to create heat, it extracts warmth from the outside air — even when it is cold out — and concentrates it to heat your radiators, underfloor heating and hot water.

The clever part is efficiency. A gas boiler is, at best, around 90% efficient: burn a unit of gas, get slightly less than a unit of heat. A well-installed heat pump typically delivers three to four units of heat for every unit of electricity it uses. That ratio is called the Coefficient of Performance, and it is why heat pumps can be cheaper to run despite electricity costing more per unit than gas.

Will it actually keep my home warm?

Yes — but the details matter. Heat pumps work best when they run steadily at a lower flow temperature than a gas boiler, gently maintaining a comfortable temperature rather than blasting heat on and off. For that to work well, your home usually needs:

  • Adequately sized radiators (sometimes larger ones than you currently have) or underfloor heating
  • Reasonable insulation in the loft and walls
  • A hot water cylinder, as heat pumps do not heat water instantly like a combi boiler

An older, draughty Norfolk cottage can still use a heat pump, but it may need some upgrades first. A properly conducted heat-loss survey — which any competent installer will carry out — tells you exactly what your property needs. Be wary of anyone quoting without one.

How the Boiler Upgrade Scheme grant works

The Boiler Upgrade Scheme is a government grant, administered by Ofgem, that pays a fixed amount towards installing a low-carbon heating system. It is open to homeowners (and small non-domestic properties) in England and Wales, and it is running in 2026.

According to Ofgem, the current grant amounts are:

  • £7,500 off the cost and installation of an air source (air-to-water) heat pump
  • £7,500 off a ground source or water source heat pump
  • £5,000 off a biomass boiler (in eligible rural locations)
  • £2,500 off an air-to-air heat pump

There is also a temporary enhanced grant of £9,000 for eligible off-gas-grid properties (homes currently heated by oil or LPG) installing an air-to-water or ground source heat pump. Ofgem states this uplift is available from 21 July 2026 until 31 March 2027. If your home is off the gas grid — common in rural Norfolk villages — it is well worth checking whether you qualify.

Because grant amounts and rules can change, always confirm the current figures on gov.uk or the Ofgem website before you commit.

Who is eligible?

The core requirements are straightforward, but check the current criteria on gov.uk as they are occasionally updated. In general you need:

  • A property in England or Wales
  • A valid Energy Performance Certificate (EPC) — in most cases without outstanding recommendations for loft or cavity wall insulation
  • To be replacing a fossil-fuel system (gas, oil, LPG or electric); new builds are usually excluded

You do not apply for the grant yourself. Your MCS-certified installer applies on your behalf and deducts the grant from your quote, so you only pay the balance. This is one reason choosing an experienced, accredited installer matters so much.

What will it cost me overall?

Costs vary with the size of your home and how much upgrading is needed, but a typical air source heat pump installation for an average home often lands somewhere in the region of £10,000–£14,000 before the grant. With £7,500 knocked off, the out-of-pocket figure becomes far more manageable. Treat any quote as property-specific — the only reliable number comes from a survey of your actual home.

Is a heat pump right for you?

Heat pumps are not a silver bullet for every property, and honesty matters more than a hard sell. They suit homes that are reasonably insulated and where there is space outside for the unit and inside for a cylinder. If that is your home, a heat pump can cut carbon emissions sharply and, with the grant, become a genuinely cost-effective upgrade. If your home needs insulation work first, doing that groundwork usually pays off across any heating system.

Ready to explore a heat pump for your Norfolk home?

At Norfolk Heating Ltd we can carry out a proper heat-loss survey, advise honestly on whether a heat pump suits your property, and handle the Boiler Upgrade Scheme application for you. Based in Norwich and Gas Safe registered, we cover homes across Norfolk.

Call us on 07751 261207, email enquiries@norfolkheatingltd.co.uk, or visit us at Prestige House, Avian Way, Norwich NR7 9AR. We are open Monday to Friday, 7:30am–5:00pm.

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