Trustpilot
Friendly and efficient service from Cloe!
Pa 31 Oct 2026
Air Source Heat Pump Funding: BUS, VAT, Smart Tariffs and Finance
An air source heat pump install attracts more government funding than any other domestic energy product in the UK. The headline number is £7,500 from the Boiler Upgrade Scheme. On top of that there is 0% VAT relief, the Warmer Homes scheme for eligible households, smart tariff savings of 50-70% on running costs, and consumer finance options that often make the install cash-flow neutral from day one. This page walks through the full picture for residential heat pump customers.
Book your FREE Survey
Or call 01473 727 727
Google Rating: 4.5
Trustpilot: (423) 4.7 Based on 423 reviews The funding stack for a typical install
Take a 4-bed Suffolk home moving from a gas boiler to an 11 kW air source heat pump install. The funding stack looks like this:
| Component | Amount |
|---|---|
| Heat pump install full cost | £14,500 |
| Boiler Upgrade Scheme (BUS) | -£7,500 |
| 0% VAT on energy-saving materials | (already applied) |
| Customer cost after BUS | £7,000 |
| Consumer finance over 60 months at 7.9% APR | ~£142/month |
| Annual running cost on Cosy Octopus + Adia Thermal | £550 |
| Annual saving vs. previous gas bill | £850 |
For most households, the install is cash-flow neutral from year one when you account for the energy bill saving offsetting the finance payment, and pure saving from year 5 onwards once the finance is paid off.
For lower-income households, certain benefit recipients, and properties in EPC bands D-G, the Warmer Homes scheme may cover most or all of the install cost. The Warmer Homes scheme is the UK Government's successor to ECO4 and is now a substantial programme in its own right. Ask us during your survey and we will check your eligibility.
The schemes in detail
Boiler Upgrade Scheme (BUS) - the headline
The BUS pays £7,500 toward an air source heat pump or £6,000 toward a shared ground loop. Available to any owner-occupier in England and Wales replacing a fossil-fuel boiler. No income test, no property size cap, no waiting list under normal operation. Funding confirmed through at least March 2028.
We handle the entire BUS application on your behalf. You sign nothing other than the install agreement. The grant is paid directly to us; the price you sign is the price you pay.
See the BUS grant deep dive for full eligibility, application process and combination with other schemes.
Warmer Homes scheme
For lower-income households and EPC D-G properties, the Warmer Homes scheme (the UK Government's successor to ECO4) may cover heat pump installs in full or in large part. The scheme can combine with BUS for eligible customers, and runs alongside it.
If there is any chance you might be eligible, ask us during your survey and we will check for you.
0% VAT on energy-saving materials
Domestic heat pump installs qualify for 0% VAT under the energy-saving materials relief. This applies to the kit and the labour. The 0% VAT is built into our prices, so the figure on the proposal is the figure you pay.
The relief is currently extended to 31 March 2027. After that, the rate is expected to revert to 5% (the previous reduced rate) unless extended. We will register and apply VAT correctly regardless of date changes.
See the 0% VAT deep dive.
Smart tariffs designed for heat pumps
A heat pump runs on electricity, which means the tariff you choose is one of the biggest factors in the running cost. The right tariff for a heat pump household is rarely the standard variable tariff.
Cosy Octopus has three cheap windows per day (4am-7am, 1pm-4pm, 10pm-12am) at 11-14p per kWh. Heat pumps can be scheduled to do their main heating and hot water cycles during these windows, with the well-insulated house and a buffer/hot water tank coasting through the peak hours.
Octopus Intelligent Octopus Go has a long overnight cheap window (11:30pm-5:30am) at 7p per kWh. Best when paired with a battery that can shift the heat pump's overnight charge into daytime running.
Octopus Agile uses half-hourly dynamic pricing. With Adia Thermal Control reading the prices and scheduling the heat pump accordingly, this can deliver the lowest possible running cost, but it requires a smart inverter / controller that can talk to Agile.
On any of these tariffs, the heat pump running cost typically drops 50-70% compared with a household on a standard variable tariff.
Consumer finance
For the residual cost after BUS (and potentially Warm Homes), we offer consumer finance through Greenscape.
Typical terms:
| Loan amount | Term | APR | Monthly payment |
|---|---|---|---|
| £7,000 | 12 months | 0% | £583 |
| £7,000 | 24 months | 0% | £292 |
| £7,000 | 60 months | 7.9% | £142 |
| £7,000 | 120 months | 7.9% | £85 |
| £10,000 | 12 months | 0% | £833 |
| £10,000 | 24 months | 0% | £417 |
| £10,000 | 60 months | 7.9% | £202 |
| £10,000 | 120 months | 7.9% | £121 |
These figures are indicative. Your actual rate depends on your credit profile. Consumer finance is provided by Zopa Bank. Greenscape Energy Limited is FCA-authorised as a credit broker (FCA registration 690130), not a lender.
See the Consumer Finance page for the full options.
Combining everything
Most customers end up combining the schemes rather than relying on one. The typical paths look like this.
-
Owner-occupier with mains gas, mid-to-high income:
BUS + 0% VAT + smart tariff + (optional) consumer finance. Around £7,000 customer cost on a typical install, finance over 5 years if desired.
-
Owner-occupier off-gas (oil or LPG)
BUS + 0% VAT + smart tariff + consumer finance. The off-gas case is even stronger because oil and LPG prices have risen sharply and the BUS grant remains £7,500.
-
Lower-income household, EPC D-G property
Warmer Homes scheme + BUS + 0% VAT + smart tariff. Potentially £0 customer cost depending on eligibility.
-
Social housing tenant
Warmer Homes scheme funding routed through the landlord. The tenant pays nothing toward the install, just benefits from the lower running cost.
-
Retired homeowner on a pension
Often eligible for Warmer Homes via the lower-income or Pension Credit criteria. BUS still applies on top.
“Do it whilst incentives remain in place — such as the £7,500 BUS grant on ASHP”
What we handle for you
The paperwork side of heat pump funding can look intimidating from outside. From your side as a customer, the actual experience is:
-
Free 90-minute survey with one of our Renewable Energy Specialists
-
Written proposal within 5 working days, with all scheme details and the fixed price already including the BUS deduction
-
You sign the install agreement
-
We file the BUS application with Ofgem
-
We file the Warmer Homes scheme application if you are eligible
-
We confirm 0% VAT on the proposal
-
We arrange consumer finance through Greenscape if needed
-
The install runs (5 to 7 days on site for a typical install)
-
We commission Adia Thermal Control and walk you through it
-
We register the install with MCS and confirm warranty paperwork
You sign one agreement (the install agreement). Everything else is handled.
Frequently asked questions
01 Can I apply for the BUS grant myself if I do not use Greenscape?
Technically the grant is paid to the installer, not the customer, so the application is always installer-led. Whichever installer you use must be MCS certified and willing to handle the application. Most reputable installers do this as standard.
02 What if I move house before the heat pump finance is paid off?
Consumer finance is unsecured personal lending, so it goes with you, not the property. The heat pump stays with the property. We have not seen this be a problem for customers in practice; heat pumps add value at sale (lower EPC, lower running costs) so the property value uplift more than offsets the residual finance.
03 Will the BUS grant still exist in 2027 or 2028?
Yes. The current funding allocation runs through at least March 2028. We will update this page if there are policy changes.
04 Can I get a heat pump without a smart tariff?
Yes. Heat pumps work fine on standard variable tariffs. The running cost is just higher, around £1,100/year for a 4-bed home vs around £550 on Cosy. We strongly recommend a smart tariff but it is not technically required.
05 Do I need a battery to get the smart tariff benefit?
Not for Cosy Octopus (the three cheap windows are long enough for a heat pump to do its main work without needing battery storage). For Intelligent Octopus Go, a battery helps shift the overnight cheap-rate charge into daytime running, but it is not essential.
Our reviews speak for themselves
Trustpilot
The two technicians, Luke & Cam arrived as scheduled, were courteous and respectful. They carried out the work as requested and invited me to inspect what they had done. Luke also clarified and guided me through a particular aspect on the Solis App.
V Evans 30 Oct 2026
Trustpilot
As usual, Greenscape customer service resolved my query quickly and professionally. I had a query about winter settings for my batteries which Chloe resolved for me and then sent a follow up email to confirm all is in place. Thank you!
Hayley Goldson 30 Oct 2026
Trustpilot
Harry fixed a persistent problem we've had for years. Over the last 4 years, a number of engineers had a go at fixing this but without success. Very happy with Harry and the knowledge he had of the Mitsubishi system
Eric Henderson 30 Oct 2026
Trustpilot
Can’t thank Chloe Hickman enough for sorting out my winter charging so quickly and efficiently Stephen Carpenter
Stephen Carpenter 30 Oct 2026
Trustpilot
Excellent service given by our Greenscape engineer Harry, who sorted our heating and gave a detailed explanation of the problem
customer 30 Oct 2026
Trustpilot
Darren Ben and Cameron were absolutely lovely very helpful and professional. Neat and tidy and really nice guys, great job done very happy
Laura Lawrence 29 Oct 2026
Trustpilot
Aaron at Greenscape Energy provided a prompt, friendly, informative and helpful service when quoting the proposed PV and battery system for our property.
M Hayes 29 Oct 2026
Trustpilot
Both Brandon and young apprentice Ellis arrived on time to install my long awaited Pylontech battery. What can I say, they were very smart, professional and most polite. Greenscape have a good team here, please retain them and do pass on my best regards to them both. Cheers Paul
MRS MARILYN BAILEY 29 Oct 2026
Trustpilot
Chloe was very helpful with my winter settings, my app wasn’t the same as the written instructions but she just did it for me and then checked to see it was all working correctly.
Ruth 28 Oct 2026
Google I have used Greenscape Energy to install Solar Panels and Tesla Powerwall batteries and I can confidently state that they are an excellent company to deal with. I recently had a minor problem with the batteries not being charged during the cheap rate. Greenscape could not have been more helpful and put me in contact with Tesla to resolve the problem. Fantastic service from a professional company.
Tim Reid 27 Oct 2026
Google Michaela, dealt with my finance query in a professional, efficient manner, and placated my fears that the progress on my solar system would be paused until the return of the surveyor from holiday. Good customer care. Thank you
Andrew Kay 16 Sept 2026
Google Very professional and efficient from the sales engagement through to commissioning. I wouldn’t hesitate in recommending them.
Granary Barn 17 Aug 2026
Google I have been very impressed with the service I received from Greenscape. The initial survey was very professionally done by Andrew and I was pleased that he convinced me not to have more panels than necessary. The team that installed the battery and inverter were excellent and very pleasant to deal with. The system is up and running and there have been no complications. I thoroughly recommend Greenscape.
Richard Stainer 11 Aug 2026
Google I arranged to have solar panels and a battery installed by Greenscape via OVO Energy. From start to finish, the service has been excellent. From the survey, to the panel installation and battery installation, every team member has been professional and very friendly. The after sales have kept in contact to make sure everything has gone smoothly. Couldn't fault Greenscape.
Gareth 7 Jul 2026
Book your FREE survey today and start saving money whilst reducing your carbon footprint.
Book a FREE Survey
Book your FREE survey 
Professional Site Visit
Premium Installation
100% Satisfaction
Slashed Energy Bills
Protected Future
Reduced Carbon
