If you are living in Scotland and thinking about switching to an air source heat pump, 2025 is a smart time to do it. Why? The Scottish Government is still offering generous grants that can cover most or even all of your costs.

Let’s walk through what’s available right now, how to qualify, and how people are actually getting these systems installed for free or close to it.

Are Air Source Heat Pumps Really Free in Scotland?

In some cases, yes. Most owner-occupiers in Scotland can get a £7,500 grant toward an air source heat pump and +£1,500 rural uplift if your home is in a designated rural or island postcode. The total possible amount granted can be £9,000, but only if you live in a rural area. So, for the average homeowner in an urban or semi-urban area, the grant is realistically £7,500.

Air Source Heat Pump Grants 2025

Here are some of the great options available for you:

Home Energy Scotland Grant & Loan

Home Energy Scotland Grant & Loan is a Scottish Government scheme that helps homeowners make their properties more energy-efficient. It offers a combination of free grants and interest-free loans to cover the cost of installing renewable heating systems, like air source heat pumps, and improving insulation.

Grant

• Up to £7,500 towards an air source heat pump
• An extra £1,500 if you live in a rural or island area
• So a total of up to £9,000 grant

Loan (optional)

• Interest-free loan up to £7,500 to cover any remaining costs

Who’s eligible?

• Homeowners in Scotland
• Property must be your main home
• Must use an MCS-certified installer
• Your property must meet minimum insulation standards (or upgrade during the process)

How to apply?

• Contact Home Energy Scotland for free advice
• Arrange a home energy assessment
• Get quotes from approved installers
• Apply before installation begins

Warmer Homes Scotland Scheme

Warmer Homes Scotland (WHS) is a Scottish Government initiative managed by Warmworks. They help households who are struggling with energy bills to stay warm and reduce fuel poverty. This is where things can become completely free for qualifying households.

Funding

 Covers the full cost of installation (up to £10,000 or more)

Who Is Eligible?

• Homeowners or private tenants (with landlord consent)
• A primary residence lived in for at least 6 months (unless terminally ill)
• Council tax bands A–F
• A poor energy rating (as assessed by WHS)
• Total floor area of up to 230 m² (typically up to 5 bedrooms)
• The household must include someone who is: over 75 with no central heating, or terminally ill, or receiving specific income‑related or disability benefits.

How to Apply?

• You undergo a Home Energy Scotland self-assessment or call.
• If eligible, you’re referred to Warmworks.
• A certified assessor surveys your home and recommends improvements.
• All work is conducted by approved installers.

People under this scheme can have air-sourced heat pumps, insulation, and new controls installed, entirely free.

ECO4 Scheme (UK-wide, includes Scotland)

ECO4, the fourth phase of the Energy Company Obligation, is a UK-wide initiative running until March 31, 2026. It’s designed to reduce carbon emissions and support fuel-poor households by funding free energy-saving improvements, including air source heat pumps.

What Does it Cover?

• Air source heat pump
• Insulation
• Ventilation
• Heating controls

Who qualifies

• Low-income households (claiming means-tested benefits)
• Homes with EPC rating D, E, F, or G
• Must be owner-occupied or in the private rented sector (with landlord consent)

Good to know

• Installers are usually ECO4 providers. You can apply through them, not the government directly. Don’t forget to check https://www.renew-able.co.uk/services/heat-pump-installation-edinburgh-sct/.
• The grant is fully funded. No loan. No repayment.

What If You are Not on Benefits?

Even if you are not on benefits or in a rural area, the standard Home Energy Scotland grant of £7,500 plus a loan can bring your out-of-pocket cost way down, often below £3,000 for a typical install. Some Reddit users have reported paying even less with smart insulation upgrades bundled in.

What Do Air Source Heat Pump Grants in Scotland Cover?

Air source heat pump grants in Scotland cover the core cost of purchasing and installing an air source heat pump. This includes:

• The heat pump unit itself
• Installation labor
• Standard materials needed for the install
• Basic system controls
• VAT (if applicable)

What’s not usually covered (but may be partially funded or loaned):

• Hot water cylinders
• Radiator upgrades or underfloor heating
• Insulation (though it may be required to qualify)
• Electrical upgrades
• Structural work or non-standard plumbing

FAQs

Can landlords apply for a heat pump in Scotland?

No, landlords can’t apply for HES grants. But if their tenants qualify (low income, benefits), they can benefit from ECO4 or Warmer Homes. Landlord consent is needed, but funding goes through the tenant.

Is this the same as the Boiler Upgrade Scheme (BUS)?

No. Scotland runs its grant schemes BUS only applies to England and Wales. Scots use Home Energy Scotland.

Can I install the system first and apply later?

No. You must get approval before work begins, or you’ll lose your grant.

Is the funding guaranteed?

It’s first-come, first-served each year. The scheme is active in 2025 but may pause if funds run out, so apply early.

Final Thoughts

Air source heat pump grants in Scotland are not just a policy, but a real opportunity to cut energy bills, lower carbon emissions, and future-proof your home. Whether you are a homeowner in a rural area, a tenant on a tight budget, or someone looking to upgrade an old heating system, there is likely support out there for you.

Don’t assume it’s out of reach. Check your eligibility, ask the right questions, and get the ball rolling. The funding’s there, and you just need to claim it.