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Funding your change to an energy-efficient heat pump

Find out more about the different incentives on offer, and how to make your eco-friendly home even more affordable.

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Eco-friendly heating that’s better for the planet– and your pocket

With Daikin’s high-performance technology, not only could you save hundreds on your heating bills every single year – you may be eligible for financial incentives to help you offset the cost of installation, too.

And it’s simple to find which government grants, financial incentives or cashback schemes are available to you.

VAT free

To assist with energy-efficient home improvements, the government has removed VAT on air source heat pumps and air conditioning units until 31 March 2027. This could save you hundreds of pounds on the cost of installing your Daikin system. From 1 April 2027, a reduced rate of VAT at 5% will be applied.

 

Your installer is responsible for charging you the correct rate of VAT.

Find out more on the Government website

England and Wales: Boiler Upgrade Scheme

Boiler Upgrade Scheme

The Boiler Upgrade Scheme (BUS) is a UK Government incentive that has been extended to 2030 and helps homeowners switch to low-carbon heating. The scheme now supports both air-to-water (A2W) and air-to-air (A2A) heat pumps installed for space heating. Homeowners can receive £7,500 towards an A2W heat pump or £2,500 towards an A2A heat pump. 

 

The scheme makes it easier and more affordable to upgrade to a modern heating system that boosts efficiency, cuts running costs and keeps your home comfortable all year round. 

Learn more

Scotland: Home Energy Scotland Scheme

Home Energy Scotland Scheme

Homeowners in Scotland can apply for a standalone grant of £7,500 from the Home Energy Scotland Scheme to install heat pumps. Previously, applicants were required to sign up for a loan before they qualified for this funding, but they can now access the money directly. The enhanced measures will also include an extra £1,500 for homeowners in rural areas. A standalone grant of £7,500 for energy efficiency improvements to homes is also available.

Learn more

Energy Company Obligation (ECO4)

Energy Company Obligation (ECO4)

The ECO4 scheme is a government initiative that offers financial assistance for energy-efficient upgrades to households in Great Britain. The scheme is designed to reduce carbon emissions and combat fuel poverty among low-income and vulnerable households. The ECO4 scheme is a government initiative that offers financial assistance for a range of energy-efficient upgrades including air source and hybrid heat pumps. 

Further details of the ECO4  scheme can be found on Ofgem’s website

Ofgem

Calculate your heat pump costs and savings 

Use our heat pump calculator to get a personalised cost estimate and find out how much you could save on carbon, energy and day-to-day bills.

Try our heat pump calculator