Home Heat Pump Guide

Heat Pump Grant Wales: Nest Scheme and BUS Grant Guide

Welsh homeowners have access to two major funding routes for heat pump installations: the Welsh Government's Nest scheme and the UK-wide Boiler Upgrade Scheme (BUS). Depending on your circumstances, you could get a heat pump installed for free through Nest or receive £7,500 off through BUS.

This guide explains both schemes, who qualifies for each, and how to make the most of the funding available to you in Wales.

Two Schemes for Welsh Homeowners

Wales has a unique advantage: homeowners can potentially access support through two different programmes. Here is a quick comparison:

  • Nest Scheme: Free installation for low-income and vulnerable households. Funded by the Welsh Government. No cost to the homeowner if eligible.
  • Boiler Upgrade Scheme (BUS): £7,500 grant towards the cost. Available to all homeowners who meet the criteria. You pay the balance.

These are two separate schemes. If you qualify for Nest, that is usually the better option because it covers the full cost. If you do not qualify for Nest, the BUS grant is available as an alternative.

The Nest Scheme: Free Heat Pumps for Eligible Households

What Is Nest?

Nest is the Welsh Government's fuel poverty programme. It aims to improve the energy efficiency of homes across Wales and reduce fuel poverty by providing free energy efficiency improvements to eligible households. Heat pump installations are one of the measures available under the scheme.

What Does Nest Cover?

Nest can provide a package of free home energy improvements including:

  • Heat pump installation (air source or ground source)
  • Loft insulation
  • Cavity wall insulation
  • External wall insulation
  • Boiler replacement (if a heat pump is not suitable)
  • Smart heating controls

The specific measures offered depend on your home's needs and what will make the biggest difference to your energy bills and comfort.

Nest Eligibility

Nest is targeted at households most at risk of fuel poverty. You are more likely to qualify if you meet one or more of the following:

Benefits-Based Eligibility

You receive any of the following means-tested benefits:

  • Universal Credit
  • Pension Credit (Guarantee Credit)
  • Income-related Employment and Support Allowance (ESA)
  • Income-based Jobseeker's Allowance (JSA)
  • Income Support
  • Child Tax Credits (with income below the threshold)
  • Working Tax Credits (with income below the threshold)
  • Housing Benefit

Property-Based Eligibility

  • Your home has an EPC rating of E, F, or G
  • Your property is in a low-income area (identified through the Welsh Index of Multiple Deprivation)

Vulnerability Criteria

You may also qualify if you or a member of your household is:

  • Over 60 years old
  • Disabled or has a long-term health condition
  • Has a child under 5
  • Pregnant

How to Apply for Nest

Step 1: Contact Nest

Call the Nest helpline on 0808 808 2244 (free from landlines and mobiles) or visit the Nest Wales website. An advisor will discuss your circumstances and check your initial eligibility.

Step 2: Eligibility Assessment

Nest will assess your eligibility based on your income, benefits, property, and household circumstances. They may ask for evidence of benefits received.

Step 3: Home Assessment

If you are eligible, Nest arranges a free home energy assessment. An assessor visits your property to evaluate its energy efficiency and recommend appropriate improvements.

Step 4: Installation

If a heat pump is recommended, Nest arranges the installation through their approved contractor network. The installation is free — there is no cost to you at any stage.

Step 5: Aftercare

Nest provides aftercare support, including guidance on using your new heating system and ongoing energy advice.

The BUS Grant in Wales

If you do not qualify for Nest, the Boiler Upgrade Scheme is available to all Welsh homeowners who meet the standard eligibility criteria:

  • You own the property
  • You have a valid EPC with insulation recommendations addressed
  • You are replacing an existing fossil fuel heating system
  • The property is not a new build
  • You use an MCS-certified installer

The BUS grant provides £7,500 towards an air source or ground source heat pump. Your installer handles the application through Ofgem.

BUS in Wales: What You Pay

For a typical installation:

  • Total cost: £11,000 to £13,000
  • BUS grant: -£7,500
  • You pay: £3,500 to £5,500

Which Scheme Should You Apply For?

The decision tree is straightforward:

  1. First, check Nest eligibility. If you are on means-tested benefits or have a low-income household, contact Nest on 0808 808 2244. A free installation is always better than a £7,500 discount.
  2. If Nest does not apply, use the BUS grant. You still save £7,500 on your installation.
  3. Check ECO4 as well. The ECO4 scheme is another route to fully funded installation for low-income households.
  4. Look for local authority top-ups. Some Welsh councils offer additional funding on top of BUS.

Welsh Language Support

Both Nest and Home Energy Scotland services are available in Welsh. If you prefer to discuss your options in Welsh, let the advisor know when you call. Written materials are also available in Welsh.

Special Considerations for Wales

Rural Properties

Many Welsh properties are off the gas grid, particularly in rural mid-Wales, Powys, Ceredigion, and Gwynedd. If you are currently heating with oil or LPG, a heat pump can offer significant running cost savings on top of the grant benefit.

Older Properties

Wales has a high proportion of older, solid-wall properties. These may need more insulation work before a heat pump is the right solution. Both Nest and the BUS grant process address insulation — Nest can provide it for free, and BUS requires certain insulation measures to be completed first.

Park Homes

Park homes in Wales can be eligible for both Nest and the BUS grant, provided they meet the standard eligibility criteria. Park homes often benefit greatly from heat pump installations because of their typically high heating costs.

ECO4 in Wales

Welsh homeowners can also access the ECO4 scheme, which operates across Great Britain. ECO4 is delivered through energy suppliers and can fund heat pump installations for low-income and vulnerable households. It is worth checking ECO4 alongside Nest — you may find one route faster or more suitable than the other.

Frequently Asked Questions

Can I get a free heat pump in Wales?

Yes, if you qualify for the Nest scheme. Nest provides free heat pump installations to eligible low-income and vulnerable households in Wales. The ECO4 scheme is another route to free installation.

Is the BUS grant available in Wales?

Yes. The BUS grant of £7,500 is available to homeowners in Wales who meet the standard eligibility criteria.

Can I get both Nest and the BUS grant?

Typically no. If Nest is funding your heat pump, you would not also receive the BUS grant for the same installation. However, if Nest only covers some measures (e.g., insulation) and not the heat pump itself, you may be able to use BUS for the heat pump.

How do I contact Nest?

Call 0808 808 2244 (free from landlines and mobiles) or visit the Nest Wales website. The service is available in English and Welsh.

I do not receive benefits. Can I still get help?

Yes. Even if you do not qualify for Nest, the BUS grant provides £7,500 towards your heat pump. You pay the remaining balance. Get quotes from MCS-certified installers to see what that balance would be.

How long does Nest take?

From initial contact to completed installation can take several months, depending on demand and the complexity of work needed. The BUS grant route may be faster if you do not want to wait.

Are heat pumps suitable for Welsh weather?

Absolutely. Modern air source heat pumps operate efficiently in temperatures well below anything experienced in Wales. Rain and damp conditions do not affect performance.

Ready to get started? If you think you might qualify for Nest, call 0808 808 2244. Otherwise, get free quotes from MCS-certified installers who will handle your BUS grant application. See our complete UK grants guide for all available funding options, or use the calculator to estimate your costs.