Yes, hybrid systems qualify for grants. But not the one everyone talks about. The government’s Boiler Upgrade Scheme? Excluded. ECO4 and the new Warm Homes Local Grant? Fully supported. Why the contradiction? Because UK energy policy isn’t a single thing, it’s three competing philosophies masquerading as consumer choice.
We have compiled this article to guide you through getting a hybrid heating system under the famous Air source heat pump grant.
The Grant Hierarchy
Think of UK heating grants as a three-tier system, each with different rules, different priorities, and wildly different attitudes toward hybrids.
The Boiler Upgrade Scheme: The Purist
BUS launched in April 2022 with one mission: kill gas boilers. Fast. The scheme offers £7,500 for air or ground source heat pumps. No income limits. No property restrictions. Just switch to renewable heat, and the money’s yours.
Except if you want a hybrid. Then? Nothing.
The official line from government guidance: “You cannot get a grant for a hybrid heat pump system.” Why? Because hybrids keep a gas boiler as backup. That contradicts BUS’s core objective, complete fossil fuel elimination.
Is BUS popular despite its rigid stance? Absolutely. Between January and June 2025, it issued 19,118 vouchers. The government doubled its budget to £295 million for 2025-26. Demand keeps climbing.
But here’s what they won’t tell you: BUS works best for well-insulated modern homes. Got a 1920s terrace with single-pane windows? A Victorian semi with solid walls? BUS will fund your heat pump, but it won’t guarantee your comfort.
ECO4: The Pragmatist
ECO4 runs until March 2026 and explicitly supports hybrids. Not as standalone upgrades, as part of “whole-home retrofits.” The scheme targets low-income households and focuses on improving entire properties, not just swapping heating systems.
ECO4 Eligibility Quick Check:
| Criterion | Requirement |
| Income | Means-tested benefits (Universal Credit, Child Tax Credit, etc.) |
| Property | EPC rating E-G |
| Cost | £0 out of pocket if approved |
| Hybrid support | Yes, bundled with insulation upgrades |
Who qualifies? Anyone on benefits, low-income households via ECO Flex, or properties with terrible energy ratings. Off-grid homes (no mains gas) get priority because hybrids combining heat pumps with oil or LPG make perfect sense here.
The best part? If you qualify, ECO4 covers the full installation cost. You pay nothing.
Why does ECO4 fund hybrids when BUS won’t? Different goal. BUS wants tech adoption, switch to heat pumps, period. ECO4 wants energy reduction and better EPC ratings. If a hybrid achieves that while keeping your home warm? Approved.
Warm Homes Local Grant: The New Player
Launched April 2025, this is the big news everyone’s ignoring. The grant explicitly lists hybrid heat pumps as eligible, but only for homes on mains gas. (Yes, that’s backward from ECO4’s off-grid focus. Welcome to UK policy.)
Warm Homes Local Grant at a Glance:
| Element | Details |
| Energy efficiency | Up to £15,000 |
| Low-carbon heating | Up to £15,000 |
| Total possible | £30,000 maximum |
| Income limit | Under £36,000/year |
| Location | England only |
| Property | EPC E-G required |
That’s up to £30,000 in combined funding. Local councils run it through energy hubs. They pay contractors directly; you never touch the grant money.
The catch? It’s means-tested. Earn over £36,000? You’re out. This isn’t BUS’s “everyone qualifies” approach. This targets households that genuinely can’t afford upgrades otherwise.
Why the Policy Split?
Why does one scheme ban hybrids while two others embrace them? Simple. Competing priorities.
BUS follows pure decarbonization logic. Remove fossil fuels completely. No compromises, no half measures. If you get £7,500 toward the heat pump grants, you should commit fully. Hybrids allow fence-sitting—keeping gas “just in case.” BUS rejects that.
The Hybrid Case (Even Without BUS)
Should you consider a hybrid if BUS won’t fund it? Depends on your property. A hybrid costs £9,000-£14,000 installed. That’s often less than a standalone heat pump. And it delivers 40-50% better efficiency than traditional gas boilers alone.
How hybrids work: The heat pump runs during mild weather and shoulder seasons. When temperatures drop to 30-40°F, the system switches automatically to the gas boiler. You get optimal efficiency year-round without comfort compromise.
Your Action Plan
If you’re on means-tested benefits:
Contact an ECO4-accredited installer. They survey your home, check your EPC rating, and apply for funding on your behalf. Hybrids qualify when bundled with efficiency upgrades. Approval? You pay zero.
If your income is under £36,000:
Check Warm Homes Local Grant through your local council’s energy hub. The scheme supports hybrids explicitly for mains gas homes. The council handles everything: surveys, contractors, and payments.
If neither applies:
BUS remains closed to hybrids. Your options? Private green home improvement loans spread the cost. Or combine a BUS-funded standalone heat pump with separate boiler financing, though this loses the integrated hybrid efficiency.
The Cost Reality
BUS-funded air source heat pumps average £11,000 total. Subtract the £7,500 grant, and you’re paying £3,500 out of pocket.
Hybrids cost £9,000-£14,000 total with no BUS support; you finance everything. But qualify for ECO4 or Warm Homes Local Grant? They cover the entire cost. The barrier vanishes.
The decision depends on three factors: eligibility, property type, and comfort with technology. If ECO4 or Warm Homes Local Grant applies, take it. No question. If not, weigh private financing against the hybrid’s lower upfront cost and efficiency gains.
The Bottom Line
Hybrids qualify for government grants. Just not the most famous one. BUS’s exclusion is an intentional policy; they want complete fuel switching. ECO4 and Warm Homes Local Grant offer substantial funding (£15,000-£30,000) for eligible households. Don’t qualify? The hybrid’s lower cost and superior efficiency to standard boilers still make sense, even without grants.
Check eligibility across all three schemes before deciding. The funding landscape expanded dramatically in 2025. What wasn’t possible last year might be fully funded now.
You May Also Visir: Is a Heat Pump Grant Worth It for Small Homes?
