Tips on Maximising Government Grants for Heat Pumps

As more and more people look for alternative heating solutions for their homes, heat pumps are slowly but surely becoming a popular choice.

According to the Heat Pump Association, the heat pump market was predicted to double in 2021, and in 2020 the UK government unveiled a Ten Point Plan for a Green Industrial Revolution, which aims to roll out 600,000 heat pumps into homes per year by 2028.

The Government is also planning to ban gas and oil boilers from any homes built after 2025, aiming to phase out all gas boilers by 2035. This means if your gas boiler breaks or stops working after 2035, you’ll need to look for a low carbon or renewable heating alternative instead of a boiler.

The cost of installing a heat pump

Whilst the cost of running a heat pump is comparatively less than a boiler, the same can’t be said for the purchase and installation of an air source heat pump. Cost of buying and installing a heat pump can cost anywhere from £8,000 and increase to £15,000, depending on project requirements.

To help offset the cost of the purchase and installation of heat pumps, there are a number of Government grants and initiatives available.

Read our most common heat pump FAQs here.

Heat Pump Grants in the UK

From 2022, the following schemes will be available to residents living in the United Kingdom:

Boiler Upgrade Scheme

Part of the Government’s wider Heat and Buildings Strategy, the Boiler Upgrade Scheme launched in April 2022 and aims to help homeowners in England and Wales afford the upfront costs associated with the purchase and installation of heat pumps.

The Government has set aside £450m and will offer grants of up to £5,000 for homeowners who get air source heat pumps installed. If costs of installation exceed the grant, the homeowner will have to pay the difference.

Important dates for the Boiler Upgrade Scheme

1st April 2022 - From this date, any low carbon heating systems that are installed and set up on 1st April 2022 or after are entitled to support under the scheme.

11th April 2022 - Installers can open an account with Ofgem, the scheme administrator.

23rd May 2022 - Applications for the scheme and payments will be accepted.

To be eligible for the Boiler Upgrade Scheme you must:

Live in England or Wales
Own your own home
Have an installation capacity of 45kWth
Have a valid Energy Performance Certificate (EPC) with no outstanding recommendations for loft or cavity wall insulation.

Warmer Homes Scotland

Warmer Homes Scotland is the Scottish Government’s programme that provides funding and support to households struggling to stay warm and keep on top of energy bills. The initiative is designed to help people keep their homes warm by implementing and installing a range of energy saving improvements including.

A survey of your home is undertaken by assessors, who will then provide a list of improvements that are compatible with the property. Suggestions include:

Wall insulation
Loft insulation
Draught-proofing
Central heating
Renewables

To be eligible for Warmer Homes Scotland the household must meet all of the following criteria:

Be homeowners or the tenants of a private-sector landlord
Live in the home as their main residence
Have lived there for at least 12 months (unless in receipt of a DS1500 certificate)
Live in home with an energy rating of 72 or lower and which is not more than 230 square metres in floor size
Live in a home that meets the tolerable living standard set out in the Housing (Scotland) Act 2006 or, where the home does not meet the tolerable living standards, this will not impact on the effectiveness of the measures recommended for installation under the scheme
Householders must not have received support for energy efficiency improvements through Warmer Homes Scotland funding in the last five years.

Find out how to apply on the Home Energy Scotland website.

Home Energy Scotland Loan

The Home Energy Scotland Loan was launched in May 2017 and helps households manage the costs of installing renewable heating systems and implement energy efficient measures into their homes.

You can apply for up to £38,500 (up to £17,750 of which you may not have to pay back). For loans above £10,000, you have up to 12 years to repay. For loans less than £10,000 the repayment term varies from five to 10 years.

The loan covers the following renewable energy solutions:

To be eligible for the loan, you have to own the home you live in. If you’re building your own home, you can apply for a loan for renewable energy systems.

Find out how to apply on the Home Energy Scotland website.

Nest Scheme, Wales

The Welsh Government Warm Homes Nest scheme provides funding and impartial advice on energy efficiency and sustainable heating alternatives to low income households and households living in deprived areas of Wales.

Eligibility criteria includes:

You’re a homeowner
You rent from a private landlord
Your home is expensive to heat and energy inefficient
You or someone you live with receives a means tested benefit OR has a chronic respiratory, circulatory or mental health condition and an income below defined thresholds. (Energy Saving Trust).

Find out more about the scheme here.

How to apply for Government Grants for air source heat pumps

Once you’ve determined which loan you’re eligible for, it’s time to apply. Applications will differ depending on the type of grant you’re applying for - if in doubt, get in touch with the governing body of the scheme before you send off your application.

Whilst you’re applying, you should also look for a reputable, MCS accredited installer to install your air source heat pump.

The Boiler Upgrade Scheme

If you’re applying for the Boiler Upgrade Scheme, you can find reputable installers who have registered with Ofgem. If an installer isn’t registered, they can’t access the scheme.

Once you’ve found an MCS accredited installer, an assessment will be carried out to check if you’re eligible and that your property is suitable. The installer will apply for the grant on your behalf. The value of the grant is then taken off the price you pay.

With boilers slowly being phased out, it makes sense to look at alternative heating solutions. If you have any questions, browse our Resources centre, or get in touch with an engineer today.