Heat Pump Grants

Are you planning to change the heating system of your house? You cannot go wrong with a little eco-friendly option, which reduces carbon emissions and makes the best of renewable energy – the heat pump.

The heat pumps are one of the most significant parts of any heating and cooling (HVAC) system. It’s a small device that transfers the heat energy from one source to another destination, known as the heat sink. This process is known as the ‘pumping’ process, wherein warmth is pumped from one spot to another.

The heat pumps primarily, are responsible for underfloor heating, space heating via radiators, warm air convectors, and heating water for home or business use. Most of these devices can control climate, thus offering space cooling by quickly reversing the space heating process.

Key Takeaways

• There are two types of heat pumps: air source and ground source. The UK government encourages These eco-friendly heating systems through grants to reduce carbon emissions and promote energy efficiency.
• The Renewable Heat Incentive (RHI) grant, which covered various renewable heating systems, ended. It was replaced by the Boiler Upgrade Scheme (BUS), offering financial incentives to switch from gas boilers to heat pumps.
• To qualify for the BUS grant, homeowners in England and Wales must meet specific criteria, including having a property, replacing an existing heating system, and providing necessary documentation. The grant offers varying amounts depending on the type of heat pump installed. However, competition for these grants is fierce, with a limited number available.

The types of heat pumps

There are two kinds of heat pumps:

• Air source heat pumps: The air source heat pumps function like refrigerators by extracting the hot air from outside your property and replacing it with the cool air inside. They might not be very efficient if the air outside your house cools down, but they operate wonderfully in even -15 C, which is more or less the temperature in the UK at all times. They also help you lower your carbon print and offer an excellent energy efficiency rating.
• Ground source heat pumps: The ground source heat pumps have the exact mechanism as the air source heat pumps. But, instead of extracting warm air from outside, it absorbs the residual heat from the water body or soil outside your house and transports it inside.

These environmentally friendly heating devices might be costly if not for the UK government’s clean heat grant support!

Installing a heat pump, whether ground or air source heat pumps, can cost you more than gas boilers. These costs include the ground excavation costs (if you choose a ground source heat pump), replacement of radiators, improvement of the home’s insulation, switching out connections and pipes, etc.

In light of this, the UK government has formed several source heat pump grants to offer incentives to homeowners who come forth to change their fossil fuel heating system for the better. This is done to reduce the UK’s carbon footprint and bring the country to net-zero output by the year 2050.

What are these grants? Are you eligible for them? How do you avail of this benefit? Let’s uncover all these answers for you!

The Boiler Upgrade Scheme

To support UK households in adopting eco-friendly heating solutions and reducing their carbon footprint, the government has introduced the Boiler Upgrade Scheme (BUS). This scheme offers substantial grants to homeowners in England and Wales who install renewable heating systems, such as air or ground source heat pumps.

The Boiler Upgrade Scheme provides a direct grant to help cover the initial installation costs, making green heating technologies more accessible and affordable. For example, homeowners can receive grants of up to £7,500 for installing air source heat pumps and £6,000 for ground source heat pumps. This initiative is part of the UK’s broader strategy to encourage energy efficiency, support the transition to renewable energy sources, and move towards achieving net-zero carbon emissions by 2050.

Unlike the previous Renewable Heat Incentive, which offered quarterly payments over seven years, the BUS provides upfront financial support. This change aims to simplify the process for homeowners and increase the uptake of renewable heating technologies by reducing the initial financial barrier.

The Boiler Upgrade Scheme (BUS)

As the RHI came to a close, the UK government ignited the Boiler Upgrade Scheme, earlier known as the Clean Heat Grant. The motive of this scheme is to offer funding to people or homeowners to help them switch from using gas boilers to a better renewable heating source like the air or ground source heat pumps.

This scheme will run from April 2022 to 2025.

People applicable to receive funding under this scheme will get a monetary voucher that they can put towards the installation of a new heating system. Once the new heating system is installed, they can redeem the voucher.

It goes unsaid that you will not be eligible to apply for this grant if your property is pre-installed with a heat pump. This is because the Department for Business, Energy, and Industrial Strategy are inclined to transform the old UK houses and fit them with newer low-carbon heating technologies.

Additionally, the primary goal of the grant is to push people into switching to a heat pump if their current gas boiler requires replacement. But, if your boiler is in excellent working condition and has a long life ahead, your application may not qualify.

So, you are not forced to change your existing boiler, although the government plans to stop the sale of gas boilers soon. Eventually, you may require upgrading and getting a new heat pump.

The Boiler Upgrade Scheme provides different financial incentives for distinct heat pumps and boilers:

• Ground source heat pump: £6,000
• Air source heat pumps: £5,000
• Biomass boilers: £5,000

The grant only offers a maximum of £6,000 monetary benefit. Most heat pumps are more expensive, so please bear in mind that you would have to provide extra funding from your pocket.

The scheme only runs for landlords and homeowners located in England and Wales. All the new builds and social housing is exempt from this grant.

Remember that the competition to receive this grant is likely fierce. There are almost 28 million households in the UK, and only 90,000 houses will receive this financial incentive. That’s just 0.3% of all households. So, you need to send in your application asap and hope for the best.

Here are some other considerations that you must be mindful of:

• The financial incentive is only available if your installation is done by an MCS-certified installer (Microgeneration Certification Scheme). Once the installation is done, you will also require an MCS certificate to prove that the heat pump installation was done per the MCS standards.
• Besides the MCS certificate, you would need to produce an energy performance certificate (EPC) to show that your house can smoothly run on a heat pump. Your EPC certificate might indicate additional work such as installing other accessories or pumps, so you must fulfil that too.
• The voucher provider under the Boiler Upgrade Scheme will only last 3-6 months. So, your heat pump installation must be done within that time frame. Any delay may cause your voucher to be null and void, and another homeowner applicant may be eligible to take your place.

What are the requirements?

As a homeowner applying for the Boiler Upgrade Scheme, you must fulfil the following conditions:

• Be a resident of England or Wales
• Have a property of your own
• Replacing the gas, oil or electric boiler with the heat pump
• Produce a valid Energy Performance Certificate (EPC) to prove your home can run an energy-efficient heat pump

The financial incentive is unavailable for people who have newly built properties pre-installed with a heating system and if you have a low carbon heating system.

You can send an application under this scheme if you claim an energy upgrade for insulation or windows.

Process of applying for heat pump government grants

Before you send in your application for Boiler Upgrade Scheme (BUS), gather all the required and relevant documents in one place. This will help expedite the application process and mitigate any chance of delay.

Moreover, it will help you send in your application as early as possible without any holdup, enhancing your chances of getting the grant!

You are going to require the following documents for your application:

• Energy Performance Certificate (EPC) number: This certificate must be no older than two years from when you send your application. If the EPC requires you to install any wall insulation or loft, you must also fulfil that requirement.
• Microgeneration Certificate Scheme (MCS) number: This certificate must be provided by the heat pump installer within 2 weeks from the time your system gets commissioned.
• Metering arrangement details: You may have to install metering for both payment and performance in certain circumstances.
• Financial contribution: You will have to provide records or invoices for the heating system’s cost and the additional installation charges. Estimates or approximations are acceptable.
• Bank details: To successfully transfer the government grant, you must furnish the requisite bank details.

Once you complete your application, it will either get accepted, rejected or sent for further review. All the information you provide goes through automated checks and gets verified by a third party.

A certain number of applications also get flagged by the system for random reviewing to ensure quality. So, your application might be one of them – do not worry!

If your application is approved, the system will create an easily accessible account under your name. You can avail all the necessary and relevant information pertaining to the grant and your application from there.

Heat Pump Source: Reliable Heating and Cooling Solutions

At Heat Pump Source, we take pride in our unwavering commitment to serving the UK with top-tier HVAC solutions. From the efficiency of heat pumps and the cool relief of air conditioning to the warmth of boilers, radiators, and underfloor heating, our dedicated team is always at the forefront of innovation. We understand the unique needs of every household and business, and we strive to provide dependable health and cooling products and services that are tailored just for you. Ensuring your comfort and satisfaction is our utmost priority. Whether you have questions, need guidance, or require support, we’re always here to assist. Please don’t hesitate to contact us; we’re eager to be of service.

Wrapping up

As the world tries to make a slow and steady switch towards environment-friendly options, it’s time for you to upgrade to a better heating system for your house. To heat your home, you do not need gas, oil or electric boilers anymore.

You can choose a better heat exchanger system such as a heat pump. It could be air source heat pumps or ground source heat pumps – either option is low on carbon emission and runs on renewable energy.

More importantly, both the options are eligible for government grants, one of which is the Boiler Upgrade Scheme. Since the scheme started in April 2022, it would be wise to send in your application as soon as possible. The sooner your application gets in, the higher your chances of getting the grant!

So, collect all the necessary documentation, complete your application to the T and wait to be the chosen one. All the best!