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Grants for Heat Pumps | Everything There Is To Know

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Have you ever heard of the grants for heat pumps scheme? The Government provides grants towards the cost of installing heat pumps. Eligible homeowners can get £7,500 off the price of installing one. But, how can you get a grant for a heat pump, and are you eligible?

How do heat pumps work?

Heat pumps run on electricity and work similarly to a fridge, only in reverse. They extract energy from the air or ground and move heat from one area to another. Unlike gas and oil boilers, heat pumps are more energy efficient and friendlier to the environment.

Why consider a heat pump?

A low-carbon heat pump is better for the environment. Meaning your home will be more energy efficient. Beyond that, there’s currently an energy crisis, with energy bills rising. Although the Government stepped in with price caps, homeowners are still paying much higher rates than before. A low-carbon heat pump uses less energy and should help reduce your energy costs.

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What are the grants for heat pumps scheme?

Buying a heat pump could help you reduce your carbon footprint and reduce your heating costs. Especially if you currently use oil, LPG or electricity to heat your home.

The heat pump scheme is part of a £3.9bn project from the Government. It has been set up with the aim to make all heating systems low-carbon by 2035 by replacing less energy-efficient gas boilers.

To reach their goal by 2035, the government is offering grants for heat pumps with the aim of making it more desirable for homeowners to replace their boilers.

The so-called Boiler Upgrade Scheme allows homeowners in England and Wales to get a grant covering part of the cost of replacing their heating system. The scheme is offering grants to chop £7,500 off the cost of an air source heat pump, £7,500 for a ground source pump, and £5,000 for biomass boilers.

Who’s eligible for the scheme?

Most homeowners and landlords are eligible. The only exceptions are those living in social housing and new-build properties. It’s also worth noting that grants are limited and only 30,000 heat pumps are available each year.

How do I apply for the grants for the heat pumps scheme?

Step 1: get in touch with a qualified heat pump installer, it’s usually the installer who submits the application to Ofgem, the energy regulator. They typically will guide you through the necessary steps and handle the paperwork with Ofgem on your behalf.

Step 2: If you’re eligible Ofgem will issue you a voucher confirming the grant amount. From the voucher’s issue date, pump installers typically have a set timeframe (a few months) to complete the installation.

Step 3: Once your heat pump has been installed, the pump installer will generate a microgeneration certification certificate. The certificate is then submitted to Ofgem, who will pay the grant amount directly to the installer. Be aware that you are responsible for covering any costs that exceed the £7,500 grant.

Is £7,500 enough to install a heat pump?

No. The cost of installing a heat pump varies between £10,000 to £12,000 as a guide. Also, costs will vary depending on the size of your home, the supplier, and the type of pump.

So, despite the grants that you’ll get from the heat pumps scheme, you’ll still have to top it up.

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Why consider the scheme

If you’re on a mission to make your home more energy-efficient or you’re in the market for a new boiler then the scheme could be worth considering.

While the grants for heat pumps scheme won’t cover the full cost it’s a notable contribution.

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Last Updated: November 28th, 2023