Homeowner grants for air source heat pumps in England and Wales will increase by 50% from £5-6,000 to £7,500 beginning on Monday, in response to criticism regarding the adoption of the low-carbon technology.
Increased government grants made available today make heat pump installation more affordable for households than the average gas boiler cost. Grants are available to cover a third of the cost of installation.
The Boiler Upgrade Scheme will contribute £7,500 to the price of a new heat pump, as pledged by the Prime Minister as part of the government’s approach to net zero.
What are the potential savings compared to a gas boiler?
The approximate expense of procuring and installing a gas boiler is between £2,500 and £3,000. However, certain households can now obtain heat pumps for less than this amount by using the grant and supplementary discounts provided by energy suppliers.
The increased grants are a component of the government’s realistic, and proportionate strategy towards achieving net zero. This approach aims to alleviate the significant financial burdens that British families have endured in recent years while simultaneously fulfilling their international obligations.
Who benefits from this change?
The government is currently:
- Distributing £10 million via the Heat Pump Ready programme to encourage heat pump industry innovation to further reduce installation costs;
- Introducing a new campaign called “Welcome Home to Energy Efficiency” to assist individuals in increasing the energy efficiency of their homes and reducing their winter energy expenses.
- The increased grant funding allows thousands of families nationwide to switch to a more environmentally friendly heating system at a reduced cost.
In addition to increasing the grant for air-source heat pumps from £5,000 to £7,500, grants for ground-source heat pumps have also been increased from £6,000 to £7,500. Furthermore, biomass burner grants for households remain at £5,000.
Organisations can submit applications for a portion of the most recent Heat Pump Ready programme round. This programme provides financial support to innovation projects that aim to enhance the customer experience by making heat pumps more affordable, streamlined, or quicker to implement.
If you live in a high energy cost household, an air source heat pump may be just what you need. Installing an air source heat pump could be very beneficial in the long run, saving you money on your energy costs.
What made this happen?
This announcement came because the government have targets they are required to reach before 2050. The amount of heat pumps that are currently being installed do not fall in line with the governments target, and to combat this, they have now announced more funding.
The Welcome Home to Energy Efficiency campaign will use print, on-demand services, television, and billboards to promote the improvement of households’ energy efficiency. They will consist of a variety of suggested measures, including:
- Examining wall and mezzanine insulation
- Installing a heat pump while using the bumper grant
- Solar panel installation to power a heat exchanger and further conserve energy
In England, Wales, and Scotland, boiler upgrade scheme grants may be used with the £1 billion Great British Insulation Scheme to assist over 300,000 households, including the most vulnerable.
Official Statements
Claire Coutinho
Claire Coutinho, secretary of Energy Security, stated: “It is inexcusable to force individuals to choose between reducing expenses and emissions. By adopting a practical strategy, we can sustain our efforts to achieve our ambitious net-zero goals without unduly burdening the financial resources of diligent households.”
“Currently, heat pump installation costs may be less than the mean cost of a gas boiler for some households, as the cash grant has been increased by 50% to £7,500, making our programme one of the most generous in Europe.”
Lord Callanan
Minister for Energy Efficiency, Lord Callanan, stated: “Enhancing the energy efficiency of our housing stock contributes to realising our net zero goals and empowers households to decrease their energy consumption and consequently lower their utility expenses.”
“By assisting individuals in identifying feasible energy-saving measures for them, Welcome Home to Energy Efficiency will generate street after street of warmed homes.”
What happens next?
The government is delaying the banning on installing oil and liquefied petroleum gas boilers and new coal heating in off-gas-grid homes until 2035 instead of phasing them out in 2026.
Additionally, the government has exempted fossil fuel boilers, including gas boilers, from the 2035 phase-out requirement; therefore, if a residence is unsuitable for a heat pump, homeowners will no longer be required to convert.
Final Thoughts
The heat pump grants show the dedication of the UK government to eliminating gas boilers and shifting towards heating systems with reduced carbon emissions. Although heat pumps require a greater initial investment, the recently secured funding assists in narrowing the cost disparity when compared to gas boilers, thereby expanding the residential market that can benefit from heat pumps.
Considering that the grants cover approximately one-third of the installation costs, the transition to electric heat pumps is growing in appeal, particularly in light of the escalating cost of gas. Strong grant acceptance hasten the UK’s efforts to reduce emissions from building heating.
The effectiveness of the new incentives in stimulating the widespread adoption of heat pumps and firmly transitioning the UK away from fossil fuel dependence will be determined in the coming years.
People also asked...
In the UK, do heat pumps work in the winter?
Heat pumps always work the same way, even in the winter. To heat your house and make hot water, they use energy from the air, a nearby water source, or the ground’s heat. In the UK, the normal temperature in the winter is between 2° and 7° Celsius.
Is it possible to integrate a heat pump with my current central heating system?
Although feasible, the integration of air-source heat pumps into pre-existing heating and hot water systems requires thoughtful deliberation and suitable adjustments.
Do heat pumps work with heaters that are already there?
Yes, heat pumps can work with radiators if the flow temperature is kept low. Most of the time, radiators that are already there are big enough to handle a lower flow temperature. This is especially true if the building is being made more energy-efficient.
Do you need a heat pump and a water tank?
You will need a way to store hot water when needed because a normal heat pump doesn’t give you hot water on demand like a combi boiler does.
What temperature does a heat pump not work?
For most systems, heat pumps don’t work as well when temperatures drop below 25 to 40 degrees Fahrenheit. A heat pump should be above 40 degrees. When it gets below 40 degrees outside, heat pumps work less well and need more energy to do their jobs.
Useful Resources
- Department for Business, Energy & Industrial Strategy – Heat Pump Ready Programme – https://assets.publishing.service.gov.uk/media/619fb2bcd3bf7f0559e1da6e/heat-pump-ready-programme-questions.pdf – (.pdf)
- UK Government – Boost to heat pump rollout with plans for cheaper and easier installation – https://www.gov.uk/government/news/boost-to-heat-pump-rollout-with-plans-for-cheaper-and-easier-installation – (.html)
- Ofgem – Boiler Upgrade Scheme (BUS) – https://www.ofgem.gov.uk/environmental-and-social-schemes/boiler-upgrade-scheme-bus – (.html)
- UK Government – Check if a heat pump could be suitable for your home – https://www.gov.uk/check-heat-pump – (.html)
- Energy saving trust – Air source heat pumps – https://energysavingtrust.org.uk/advice/air-source-heat-pumps/ – (.html)
Did this advice help?
Help us improve our website. Your feedback will help us give millions of people the information they need.