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Many people are moving towards greener methods of heating their homes. This doesn't just save money on energy bills, but it also reduces your carbon footprint. The government is aiming for the UK to reach net zero by 2050, where the balance between carbon emissions and carbon absorption is such that there is a net zero carbon emission rate. This target has led to a variety of schemes to help people reduce their carbon footprint, and air-source heat pumps are one of the options that are eligible for government grants and loans.
The average cost of buying and installing an air source heat pump is between £2,000 and £20,000. There are a variety of factors that influence the cost including:
Gain insights: Why Are Air Source Heat Pumps So Expensive
There are a variety of grants available in England and Wales that could help with the cost of installing an air source heat pump, or other renewable energy systems, such as ground source heat pumps, water source heat pumps, or biomass boilers.
The Boiler Upgrade Scheme is a government initiative to increase the installation of low-carbon heating across households in England and Wales. Under the scheme, you could receive £7,500 towards air source heat pump installation costs.
The scheme also has funding for other types of low-carbon heating systems:
To receive funding under the Boiler Upgrade Scheme (BUS), you will need to fulfill certain eligibility criteria.
You must be a homeowner in England or Wales. You can only receive one grant per property, but the property doesn't have to be your main home. It can be your second home, a business, or a property that is rented out to tenants.
It must have a valid and up-to-date Energy Performance Certificate (EPC). These certificates demonstrate the current energy efficiency of your property and are valid for 10 years.
A BUS grant can only be used for replacing fossil fuel heating systems. You can't receive it if you are replacing a low-carbon heating system. Fossil fuels include oil, gas, LPG, and electricity.
You will still be eligible if the property has received funding in the past for other energy efficiency measures, such as insulation, but you won't be eligible if it has previously received funding for a low-carbon heating system.
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Your air source heat pump must be installed by a Microgeneration Certification Scheme (MCS)-certified installer. At Heat Pump Heroes, you will receive an initial consultation and site visit, after which you will receive a detailed quote for the proposed work. After that, we will apply for the Boiler Upgrade Scheme with Ofgem on your behalf. They may contact you to inform you that we are acting on your behalf, and after that, we will take care of all the details.
If you are in Scotland, you won't be able to apply for the Boiler Upgrade Scheme, but you can still receive funding for your air source heat pump using a very similar scheme.
The Home Energy Scotland Scheme provides funding for property owners to improve the energy efficiency of their homes. It provides grants and interest-free loans to fund:
For an air source heat pump, the grant amount you could receive is £7,500. You also have the option to apply for a further £7,500 as an interest-free loan. If you live in a rural area, you can also apply for a rural uplift grant of £1,500.
For those in rural areas, you could receive a total of £18,000. For everyone else, the total could be £15,000.
You must meet certain eligibility criteria to receive a grant or loan from the Home Energy Scotland Scheme.
You must be a homeowner and the property you are applying for must be your main dwelling. You can't apply for this scheme if you are a private-sector landlord, but there are other grants that you can receive, such as the Private Sector Landlord Loan.
The scheme isn't means-tested and you don't need to be in receipt of any benefits. You need to have a quote from an approved installer before applying for the loan.
To apply, you need to contact Home Energy Scheme Scotland, either by phone or email. You will be assigned an advisor who will go through some details with you. These might include details about the property, your EPC certificate and its recommendations, and your personal circumstances.
For a clean heating system, you may be referred to a specialist advisor who will create a report to add to your application.
If your advisor thinks you are eligible for the scheme, they will invite you to apply. This is via an online portal and you will need to include some documents, including:
There are other grants available for funding an air source heat pump or other energy efficiency measures. The eligibility criteria for these can vary, as can the amount you would receive.
These are allocated via your local authority and allow homeowners or private renters on low-income and/or means-tested benefits grants to improve the energy efficiency of their homes.
Warmer Homes Scotland is an interest-free loan available for low-income and vulnerable homeowners and tenants of private landlords. You could receive up to £10,000 towards improvements to your home's energy efficiency.
It is available to people who are of pensionable age and those who receive passport benefits, as long as their home has a poor energy rating.
Nest Scheme Wales provides households in Wales with a grant for the full cost of installing an air source heat pump, or other clean energy measures. It is available for people who own or privately rent their home, who are on a low income or who receive a means-tested benefit, and whose property has an EPC rating of E or less (D or less if there is a household member with a relevant health condition).
If you are hoping to install an air source heat pump in your property, and want to know if you are eligible for a government heat pump grant, we can help. We have extensive experience in navigating the government grants system, and we can advise you.
For the Boiler Upgrade Scheme, we will handle the application process on your behalf with Ofgem, and keep you updated every step of the way. For other types of grants and loans, we will provide detailed quotes and can answer any questions that are needed for your application.
All our installers are MCS-certified and are highly trained and knowledgeable about air source heat pumps, other clean energy systems, energy performance certificates, and how to improve your home's energy efficiency.
Once we have the grant or loan in place, we will work closely with you throughout the heat pump project and will ensure that every element of the installation meets or exceeds industry standards.
Air source heat pumps are an energy-efficient method of heating properties. Replacing a traditional heating system, such as a gas boiler or electric heating system with an air source heat pump won't just save you money on your energy bills, but it will also help the environment. The government is pushing for the UK to rely on renewable energy sources, rather than fossil fuels, and provides a variety of grants to encourage households to switch to cleaner energy
