Proposals announced to simplify heat pump grant process

New proposals have been announced to make it easier for homeowners and small businesses to access a grant to install a heat pump for low-carbon heating.

Measures being proposed aim to enable more households and business owners to take advantage of low-carbon heating and reduce energy costs by replacing old boilers. Current rules however require loft or cavity wall insulation to be in place to qualify for a heat pump grant.

A heat pump takes heat at a low temperature from the air or ground, increases it to a higher temperature, before transferring the heat into homes for heating and hot water. This technology is significantly more efficient than traditional boilers and uses cleaner electricity rather than fossil fuels and is part of the government’s efforts to decarbonise the UK’s energy system; vouchers issued as part of the government’s Boiler Upgrade Scheme have so far totalled £81 million.

The latest proposal to reduce the reliance on fossil fuels to heat homes also include support to install new biomass boilers, which can also double-up as an oven.

Lord Callanan, Minister for Energy Efficiency and Green Finance, said: 

“Heat pumps are a vital tool in cutting the carbon emissions from people heating their homes, while also helping to drive down costs and boosting our energy security.

“While a heat pump can be installed for a similar price to installing a gas boiler, the support we’ve put in place means it is an option for more and more households.

“Today’s [31st Augsut] changes go even further and will mean even more people could benefit from making the switch, offering them the option for a low-emission, low-cost form of heating their homes.”

The government’s £450 million Boiler Upgrade Scheme was recently extended until 2028 and offers grants of £5,000 towards the installation of an air source heat pump; £6,000 off a ground source heat pump; and £5,000 off a biomass boiler. Consumers can also receive a zero VAT rate on installations.