Can You Get Grants for Air Source Heat Pumps?
Looking at the government help available for those looking to invest in an air source heat pump.
As with any large home improvement, the perceived cost of upgrading to an Air Source Heat Pump can be a real blocker for many homeowners – but we stress that it’s the perceived cost. Firstly, the cost of an ASHP installation can be significantly offset by government grants and secondly you could be saving hundreds on your energy bills by making the switch.
So, what grants and financial support can you get for your Air Source Heat Pump installation?
Here are the grants and other options on offer:
The Boiler Upgrade Scheme (BUS)
The government’s flagship heat pump grant scheme is the Boiler Upgrade Scheme (BUS). This government payment has recently been raised to £7,500 towards the cost of switching to an air source or ground source heat pump.
In most installations, an air source heat pump will provide a much more dependable and less disruptive installation than a ground source one would (which is why we exclusively install air source units), but the government grant is available for either option.
Not every household is eligible for the grant, but most domestic UK properties, including new build properties, are eligible because the main criteria are:
- You must be switching away from a fossil fuel source (like gas, oil, biomass, or electric storage heaters)
- You must own the property (even for commercial reasons)
- The heating upgrade must have been installed after 1st April 2022
- Your heating installer must be certified by the Microgeneration Certification Scheme (MCS), which we are!
If you choose an installer who isn’t MCS certified, you won’t be able to get the grant. We are MCS certified here at CB Heating and we’ll handle the grant application and take care of all the paperwork for you. Your air source heat pump installation with us is one you can depend on, without the added admin.
The upgrade scheme is comparatively very generous and isn’t likely to be available forever (especially as more households move to environmentally-friendly heating) – so it’s worth investing while it’s still at such a significant discount! Get in touch for a free no obligation quote for a heat pump installation.
VAT on heat pumps at 0% for 5 years
While this isn’t a grant as such, the government has also reduced VAT for heat pump units to zero, which means that the unit and installation cost is significantly reduced for homeowners for the next few years.
This will be in effect until the end of March 2027.
Great British Insulation Scheme (GBIS)
One of the best ways to ensure you’re maximising your heat pump performance is by insulating your property. By investing in more effective insulation, your heat pump doesn’t have to work as hard – which means it uses significantly less energy than it otherwise would have to. This is because heat pumps can frequently work at between 300-400% efficiency (and frequently much higher!) – learn more about heat pump efficiency here.
Significant insulation upgrades can be quite an investment – luckily, government help is available! The Great British Insulation Scheme is a £1 billion scheme to help homeowners and tenants upgrade their homes in order to keep energy bills lower.
The scheme aims to improve the installation of your property. In England, this primarily applies to homes with Energy Performance Certificate (EPC) ratings of between D-G and which are also within Council Tax Bands A-D. You can check whether you’re eligible here.
One of the key benefits of the GBIS is that the cost of insulation improvements in loft and/or wall insulation can be offset by as much as 75% from the grant.
Energy Company Obligation (ECO4)
This scheme is the fourth iteration of the ECO scheme. The core focus of this scheme is to help low income homeowners and tenants improve the energy efficiency of their homes. Whilst the Great British Insulation Scheme focuses on loft and wall insulation, the ECO4 scheme is a whole-house upgrade on insulation and heating equipment – including extra upgrades like solar panel installations and even installing air source heat pumps.
At CB Heating, we are an ECO4 Partner and we can help you find out if you are eligible for the fund. Just get in touch with us today and we will go through it with you.
Home Upgrade Grant
You may also be eligible for a Home Upgrade Grant if your household income before tax is below £31,000, your home has a poor EPC rating, and it’s not currently heated by mains gas. For example, if you live in a rural property that’s heated with electric storage heaters, on-site oil, or wood, then you could get financial help towards the cost of insulation. This isn’t always available in tandem with the Great British Insulation Scheme and isn’t available in every area.
Local Authority schemes
Individual district councils sometimes offer incentives and grant schemes (such as the Home Upgrade Grant) to support local homeowners in the switch to becoming more environmentally friendly. In some cases, these can be quite generous, but they also sometimes come as an either-or option if you’re also receiving help from a wider government scheme.
Be sure to check your particular council website to see if you may be eligible for some extra assistance.
Eco loans tend to have better rates
While not a grant, it may be worth looking specifically for green energy investment loans as opposed to remortgaging and/or taking out a personal loan. Most banks offer much better rates for eco friendly home improvements – so you could save significantly on interest repayments!
What about new builds and extensions?
The introduction of the ‘Future Homes Standard’ means that all gas boilers will be banned in all new build and self-build homes from 2025 and all new homes must have low-carbon heating systems such as an air source heat pump.
There are some things you will need consider when looking at an Air Source Heat Pum for your new build project. For example, you may not be eligible for the Boiler Upgrade Scheme in a new build. We have written more about this here.
If you’re opting for solar panels
Another great investment (though also not a grant) when upgrading your heating system to a dependable ASHP system is to also have solar panels and batteries installed. Because air source heat pumps need electricity to run, installing solar panels can provide you with virtually unlimited heating for your home and hot water without having to pay for any electricity bills ever again!
Many customers have found this the perfect way to go completely green and get away from having to worry about fluctuating energy price markets. But, if you have the space and up-front funds, you can actually choose to oversize your solar panel system so that you can generate electricity for the grid and get paid for it! What’s more, if you get those solar panels installed as part of the ECO4 grant, you get twice the benefits!
Have any heat pump questions?
These grants can help you with the cost of getting the air source heat pump installed, but here’s more information on the cost of actually running a heat pump – as well as financing options available.
If you’re thinking about making the leap to environmentally friendly, dependable heat, get in touch with our expert team to clear up any questions – we’re always happy to help!