What grants are available for air source heat pumps?
Let’s talk heat pump grants
Are you thinking about making your home more energy-efficient with a heat pump but worried about the costs?
Don’t be. There are a variety of grants available that can help ease the financial burden and make your eco-friendly upgrade more affordable. In this article, we’ll explore the different grants you can tap into, so you can enjoy a cosy home while doing your part for the planet. Let’s dive in and discover the funding options that can help you make the switch to a greener, more efficient heating solution!
Firstly, what grants are available in the UK?
- Boiler Upgrade Scheme
- Energy Company Obligation (ECO4) Scheme
- Warm Homes Fund
The boiler upgrade scheme (BUS)
The boiler upgrade scheme (BUS) is a grant of £7,500 available to eligible homeowners looking to replace their old gas and oil boilers with a green energy efficient home heating system such as an air source heat pump. To be eligible for the Boiler Upgrade Scheme, you need to own a property in England or Wales. The property can be a home or a small non-domestic building. It’s important that the property has an existing fossil fuel heating system, like oil, gas, or electric, that you’re looking to replace with a more energy-efficient alternative. Also, the installation must be carried out by a MCS-certified installer. Remember, new builds are typically not eligible unless you’re building your own home.
Applying for the Boiler Upgrade Scheme isn’t difficult, and we take care of the application for you. We’ll guide you through every step of the process, ensuring you have all the necessary information and support you need. We’ll check your eligibility for the scheme and once you’re ready to proceed our expert team will take care of the application. We’ll ensure all paperwork is correctly filled out and submitted so there is nothing for you to worry about.
The Energy Company Obligation scheme (ECO4)
The ECO4 scheme is a government initiative delivered by the energy companies. It improves the energy efficiency in residential properties with an EPC rating of E, F or G across the UK. The scheme has the capability to fully fund energy measures required in homes.
The scheme plays an important role in tackling fuel poverty in the UK, with the aim of funding energy efficient measures for those most in need to improve their health and living standards. It helps lower carbon emissions through the installation of insulation, heating systems (such as air source heat pumps), and other energy-efficient upgrades.
The Warm Homes fund 2025
This scheme replaces the previous SHDF scheme, and is separated into two programmes, to fund local authority and social housing schemes, which we will discuss in more detail in the next section.
The scheme aims to address fuel poverty by providing grants to local authorities and registered social landlords to improve heating systems and energy efficiency in low-income households. The fund focuses on delivering sustainable heating solutions, such as gas connections, renewable energy installations, and insulation improvements, to ensure that vulnerable and disadvantaged communities have access to warm and energy-efficient homes.
This scheme aims to tackle health issues associated with inefficiently heated homes. The impact that these current issues are having on the health of tenants and homeowners has been well documented across the media. The aim of the Warm Homes programme is to ensure these issues are eradicated in the future so that everyone has a safe warm home in which to live.
The Warm Homes: Local Grant
The Warm Homes: Local Grant aims to provide energy performance upgrades and low carbon heating through local authorities. Eligible households include:
- Residences in England
- Low-income households meeting one of the following criteria:
- Gross annual household income of £36,000 or less
- Located in deprived areas (ranked in the lowest income deciles)
- Receiving means-tested benefits (such as Universal Credit or Housing Benefit)
- Possessing an Energy Performance Certificate (EPC) between D and G
- Privately owned properties (either owner-occupied or privately rented)
The scheme is available to households both on the gas-grid (using mains gas) and off the gas-grid (using electricity, oil, coal, or liquid petroleum gas).
Landlords may also apply for funding to upgrade properties, which will help reduce bills for tenants in the private rented sector. Full funding is available for the first property, with 50% funding for additional properties.
We can support Local Authorities and contractors in the delivery of air source heat pumps for their Warm Homes schemes. Get in contact with our team today to see how we can help you.
Warm Homes: Social Housing Fund
The Warm Homes: Social Housing Fund aims to elevate a substantial portion of social housing stock currently below Energy Performance Certificate (EPC) band C to meet this standard. It facilitates the installation of energy efficiency measures in social homes across England, contributing to:
- Tackling health issues associated with badly insulated homes
- Delivering warm, energy-efficient homes
- Reducing carbon emissions
- Addressing fuel poverty
- Supporting green jobs
- Developing the retrofit sector
- Enhancing the comfort and well-being of social housing tenants
The Warm Homes: Social Housing Fund is not open to the public directly. To access the funds, applications were open to Local Authorities, registered providers of social housing (including housing associations) and registered charities that own social housing. To check your eligibility for this scheme, contact your local authority today.
We also support housing associations and private landlords to deliver their sustainable heating projects through the installation of air source heat pumps. Our team will happily talk through your requirements. Get in touch today.
How expensive is it to install a heat pump?
We provide cost-effective solutions for homeowners looking to install an air source heat pump. Our expert team will design and build a system specifically for your property needs. We can do this both directly to consumers and for our business-to-business partners.
Installing a heat pump does not need to be expensive. Advances in technology have led to more cost-effective manufacturing processes, reducing the overall price of heat pump units. This will continue over the coming years as the technology develops. As we know, government and local authorities are offering various incentives, and grants to encourage the adoption of energy-efficient systems, which can significantly offset installation costs.
The growing demand for renewable energy solutions has increased competition among suppliers and installers, often resulting in more competitive pricing. Lastly, the long-term energy savings and reduced utility bills associated with heat pump systems can further justify the initial investment, making the overall cost more manageable.
In summary
In summary, there are several different grant schemes available in the UK to support the installation of air source heat pumps and other energy-efficient upgrades. These are designed to make it easier for homeowners to transition to greener heating solutions.
By taking advantage of these funding opportunities, you could not only enhance your home’s energy efficiency but also contribute to environmental sustainability and reduce your energy costs.
When you’re ready to move to a sustainable heating solution for your home, get in touch with our team and we’ll be happy to help.