What Grants Are Available for Heat Pumps?

Big changes are being made to the grants available for heat pumps in the UK. Sadly the Domestic Renewable Heat Incentive (RHI), designed to help UK consumers replace their old boilers with electric heat pumps, is coming to an end in March, but from April 2022 a replacement called the Boiler Upgrade Scheme (BUS) will be open to applications. 

BUS is part of the Heat and buildings Strategy, designed to make UK homes more energy efficient to aid the government’s net-zero by 2050 target. The scheme will see 90,000 heat pumps installed and will run between April 2022 – 2025 on a first-come first-serve basis.  

If you’re wondering what a heat pump is, we have a comprehensive explainer here.

What is On Offer?

The BUS scheme will see successful applicants receiving up to £5000 for installation of an air source heat pump, or £6000 for installation of a ground source heat pump or water source heat pump. Much like the Green Homes Grant (GHG) voucher scheme, BUS will offer a simple fixed sum toward the cost. These grants could reduce the cost of installing low-carbon electric heating to around £2000, making it comparable to gas boilers.

Am I Eligible?

  • All homeowners, private landlords and small landlords will be eligible
  • All applicants must have a valid Energy Performance Certificate (EPC) from the last decade which has no outstanding recommendations for cavity wall or loft insulation
  • If these recommendations are still outstanding you can still redeem your voucher for a government grant provided you can prove that the works have been carried out in the meantime
  • Those living in social housing or new builds are not eligible 
  • Custom and self-built property owners may apply 

How Can I Apply?

  • Applications are not yet open but we will bring updates as soon as possible

What Should I be Aware Of? 

Once you have received your voucher, you will have three-months to install an air source heat pump or six months for a ground source heat pump. You pay upfront for the installation and redeem the voucher to reduce the cost. BUS will be operating on a first-come-first-serve basis, so with the limited funds of the scheme we recommend getting your application in quickly! And as always, do have a read of the ofgem website before you apply.

Leave a Comment

Your email address will not be published.