Are you curious about ground source heat pumps but put off by the upfront costs? This relatively new green technology is sweeping the UK, and more homeowners than ever are taking advantage of its many benefits. Statistics show that more than 35,000 heat pumps were fitted in 2023, and this is set to increase in 2024. Heat Pump Gang is proud to have contributed to this surge towards sustainable energy, helping consumers to reduce their carbon emissions.
The trouble is that many of us are also feeling the pinch of the cost-of-living crisis, and we need to economise somewhere. While the benefits are clear, cost is definitely a major factor when deciding whether to take the plunge.
If you're debating whether or not to make that investment, or you simply don't have the finances to cope with the upfront cost, we have some great news - heat pump grants are available to offset the financial burden!
Now, bear in mind that this funding is offered by the UK government, so it's likely to change sometime in the future (currently, it's set to end in 2028). On the positive side, this latest scheme was altered fairly recently, and the funding actually increased. Future funding schemes will probably follow this trend as the government strives to meet its net-zero targets by 2050.
So, let's press on and check out the details to see how much you can get, what's involved, and how you can apply...
Explore further: What Is A Ground Source Heat Pump?
The Boiler Upgrade Scheme, initially called the Clean Heat Grant, was officially launched in 2022. It effectively replaced the Domestic Renewable Heat Incentive (RHI), which allocated payments on a tariff basis according to each individual property's energy efficiency.
The main difference between the two is that the Boiler Upgrade Scheme operates on a flat rate across the board, so everyone gets the same amount.
To qualify for this government grant, you need to meet the following criteria:
Under the present rules, this government heat pump grant (BUS) is only available in England and Wales. Property owners north of the border may be eligible for funding from Home Energy Scotland via the Warmer Homes Scotland initiative (funded by the Scottish government).
Eligible property owners in Scotland will receive a grant of £7,500 or £9,000 for homes qualifying for a rural uplift. You can also apply for additional funds in the form of an interest-free loan.
The grant scheme covers all types of detached and semi-detached domestic homes. It is generally not applicable to individual flats or apartments within a larger building. However, there might be exceptions for certain self-contained flats with their own heating systems.
Small, non-domestic buildings, such as shops, offices, and village halls, they must:
New build properties (anything constructed after April 1st, 2022) are not eligible, as they should already (in theory!) meet current energy efficiency measures.
The only exception to this is self-build properties, although the building cannot have been owned by a business or organisation.
BUS also does not apply to social housing.
The BUS is specifically for situations where you're replacing your entire existing heating system. It won't cover upgrading an existing system with additional components, such as adding a heat pump to a boiler system.
The existing heating system you're replacing doesn't necessarily need to be functional. For instance, if you have an old oil boiler that's no longer in use, you can still replace it with a heat pump under the BUS scheme.
BUS heat pump funding can be used to replace fossil fuel heating systems of all types, including oil, LPG, and gas boilers.
It's also available for replacing electric resistance heating systems often found in older properties, such as electric boilers, panel heaters, and storage heaters.
The Boiler Upgrade Scheme funds can't be spent on upgrading an existing low-carbon heating system, such as air source heat pumps or biomass boilers. However, if a ground source heat pump is not the right option for you, you can apply directly for funding for a new air source heat pump or biomass boiler (although the latter only applies to rural properties not connected to the gas grid).
Valid EPC
While you must have a valid Energy Performance Certificate to qualify for the Boiler Upgrade Scheme,
there is no minimum EPC rating as of May 8th, 2024.
Even so, heat pumps work best in homes with good insulation measures in place, so it may be worth investing in cavity wall insulation or loft insulation to make your property even more energy efficient.
To apply for ground source heat pump funding, you must be the legal property owner. This rule is fundamental to receiving the full grant amount.
As the property owner, you'll be responsible for arranging and paying for the heat pump's installation, even though the BUS grant will cover a portion of the cost.
Landlords who own rental properties (houses or small non-domestic buildings) can apply for the BUS grant to replace the existing heating system with a heat pump. There are no specific requirements regarding the tenancy agreement or the rent charged.
The system's maximum capacity must not exceed 45kWth, which should cover most domestic and non-domestic properties that fall into the above criteria.
For properties with shared ground loops, where multiple properties share a ground heat source, the combined capacity for all heat pumps on the system is 300kWth.
Your new heat pump must also meet minimum efficiency levels to qualify for the grant. Don't worry if you're not sure about all the technical details, the Heat Pump Gang experts will explain everything!
The grant amount was raised from £6,000 to £7,500 in 2023, indicating the government's desire to help consumers make energy efficiency improvements.
While installation costs can go as high as £49,000 for a good quality, professionally fitted ground source heat pump*, the typical cost is between £10,000 to £18,000.
*It depends on the size and scale of the ground loop being installed, as well as the size of the space being heated.
A lump sum of £7,500 would definitely be a big plus for many property owners considering ground source heat pumps! This would offset the upfront cost and ensure that you reap the benefits of a reduced carbon footprint and lower energy bills even sooner.
Discover: Air Source Heat Pump Grants
Your first job is to find an MCS-certified installer, like Heat Pump Gang! The installation must be handled by qualified professionals to qualify for government funding.
The installer then discusses eligibility with you and provides a quote. Following this, the installer should:
All you have to do is provide your property details and information about your existing heating system, give consent for the installer to submit your grant application to Ofgem, and approve the final installation plan.
Finally, you need to ensure that the installer has access to your property to complete the work and pay the remaining balance of the installation cost minus the grant.
Check out: Ground Source Heat Pump Cost
Vulnerable or low-income households that don't qualify for a BUS grant may be able to get help through other channels, such as the Energy Company Obligation Scheme or NEST (in Wales).
Both schemes may be able to help you replace a gas boiler with a new heating system (including, potentially, a heat pump), although this is not guaranteed. The funding is allocated to various energy companies, and each case is investigated individually to assess the extent of financial assistance provided.
Other than these, it's worth contacting your local authority, as they sometimes offer funding at a regional level that's not widely advertised.
While most won't cover all the costs, they'll certainly make things more affordable.
There's little doubt that the different types of heat pumps available are becoming more popular by the day. The reasons for this are obvious: they're highly efficient, saving you money on energy bills and reducing your environmental impact. They are also compatible with renewable energy resources, such as solar and wind power; essentially, you get free energy once the equipment is in place!
Government grants are likely to continue, boosting sustainable energy methods in the UK housing stock. Currently, the government is committed to installing 600,000 heat pumps by 2028 and has set aside £450 million (out of a total pool of £3.9 billion Heat and Buildings Strategy) to achieve this.
As warnings of climate change grow more alarming and energy prices continue to rise, energy-saving materials and methods, including air, ground, and water source heat pumps, will become even more essential.
And the Heat Pump Gang will be here to lead the way to a more sustainable world.
