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The need for a government heat pump incentive
The government is committed to reducing carbon emissions to net-zero by 2050. To achieve this ambitious goal, fundamental changes will have to be made to the way we heat our homes.
Dometic heating is responsible for releasing 31% of total household carbon emissions. That amounts to around 2,745 kg of CO2(opens in a new window) a year per household. To achieve net-zero, this will need to be reduced to around 138 kg CO2 per household.
Such a seismic shift will only be possible by moving away from burning natural gas. So how will we heat our homes in the future?
Several technologies can be used including solar thermal and biomass boilers, but heat pumps are seen as the best option. The problem is, heat pumps are currently more expensive to install than gas boilers.
The government has therefore announced the Boiler Upgrade Scheme to help subsidise the cost of installation and encourage uptake of the technology.
What is the ‘Boiler Upgrade Scheme’?
The Boiler Upgrade Scheme (BUS) is funded by the Department for Business, Energy & Industrial Strategy (BEIS). It provides an upfront grant to support the installation of renewable heat technologies including heat pumps and biomass boilers.
The scheme is set to run from April 2022 to April 2025 and is open to all domestic properties and some non-domestic properties in England and Wales. There is currently no equivalent scheme available in Scotland but this may change in the future.
How much money can I get?
The scheme provides grants of up to £5,000 for air source heat pumps and biomass boilers. And up to £6,000 for ground and water source heat pumps. Only one grant is available per property.
As we write this, the cost of installing an air source heat pump is around £10,000. So the grant should cover around 50% of the installation costs. The funding gap is larger for ground and water source heat pumps which cost around £14,000 to install.
But as more homeowners install heat pumps the cost of installing the technology will come down. A recent report by Delta-ee(opens in a new window) estimates that heat pumps could fall in price by as much as 40% over the next decade.
This will bring the cost of installation down to around £6,000. So homeowners will only need to fund £1,000 after the BUS grant is applied. This will make heat pumps more affordable compared to the cost of installing a new gas boiler, which currently stands at around £4,000.
How does the boiler upgrade scheme work?
To apply for a BUS grant you must first contact an MCS Certified Installer(opens in a new window) to obtain a quote. The certified installer will then assess your property to establish what type of heat technologies are suitable. They will then provide you with a quote.
When you are ready to proceed, the installer will apply for the grant on your behalf. Once the grant has been approved the air-source heat pump or biomass boiler must be installed within three months. This is extended to six months for ground-source and water-source heat pumps.
Note you can contact as many certified installers as you wish. We recommend getting at least three quotes before choosing an installer.
Which heating technologies are eligible?
Air-to-air heat pumps – With this type of system, heat is absorbed from the air outside before being amplified in the same way as an air-to-water system. But instead of being transferred to the water through a heat exchanger, the superheated refrigerant is distributed directly through a network of ducts heating the air around your home.
Air-to-water heat pumps – With this type of system, heat is transferred from outside into a refrigerant fluid which boils at a low temperature. The refrigerant vapour is then passed to a compressor to increase its temperature. The now superheated vapour is then passed through a heat exchanger which transfers the heat around the home via a conventional wet central heating system.
Ground source heat pumps – absorb heat from the ground before passing it through a heat exchanger to heat the building.
Biomass boilers – A boiler fuelled by wood chips from a renewable source. Biomass boilers can only be installed if a heat pump is not suitable.
Qualifying criteria
- You must be the property owner.
- The property must be located in England or Wales.
- The property must have an Energy Performance Certificate (EPC) issued within the last 10 years.
To be eligible your EPC must meet one of the following criteria:
- Your EPC does not make any recommendations for the installation of cavity wall or loft insulation.
- Your EPC recommends that either loft insulation or cavity wall insulation is installed. You must then agree to carry out the work before the heat pump is installed.
- Your property has an EPC exception that excludes the installation of loft or cavity wall insulation. This is usually due to planning restrictions or because the building is Grade II listed.
New build properties do not require an EPC because they will have been built to the latest environmentally friendly building standards.
How do I apply?
Applications for the grant open on 23 May. You must apply for the grant through an MCS Certified Installer(opens in a new window). The installer will assess your property to determine what type of heat pump technology is suitable. If a heat pump is not suitable, they may recommend a biomass boiler instead.
The installer will then issue you a quote for both supply and installation. You are under no obligation to accept the quote and you can contact as many Certified Installers as you wish. Once you are happy to proceed, your chosen installer will apply for the grant on your behalf.
Ofgem will then get in touch to confirm that you have agreed to have the heat pump/biomass boiler installed. Once approved, the grant will be issued directly to the installer. You can then arrange for the work to be completed and will only have to pay the difference after the grant has been applied.
Useful Links
Government Boiler Upgrade Scheme Website (website opens in a new window)
Use our Quick Quote Form to compare free heat pump quotes from MCS installers local to you.
