In England, the Boiler Upgrade Scheme covers a large part of the heat pump cost: the grant has been increased from £5.000 to £7.500 for air-source heat pumps.
At first glance, heat pumps may appear to require a larger initial investment compared to traditional heating systems. However, when considering the purchase of a heat pump, it is important to know that the chances of premiums are high which makes investing in a heat pump very attractive.
In an effort to combat climate change, many governments have decided to phase out gas and oil boilers. Instead, they are encouraging the adoption of low-carbon solutions such as heat pumps.
Historically, convincing homeowners to make the switch to heat pumps has posed a significant
challenge. However, rising gas prices are becoming a concern across Europe and subsidies are now available in most countries. Because of this, there is a growing enthusiasm and recognition that heat pumps are a viable option.
Subsidies play a crucial role in enhancing the competitiveness of air-to-water and ground-source units. By incentivising the adoption of these technologies, the transition towards sustainable heating solutions can be further accelerated.
In the UK, to help reach the net zero carbon emissions target set by the government (a reduction of 95% over the next 30 years), the UK has a grant scheme for the replacement of fossil fuel heaters.
Through the Boiler Upgrade Scheme, people in England and Wales can get a grant to cover part of the cost of replacing fossil fuel heating systems including oil, gas and electric, with a heat pump or biomass boiler.
Eligibility depends on the conditions of the property, and also on the situation of the owner. They must own the property, have installed, or plan to install, the new heating system on or after 1 April 2022, be replacing fossil fuel heating systems such as oil, gas or electric. Furthermore, the property must have a valid Energy Performance Certificate (EPC) with no outstanding recommendations for loft or cavity wall insulation. This premium applies only to renovation projects.
The amount of the grant, per property, has recently been increased from £5,000 to £7,500 for air- source heat pumps and from £6,000 to £7,500 for ground-source heat pumps. Hybrid heat pump systems are not eligible for the grant.
An MCS-certified installer will apply and the value of the grant will be deduced from the total installation cost price of the heat pump.
In Scotland, the Home Energy Scotland Grant and Loan program offers funding for energy efficiency improvements and heat pumps, aiming to support homeowners in adopting energy-efficient measures and transitioning to renewable energy systems. Grant funding covers up to 75% of improvement costs, with a maximum of £7,500. Eligible interventions include energy efficiency improvements like insulation, electric heating, and glazing, secondary improvements (combined with energy efficiency or renewable systems), and installation of renewables such as heat pumps and solar PV panels. Applicants must be homeowners in the property they own. Contact information can be found on the Home Energy Scotland website.
Additional support may be available through The Energy Company Obligation (ECO). Different energy suppliers have different amounts of support and offer different types of improvements, for which it is best to contact the supplier directly.
The Social Housing Decarbonation Fund (SHDF) in England aims to improve the energy performance of social homes, bringing homes below EPC Band C up to that level. Interested applicants can apply through the SHDF Wave 2.1 website. Additionally, the Home Upgrade Grant (HUG) offers energy efficiency upgrades and low carbon heating for low-income households off the gas grid, with Energy Performance Certificates between D and G. The program is funded by local authorities and is available in certain areas listed on the "Find your local council" web tool. HUG 2 will be implemented from April 2023 to March 2025.
To verify your eligibility for the Boiler Upgrade Scheme, please contact a suitable MCS-certified installer at the MCS – Find a contractor website
To verify your eligibility for the Energy Company Obligation (ECO), please refer to the Ofgem website.
To verify your eligibility for the Home Energy Scotland Grant, please refer to the Home Energy Scotland website, “Home Energy Scotland Grant and Loan: in detail”.
To verify your eligibility for the Social Housing Decarbonation Fund, please refer to the SHDF Wave 2.1 website.
To verify your eligibility for the Home Upgrade Grant, please refer to the Find your local council” webtool.
For more details, please see the full paper here: