There are several government grants available right now. While the majority of these programs offer financial assistance to pay a portion of the air source heat pump grants, some programs cover the entire cost to aid low-income households.
As it stands, 69% of individuals identified cost as the most important criterion when deciding which low-carbon product to purchase, so financial help is essential if the government wants to invest in green technology.
What programs are in place to make heat pumps more affordable? Let’s look at it.
The Boiler Upgrade Scheme
The Boiler Upgrade Scheme, formerly known as the Clean Heat award, attempts to assist households in replacing their boilers with a more environmentally friendly option, such as heat pumps.
This program, which will run from April 2022 to April 2025, will take the place of the Domestic Renewable Heat Incentive (RHI), which shut down to new applications on March 31, 2022.
How does it function?
With the help of this, householders in England and Wales will be able to save £5,000 on a new air source heat pump and £6,000 on a ground source heat pump.
Customers will need to act quickly to register their interest with air or ground source heat pump installers because the program will function on a “first-come, first-served basis. Reduces the typical cost of an air source heat pump from £10,000 to £5,000, substantial savings, and it also means that, based on our estimates, a heat pump is now more affordable and will save the typical home £6,700 over a gas boiler.
Who is qualified for the program?
Homeowners, small landlords, and private landlords.
All applications must have a current Energy Performance Certificate (EPC) with no outstanding recommendations for loft or cavity wall insulation. Typically, this EPC was given within the last 10 years.
Although the exact procedures for applying for grants are still unknown, the government has suggested two stages:
Prior to installation, the homeowner will lead the application process for the voucher.
Redeeming the voucher – The installer will lead this and attest that the installation was completed.
Nest, a project of the Welsh Government, aims to improve the energy efficiency of low-income housing in Wales in order to lessen the effects of fuel poverty there.
How does it function?
If a household is having trouble paying their energy bills, they can call Nest’s hotline, to determine whether they qualify for assistance.
A “whole house assessment,” a property survey that determines which home modifications should be undertaken, will be conducted by British Gas if the household meets specific requirements.
Who is an eligible candidate for Nest?
Owning a property or renting one privately (not from a local authority or housing association)
Own an expensive-to-heat inefficiently used home
Have a chronic respiratory, circulatory, or mental health problem, or receive a means-tested benefit
Grant for heat pumps from Octopus Energy
Together, Octopus Energy and Lloyds Banking Group. As part of its Green Living Reward program, Halifax, a firm owned by the Lloyds Banking Group, has launched the trial program. By participating in this programme, Halifax will award a £1,000 Green Living Reward while Octopus Energy will supply and install the heat pumps. If used in conjunction with the government’s Boiler Upgrade Scheme, this could potentially bring the cost of an air source heat pump below the average boiler. Simply register for the Green Living Reward to participate in the program. After that, you must go to Octopus Energy to make a personal heat pump reservation evaluation and quotation.
What are the prices of heat pumps without grants?
A typical air source heat pump installation costs £10,000. This may seem excessive, but it makes sense when you realize that heat pumps typically run for 20 years, which is twice as long as the ordinary gas boiler. Running expenses will vary based on a number of variables, such as the size of your property, its insulation quality, and the desired room temperatures. However, having a heat pump as opposed to a gas boiler will, on average, save you £6,700 when all expenses are taken into account. Of course, you’ll also benefit the environment and prevent expensive gas price increases with help of Heat Pump Grants.