–Navigating Heat Pump Grants and Incentives in the UK

Overview of Heat Pump Grants in the UK

There is a growing commitment to using more efficient and renewable energy sources such as heat pumps.

Due to their high energy efficiency, heat pump systems for heating, cooling and/or domestic hot water are becoming one of the most important options. In addition, these systems allow you to reduce the cost of your electricity bill.

To overcome the initial cost barrier, the UK government is promoting financial support schemes to encourage the installation of these sustainable systems.

Discover the grants and incentives available in this article

Key Types of Heat Pump Incentives

Boiler Upgrade Scheme (BUS)

The Boiler Upgrade Scheme in the UK is a new initiative, launched in April 2022, to promote the de-carbonization of heat in buildings. It is administered by OFGEM and aims to encourage the replacement of fossil fuel boiler systems with renewable systems, such as heat pumps. Initially, savings could reach up to £5000 for a heat pump grant. However, in 2023 the government announced an increase in this grant. Now savings could reach up to £7,500.

Eligible Criteria

To be able to opt to the BUS incentive you must meet the following conditions: 

• Be the owner of the property (including business, second homes or properties rented to third parties)  
• System installation must have been done from 1 Apr 2022 onward 
• Applicable to residents of England and Wales 
• Property must have a valid Energy Performance certificate (EPC) with no outstanding recommendations for loft or cavity wall insulation. 

There are some properties that are exempt from eligibility for this benefit. 

• New build properties (Self build properties own by individuals not businesses are eligible) 
• Social housing 
• Properties that have already received a government funding or support for a heat pump or biomass boiler 

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Grants for Heat Pumps Systems in Scotland

Home Energy Scotland Grant and Loan

In the quest for sustainable living, Scotland is also leading the way with innovative solutions to improve energy efficiency. As part of this, the government offers the Home Energy Scotland Grant and Loan, which highlights how property owners can access financial support to make the transition to energy efficient and renewable systems. 

Grant funding for energy efficiency improvements is up to 75% of the combined cost of the improvements, up to the maximum grant amount of £7500, or £9000 if the household qualifies for rural improvement. 

The aid offers grants and optional loans for three main purposes:  

• Energy efficiency improvements 
• Secondary improvements (always subrogated to energy efficiency support or support for installation of renewable systems). 
• Installation of renewable systems including heat pumps (either air-to-water, ground source-to-water, water source-to-water, water source-to-water)

Find further information here

Eligible Criteria 

To apply you must meet the following requirements:  
  
Be the owner of a residential dwelling. Businesses and property developers cannot apply but can avail themselves of other grants such as loans for private rented sector landlords. 
 
Third parties as installers are not allowed to apply for you 

Application process 

You must contact Home Energy Scotland via their website or telephone (0808 808 2282). An official adviser will assess your case and eligibility and assess the options available to you. If you are found to be eligible, they will send you an application form so you can officially start the process. 

Hitachi Cooling & Heating solutions:

Find out here our range of highly efficient and renewable equipments.

Get Your Custom Heat Pump Quote Today 
 
Ready to upgrade to an efficient heat pump? Request a personalised quote now and discover how you can save on energy costs and reduce your carbon footprint. 
 
[🔍 Contact an expert] 
 
Our team of experts will provide you with a tailored solution that fits your specific needs and budget. Take the first step towards a more sustainable and cost-effective heating system today! 

Heat Pump aids finalized

RHI Incentive

It was a government incentive for domestic and non-domestic installation designed to encourage the use of renewable heat to reduce carbon emissions. Its main goal was to provide quarterly financial support over 7 years to property owners who install renewable heating systems eligible for the programme.

The Department for Energy Security and Net Zero was responsible for developing the underlying RHI policy.

This aid is currently closed to new applications from 31 March 2022. Applications are only allowed in case of a change of ownership. Read more information here.

Green Homes Grant for Heat Pumps

It was launched in line to UK´s broader environment sustainability objectives. Contributing to reducing carbon emission and to enhance homes efficiency.

It provided support to homeowners to make their homes more efficient. The focus of this grant was related to the insulation improvement and the installation of renewable systems such as heat pumps. Initially the grant was offered via a voucher scheme.

Although this measure went through changes and the coupon system was discontinued in 2021, some local public entities continue to offer aid in this regard to support the installation of heat pumps. You can contact your local council for more information.

Learn about Hitachi's success stories in heat pump installation

Hitachi's aerothermal solutions are efficient solutions capable of providing heating, cooling and DHW with maximum efficiency and comfort.
Our professionals have a wide experience in the installation of HVAC projects for both new buildings and renovation projects:

Take a look at this success story for the installation of an air-water heat pump in a development of 20 new homes. You can also consult the following housing renovation project.

 Benefits of Applying for Heat Pump Grants

With existing subsidies, the economic effort to make this necessary transition is less than ever before.

In addition, these systems have multiple advantages that allow great savings in the medium to long term.

• Energy savings (systems up to 300% more efficient).
• Economic benefit. Not only because of the ever-increasing subsidies and facilities offered by public institutions, but also because of the savings on electricity bills compared to other systems that use fossil fuels.
• Environmentally friendly systems
• 3-in-1 solution (heating, cooling and DHW)
• Greater comfort and space
• Elimination of odors compared to other systems such as oil-fired boilers.

How to Apply for Heat Pump Grants

The application process depends on the aid selected. Some tips for choosing the most appropriate aid for your case are:

1. Check the acceptance requirements of the programme beforehand.
2. Gather all the necessary information for each programme to facilitate the process.
3. Make sure that you are working with accredited installers.
4. Seek professional help and advice. At Hitachi, we can provide you with all the information you need about our heat pump systems. Contact us now without compromise!

Future Outlook for Heat Pump Funding

In line with the SDGs and the 2030 agenda, authorities are increasingly focusing on subsidies and grants to facilitate the installation of renewable and energy-efficient systems to replace fossil fuel systems.

That is why more and more not only from the central government, but also from local authorities are launching incentive programs and support for the transition to renewable heat pump systems.

The requirement to switch to renewable systems such as aerothermal energy is and will be more urgent than ever in the future in the face of measures such as the Future Homes Scheme which requires new buildings and homes to use more energy efficient solutions to promote low carbon heating and hot water.

Conclusion

The transition from the use of fossil fuels to more sustainable and efficient systems such as air source Heat Pumps energy is already a reality.
Based on the UK government's Net 0 consumption directive, it is estimated that by 2035, 80% of households will have to transition to sustainable systems such as heat pumps.

In this context, the urgency of replacing unsustainable systems is growing. The benefits of using heat pump systems are manifold and can be felt from the first month of installation, with significant savings on electricity bills and greater energy efficiency.

Awareness-raising by government authorities and the introduction of incentives and subsidies in this area are making it increasingly affordable for all households to overcome the initial barriers of installation costs.