The Air Source Heat Pump Grant was a scheme set up by the United Kingdom government to encourage the uptake of air source heat pumps. The grant was worth £950 and was available for domestic properties in England, Scotland, and Wales.
The grant was administered by the Energy Saving Trust and funding was provided by the Department for Business, Energy, and Industrial Strategy.
The previous boiler upgrade scheme called the Renewable Heating Incentive (RHI) closed to new applicants on March 31, 2022, and was replaced by a new grant program called the Boiler Upgrade Scheme (BUS) that runs from April 2022 until April 2025 in England and Wales.
In Scotland, you can get an interest-free loan or look for financing for your renewable heating system, among other things.
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How Does The Boiler Upgrade Scheme Work?
This new government scheme encourages property owners to upgrade their old, inefficient boilers to new, more efficient models.
The scheme offers:
- £5,000 off the cost and installation of an air source heat pump
- £5,000 off the cost and installation of a biomass boiler
- £6,000 off the cost and installation of a ground source heat pump
How To Apply For The Boiler Upgrade Scheme Grant?
To apply for the grant scheme, simply visit the Boiler Upgrade Scheme page to see if you are eligible.
The application will require basic details about your property and about your current boiler, as well as information about the renewable heating system you would like to install. You can submit your application online or by contacting the Energy Saving Trust directly.
The Boiler Upgrade Scheme is open to applications until April 2025, so be sure to apply soon if you are interested in upgrading your home’s heating system!
If you have already used the Renewable Heat Incentive then you will not be eligible for this grant scheme. However, you may still be able to finance your new boiler through a loan or take advantage of the interest-free loans offered in Scotland.
To learn more about how to apply for financing or grants in your area.
Your best bet is to call out a registered and qualified Air Source Heat Pump Installer who will be able to help and guide you through this process and make it as smooth as possible for you.
They will also be able to tell you what the latest deals, offers, and Air Source Heat Pump Grants are available so that you can get the best possible price for your new heating system.
Here’s the process:
- Your contractor will apply for the BUS grant on your behalf after you receive your quotation and agree to it.
- The installer applies for a voucher from Ofgem and provides all of the requested information.
- As a property owner, you will be contacted by Ofgem to confirm your consent.
- The application is evaluated by Ofgem, and a voucher is given to the installer.
- The Installer completes the installation
- The installer redeems the voucher with Ofgem
- Ofgem pays grant to the installer
Are The Grants The Same For England, Ireland, Scotland, and Wales?
As I explained earlier you receive a grant in England and Wales but will be able to apply for an interest-free loan in Scotland and Northern Ireland.
Can You Get Free Air Source Heat Pumps?
No, you can not get a free heat pump because the cost to buy and install a heat pump is high.
The government offers grants and loans to help with the cost of installation, but you will still need to pay for the heat pump itself.
How Much Do Heat Pumps Cost Without Grants?
The average price to install a heat pump is around £10,000 to £13,000, but this will vary depending on the size and type of heat pump you choose.
It sounds like a lot, right? However, when you consider that the pump will last for approximately 20 years and the efficiency savings you will make, the cost is actually quite reasonable.
Related: A Guide To Heat Pump Prices
How Much Will You Save With An Air Source Heat Pump?
If you switch to an Air Source Heat Pump you can reduce your energy bills by up to £1,335 per year. Don’t forget, that most heat pumps will also allow you to cool your home in the summer months, so you could save even more!
Heat pumps are much more efficient than traditional boilers, and they can also be used to provide hot water as well as heating.
If you are interested in getting a heat pump for your home, be sure to get quotes from several different contractors to find the best deal.
