Government unveils new proposals for heat pump funding

heat pump
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The government has revealed proposed measures for varying levels of heat pump grant, depending on the customer’s property type or existing fuel source.

Households could also save time and money through a simplified approach to qualifying for a heat pump grant by removing the need to install loft or cavity wall insulation first.

The proposals also provide an additional option to help consumers install new biomass boilers that also work as an oven.

Lord Callanan, Minister for Energy Efficiency and Green Finance, said:

Heat pumps are a vital tool in cutting the carbon emissions from people heating their homes, while also helping to drive down costs and boosting our energy security.

While a heat pump can be installed for a similar price to installing a gas boiler, the support we’ve put in place means it is an option for more and more households.

Today’s changes go even further and will mean even more people could benefit from making the switch, offering them the option for a low-emission, low-cost form of heating their homes.

The government’s £450 million Boiler Upgrade Scheme was recently extended until 2028 and offers grants of £5,000 towards the installation of an air source heat pump; £6,000 off a ground source heat pump; and £5,000 off a biomass boiler. Consumers can also receive a zero VAT rate on installations.

Heat pump installers, manufactures, suppliers, and the wider industry can have their say on the government’s proposed changes to the Boiler Upgrade Scheme, with the consultation open until 12th October.