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Can You Get Grants for Air Source Heat Pumps?

Looking at the government help available for those looking to invest in an air source heat pump.

Like making any large home improvement, the perceived cost of an Air Source Heat Pump upgrade can be a real blocker for many homeowners – but we stress that it’s the perceived cost for a few factors. Primarily, the cost of an ASHP installation can be significantly offset by government grants – and you could be saving hundreds on your energy bills by making the switch. 

But what grants and financial support can you get for an Air Source Heat Pump installation? 

Here are the grants & other options on offer:

The Boiler Upgrade Scheme (BUS)

The government’s flagship heat pump grant scheme is the Boiler Upgrade Scheme (BUS). This grant has recently been raised to £7,500 towards the cost of switching to an air source or ground source heat pump.

In most installations, an air source heat pump will provide a much more dependable and less disruptive installation than a ground source one would (which is why we exclusively install air source units), but the grant is available for either option.

Not every household is eligible for the grant, but most domestic UK properties are eligible because the main criteria are:

  • You must be switching away from a fossil fuel source (like gas, oil, biomass, or electric storage heaters)
  • You must own the property (even for commercial reasons)
  • The heating upgrade must have been installed after 1st April 2022
  • Your heating installer must be certified by the Microgeneration Certification Scheme (MCS), which we are!

    This last criteria is applicable because the grants are often applied for retrospectively – but it’s actually something we handle completely. So an installation with CB Heating is one you can depend on, but without all the faff of the paperwork.

    This upgrade scheme is comparatively very generous and isn’t likely to be available forever (especially as more households move to environmentally-friendly heating) – so it’s worth investing while it’s still at such a significant discount!

    Get in touch for a free no obligation quote for a heat pump installation.

    VAT on heat pumps at 0% for 5 years

    While this isn’t a grant as such, the government has also reduced VAT for heat pump units to zero, which means that the unit & installation cost is significantly reduced for homeowners for the next few years.

    This will be in effect until the end of March 2027.

    Great British Insulation Scheme (GBIS)

    One of the best ways to ensure a really dependable air source heat pump system is, wherever necessary, to also invest in insulating your property.

    By investing in more effective insulation, your heat pump doesn’t have to work as hard – which means it uses significantly less energy than it otherwise would have to, and even less energy than an efficient gas boiler would have to.

    This is because heat pumps can frequently work at between 300-400% efficiency (and frequently much higher!) – learn more about heat pump efficiency here.

    But significant insulation upgrades can be quite an investment – luckily, government help is available! The Great British Insulation Scheme is a £1 billion scheme to help homeowners and tenants upgrade their homes in order to keep energy bills lower.

    One of the eligibility criteria for the Eco+ grant used to be an annual household income of less than £31k, but the scheme has been rebranded to focus primarily on improving the insulation in poorly insulated homes.

    As such, in England this primarily applies to homes with Energy Performance Certificate (EPC) ratings of between D-G and which are also within Council Tax Bands A-D. Check whether you’re eligible here.

    A key benefit with the GBIS is that the cost of insulation improvements in loft and/or wall insulation can be offset by as much as 75% from the grant.

    Energy Company Obligation (ECO4)

    This scheme is the fourth iteration of the ECO scheme. The core focus of this scheme is to help homeowners with low incomes improve the energy efficiency of their homes. The core eligibility criteria for an ECO4 grant is an annual household income of less than £31k and/or one of the homeowners receiving benefits of any kind.

    While the Great British Insulation Scheme focuses on loft and wall insulation, the ECO4 scheme is a whole-house upgrade on insulation and heating equipment – including extra upgrades like solar panel installations.

    Home Upgrade Grant

    You may also be eligible for a Home Upgrade Grant if your household income before tax is below £31,000, your home has a poor EPC rating, and it’s not currently heated by mains gas. For example, if you live in a rural property that’s heated with electric storage heaters, on-site oil, or wood, then you could get financial help towards the cost of insulation.

    But this isn’t always available in tandem with the Great British Insulation Scheme and isn’t available in every area.

    Local Authority schemes

    Individual district councils sometimes offer incentives and grant schemes (such as the Home Upgrade Grant) to support local homeowners in the switch to becoming more environmentally friendly.

    In some cases, these can be quite generous, but they also sometimes come as an either-or option if you’re also receiving help from a wider government scheme.

    Be sure to check your particular council website to see if you may be eligible for some extra assistance.

    Eco loans tend to have better rates

    While not a grant, it may be worth looking specifically for green energy investment loans as opposed to remortgaging and/or taking out a personal loan. Most banks offer much better rates for eco friendly home improvements – so you could save significantly on interest repayments!

    If you’re opting for solar panels

    Another great investment (though also not a grant) when upgrading your heating system to a dependable ASHP system is to also have solar panels & batteries installed. Because air source heat pumps need electricity to run, installing solar panels can provide you with virtually unlimited heating for your home and hot water without having to pay for any electricity bills ever again!

    Many customers have found this the perfect way to go completely green and get away from having to worry about fluctuating energy price markets. But, if you have the space and up-front funds, you can actually choose to oversize your solar panel system so that you can generate electricity for the grid and get paid for it!

    What’s more, if you get those solar panels installed as part of the ECO4 grant, you get twice the benefits!

    Have any heat pump questions?

    These grants can help you with the cost of getting the air source heat pump installed, but here’s more information on the cost of actually running a heat pump – as well as financing options available. 

    If you’re thinking about making the leap to environmentally friendly, dependable heat, get in touch with our expert team to clear up any questions – we’re always happy to help!

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