Homeowners and small businesses will soon benefit from cheaper and easier heat pump installation under new proposals set out by the UK Government today.
Affordable and easy heat pump installation will enable more households and small businesses to benefit from low-cost and low-carbon heating in efforts to reach net zero.
Proposed measures could mean varying the levels of grants that are made available, 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.
Scrapping fossil fuels for the latest green technology
The heat pump installation grant will help more homes and businesses move away from costly fossil fuels to cleaner, cheaper homegrown energy.
This forms part of the government’s goal of decarbonising the nation’s heating, with more than £81m already dedicated to vouchers for the Boiler Upgrade Scheme.
Today’s new proposals also provide an additional option to help consumers install new biomass boilers that also work as an oven, helping more households access the latest in cutting-edge, green technology.
Lord Callanan, Minister for Energy Efficiency and Green Finance, explained: “Heat pump installation is vital 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.”
He concluded: “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.”
How will the heat pump installation scheme work?
Heat pump installation is significantly more efficient than traditional boilers and uses cleaner electricity rather than fossil fuels – helping to reduce the carbon footprint of a home.
The government’s £450m 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.
The future of net zero
Heat pump installation manufacturers, suppliers, and the wider industry are now being invited to offer their views on the government’s proposed changes to the Boiler Upgrade Scheme. The consultation is open on GOV.UK until 12 October.
This comes alongside a government commitment to the Future Homes Standard coming into force in 2025.
The Building Regulations will continue to set a performance-based standard rather than mandating or banning the use of any technologies.
However, to make sure that new homes are zero carbon ready we plan to set the performance standard of the Future Homes Standard at a level which will effectively preclude new homes being built with fossil fuel heating.
