Boiler Upgrade Scheme – up to £6,000 off the price of heat pumps

In October 2021 the UK Government unveiled its’ plan to overhaul how Britain heats its homes in order to meet climate change targets.

Just 67,000 heat pumps were sold in the UK in 2021, Boris Johnson has previously set a target of installing 600,000 heat pumps a year across homes and public buildings by 2028.

Why Should I Change to a Heat Pump?

Heat pumps represent a low-carbon alternative to gas boilers, at present homes account for around one fifth of Britain’s total CO2 emissions.

The Government intends to appeal to homeowners who are looking to upgrade or replace existing boilers, by offering a greener alternative to help tackle pollution from homes.

Electric heat pumps work by absorbing warmth from an outside source such as air, ground or nearby water before transferring it into the home. They require just a third of the power used by electric heaters and use far less energy than oil and gas heating.

Will Heat Pumps Replace Gas Boilers?

Not yet, but the UK government will eventually phase out gas boilers in favour of household heat pumps and other efficient heat sources. This is to reduce reliance on non-renewable energy and reach net-zero emission targets.

How Much Can I Save?

Individual grants will be offered of up to £5,000 for air source heat pumps (ASHP) and up to £6,000 for ground source heat pumps (GSHP).

This means that you could benefit from an air source heat pump for about £2,000, comparable to the cost of a new boiler.

Are Heat Pumps Cheaper Than Boilers?

A heat pump is more expensive than a gas boiler of the same capacity if you have not secured boiler upgrade scheme funding. That said, heat pumps are more energy efficient, and will eventually be cheaper to run than gas boilers.

What Do I Need to Do?

The Boiler Upgrade Scheme will be open to applicants from April 2022 to April 2025. At the moment, the Government are still accepting applications under the Domestic Renewable Heat Incentive, but applications close in March 2022, which is when the Boiler Upgrade Scheme will come into effect.

To find out if your home may be eligible, you can visit the Government website and fill out some simple questions about your home: https://www.gov.uk/renewable-heat-incentive-calculator

The calculations may be more accurate if you can provide a valid Energy Performance Certificate (EPC). It will likely be a requirement when it comes to applying that you have an EPC with no outstanding recommendations for loft or cavity wall insulation, conducted in the last ten years.

No details on how to apply have been released yet, but the Government has advised that there will be two stages in applying for the grant: applying for the voucher – led by the homeowner; and redeeming the voucher – when the heat pump provider will be required to supply proof of installation.

 

Check back in with us in the coming months as new information is released.