If you’re wondering about the financial support for your energy-efficient home improvements, you’re not alone. Many homeowners are exploring their options to save on heating and cooling costs. Air-source heat pumps are becoming a popular choice. They are efficient and environmentally friendly. But, the cost can be high. This is where heat pump grants come into play. These grants can significantly reduce the upfront costs. But, there might be even more savings available. In addition to grants, tax credits or rebates can further lower the overall expense. These incentives are designed to encourage homeowners to switch to more energy-efficient systems. So it’s important to know what’s available to maximise your savings.
In the following sections, we will delve into the specifics of air source heat pump grants, tax credits, and rebates. We’ll also discuss how these financial aids can be combined for maximum benefit.
What’s an air-source heat pump and how does it work?
Firstly, an air source heat pump absorbs heat from outside air. It does this by drawing air over tubes filled with refrigerant gas. This gas circulates at -28°C, extracting heat energy. Secondly, the gas goes through a compressor. This process increases its pressure and temperature, changing it from a cold gas to a hot liquid.
Next, this hot liquid enters a heat exchanger. Here, it heats water for your radiators and taps. Finally, the refrigerant turns back into a cold gas, restarting the cycle.
Heat pumps work at lower temperatures than gas or oil-fired boilers. Consequently, your radiators won’t feel as warm. They provide gentle, prolonged heating. Interestingly, heat pumps can be more efficient than gas boilers. They can reduce your carbon footprint. However, the water temperature is likely to be around 50-55 °C, compared to 60-65 °C with a boiler.
Are there tax credits or rebates available alongside air source heat pump grants?
There are several grants that offer tax credits, rebates and even totally free support for the installation of air-source heat pumps. In the following section, we’ll take a look at some of these schemes that help install heat pumps.
Boiler Upgrade Scheme (BUS)
It is a significant initiative supporting building heat decarbonisation. It also offers upfront grants for installing heat pumps and biomass boilers. Firstly, in September 2023, the Department for Energy Security and Net Zero raised the BUS grant for air source heat pumps. Installers can now get £7,500 off the cost and installation. This is a big jump from the previous £5,000 grant, making it one of Europe’s most generous schemes.
Next, initially, the scheme had £450 million in funding for three years until 2025. But in March 2023, the government extended it until April 2028. Moreover, in December 2023, £1.5 billion extra funding was announced for the BUS extension. This shows the government’s commitment to renewable energy.
Help to Heat schemes
These include the Boiler Upgrade Scheme, Home Upgrade Grant Phase 2, Sustainable Warmth Competition, Social Housing Decarbonisation Fund, and Energy Company Obligation. These are part of a £12 billion government investment. However, they are delivered by installers, local authorities, energy companies, and other bodies, not directly by the government. Of these, the Green Homes Grant Voucher (GHGV) scheme closed on 31 March 2021.
Now, the number of UK energy efficiency installations, like insulating lofts and cavity walls, has decreased a lot since 2012. But heat pumps too are rapidly popularising in the country. The main reason is the governmental patronage. So if you want any rebate or credit for an air source heat pump, check with your local authority or an MCS-certified installer for the most current information. Remember, consider all your options before deciding. As a matter of fact, a home is unique, so what works for one might not work for another.
ECO4 Scheme
ECO4 is the latest initiative of the UK government. It is the biggest energy program that covers several heating upgrades. Firstly, all big energy companies are part of the eco scheme. So the grants under this scheme cover heat pump installation. Moreover, the amazing part is that eligible households may get totally free installation of heat pumps. They’ve to pay nothing. But qualifying usually means having a low income or a low EPC rating for your home’s energy efficiency. The details of ECO4 can change by location and installer. However, it’s worth checking out to see if you can save money on your air source heat pump.
Now, to install a heat pump, you also need enough outdoor space for the unit. Furthermore, as mentioned above, your home should also have a low EPC rating, meaning it’s not very energy efficient. On top of that, your home may need insulation improvements first. So these requirements help the heat pump work better.
