A grant is just one of the ways you can save money on your heat pump and its installation. These appliances can cost more than a boiler, but reduced heating bills and the option to power them with renewable energy can balance out this additional upfront cost.
In October 2021, the government Department for Business, Energy & Industrial Strategy (BEIS) announced a brand new heat pump grant that could get you around 50% off this heating appliance. Heat pumps are generally more expensive than boilers, and as an incentive, the government is offering to pay £5,000 towards your new heat pump. They hope that this will encourage more people than ever to make the switch to low-carbon heating that is better for our planet.
The domestic RHI is available to all those who live in England, Scotland or Wales and own their home. The scheme means that you could receive quarterly payments for every unit of green, renewable heat produced by your system, including air source and ground source heat pumps. The payments are made four times a year for up to seven years and mean that you could see a big return on your initial investment when you had the heat pump installed.
In order to qualify, your heat pump system must have an Microgeneration Certification Scheme (MCS) certificate and your home must have an up-to-date Energy Performance Certificate (EPC). You can find out more about the scheme here.
As well as the domestic RHI there is also the non-domestic RHI for businesses that use renewable heat.
While not exactly a grant, the Home Energy Scotland Loan could help you to get an air or ground source heat pump installed. If you’re struggling to pay for a heat pump up front and live in Scotland, you could get a loan for up to £10,000 from the Scottish government. They will absorb the interest, meaning you will pay zero interest for the loan and spread out the cost of your heat pump.
The Warmer Homes Scotland programme is in place to help those who struggle to heat their home because of cost. The government will pay for certain home improvements that could make it easier to heat your home, and the improvements they pay for will depend on the results of a survey that must be completed. In some cases, they may cover some of the cost of a heat pump. The criteria is quite strict, so do be sure to find more information on the Home Energy website.
For those of you based in Wales, you may qualify for the Nest grant. This grant is specifically for low-income households who may not be able to afford a new central heating system. You may, therefore, be able to get help with the cost of a ground source or air source heat pump, but do check the qualifying criteria.
Grants do regularly come and go, so you should be sure to check regularly for any changes or new grant schemes the government has introduced. The best grant currently available for a heat pump, whether you live in England, Scotland or Wales, is the RHI.
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