New government proposals announced today (Thursday, August 31, 2023) could make installing heat pumps more affordable and straightforward for homeowners and small businesses. The proposed measures may vary grant levels based on property type or existing heating source, lowering costs for more households and small businesses to switch to low-carbon heating.
Homeowners could also save time and money by no longer needing to insulate lofts or cavity walls before qualifying for a heat pump grant. These changes will help more homes and businesses transition from expensive imported fossil fuels to cleaner, cheaper renewable energy, advancing the government’s efforts to decarbonise heating nationwide.
Over £81 million in vouchers have already been issued through the Boiler Upgrade Scheme. The proposals also introduce an option to help consumers install new biomass boilers with built-in ovens, increasing access to cutting-edge green technology.
Heat pumps utilise an ingenious technology to provide home heating and hot water. They extract ambient heat from the air or ground at low temperatures, concentrate it, and transfer the higher temperature heat indoors. This system is far more efficient than traditional boilers and relies on clean electricity rather than fossil fuels, shrinking a home’s carbon footprint.
To accelerate adoption, the government recently extended its £450 million Boiler Upgrade Scheme to 2028. This program provides grants of £5,000 for air source heat pumps, £6,000 for ground source heat pumps, and £5,000 for biomass boilers. Consumers also benefit from a zero VAT rate on installations.
Satisfaction with the technology is high – 92% of heat pump owners reported being highly satisfied after 2 winters, per a review of the predecessor incentive program.
The government is now inviting feedback on proposed changes to the Boiler Upgrade Scheme from installers, manufacturers, suppliers, and the broader industry. This consultation aligns with the upcoming 2025 rollout of the Future Homes Standard. While avoiding mandates, the new performance-based Building Regulations will effectively require new homes to be built zero carbon ready, moving away from fossil fuel heating.