Grants for Air Source Heat Pumps

Even though renewable energy systems like ASHPs will save you money over time, the initial installation can be costly. Fortunately there is currently UK government support for new installations to subsidise some of the cost.

When in carrying out heat pump services in Ashford we always ensure our customers are aware of what they can claim to reduce installation costs. As MCS certified installers, we can often do the paperwork for you.

Renewable Heat Incentive (RHI)

Until March 2022, the government’s Renewable Heat Incentive scheme allowed homeowners to be paid for the energy their heat pumps produced. This included other renewable heating systems like solar hot water, or biomass boilers.

The Boiler Upgrade Scheme has now replaced the RHI.

The Boiler Upgrade Scheme (BUS)

The Boiler Upgrade Scheme (sometimes known as the Clean Heat Grant) is currently planned to be accessible from April 2022 to March 2025. £450 million of grant funding has been allocated by the UK government for the scheme.

The BUS is administered by Ofgem. It gives domestic customers the opportunity of a £5000 discount on a new ASHP. Ofgem are responsible for publishing procedural guidance on the scheme, processing applications, paying installers, and general reporting and monitoring on the scheme.

The Department for Business, Energy and Industrial Strategy is responsible for the scheme policy and legislation. You can find more details about specific regulations in the Boiler Upgrade Scheme (England and Wales) Regulations 2022.

Property owner eligibility

The eligibility criteria for the BUS are simple:

  • You’re a homeowner or small business owner
  • Your property is in England or Wales
  • Your building has been issued an eligible Energy Performance Certificate (EPC) in the past 10 years

If your property is a custom built home you won’t need an EPC

How to obtain an eligible Energy Performance Certificate

To get an EPC you can check your local area on the government’s official EPC register. This will list all the accredited domestic energy assessor’s that are allowed to carry out an EPC near you.

To qualify for the BUS you will need to satisfy one of the following:

  • Your EPC does not recommend loft or cavity wall insulation
  • Your EPC does recommend loft or cavity wall insulation, but you have the insulation work carried out between applying for the Boiler Upgrade Scheme and your heat pump installation
  • Your property is exempt from EPC or insulation requirements. Listed buildings fall into this category

Installer eligibility

As we are certified to install ASHPs under the MCS, we can carry out the installation of an air source heat pump under the BUS. This means we will also do all the admin for you!

How we handle BUS applications for customers

  1. We will apply for the BUS voucher on behalf of the customer.
  2. Ofgem will then email the customer to confirm that they consent to our application on their behalf.
  3. The customer may also need to confirm the BUS eligibility details we have provided, including any EPC recommendations.
  4. We will invoice you for the installation, minus the amount awarded by the Boiler Upgrade Scheme
  5. Ofgem then sends us the difference.

Once the BUS scheme funding is all allocated to customers, the government are unlikely to offer more. This happened with the EV charging point scheme for domestic users, which ran out quicker than anticipated.

If you’re considering using a BUS grant to fund an ASHP installation, get in touch with us now!

Octopus Energy heat pump grant

Octopus Energy and Lloyds Banking Group are working together on their own UK heat pump grant scheme.

A pilot scheme has been launched by Halifax (who are part of Lloyds Banking Group) as part of its Green Living Reward scheme. 

Under this scheme, Octopus Energy provide and install the ASHPs, while Halifax award a £1,000 Green Living Reward. This can be used in conjunction with the BUS, making an ASHP installation cost comparable to a new gas boiler.

Although Ashford Heat Pumps aren’t involved in this scheme, it’s worth knowing about for anyone considering an ASHP. Of course, we’d be more than happy to service and repair any units you have installed if you choose to use this route!

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