New Government grant scheme for heat pumps announced

With the deadline for final RHI scheme applications on the 31st of March 2022, the Government have announced some details of a grant scheme that will replace it.

The scheme is positioned with the framework of the the Heat and Buildings Strategy, and is described as, "its plan to incentivise people to install low-carbon heating systems in a simple, fair and cheap way as they come to replace their old boilers over the coming decade."

Instead of a dedicated scheme for heat pumps grants of up to £5,000 wlll come through a new £450 million 3-year Boiler Upgrade Scheme designed to encourage homeowners to install more efficient, low carbon heating systems  "like heat pumps" but not explicitly limited to them.

The claim is that these grants mean people choosing to install a heat pump will pay a similar amount as if they were installing a traditional gas boiler.

The money will support the government’s new target for all new heating systems installed in UK homes by 2035 to be either using low-carbon technologies, such as electric heat pumps, or supporting new technologies like hydrogen-ready boilers.

It is not yet clear how the scheme will be administered or to whom grants will be paid.

Further funding support will be targeted to those who need it most through schemes such as the Social Housing Decarbonisation Fund and Home Upgrade Grant, while improvements to public sector buildings will continue to be made through the Public Sector Decarbonisation Scheme