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Ministers propose more flexible heat pump grants
Ministers have set out plans to make heat pump grants more flexible and expand the qualification criteria.
A consultation published today by the Department for Energy Security and Net Zero (DESNZ) proposes changes to the current £450m boiler upgrade scheme, which was recently extended to 2028.
The changes include varying the levels of grants that are made available for consumers depending on their property type or existing fuel source.
The discount scheme currently offers grants of £5,000 towards the installation of an air-source heat pump, £6,000 off a ground-source heat pump, and £5,000 off certain biomass boilers, but the value of the grant is not affected by the type of property.
Customers can also receive zero VAT on installations.
As an example, the consultation said: “It is possible that heat pump costs will fall faster for properties currently with gas heating rather than those with oil heating.”
If this transpires, then “it may be appropriate, in future, to reduce the grant value faster for properties replacing gas heating than oil heating”.
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The government is also proposing to relax the need to install loft or cavity wall insulation before a house qualifies for a heat pump grant, which could speed up the qualification process.
Currently to qualify for a heat pump grant, a property must have a valid Energy Performance Certificate (EPC) with no outstanding recommendations for loft or cavity wall insulation. This is because heat pumps work more efficiently in well insulated homes.
The proposed changes would allow people to apply with outstanding insulation recommendations if they provide evidence the insulation has been installed when they come to redeem the grant vouchers.
“This flexibility reduces disruption on the property owner who may wish to have the installation and insulation carried out at the same time,” the consultation said.
It added that “we would welcome further feedback and evidence on whether to retain the current requirement to have a valid EPC” to qualify for the scheme.
The government aims to install 600,000 heat pumps a year by 2028 to cut carbon emissions, however last year only 55,000 were sold in the UK. It typically costs around £10,000 to buy and install a heat pump.
Over £81m in vouchers have already been issued to consumers under the heat pump discount scheme, DESNZ said, with 1,098 installers registered on the scheme.
Another proposal is to expand the grant to include installation of biomass boilers that also work as an oven. These cooking boilers were originally excluded “to encourage efficient, whole-house heating systems”, the consultation said, but they “could fill a gap in the market replacing fossil fuel style Aga cookers in houses which are unsuitable for a heat pump”, provided the oven function is “incidental” and cannot be controlled separately to the heating.
Lord Callanan, minister for energy efficiency and green finance, said: “While a heat pump can be installed for a similar price to installing a gas boiler, the support we’ve put in place means it is an option for more and more households.”
The changes, he said, “will mean even more people could benefit from making the switch, offering them the option for a low-emission, low-cost form of heating their homes”.
Heat pump installers, manufactures and suppliers are invited to offer their views on the proposed changes to the scheme until 12 October.
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