Government grants of £7,500 available for heat pumps
6th November 2023 by John Munro
The government is promoting the installation of heat pumps in homes to replace boilers, with vouchers being offered to homeowners who wish to make the switch.
The Department for Energy Security and Net Zero has announced that qualifying for a heat pump grant will be simplified and financial assistance made more widely available. The vouchers offer £7,500 off of the cost of heat pump installation or £5,000 for biomass boilers, with over £81 million having been issued.
The need to install loft or cavity wall insulation before applying for a grant has been removed, to make the vouchers more easily obtainable.
How do heat pumps work?
Heat pumps take heat from outside or in the ground and convert it to useable heat for your home. This can be for central heating, space heating or water heating. The pumps require electricity to function but the amount needed is substantially less than using electricity directly to heat a property.
Because the heat pump uses warmth from the environment, it is not burning any fuel and so no carbon dioxide is emitted by the pump.
The system is similar to the process used by a fridge, except in reverse so that warmth is provided. The source heat is moved over a heat exchanger on the outside of the heat pump. The word ‘heat’ is slightly misleading, as the refrigerant can work with air as cold as -20°C.
The warmth taken from the air or ground is enough to evaporate the refrigerant liquid contained in the pump. The resulting gas is compressed and its temperature rises because of the increase in pressure. This is passed over the heat exchange surface inside of the heat pump and the heat is transferred out into a central heating system or hot water system.
The gas then cools and liquifies and is returned to the outside heat exchange surface, where the process starts again.
The government has a £450 million Boiler Upgrade Scheme, which is due to run until 2028. Grants of £7,500 are offered towards the installation costs of air source and ground source heat pumps. Grants of £5,000 are offered for biomass boilers. No VAT is charged on the installation.
The paperwork will be dealt with by the heat pump installer. At their initial assessment, they will provide a quote showing the £7,500 voucher. If they are certified under the Microgeneration Certification System they can apply for the voucher as part of their service.
The government estimates that an air source heat pump could cost around £12,000. This could vary depending on the size of heat pump needed for your property.
Figures have shown that customers are happy with the results, with 92% of heat pump owners surveyed saying that they were highly satisfied after two winters.
To speak to one of our property experts, please contact Kelly Howe on firstname.lastname@example.org or 01202 377800.