February 2024

Air Source Heat Pump Grants in 2024

Rishi Sunak has unveiled alterations to the UK government’s environmental initiatives aimed at achieving net-zero targets, with changes to the heat pump grant program being among them. In his announcement, Rishi emphasized the priority of the country’s long-term interests over short-term political considerations.

Heat Pump Grant 

The grant for the boiler upgrade scheme will increase to £7,500

Rishi expressed confidence that the UK would still achieve net-zero emissions by 2050. His decision to delay the ban on new petrol and diesel cars until 2030, along with other net-zero measures, aims to avoid public backlash and prevent imposing substantial costs on the working population.

Implications for Landlords: Landlords can continue to make improvements to their rental properties, benefiting both themselves and their tenants. Funding remains available under the ECO (Energy Company Obligation) scheme for eligible landlords. However, the emphasis on making energy-efficient changes by 2028 has been removed.

It’s worth noting that the ECO4 scheme will run until March 31, 2026. This presents an opportunity for landlords to apply for funding to offset the cost of energy-efficient upgrades, covering insulation, heating, and renewable energy improvements.

£7500 Heat Pump Grant

Property owners in England and Wales who meet certain criteria are eligible for a heat pump grant of up to £7,500. The eligibility criteria include property ownership, a valid Energy Performance Certificate (EPC) issued within the last 10 years (or obtaining a new one if necessary), and the replacement of fossil fuel heating systems with heat pumps. Despite the delay in banning new boilers until 2035, there has never been a more opportune time to consider installing a heat pump.

Rishi emphasized that the grant for the Boiler Upgrade Scheme, aimed at facilitating the transition to heat pumps, comes with no repayment obligations.

The current voucher scheme offers £5,000 for air source heat pumps and £6,000 for ground source heat pumps. The recent changes will see this grant for upgrading to a heat pump increase by 50% to £7,500.

The Boiler Upgrade Scheme, launched in May 2022 to encourage the replacement of gas boilers with electric-powered heat pumps, forms a crucial part of the government’s commitment to achieving “net zero” carbon emissions by 2050. Although this scheme is set to end in 2028, there are no current plans regarding its post-closure prospects. Hence, the present remains an opportune time to consider making home improvements, and assistance is readily available for those interested.