An air source heat pump is a sustainable means to cover your heating needs that can be easily installed in most households but are they too expensive to buy for most people?

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The cost of installation of an air source heat pump can hinder low-income households, which is why hydrogen-ready boilers are still the preferred option even if they are currently powered by fossil fuels.

As much as a hydrogen boiler is the most viable solution in the long term, this is frustrating the UK government’s mission to attain a net-zero carbon emission status – one of its key pillars is the complete phasing out of fossil fuels from domestic heating systems.

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Air source heat pump installation grants

Today, we look at different air source heat pump grants available to the public that cover acquisition and installation costs. We will look at their availability, the associated benefits, and what it takes to qualify for these grants.

Keep reading and discover ways to access the necessary funds for transition to a futuristic heating system that will provide you with an energy-saving solution if you don’t want a hydrogen boiler or can’t afford the cost of a ground source heat pump

A Look at Common Air Source Heat Pump Grants

Renewable Heat Incentive (Domestic RHI)

This domestic renewable heat incentive is a government-funded scheme covering England, Scotland, and Wales to promote heat generation from renewable energy sources.

It was introduced through the Energy Act of 2008 and is similar to the Feed-in Tariff system. The amount you receive is determined by a tariff that classifies you based on the system you are using, its efficiency, and the scale of heat generation.

Get rewarded for using less electricity

In this instance, you are rewarded for relieving the electric grid, not by generating your own electricity but by significantly reducing your dependence on it for your heating needs. The higher the efficiency rating, the more you are entitled to.

Cash payments paid every 3 months

Cash payments are awarded to owners of heating systems that utilise renewable heat every quarter over seven years. This is meant to alleviate the installation costs incurred so that the renewable heating systems can be competitive against the cheaper fossil fuel boilers.

If you got great bargains for the air source heat pump and from your contracted installer, the cashback might even surpass the investment. You can consider this tax-free income from the government. Your entire investment is typically recouped within the first four to five years.

What it takes to get this Domestic Renewable Heat Incentive

• The applicant should own or inhabit the property where the renewable energy system is being installed; this means they are the landlord, the house’s builder, the owner, or the tenant.
• If it is a new building, it should be customised to optimise heat generation and efficiency using the proposed technology
• The building should be standalone; the renewable heat source shouldn’t support many houses.

This scheme is due to close on the 31st of March, 2022, so your time is limited if you want to benefit from it as an alternative to gas boilers.

We recommend that you get several quotes from certified local installers to increase the probability of getting the best deal and maximise returns from the scheme.

The Boiler Upgrade Scheme (Previously known as the Clean Heat Grant)

This boiler upgrade scheme (BUS) replaces the RHI scheme that is due to come into play in April 2022.

The UK government will also administer it, and its goal is to transition small domestic buildings that are still dependent on fossil fuels to low-carbon heating solutions.

The boiler upgrade scheme has been allocated £450 million and is expected to run for three years. Disbursement will be on a first-come-first-served basis until the fund is depleted.

The applicant will have to consult their local certified installers and present at least one quote with their application to participate.

Applying for boiler upgrade scheme grant

According to the proposals, it will be a two-stage application where the applicant applies for the voucher, but only the contractor can redeem the voucher after presenting proof of installation.

The maximum installation period will be capped at three months, and the maximum air source heat pump grant is £5,000.

The benefit of this scheme over the RHI is the funding is given upfront, so the applicant is instantly relieved from the hefty cost of installing an ASHP system. The RHI had them bearing the whole cost then recovering it later over seven years.

If you are starting to think that an air source heat pump is too costly, why not check out how much a new boiler costs instead? These hydrogen-ready boilers are much cheaper and will not be part of the gas boiler ban in 2025.

How much can I get for this grant?

On the downside, this new grant is capped at £5,000, regardless of the cost or efficiency of your installation. This is not sufficient to cover most quality air source heat pumps, and the applicant will be forced to cover the gap out of pocket.

What it takes to qualify for a Clean Heat Grant

• The property will have to produce a valid Energy Performance Certificate (EPC) that is less than 10 years old. This shows the level of energy loss the building is subjected to because it will influence how effective the new installation will be.
• The EPC should not include recommendations for cavity wall insulations or any extensive insulation
• The building should already exist, or if it is new, it should have been custom-made for the renewable energy system being considered. The grants are meant for retrofits because it is more expensive to overhaul a complete heating system.
• The applicant should provide a quote from an MSC certified installer who conducted an on-site needs analysis. This enforces their commitment to fulfil the task before redeeming the voucher as they will know the scope of the job.

Warmer Homes Scotland grants

Warmer Homes Scotland is the Scottish government’s initiative offering financial support to low-income households struggling to cover energy bills by providing access to low-cost heating solutions. The scheme covers the cost of wall and loft insulation, draught-proofing, heating, and boilers. It is biased towards renewable heating systems like air source heat pumps or ground source heat pumps.

The Scottish government typically covers the entire cost under the Warmer Home grant, but the consumer might have to foot a part of the bill in some of the more expensive modifications. Interest-free loans are accessible to aid where the applicant doesn’t have adequate resources. They don’t reimburse funds for finished projects but only finance ongoing or new ones.

Your home must be assessed to establish whether the heating system powered by renewable energy will reduce costs. The applicant must contact Home Energy Scotland to analyse the premises for eligibility and determine the most suitable green heating solution.

What Does it Take to Qualify for a Warmer Homes Scotland Grant?

• The applicant should be the homeowner or a tenant of a private sector landlord
• The home should be the applicant’s primary residence
• The applicant should have resided in the home for a minimum of 12 months. (Exemptions can be made for people living with terminal illnesses who are in possession of a DS1500 certificate)
• The home shouldn’t have a bigger footprint than 230 square meters, and the present energy rating shouldn’t be higher than 67.
• The home should meet the tolerable living standards highlighted in the Housing (Scotland) Act of 2006 and shouldn’t hamper the effectiveness of the recommended energy efficiency measures.
• The applicant should not have been a beneficiary of the Warmer Homes Scotland grant for energy efficiency improvements within the previous five years

People who qualify for a grange from Warmer homes Scotland

• Pensioners without a working heating system who also have passport benefits
• People who have attained the age of 75 who also receive passport benefits
• People who are pregnant and/ or are taking care of a child or children below 16 years who also enjoy passport benefits
• Persons living with disability who also receive Personal Independent Payments (PIP)
• Persons living with disability who also receive a high rate Disability Living Allowance (DLA)
• Persons living with disability who also receive a low or medium rate DLA and income-related benefit(s)
• People whose careers are entitled to a Carers Allowance
• People who were injured or disabled while serving in the armed forces and are in receipt of the War Disablement Pension or the Armed Forces Independence Payment.
• People who were injured or disabled in work-related accidents or diseases and are in receipt of Industrial Injuries Disablement Benefits.

If found eligible, you will be connected to Warmworks; the official Warmer Homes grant managing agents. The first step is to get different quotes from certified local heat pump installers to get the most suitable one that allows you to maximise savings.

Nest Scheme, Wales

This initiative from the Welsh Government covers home energy efficiency improvements like Vaillant air source heat pumps and free advice and recommendations on the subject.

The Nest Scheme is motivated by the government’s desire to minimise adverse climate changes, eliminate fuel poverty and bolster up economic development in Wales. The mission is to enhance heating energy efficiency in low-income Welsh homes.

You should contact the Nest helpline that the Energy Saving Trust runs if you struggle to cover energy bills. They will conduct a small interview to determine what is required and whether you are eligible for support. You are then referred to the people at British Gas who will assess the property to establish the project’s viability.

What it Takes to Qualify for a Nest Scheme Grant

• The applicant should own the home or be renting it from a private landlord.
• The home should be currently inefficient and expensive to heat
• The applicant or any member of their household should be living with a chronic respiratory, circulatory, or mental health condition
• The applicant or any member of their household should be a recipient of a means-tested benefit