In a surprising announcement from the UK government, thousands of households are now eligible for increased financial support to embark on significant home upgrades including replacing an existing gas boiler with an air source heat pump.
In a major address on green policies, Prime Minister Rishi Sunak revealed a substantial boost to the grant aimed at encouraging the replacement of gas boilers with heat pumps. The grant is set to rise to £7,500, representing a 50% increase. Sunak emphasised that this scheme, providing cash grants for boiler upgrades, comes with no strings attached and is not repayable.
Furthermore, the expected ban on gas boilers, originally slated for 2035, has been postponed. Sunak clarified that the government will not mandate the replacement of gas boilers with heat pumps, and households will only be required to make the switch during routine boiler replacements. Additionally, the PM announced a five-year delay in the ban on new diesel cars until 2035, aligning with The Sun's Give Us A Brake campaign.
The Boiler Upgrade Scheme, a £450 million fund in England and Wales, was launched in 2022, offering grants ranging from £5,000 to £6,000, depending on the heat pump type. With this increase, households can now receive an additional £1,500-£2,500 to offset the costs.
Most homes traditionally rely on gas boilers for heating, but heat pumps provide a greener and more cost-effective alternative. Historically, heat pumps' upfront costs have been between £5,000 and £8,000. The scheme, expected to fund 90,000 installations, is scheduled to run until the end of March 2025.
Heat pumps operate similarly to a refrigerator in reverse, extracting heat from the air outside, even in cold conditions, and using it to warm a liquid refrigerant. This process results in lower energy bills compared to gas and oil boilers.
To apply for a heat pump grant, homeowners must engage an MSC-certified installer to facilitate the grant claim. MSC, the certification scheme for energy-efficiency product installers, ensures the installer's credibility. The grant application is then submitted by the installer, and Ofgem, the energy regulator, contacts the homeowner to confirm the work.
While gas boilers range from £500 to £1,500, heat pumps can cost between £6,000 and £8,000. The recent grant increase could substantially reduce or cover these costs, providing financial relief for homeowners. The scheme is available to households in England and Wales until 2025, subject to certain property requirements.
For eligibility, properties must support an installation capacity of 45kWth, and homeowners need a valid energy performance certificate with no outstanding recommendations for insulation. Two types of air-source heat pumps, air-to-water systems, and air-to-air systems, offer homeowners flexibility in their choices.
Unlike gas boilers, heat pumps operate on electricity, resulting in lower emissions and potentially more affordable bills. According to the Energy and Climate Intelligence Unit (ECIU), for every unit of heat input, heat pumps deliver three units of output, while gas boilers provide less than one. This efficiency translates to significantly reduced energy requirements for heat pump operation compared to traditional boilers.
If you would like more information on how you can apply for the grant to support the purchase of your new boiler from Nick Padovano Plumbing Services then please reach out to us by phone or email.
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