Despite popular misconception, there are no specific air source heat pump grants available in the UK at the moment to support the installation of an ASHP. However, homeowners and businesses have the choice of various other subsidies, financial assistance schemes, and government incentives to help them switch to renewables.
These initiatives apply to renewable heating solutions such as air source heat pumps, ground source heat pumps, hybrid systems, biomass boilers, and solar thermal panels. Whilst none are specific grants for air source heat pumps, they will help you cover the cost and benefit financially from installing an air source heat pump at your property.
Without delay, let’s look at the financial help that is available to you.
The Domestic RHI and Non-domestic RHI schemes are the most significant financial incentives in the UK, designed to improve the uptake in renewable heating.
In a nutshell, these schemes pay out quarterly payments to system owners, calculated by the level of clean renewable heat that their system generates. This incentive is designed to help the UK make the switch to a greener future, and has proved to be very popular.
Tariffs vary, based on the technology you use. In all cases, a property must meet the adequate energy efficiency ratings to qualify. Renewable Heat Incentive payments come as an additional benefit to utility bill savings, and renewable heating systems will also add value to a property. For more information about the the Renewable Heat Incentive (RHI), download our guide.
The RHI ensures that you make your money back over time, but you still need to find the upfront funds to purchase and install the air source heat pump. Unless…
Another support mechanism in place to help householders overcome the upfront cost financial barrier of a renewable heating system is the Assignment of Rights (AoR).
This finance scheme allows an “investor” to fund the purchase, installation, and maintenance of a household or landlord’s renewable heating system. The scheme then allows the investor to be assigned the RHI payments as a form of repayment.
The Home Energy Scotland loan has been made available to help homeowners make energy efficiency and renewable energy improvements to their home. The loan scheme itself allows up to £38,500, although for heat pumps a homeowner can get a maximum of £10,000 (in 2018). Bearing in mind the costs of an air source heat pump, this is a significant chunk of installation.
This loan is interest-free and is funded by the Scottish Government for homeowners and registered private sector landlords in Scotland. This is only available in Scotland at the moment, but fulfils a similar function to the Assignment of Rights in England and Wales. The Assignment of Rights is also available in Scotland, so you have a choice as to which suits you most.
You may have heard about other air source heat pump grants and finance initiatives, but some are now no longer operational in their original format.
An example of this is the Green Deal. This was designed by the government to help energy efficiency and renewable upgrades. The Green Deal allowed people to install a new green technology into their property, and pay the loan back over time through energy bills.
The main advantage of the Green Deal initiative was that the expected financial savings were equal to or greater than the costs attached to the energy bill. Unlike a traditional loan, it allowed people to move away from the property, and the agreement staying with the property where the savings occur – not with the original bill payer. Green Deal is no longer available in its original government format, and has now been launched privately.
Another measure is called the Energy Company Obligation (ECO). This is designed to target fuel poverty in the UK, providing relief to some of Britain’s most vulnerable households. Under this programme, all energy suppliers with over 250,000 domestic customers (or give over 400GwH of electric, or over 2,000GwH of gas) have a responsibility to reduce the carbon emissions and increase the energy efficiency of qualifying properties. This scheme is evolving, and you can track its progress and relevancy for you on the Ofgem website.
Please contact us using the form below, or call us on 0800 865 4328.