Grants for Renewable Heating

Until the Green Homes Grant Scheme was launched in October 2020, there were no specific heat pump grants available in the UK.

Homeowners and businesses had no support the upfront costs of the installation of an Air Source Heat Pump or Ground Source Heat Pump.

However, now they have had access to various:

  • Subsidies
  • Financial assistance schemes
  • Government incentives

These still continue to be available even after the Green Homes Grant Scheme ended.

Schemes that cover most renewable heating

These initiatives apply to renewable heating solutions such as:

They will help you cover the cost and benefit financially from installing an air source heat pump or ground source heat pump at your property.

Without delay, let’s look at the financial help that is available to you.

Funding for Heat Pumps

Home Energy Scotland Loan

The Home Energy Scotland Grant and Loan provides an opportunity for homeowners and private sector landlords to access up to £38,500 of interest-free funds from the Scottish Government. Specifically, for heat pumps, the loan covers up to £15,000 (£7,500 grant plus up to £7,500 loan), with an additional £1,500 grant available for qualifying rural properties​.

This loan is intended for the installation of renewable energy technologies and energy efficiency improvements to properties. Managed by the Energy Saving Trust, the program aims to help Scottish residents reduce their carbon emissions. To be eligible, you must use an MCS certified installer (such as ourselves) for all projects and meet specific qualification conditions such as acquiring an Energy Performance Certificate (EPC).

For more information about the Home Energy Scotland loan, read our article. The scheme may change over time, so it is important to monitor updates on the Energy Saving Trust website.

Boiler Upgrade Scheme (BUS)

The Boiler Upgrade Scheme (BUS) is available across England and Wales and offers grants of £7,500 for air source heat pumps and ground source heat pumps, and £5,000 for biomass boilers. This scheme aims to help homeowners and small businesses cover the upfront costs of installing low-carbon heating systems​.

The BUS is designed to be simple and user-friendly. You need to get a quote from an MCS-certified installer, who will then apply for the grant on your behalf. The scheme runs until 2028, so it’s a good idea to take advantage of it while it lasts.

Other Grants and Finance Initiatives

Energy Company Obligation (ECO4)

The Energy Company Obligation (ECO4) targets fuel poverty in the UK, providing relief to some of Britain’s most vulnerable households. Under this program, all energy suppliers with over 250,000 domestic customers (or who supply over 400 GWh of electricity or 2,000 GWh of gas) have a responsibility to reduce carbon emissions and increase the energy efficiency of qualifying properties. This scheme is continuously evolving, and you can track its progress and relevancy on the Ofgem website. Please note that IMS Heat Pumps does not offer services under the ECO4 program. For access to ECO4 funding, you can contact your energy supplier directly or visit the Ofgem website for more details​.

Warmer Homes Scotland

For Scottish homeowners, the Warmer Homes Scotland program provides assistance to make energy efficiency improvements, including the installation of renewable heating systems like heat pumps. The program offers grants and loans to cover the cost of these upgrades, ensuring that homes are warmer and more energy-efficient. IMS Heat Pumps does not participate in the Warmer Homes Scotland Program. For more information and to apply, visit the Home Energy Scotland website​.

Download Our Free Guide to Funding For Heat Pumps

Conclusion

Historically, the challenge of uptake was where theory and practice often conflicted.

While most people agree on the necessity of switching to renewable technology, implementing these changes was often impractical due to high upfront costs.

The various schemes and incentives available now address this issue effectively.

Prioritising renewables for your home is a smart choice, and the available funding options provide significant support. For more information about these funding options and specific advice about your renewable heating project, get in touch with us today.