Government may ease installation rules for heat pump grants

The Department for Energy Security and Net Zero has proposed measures to make it easier and more affordable for homeowners and small businesses to install heat pumps.

Proposed changes include varying the levels of grants available based on the customer’s property type or existing fuel source, and simplifying the qualification process for a heat pump grant by eliminating the need for loft or cavity wall insulation installation beforehand.

The new proposals also include an option to help consumers install new biomass boilers that double as ovens, promoting access to green technology.

Lord Callanan, minister for energy efficiency and green finance, said:

“Heat pumps are a vital tool in cutting the carbon emissions from people heating their homes, while also helping to drive down costs and boosting our energy security. While a heat pump can be installed for a similar price to installing a gas boiler, the support we’ve put in place means it is an option for more and more households.

“Today’s changes go even further and will mean even more people could benefit from making the switch, offering them the option for a low-emission, low-cost form of heating their homes.”

However, campaign group Greenpeace questions the government’s proposals to ease rules requiring homes installing heat pumps to ensure good levels of energy efficiency.

Greenpeace UK climate campaigner, Georgia Whitaker said:

“While the government is absolutely right to make the installation of heat pumps cheaper and more accessible, removing the need for insulation is cutting all the wrong corners. Insulation is the quickest and easiest way to slash household carbon emissions and reduce energy use – saving people up to a thousand pound a year on their bills. In addition, better insulation makes heat pumps more efficient.

“Rather than taking one step forward, two steps back, the government should be ramping up investment for both heat pumps and insulation – delivering a nationwide programme to make homes warmer, cleaner and cheaper to run side-byside, not pitting one energy-saving scheme against the other.”

Andrew Warren, chairman of the British Energy Efficiency Federation added:

“Previously the government has always argued that if you want to reduce fuel bills at home, the first thing any householder should do is to insulate and double glaze the building, so as to minimise the amount of energy needed to be purchased. This is called the ‘fabric first” principle, endorsed by practically every recognised building specialist. “It is absurd that, in this drive to remove gas and oil boilers, everyone now seems overtly to be discouraged by government from making financial savings through improving the fabric of the buildings they occupy.”

The government’s £450 million Boiler Upgrade Scheme was recently extended until 2028 and offers grants of £5,000 towards the installation of an air source heat pump; £6,000 off a ground source heat pump; and £5,000 off a biomass boiler. Consumers can also receive a zero VAT rate on installations.

This comes alongside a government commitment to the Future Homes Standard coming into force in 2025. The Building Regulations will continue to set a performance-based standard rather than mandating or banning the use of any technologies.

Heat pump installers, manufactures, suppliers, and the wider industry are now being invited to offer their views on the government’s proposed changes to the Boiler Upgrade Scheme, with the consultation open on GOV.UK until 12 October, 2023.