The three types of low carbon heating that can be installed are:
- Air source heat pumps
- Biomass boilers
- Ground source heat pumps
Under this new scheme, which will run from 2022 to 2055, homeowners can receive £5000 off the cost of air source heat pumps and biomass boilers, and £6000 off the cost and installation of a ground source heat pump. One grant is available per property.
To take advantage of this scheme, property owners must first find a qualified, MSC certified installer. The installer will visit the property and advise if it is eligible for the scheme, assessing whether the home is suitable for one of the new low carbon systems. The installer will provide a quote that deducts the grant. If the homeowner wishes to proceed, the installer will apply for the grant on behalf of the homeowner.
The Boiler Upgrade Scheme is available in England and Wales. It is only valid for homeowners who are replacing fossil fuel systems and not those who are replacing existing low carbon heating systems. The property must also have an energy performance certificate (EPC) that has been issued in the last ten years. Installation of low carbon systems like an air source heat pumps can potentially save people money on their energy bills, and also works to support the UK’s target of reaching net-zero emissions by 2050. The scheme has funding of £450 million, which can support the installation of 90,000 air source heat pumps. The grants are available on a first-come-first-serve basis, so interested and eligible property owners should apply as soon as possible.
The scheme is not available to new builds or social housing. The exact cost of the installation will vary depending on the size of the home, and any additional costs such as upgrading radiators should be taken into consideration. Over the next five years, there will be 0% VAT on the installation of heat pumps and other energy-saving products, which will further reduce costs for homeowners.