Tag Archives: Heat Pump

Demand for heat pumps surges as grant application increase by 39%

Demand for heat pumps continues to grow with the Boiler Upgrade Scheme enjoying the third best month for applications in its history.

Figures for the Boiler Upgrade Scheme released today (29 February) show there were over 2,000 applications for heat pump grants in January 2024 – only exceeded by October and November last year, which immediately followed the increase in government-funded heat pump grants. 

The January figure is up 39% on the same month last year as families take advantage of the 50% grant increase introduced by the government last autumn, making the initiative one of the most generous of its kind in Europe.

The news follows recent government figures showing the UK is the first major economy to halve its emissions – having cut them by 50% between 1990 and 2022, while also growing its economy by 79%.

Energy Security Secretary, Claire Coutinho, said:

I don’t want families to have to choose between cutting costs and cutting emissions. I want families to feel supported, not forced, to make changes that are right for them.

After we made our heat pump scheme one of the most generous in Europe, applications have soared by 40% year on year – showing that our approach is the right one.

The figures also revealed the average monthly number of applications from November 2023 to January 2024, the months after the grant increase, has been 39% higher than the monthly average before the uplift.

Up to the end of January, the scheme has now received 33,424 applications in total and has issued more than £133 million in vouchers to customers.

The Boiler Upgrade Scheme helps households make the switch from fossil fuel heating systems to cleaner low carbon heating alternatives, by covering the majority of the average upfront cost of an air source heat pump.

In October, the Prime Minister increased grants for the installation of air source and ground source heat pumps to £7,500. The scheme also offers £5,000 off the cost of a biomass boiler.

The figures released today also show a regional breakdown of where heat pumps have been installed in England and Wales.

The South West has seen the most with 3,894 installations, followed by the South East with 3,886 and then the East with 2,671.

Chief Executive of the Heat Pump Association, Charlotte Lee, said:

It’s great to see interest in the Boiler Upgrade Scheme increasing, supporting the installation of over 20,200 heat pumps to date across England and Wales. 

The uplift in the grant value for air source and ground source heat pumps in October 2023 to £7,500 has been well received by both the sector and consumers and we hope this increasing interest will be a trend which continues forward as we move to decarbonise home heating in line with the government’s legally binding net zero targets.

£14 million cash boost to accelerate rollout of low carbon heating

More than £14 million is being made available to accelerate the installation of heat pumps and heat networks across the country, as a new scheme launches to train thousands of installers.

Over £9.7 million will go towards 4 projects based across the country, from Bristol to Cambridgeshire – helping cut costs of these low carbon technologies, and reducing disruption to consumers by coordinating the wide-spread rollout in concentrated areas.

To propel the move to cleaner energy in homes, a new £5 million Heat Training Grant will support 10,000 trainees over the next 2 years to become low carbon heating experts – creating new green jobs and growing our economy in flourishing green industries. Grants of up to £500 will go towards training with heating manufacturers such as Panasonic, Valliant and Worcester-Bosch expected to offer additional discounts to participating trainees.

Parliamentary Under Secretary of State at the Department for Energy Security and Net Zero, Lord Callanan, said:

This funding will give the rollout of heat pumps a huge boost by making them cheaper and easier to install, and importantly helping more households move away from costly fossil fuels.

But we need a skilled workforce to deliver this, so we’re training thousands of people to be experts at installing heat pumps and heat networks, driving the country’s push towards net zero.

We’re also making sure the cost of installing a heat pump is more affordable than ever before through grants of up to £6,000 through the Boiler Upgrade Scheme and a zero rate on VAT. So, it’s right we also put funding in place to train installers to meet demand.

Heat pumps are highly efficient and reliable and are key to cutting carbon emissions using cheaper renewable energy produced here in the UK.

The government’s £60 million Heat Pump Ready programme aims to develop innovative solutions to reducing barriers to the rollout of low carbon technology in homes and businesses across the UK.

The 4 Heat Pump Ready projects, 2 in Oxfordshire and one each in Bristol and Cambridgeshire have been successful in the second phase of funding.

The innovation programme runs alongside the government’s £450 million Boiler Upgrade Scheme, that provides up to £6,000 grants to homeowners towards the cost of a heat pump, and a zero rate of VAT, making clean heating measures even more affordable for people looking to replace gas or oil boilers in their property.

Work on installing heat pumps purchased through the Boiler Upgrade Scheme will begin in the successful projects from late December this year. The government expects heat pump deployment to reach 600,000 per year in 2028, a tenfold increase from 2021.

To meet demand, the Heat Training Grant will provide heating engineers with grants of up to £500 towards training.

The grant could cover most of the cost of a level 3 heat pump course, which takes one week or less for an experienced gas or oil heating installer to complete. In addition, heating manufacturers including Baxi, NIBE, Panasonic, Vaillant, Ideal Heating and Worcester-Bosch are expected to offer additional discounts and offers to participating trainees. These benefits could be worth up to a further £500 in product vouchers, additional training and other support, helping trainees put their new skills into practice.

Karen Boswell, Managing Director UK and Ireland at heating manufacturer Baxi, said:

We welcome the government’s investment in developing the new skills needed to support the growth of low-carbon heating solutions in homes and buildings.

We are fully committed to helping the industry transition to net zero, and we’re focused on helping individuals access opportunities to participate in the anticipated growth of air source heat pumps.

Shaun Edwards, CEO Groupe Atlantic UK, ROI and North America Divisions, said:

At Ideal Heating we believe installers will play a critical role in the decarbonisation of heating and we welcome further government funding targeted at heat pump training. Our Ideal Heating Expert Academy has also committed to providing additional subsidised training for installers participating in the government scheme.

This financial support, together with the forthcoming opening of our state-of the-art National Training and Technology Centre, will make the upskilling of the sector to install and maintain heat pumps as affordable and accessible as possible, to support the drive to net zero.

Carl Arntzen, CEO of Worcester Bosch said:

We are delighted to see the announcement by government of the funding for installers to become qualified to install heat pumps. There is great interest in future technologies and with this funding installers can gain the confidence and skills to offer heat pumps to their customers.

The latest support comes in addition to the £15 million government has already committed to developing skills in the energy efficiency and low carbon heating sectors since 2020.

The government already funds heat pump training through the Home Decarbonisation Skills Competition, however the new funding will now extend support for heat pumps until at least 2025, and also goes further by including training for heat networks.

The heat networks training courses will cover the full lifecycle of the systems from initial design to building, operation, and maintenance. Government is also aiming to develop a series of courses and online training videos for heat networks operation and maintenance.

By providing heat networks training support alongside heat pumps, areas of overlap and collaboration can be better explored, particularly around the installation of large-scale heat pumps for heat networks and shared ground loops.

Government is now seeking expressions of interest from training providers who wish to offer the new grants for heat pump training.

Five reasons to get a heat pump

It is now cheaper than ever to install cleaner, more energy efficient heating solutions thanks to the government’s new £450 million Boiler Upgrade Scheme.

Homeowners and small businesses across England and Wales can now apply for vouchers to get thousands of pounds off replacing their oil and gas boilers with clean heating systems.

Under the scheme, which will run for 3 years, property owners will be able to get:

  • £5,000 off the cost and installation of an air source heat pump
  • £5,000 off the cost and installation of a biomass boiler
  • £6,000 off the cost and installation of a ground source heat pump

Phil Hurley, Chair of the Heat Pump Association said:

The Boiler Upgrade Scheme is a great opportunity for householders to make their home more energy efficient and we encourage anyone thinking about switching out their oil or gas boiler to make use of the grants.

The upfront funding available means that heat pumps have never been more accessible, making it easier than ever for households to reduce their energy bills and carbon footprint.

Here are 5 reasons why you should consider swapping your oil or gas boiler, or direct electric heating, for a heat pump:

1. Reduce your energy bills

Moving to a heat pump means you can avoid the volatile prices associated with gas and oil. If you are using oil, Liquefied Petroleum Gas (LPG) or electric heating, you could see a reduction to your energy bill if you move to a heat pump.

2. No VAT to pay on installation

The government has recently announced 0% VAT on the installation of heat pumps and biomass boilers, which will last for 5 years, further reducing the cost of installation.

3. Reduce your carbon footprint and combat climate change

Heat pumps are significantly more efficient than traditional boilers and use cleaner electricity, so will reduce your home’s carbon footprint. A heat pump takes heat at a low temperature from the air or ground, increases that heat to a higher temperature and transfers it into your home to provide heating and hot water.

4. Save time and storage space by stopping fuel deliveries

If you’re using oil or LPG, you’ll no longer need to deal with fuel deliveries and can save space with not needing the storage for this anymore.

5. Get ahead of the curve

Heat pumps are an important part of the future of heating, and installing one now will give you access to the latest technology and allow you to future proof your home.

Check if you are eligible for the scheme or find out more.