Heat pump grants could get bigger under new Government plans

Homeowners swapping their gas or oil-powered boilers for heat pumps could get higher Government grants for the work under new plans.

Heat pumps gather heat from either the air or ground and can replace traditional ways of heating homes using fossil fuels such as oil and gas.

But the devices cost between £8,000 to £30,000 to buy and fit, with the big price range reflecting which type you buy and what sort of home you have.

To encourage homeowners to switch, the Government has Boiler Upgrade Scheme grants of up to £5,000 for air source heat pumps and £6,000 for ground source pumps, as well as £5,000 to fit a biomass boiler.

But even if homeowners can get a heat pump grant they still face bills of up to £25,000 they have to foot themselves.

Heating up: Heat pumps are touted as a greener alternative to traditional gas boilers

This led the the Energy and Utilities Alliance trade body to criticise the Boiler Upgrade Scheme as a ‘cash bung for the rich’. 

Now the Government is consulting on changing how it hands these grants out – and they could become more generous.

The Government said heat pumps are expensive, and the current grant system is perhaps too simple.

The Boiler Upgrade Scheme does not take into account what sort of house a heat pump is being fitted to, or the circumstances of the property owner.

Now the Government is consulting on changing the scheme to improve how it works.

A consultation published today said: ‘There is currently no difference in the grant value available to different property types, or property owners. 

‘We recognise that even with the grant, the upfront capital costs of low carbon heat remain a barrier to uptake for certain properties and property owners.’

A spokesperson for the Department for Business, Energy, and Industrial Strategy added that the grants ‘could potentially increase’ but it would depend on how energy suppliers, manufacturers and consumers respond.

Another barrier to getting a heat pump grant is that homes need to have loft or cavity wall insulation fitted first.

The Government also plans to scrap this requirement, lowering the overall cost of fitting a heat pump.

Minister for energy efficiency and green finance Lord Callanan said: ‘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.’

The consultation closes on October 12.

Energy firms are also competing to offer cheaper heat pumps.

The two cheapest options are from Octopus Energy and British Gas.

Octopus Energy’s air source heat pump can be fitted for as little as £2,500, while British Gas heat pumps start at £2,999.

However, both schemes rely on the homeowner getting the maximum Boiler Upgrade Scheme grants available, then topping that up.

What are the advantages of a heat pump? 

Experts say they can cut up to 25 per cent off your energy bills as the devices require less power to run, which also makes them more environmentally friendly than boilers. 

They can also last longer than boilers – up to 20 years.

Are there hidden costs to heat pumps? 

Getting the most out of a heat pump can involve extra costs. Poorly insulated properties may not get the maximum benefit from a heat pump, as the devices work at lower temperatures than boilers.

This means homeowners fitting a heat pump should consider sorting out decent wall and loft insulation, as well as double glazing, first.

Getting loft and wall insulation is currently a requirement to access Boiler Upgrade Scheme grants, unless the Government scraps this. 

The cost of these home improvements can run into the thousands of pounds – but will help keep energy bills down from that point onwards.

You may also need bigger radiators to get the most warmth out of a heat pump.

That is because the devices do not heat water to as hot a temperature as boilers can, so radiators with larger surface areas may be needed to maximise heat.

Your property must also be suitable to get a heat pump fitted.

A ground source heat pump also requires space outside to bury the pipes needed to generate heat.

Both ground source and air source heat pumps require a hot water cylinder to be fitted, which may not suit smaller flats.

This post first appeared on Dailymail.co.uk