THOUSANDS of households can get £7,500 to make a major home upgrade from today.
The free grant is to replace gas boilers with heat pumps, and the cash doesn’t need to be repaid.
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The grant was announced last month by Prime Minister Rishi Sunak but opens today.
It sees the cash offered in the already established Boiler Upgrade Scheme increased from £5,000.
The fund is multi million pound cash pot offering grants to homeowners in England and Wales to purchase the heat pumps.
The scheme was first launched in 2022 and has now been extended by three years from 2025 to 2028, giving people more time to take advantage of the free cash.
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Estimates state that the typical cost of buying and installing a gas boiler at between £2,500 and £3,000.
While prices for heat pumps can now be below this for some households if they take advantage of the grant and additional discounts offered by energy suppliers, according to the government.
Energy security secretary Claire Coutinho said: ”No one should have to choose between cutting costs and cutting emissions – our pragmatic approach means we can continue to deliver on our ambitious net zero targets without unfairly hitting the pockets of hardworking families.
“From today, for some households starting prices for heat pumps could now be below the average gas boiler, as we have increased the cash grant by 50 per cent to £7,500 – making our scheme one of the most generous in Europe.”
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The government also added that the cash will help thousands of people across the country reduce their energy use, as well as keeping their homes warm.
It also said it will not force anyone to replace a gas boiler with a heat pump, and households will only be required to switch over when they are due to change their boiler anyway.
An expected ban on gas boilers in 2035 has also been postponed.
Below we explain what a heat pump is, how it works and how you can get the cash.
What is a heat pump?
Heat pumps work like a fridge but in reverse.
They take in heat from the air outside, even when it is cold, and use it to warm a liquid refrigerant and turn it into a gas.
This is then compressed and transferred to a central heating system to warm radiators.
They heat your home at a lower temperature than gas and oil boilers, which could reduce your energy bills.
Unlike gas boilers, heat pumps work on electricity and need less energy to operate.
This means lower emissions and hopefully cheaper bills as you won’t be using as much energy.
Typically for every one unit of heat in, you get three out, according to the ECIU.
In contrast, for a typical gas boiler, for every one unit of heat in, you get less than one out.
This means that overall, more than three times less energy is needed to operate a heat pump compared with a boiler.
How does a heat pump work?
There are two types of air-source heat pumps, air-to-water systems and air-to-air systems.
As well as increasing the air source heat pump grant from £5,000 to £7,500, ground source heat pump grants have risen from £6,000 to £7,500.
And households can still access £5,000 grants for biomass boilers.
Unlike gas boilers, heat pumps work on electricity and need less energy to operate.
This means lower emissions and hopefully cheaper bills as you won’t be using as much energy.
Typically for every one unit of heat in, you get three out, according to the Energy and Climate Intelligence Unit (ECIU).
In contrast, for a typical gas boiler, for every one unit of heat in, you get less than one out.
This means that, overall, more than three times less energy is needed to operate a heat pump compared with a boiler.
How can you apply for a heat pump grant?
Customers do not have to apply for the grants and can check their home is eligible on gov.uk.
You will need to find an MSC-certified installer to claim the grant on your behalf.
MSC is the certification scheme for energy-efficiency product installers.
You can find the nearest ones to you on the MSC website, but it is worth shopping around to get a few quotes.
Once you agree a price, the installer will apply for the grant and you will then be contacted by Ofgem, the energy regulator, to confirm that the work is being done on your behalf.
You will need to pay the difference if the pump costs more than the grant.
While homeowners can purchase boilers from between £500 to £1,500, the Energy Saving Trust estimates that a heat pump can cost £6,000 to £8,000.
The latest increase to the grant could mean that you need to cover less of the cost, or nothing at all if it covers the full amount.
Your property will need to have enough power to support an installation capacity of 45kWth or kilowatt thermal, which covers most homes.
Additionally, your home will also need a valid energy performance certificate with no outstanding recommendations for loft or cavity wall insulation, unless you are exempt.
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Meanwhile, households on Universal Credit are only just realising they’re set for a £300 cash boost within days.
Plus, here’s the full list of cost of living cash worth up to £1,085 landing in bank accounts by Christmas.
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