THOUSANDS of households are missing out on £5,000 free cash to help reduce energy bills.
The help is available under the Boiler Upgrade Scheme which allows people to switch to a heat pump.
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The scheme was first introduced last year in a bid to help households become more energy efficient.
You could get up to £5,000 to switch your boiler to a more eco-friendly one and save on your energy bills.
The £450million scheme was set up to fund the switch and cover the costs of installation.
The latest government figures released on Thursday have revealed that only 16,052 vouchers have been dished since May 2022.
This is 13,948 shy of its annual target of 30,000.
Below we explain more about the scheme and how you can take part.
What is the Boiler Upgrade Scheme?
The Boiler Upgrade Scheme is a £450million fund that offers grants to homeowners in England and Wales to purchase heat pumps.
You can apply for £5,000 off the cost and installation of an air source heat pump or biomass boiler.
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Homeowners can also get £6,000 off the cost and installation of a ground source heat pump.
In total the scheme is aiming to pay for 90,000 installations and will run until the end of March 2025.
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.
How does a heat pump work?
There are two types of air-source heat pumps, air-to-water systems and air-to-air systems.
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 much do heat pumps cost?
Heat pumps can be quite costly and have stopped households from buying them in the past.
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.
But it is hoped that the grants from the Boiler Upgrade Scheme will take some of the strain away from people.
You will need to pay the difference if the pump costs more than the grant but the idea is to get the amount closer to what you would pay when installing a gas boiler.
Who can access heat pump grants?
The scheme is only open to domestic properties in England and Wales until 2025.
The 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.
How do you apply for a heat pump grant?
You don’t apply for the scheme yourself.
Instead, 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 and you can find the nearest ones to you on the MSC website.
It may be worth getting a few quotes to compare which option is best-suited to you though.
The installer will advise on whether a low carbon heating system is suitable for your property and if you can get the grant.
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.
How can I lower my energy bills?
Switching to paying your energy bills by direct debit is one of the simplest ways to bring down your charges.
Customers of several firms have a choice over how their direct debits are set up:
- Fixed direct debits
- Variable direct debits
With a fixed direct debit, you’ll pay a fixed amount every month. Your energy company will work out the cost of your energy for the year ahead and divide this into equal payments.
Most energy firms will use the average amount of gas and electricity used in previous years to calculate your monthly instalments.
With a fixed direct debit you can spread the cost of your energy use without any surprises.
With a variable direct debit, you can choose to pay a varying amount every month or every quarter, depending on the energy you use.
You’ll pay for the energy you use, this means you’ll likely pay more in the winter and less in the summer.
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