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A Guide to UK Air Source Heat Pump Funding & Government Grants
Posted in
12/09/2019

A Guide to UK Air Source Heat Pump Funding & Government Grants

Like many renewable energy sources, air source heat pumps are a worthwhile investment. They reduce the amount of energy your home needs from conventional sources, lower your energy bills and can save you money in the long run. Heat pump funding can make that investment even more beneficial.

In this post, we’ll take a closer look at the UK government’s Renewable Heat Incentive and whether you could get a government funded air source heat pump.

What is the Renewable Heat Incentive?

The RHI was set up by the government in 2014 as part of their commitment to reduce greenhouse gas emissions. It’s essentially a reward scheme for anyone who generates their own renewable heat, encouraging homeowners to generate their own clean energy.

Among other technologies, that includes air source heat pump funding:

  • Biomass boilers
  • Biomass pellet stoves providing space heating
  • Solar thermal panels used for hot water
  • Ground to water heat pumps
  • Air to water heat pumps (air source heat pumps)

While there’s no upfront government funding for air source heat pumps, you can effectively get funding in instalments. Once your air source heat pump is installed, you will receive payments every three months for seven years. That’s a total of 28 payments. Or, 28 government grants for your heat pump.

How much heat pump funding will I receive?

RHI payments depend on a few factors, including the type of technology installed and the current tariffs. From May 2018, newly installed heat pumps also need a meter to determine their heat output. However, for domestic homes (excluding second homes), the payments will still be made based on an estimated heat output.

According to The Energy Saving Trust, annual RHI payments would amount to between £1,341 and £1,586 for an average-sized detached home with four bedrooms. Over the course of seven years, that would accumulate to between £9,387 and £11,102.

Can I get up-front heat pump funding?

Since launching the RHI scheme, the government has also introduced an “assignment of rights” (AoR) option which can help with funding before your heat pump is in place.

Essentially, AoR allows homeowners or landlords to assign the rights of their air source heat pump to a nominated investor. The investor will help fund the heat pump purchase and receive the RHI payments in return.

Despite missing out on RHI payments, the householder still benefits from reduced bills for their conventional energy sources – with no need to pay in full for installation.

Expert advice for heat pump funding

NBEC is a team of specialist renewable energy contractors in Yorkshire. With over six years of experience in the renewables sector, we can provide the expert advice you need with regards to heat pump funding in the UK. Give our team a call on 0800 292 2343 or email [email protected] to discuss your options.

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