The Funding Options around Heat Pumps
People around much of Europe are already using renewable heating options. Now, partly due to the RHI and the Green Homes Grant, our usage in the UK is growing rapidly too.
Heat Pumps make a great heating alternative in many houses because they lower carbon output and save you money. However, they are a significant financial outlay so knowledge of the key funding is vital.
If you are a home owner or residential landlord, you have a choice of two different funding schemes. Both are there to encourage you to choose greener technologies within the home. The Green Homes Grant helps with the cost of installs which make homes more eco friendly. The Renewable Heat Incentive pays money back to home owners over time.
It is important to note that although you can apply for both schemes, money paid through the Green Homes Grant will be deducted from your RHI payments later – you cannot benefit twice.
This is a voucher which covers two thirds of your costs towards eligible improvements. It can be to a maximum government contribution of £5000 with exceptions for those on certain benefits. Eligible improvements are categorised as Primary and Secondary Measures. Insulation and heating fall into the former category and draught proofing etc coming into the latter. The installation of Ground and Air Source Heat Pumps is a primary measure.
As experienced installers of Heat Pumps, however, we feel it is worth offering a note of caution. Energy efficient, reliable heat pumps will mostly be in a price bracket where £5000 will NOT cover two thirds of costs. Cheaper heat pumps are available but may not save you money on your heating bills and running costs.
This scheme aims to help the government reach its renewable energy targets by promoting the use of renewable heat. The use of Ground and Air Source Heat Pumps is covered under this scheme.
On signing up to the scheme, you receive quarterly payments for 7 years. These are based on the estimated output of green energy produced by your heating system. Therefore, assuming appropriate installation, you receive a regular income on top of saving money through reduced energy bills.