Boiler Upgrade Scheme grant For Heat Pumps

What Is The Boiler Upgrade Scheme Grant?

The Boiler Upgrade Scheme is a Government scheme to encourage homeowners and business owners to replace their fossil fuel boilers and install low carbon heating systems, like air source heat pumps and ground source heat pumps. The grant is available until 2028.

“The Boiler Upgrade Scheme grant will be £7,500 for all technologies, meaning the same rate is applicable to both air source and ground source heat pumps”
— DESNZ

Homeowners or businesses will receive a grant of £7,500 for installing a heat pump, be it an air source heat pump, or a ground source heat pump. This applies to applications made after the 23rd October 2023. As an MCS accredited installer, Alto Energy will apply for and administer the grant on your behalf. Payment is made by Ofgem to Alto Energy after completion of the installation and then forwarded directly onto the homeowner.

Who Is Eligible For The Boiler Upgrade Scheme Grant?

What technologies are eligible for the Boiler Upgrade Scheme?

In short – heat pumps.

The Boiler Upgrade Scheme grant will support the following technologies:

  • Air source heat pump systems - £7,500 grant

  • Ground source heat pump systems - £7,500 grant

Heat pump systems with a capacity of 45kW or less will be eligible for the scheme. All projects will need to be completed by an MCS approved installer, like Alto Energy, and have an MCS certificate issued for the project by the MCS approved installer.

WHAT PROPERTIES ARE ELIGIBLE for the Boiler Upgrade Scheme?

The Boiler Upgrade Scheme is only available in England and Wales.

All existing domestic and non-domestic buildings are eligible for the Boiler Upgrade Scheme. As with previous grant schemes there will be a requirement for any basic energy efficiency measures to have been completed prior to the heat pump installation. This means that if you have cavity walls they must be filled, and you need a minimum of 270mm rockwool insulation (or equivalent thermal resistance) in the loft. In order to demonstrate this, you will need to have an up to date Energy Performance Certificate (“EPC”) which does not show these measures as being required.

As well as the existing housing stock, the Government also recognises the need to prevent fossil fuel systems being installed in the first place, and to this end new self-build homes are also eligible for the Boiler Upgrade Scheme. In order to be eligible, self-build homes must meet the Ofgem definition of “Custom Build”, which can be found on the Ofgem website.

Hybrid Systems and Partial Heating

In order to be eligible for the Boiler Upgrade Scheme grant, the heat pump must be designed to provide all of the heating and hot water to the property. The scope of the property will be defined by the EPC for that property.

The following situations will not be eligible for a grant:

  • Hybrid installations with a back-up boiler

  • Heating only heat pumps, where the heat pump just provides heating and not the hot water

  • Installations where the heat pump only covers part of the load defined on the EPC

How Do I Get The Boiler Upgrade Scheme Grant?

The entire Boiler Upgrade Scheme grant process is led by the MCS accredited installer. So, if you chose Alto Energy for your heat pump project, we will apply for and administer the grant on your behalf.

The process for obtaining your grant is the following:

  1. Alto Energy will produce an outline quotation for your project.

  2. Once you’re happy that you want to proceed with a heat pump, you pay us to complete the full MCS designs for your property. If it’s a new build or major renovation project we can do this from plans, otherwise we will need to carry out a site survey to gather detailed information about your project.

  3. After the designs are completed, we will issue a final quotation.

  4. Once you accept the quotation and pay for the goods, we will arrange delivery. Following delivery, we will schedule a commissioning visit with one of our engineers.

  5. We will then apply to Ofgem for your Boiler Upgrade Scheme grant once we have all the information we need.

  6. Once the project is finished, we will redeem the voucher and pay the full grant money into your account.

Any Questions?

If you have questions about the Boiler Upgrade Scheme grant, then please do not hesitate to get in touch with our team.

home energy scotland loan

What Is The Home Energy Scotland Loan?

The Home Energy Scotland Loan is a scheme funded by the Scottish Government to help homeowners finance the costs associated with the installation of a heat pumps and energy efficiency improvements. This is an interest-free loan, and cashback is available for eligible renewable heating systems.

What access to funding does the Scottish Government scheme provide?

  • Up to £15,000 to improve home energy efficiency.

  • Up to £17,500 for installing renewable energy systems, such as £10,000 for a heat pump (also available to self-builders).

  • Up to £6,000 for energy storage systems.

  • Up to £500 for installing a heat meter alongside a new heat pump.

There is also a cashback available for certain measures which means that you won’t need to pay back that portion of the funding.

To give you an idea of what the costs might look like, here is an example:

  • Receive up to £10,000 in funding for a heat pump.

  • Up to £7,500 could be cashback (75%).

  • Choose the loan period (this will depend on the amount borrowed).

  • Pay back the remaining interest-free loan of £2,500 over a maximum of 5 years.

What Is Covered Under The Home Energy Scotland Loan?

The amount you can borrow will vary depending on the type of work being carried out and the work will fall under two categories:

  • Home energy efficiency funding - Up to £15,000 of funding available and covers measures such as insulation and heating systems (gas boilers, warm air units and high heat retention electric storage heaters).

  • Home renewables systems - Up to £17,500 of funding available and covers wind and hydro turbines, solar (PV) and water heating systems, and more.

If you are looking to have a heat pump installed, this is classed as a home renewable system and means you are eligible for up to £10,000 in funding. Of the £10,000, up to 75% can be claimed as cashback. The size of the loan available will either be the total cost of the heat pump installation or the maximum value available for that measure, whichever is less. For example, if a heat pump costs £7,500, then £7,500 is the maximum funding available.

Homeowners or business will receive a grant of £5,000 for installing an air source heat pump, or £6,000 for installing a ground source heat pump. As an MCS accredited installer, Alto Energy will administer the grant with Ofgem on your behalf, and deduct the full grant amount from your quotation. In this way, the amount you pay upfront for your heat pump will be much closer to the amount you would pay for a traditional fossil fuel system, making it easier for you to access the significant carbon savings and running cost savings.

How Do I Get The Home Energy Scotland Loan?

If you’d like to apply for the Scottish Government loan, here are the steps you should follow:

  1. Speak to a Home Energy Scotland advisor for free and impartial advice (0808 808 2282).

  2. Check your home energy efficiency and the suitability of a heat pump for your property. This is something we can help you with.

  3. Review your Energy Performance Certificate (EPC) and look for any work that needs to be completed before claiming loan funding. A Home Energy Scotland advisor can discuss your EPC with you and offer advice. You may be able to apply for loan funding (with cashback available) for any measures recommended on your EPC.

  4. Gather at least 3 quotes from MCS-registered installers like Alto Energy.

  5. Complete the Home Energy Scotland Loan online application form and provide any relevant supporting documents.

  6. Once the online application has been completed and a loan has been approved, Home Energy Scotland will send you a written loan offer. Work must only commence after you have received a written loan offer from Home Energy Scotland and must be completed within six months of receiving the offer.

  7. Once all work has been completed, submit your claim documents as well as your updated EPC. The updated EPC must show that all energy efficiency improvements have been completed and that a heat pump has been installed.

Any Questions?

If you have questions about the Home Energy Scotland Loan, please do not hesitate to get in touch with our team.

 

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