Thinking about a heat pump? Don’t miss out on RHI funding

From the start of the new year, there will only be three months remaining to apply for the Renewable Heat Incentive (RHI), soon to be replaced by the Boiler Upgrade Scheme (BUS) in March 2022.

For some homeowners, it may be in their interest to take part in the RHI funding before it ends, as it can offer a greater financial incentive, (somewhere approximately between £7,000 and £12,000 spread over 7 years), whereas the new Boiler Upgrade Scheme offers a lesser overall sum of £5,000 for an air source heat pump and £6,000 for a ground source heat pump.

Both funding streams may be of use to homeowners for different reasons. For example, for residents struggling with the upfront costs of a heat pump, it may be of more use to wait and apply for the Boiler Upgrade Scheme in March 2022. However, given the cost of installing a heat pump can vary from £6,000 to £18,000 (dependent on the size of the pump and the house), the Government grant doesn’t cover as much of the cost as some would hope.

We often find that the installation of a heat pump also includes an upgrade or repair to the fabric of a house, such as improving insulation, and this is in order for the heat pump to perform to its full potential in energy efficiency. This is important to note because this can create further costs which will make the RHI a more attractive financial offer for some households.

If you live in Oxfordshire and are unsure of which scheme may be best for you, please do come and talk to the team here at Cosy Homes Oxfordshire just to ensure you don’t miss out. 

The team can also advise you on any efficiency measures to consider alongside a heat pump. The starting point is to head to our Plan Builder, once you submit your plan a member of the team will be in touch. 

The Boiler Upgrade Scheme was announced in October 2021 when the Government published its Heat and Buildings Strategy.

The scheme will offer grants of £5,000 for air source heat pumps, and £6,000 for ground source heat pumps from March 2022, and this is to help cover the upfront costs of installation. For some homeowners, this will be useful in removing the barrier of upfront costs, enabling projects to happen.

This is part of a £450 million Boiler Upgrade Scheme funding pot to help install low-carbon heating systems in our homes.

Reducing the energy demand of our homes is crucial in cutting our carbon emissions. And for those thinking of switching to a heat pump, improving the fabric of your home first is important to ensure you’re getting the most out of that new technology. These improvements also go a long way to improving the comfort and overall health of your home.

Our Free Plan Builder tool can help Oxfordshire residents collect a range of measures for their home, get an idea of what would work for them and a ballpark figure for how much upgrades will cost.

Read next…