More than 200,000 households across England and Wales will be able to access a larger Government grant to help cover the cost of installing a heat pump from next week. From July 21, the Boiler Upgrade Scheme will increase its support from £7,500 to £9,000 for eligible homeowners replacing oil or liquid petroleum gas (LPG) heating systems with an air source or ground source heat pump. The higher grant is intended to encourage more rural households not connected to the gas grid to switch to low-carbon heating.
The enhanced funding is available to owner-occupiers, including landlords, provided the property is off the gas network, currently uses oil or LPG for heating and has a valid Energy Performance Certificate (EPC). Homeowners cannot apply for the grant directly. Instead, an installer certified under the Microgeneration Certification Scheme (MCS) must submit the application to Ofgem on the customer’s behalf.
The process involves obtaining a quote from an MCS-approved installer, who then applies for the funding. Ofgem will contact the homeowner to confirm the application before the installation goes ahead.
Once the work is complete, the grant value is deducted from the final installation cost.
Anyone considering applying is advised to use an MCS-accredited installer or speak to their energy supplier to find an approved contractor, helping reduce the risk of fraud.
The Government hopes the increased grant will encourage more households to move away from fossil fuel heating, reducing exposure to volatile oil and LPG prices.
Heat pumps use electricity to capture warmth from the air or ground before transferring it into the home, providing both heating and hot water.