Am I eligible for the new £9,000 Heat Pump Grant?

The UK Government has put forward a new uplift to the Boiler Upgrade Scheme and in doing so is opening up to £9,000 of funding for thousands of eligible households.

The thinking behind the announcement is to make low-carbon heating more within reach for rural homes in England and Wales and to encourage them to leave their polluting and costly oil systems behind.

However, it is important to be clear on one thing: this is not a blanket increase for all homeowners. The headline figure of £9,000 off a heat pump is targeted at those using heating oil. For many other people applying under the standard Boiler Upgrade Scheme, the grant will still be £7,500.

So what has changed?

As of 21 July, if you are in an eligible home that is heated by oil, your grant rises from £7,500 to £9,000. That is an extra £1,500 you can put towards the installation of an air or ground source heat pump. The Government says this is to shield rural properties, particularly those not on the gas grid, from the vagaries of fossil fuel prices. They have told us some 200,000 homes across England and Wales will be made aware of the additional funding.

Who can claim the £9,000?

In short, it is for households in England or Wales that are replacing a fossil fuel system with a low-carbon heat pump via an MCS-certified installer, provided they currently use heating oil and tick the other boxes for the scheme. It is of particular interest to older, off-grid rural properties dependent on their oil tanks for hot water and heating.

But don't be in any doubt — if you are looking to replace a gas boiler, for instance, do not assume you qualify for the new top tier.

Why focus on oil?

Heating oil prices are prone to significant swings, leaving many in the country with fewer options and more exposure to volatility. A well-designed heat pump is a more stable and efficient way to run a home and, as the Government would have it, less reliant on fossil fuels.

For the uninitiated, the Boiler Upgrade Scheme is simply a way for the state to help you in England and Wales make the switch to something like an air or ground source heat pump (or in some rural cases a biomass boiler). Your installer will usually sort out the grant paperwork and the discount comes off the front end of the bill.

Is now the time to act?

If you are on oil, the extra support may make a heat pump a more viable proposition. But before you commit, get your property properly assessed. You need to know about your insulation, radiators and energy usage to ensure the system is right for the house.

A good installer will be able to tell you:

• If a heat pump is suitable for you
• What size you are looking at and if you need new radiators
• The running costs and savings you can expect
• Any planning issues and timescales
• Exactly how much grant you are entitled to

Your next move

If oil is what heats your home, start by checking if you can access the new £9,000. Put in a call to an MCS-certified renewable installer to have them look over your eligibility and current costs.

It is a positive development for those wanting to get away from fossil fuels, but let's not be under any misapprehension that the grant has been hiked for everyone. For most, it is still £7,500. Check your position first.

Find out what your home could look like with a free Green Home Report.