Heating and energy expert David Hilton gives his take on how the government grant for low-carbon heating is performing one year in
Launched in May of last year, lots of heat pump companies were, rightly, optimistic about the Boiler Upgrade Scheme, which provides a £5,000 grant for installing an air source heat pump (and £6,000 for ground source). Although it’s £5,000, the problem is that’s not even half the cost of what it takes to install a heat pump. Some energy giants have since introduced heat pump offers that – after the government grant – are expected to make installing one cost as low as the price of a gas boiler, tackling one of the bigger obstacles for self builders and homeowners: the price.
The total Boiler Upgrade Scheme fund is £450m, which equates to 90,000 installs over its three-year lifespan (or 30,000 per year). However, the aim was to install 600,000 heat pumps per year from 2028 – so where is the funding for the rest? As a result, the scheme that was originally due to close in 2025 will now run until 2028. Whether it will have a significant impact remains to be seen. According to figures from MCS (Microgeneration Certification Scheme), only 8,790 heat pumps were fitted in the first quarter of 2023 – falling well short of the government’s target of 600,000 installations per year by 2028.