Air Source Heat Pump Grants in Wales, using the new Government Boiler Upgrade Scheme (BUS).
The UK Government has said that “the Boiler Upgrade Scheme from April 2022 is to encourage homeowners to install low carbon heating systems, and that the Grant will help homeowners to overcome the upfront cost of low carbon heating technologies.”
NB. For a limited time, we can offer Air Source Heat Pumps for £0 to £ 3,000 (subject to survey) after applying the BUS. We can also access “interest-free finance” over 1, 2 or 3 years for the balance. This could mean that the total cost of installing an ASHP would be covered. *
Notes:
- 1. If the walls of the property are cavity walls, then they must be insulated. This should be free. There are allowable exceptions.
- 2. If there is a loft space which is accessible, then it must be insulated. This could be free.
When will the Boiler Upgrade Scheme Wales start?
The Boiler Upgrade Scheme started in April 2022.
There is enough Boiler Upgrade Scheme Grant funding to install 90,000 Air Source Heat Pumps across England & Wales.
The Boiler Upgrade Scheme was scheduled to run for 3 years – that’s 30,000 Air Source Heat Pumps per year, and ONLY 30,000 per year. However, this has been extended because of a slow uptake.
How much is the Boiler Upgrade Scheme Grant?
You would qualify for the following:
You would receive £7,500 off the cost of installing an Air Source Heat Pump.
We have access to additional funding for Air Source Heat Pumps. If you qualify for this funding, it should cover the shortfall.
You would receive £7,500 off the cost of installing a Biomass Boiler *
You would receive £7,500 off the cost of installing a Ground Source Heat Pump
* The Biomass Boiler is only available in rural areas and in homes that are not connected to the Mains Gas Grid.
How do I qualify for a Boiler Upgrade Grant?
You will qualify for a Boiler Upgrade Grant if:
1. You live in Wales or England
2. You own your property
3. Your property has an installation capacity up to 45kWth, which covers the vast majority of homes
4. Your property must have a valid Energy Performance Certificate (EPC)*. It must not have any outstanding recommendations for loft insulation and/or cavity wall insulation**.
5. “New Build” properties will not normally qualify. However, if you are “building your own home”, that will qualify.
6. You must be fully replacing your existing fossil fuel system, i.e. Oil, Electric or Gas (including LPG)
*If your property does not have an EPC, we can do one for you.
** There are insulation exemptions.
You will not qualify for a Grant to replace an existing low-carbon heating system.
What is an Air Source Pump?
An Air Source Heat Pump (ASHP) is a bit of kit that looks like an Air Conditioning Unit, and works like a fridge in reverse.
An ASHP extracts heat out of the surrounding “air”. It intensifies the heat and transfers it into your home, where it heats the water (usually through a well-insulated hot water cylinder) in the radiators.
It can extract heat from the surrounding air at temperatures as low as minus 18 degrees Celsius.
So, your fuel is the Air around you; it may not be fresh air, but it is FREE. And it won’t run out – if it did, well, it wouldn’t matter, would it?
The Air Source Heat Pump is powered by electricity.
Are Air Source Heat Pumps expensive?
Yes, it would probably cost between £8,000 and £15,000.
It’s a bit like buying a car. Do you want an expensive make or a cheaper make? Do you want a car for a family of 6 or a family of 2? Will you need a hot water cylinder? Will all of your existing radiators need to be changed? And so on …
A complete survey of your property would be carried out, and that would lay out all of the potential options and the cost.
There is the Boiler Upgrade Scheme grant of £7,500, so that would reduce the prices to about £6,500.
An ASHP should last twice as long (20 – 25 years) as a normal gas boiler.
There are also grants in Wales for Solar Panels (subject to qualification), which could give you some free electricity, which would reduce the cost of running the ASHP.
Does an Air Source Heat Pump take up a lot of space?
It is about the same size as an average Air Conditioning Unit.
It will need a good flow of air around it, because it is the air that it extracts the heat from.
You will need a space of about 80cm x 80cm ( just under 3 feet by 3 feet) for the Hot Water Cylinder.
If you have a system boiler or electric heating, you will probably already have a Hot Water Cylinder.
Do I need to insulate my home first, and do I have to pay for that?
If you are having an Air Source Heat Pump as a fully paying customer, i.e. you are not receiving any Grant funding, then there is no legal requirement to insulate. However, the best advice is to insulate to get all of the benefits of an Air Source Heat Pump.
If you are applying for a grant under the Boiler Upgrade Scheme (BUS), your property must have a valid Energy Performance Certificate (EPC)* and it must not have any outstanding recommendations for loft insulation and/or cavity wall insulation**. If there are cavity wall or Loft insulation recommendations in the EPC, they must be satisfied.
You may be able to qualify for a grant for some or all of the cost of cavity wall insulation and loft insulation. You will not need to be on benefits, and there are no income thresholds.
If your EPC is a D, E, F or G and your Council Tax Banding is an A, B, C, D or E you will qualify for Free Cavity Wall Insulation and, from July 2025, free loft insulation.
*If your property does not have an EPC, we can do one for you.
** There are insulation exemptions.
Are Air Source Heat Pumps cheaper to run?
This is a difficult but obviously important question to answer.
An Air Source Heat Pump (ASHP) is 300% to 400% more efficient than a gas boiler. The actual fuel for an ASHP is the fresh air, which is free. However, it uses electricity to work. Electricity is the most expensive per kWh.
If you had just fitted a brand new mains gas boiler, then an ASHP would probably be quite a bit more expensive. But if your gas boiler is a few years old, then an ASHP would probably be less expensive to run. However, if your heating fuel is Coal, LPG or even Oil, then your savings would be a lot higher.
It is estimated that replacing an old (G-rated) gas boiler with an ASHP could save you up to £500 per year.
At the moment, Electricity is expensive, mainly due to the increase in Gas prices and the high percentage of gas-fired power stations. Over time, electricity prices will drop as the amount of “renewable electricity generation” increases.
Solar panels can help reduce your electricity costs as well.
What are the benefits of having an Air Source Heat Pump installed?
Little Maintenance – Annual check of main parts, filter cleaning and safety check.
Reduces your Carbon Footprint – helping to save the world.
No more deliveries of LPG, Oil or Coal.
Parts tend to last longer and come with longer warranties.
Fuel bills should be lower.
What are the disadvantages of having an Air Source Heat Pump installed?
Cost – £8,500 to £15,000 is the norm. Even after the existing grant scheme, you will still have to fork out £2,000 to £7,500.
Needs Space – It is about the same size as an average Air Conditioning Unit and will need a good flow of air around it. This could be an issue if you have a very small garden. It will also need internal space of about 80cm x 80cm ( just under 3 feet by 3 feet) for the Hot Water Cylinder.
Noise – There is some noise, approx. 45 decibels. 45 decibels is defined as “the noise in a library”?? However, as the temperature drops, the noise increases as the ASHP has to work harder.
How do I find out more about the Boiler Upgrade Scheme?
Call us on 0800 8 10 10 60 or 07960 799681
Complete our Enquiry Form
Give us a call now on 0800 8 10 10 60 or 07960 799681 and speak to an expert adviser