Air Source Heat Pump Grants in Wales

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 is scheduled to run for 3 years – that’s 30,000 Air Source Heat Pumps per year, and ONLY 30,000 per year.

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You would qualify for the following:

You would receive £5,000 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 £5,000 off the cost of installing a Biomass Boiler *

You would receive £6,000 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.

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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.

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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).

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.

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Yes, it would probably cost between £8,000 and £12,500.

It’s a bit like buying a car. Do 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 £5,000, so that would reduce the prices to £3,000 and £7,500.

If you qualify for the additional grant in Wales, which is up to £4,000, you could be getting it FREE. At the top end it would be costing £,3,500.

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.

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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.

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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, best advice is to insulate in order 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 they must be satisfied.

You may be able to qualify for a grant for some or all of the cost for cavity wall insulation and loft insulation. You will not need to be on benefits and there are no income thresholds. This flowchart might help to explain what grants are available.

*If your property does not have an EPC, we can do one for you.
** There are insulation exemptions.

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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 gas boiler, then an ASHP would probably be a little 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 and 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.

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Little Maintenance – Annual check of main parts, filter clean 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 with longer warranties.

Fuel bills should be lower and getting lower.

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Cost – £7,500 to £12,500 is the norm. Even after the existing grant scheme you will still have to folk out £2,500 to £7,500. You may qualify for additional funding under certain circumstances.

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.

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Call us on 0800 8 10 10 60 or 07960 799681
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