The Government announced major extensions to the scheme on Tuesday
Heat pump subsidies will be expanded to include technology that provides both heating and cooling, the Government has said. As well as existing £7,500 grants for installing an air source or ground source heat pump to keep homes warm in winter, households will now be able to receive a £2,500 discount off installing an air-to-air heat pump which can provide heating in winter and air conditioning in summer, officials said.
The announcement comes as heat pump installations rise to new highs – but concerns mount that the Chancellor will restrict subsidies for the clean tech to a select group of low-income homes as part of shifting energy efficiency subsidies from bills to save households cash.
Under the expansion of the boiler upgrade scheme announced by the Department for Energy Security and Net Zero on Tuesday, there will also be £2,500 grants for heat batteries, which can store heat overnight for use during the day. Officials said the typical cost of installing an air-to-air heat pump in a flat or a small house is around £4,500, so much of the upfront cost will be met by the grant.
Minister for energy consumers Martin McCluskey said: “Air-to-air heat pumps offer the best of both worlds – keeping you warm in winter while cooling you down when summer comes along. With heat pumps more popular than ever, we want to make sure as many people as possible can benefit, especially those in flats or small homes without central heating, so they have greater choice when upgrading their property.
“We are also offering discounts for heat batteries and consulting on the role innovative, clean heating solutions can play, including thermal storage, infrared panels and renewable fuels.”
Responding to the announcement, Jess Ralston, energy analyst at the Energy and Climate Intelligence Unit, said: “If the UK doesn’t make the leap away from gas boilers to electric heat pumps that can run on British renewable electricity, as a nation we’ll become ever more dependent on foreign gas imports as North Sea output continues to decline with any new licences making very little difference.
“The Boiler Upgrade Scheme has seen around 100,000 applications already and expanding it to more net zero technologies means more choice for consumers that want to make upgrades.
“It also implies that the Government is backing its existing policies instead of cutting them in the upcoming Budget, as has been rumoured, which would create uncertainty in the industry and the jobs that rely on it, as well as damaging investment by sending mixed signals.”
