The world is moving towards cleaner and renewable energy sources. But the government also has to phase out older technologies. So, one of the best ways to encourage people is by offering incentives. And the clean heat grant is an excellent example that motivates people.
Interestingly, the clean heat grant in 2022 replaced the Renewable Heat Incentive (RHI). And it offers more benefits to users going green. But what is this Clean Heat Grant? And what are the benefits?
This article will explain all you need to know and how to be eligible.
What is the Clean Heat Pump Grant?
Electrician working on heat pump
The Clean Heat Grant or the Boiler Upgrade scheme is an incentive that helps to ease people into renewable energy life. However, switching to cleaner energy can be expensive. Thankfully, this grant offers £5000 to help replace boilers.
Further, the grant only supports 90,000 pumps over three years. And the Clean Heat Grant is available for small domestic buildings. So, the funding will help the U.K. achieve its net-zero carbon emissions goals and target to install 600,000 renewable heat pumps yearly by 2028.
Differences Between the Renewable Heat Incentive and Clean Heat Grant
Heat pumps beside a house
The clean heat pump phased out the Renewable Energy Incentive (RHI), but is it better? In truth, you could get anywhere from £200 to £4000 yearly from RHI, depending on the heating system installed. In contrast, recipients of the new grant get up to £5,000 to cover upfront costs.
However, RHI offered more benefits as recipients earned yearly payments for seven years, depending on heat use. In short, users earned up to £28,000 from the Renewable Heat Incentive.
So, funding from the Clean Heat Grant seems more limited. Furthermore, while the RHI ran for seven years, the CHG will run for only two years (may be extended).
How does the Clean Heat Grant Work?
The U.K. government approves ground, air, and water source heat pumps for installation under this grant. Hence, you can save up to 50% on the upfront costs of any of the above heating systems. In addition, buildings with weak fabric efficiency can benefit from this grant with biomass boilers.
Further, you’ll have three months to complete installations on biomass boilers and air source heat pumps after receiving a quote from a certified installer and the grant voucher. However, things are slightly different for larger installations.
In truth, you’ll get a six months timeframe to complete work on water and ground source heat pumps. While you’ll be eligible for vouchers of up to £7,000, the government will only make them available and redeemable after installation.
How to Attain Eligibility for the Clean Heat Grant?
Air source heat pumps
Eligibility for the Clean Heat Grant is similar to the Renewable Heat Incentive. First, you must provide valid EPC certificates for your property. Second, the certificate must be at least ten years old.
Third, you must have an existing building or a custom-made one. However, you won’t be eligible for this grant if you own a new building. Finally, you must submit documents for assessment and provide a minimum of one quote from a certified installer (MCS certified).
Finally, your valid EPC must not have any recommendations for cavity or loft wall insulation. But government-listed buildings and structures in conservation areas are exceptions to this eligibility requirement.
Who Can Apply for Clean Heat Grants?
Man installing a heat pump
Only landlords, property owners, and self-builders can apply for Clean Heat Grants. However, you must apply within twelve months of your renewable heat source’s commission date. Otherwise, you’ll lose eligibility.
In addition, you can’t apply for this grant if your heating system doesn’t have an MCS installation certificate number. Also, you’ll need an EPC (Energy Performance Certificate) when applying for the Clean Heat Grant.
Boiler heating system
The Boiler Upgrade Scheme represents the country’s shift to a low-carbon environment. This eco-friendly initiative is set to reduce energy bills and greenhouse gas emissions for multiple households.
In addition, the program works on a £450 million fund and will feature a first-come, first-served service. So, if you’re interested in the scheme, it’s best to apply quickly.
Unfortunately, the CHG only applies to 90,000 households and will reduce carbon emissions by less than 0.1%. Nevertheless, it’s an effective way to get boiler upgrades at more affordable prices.
Do you have more questions? Feel free to reach us, and we’ll be happy to help.