Clean Heat Grant: What we know so far - thumbnail image

Clean Heat Grant: What we know so far

In April 2022, we are expecting the Clean Heat Grant (also known as the Boiler Upgrade Scheme) to come into effect and replace the Renewable Heat Incentive (RHI), which is due to end in March 2022. This is the first time the Clean Heat Grant has been available for small domestic buildings, so the team at Thrift felt it was only right to put together a blog post detailing everything we know about this new funding package.

What’s new?

There are a couple of key differences between the Domestic RHI and Clean Heat Grant, the most notable being that recipients of a Clean Heat Grant will receive up to £5,000 to cover upfront costs, while recipients of the RHI earned annual payments for seven years, based on your annual heat use.

As a result, those who received the RHI earned up to £28,000 over a period of seven years, thus those who receive a Clean Heat Grant will receive funding that is much more limited. Additionally, the programme will only run for two years, though it may be extended in the future.

Eligibility Criteria

The criteria to qualify for the Clean Heat Grant are similar to the Domestic RHI. A property has to provide a valid EPC certificate that has been issued within the last 10 years. The property must be an existing building or a custom-made one – new builds are not eligible for this grant. Homeowner’s must get their needs assessed and provide at least one quote form a certified installer. The installer in question must be MCS certified.

Finally, there must be no recommendations on the valid EPC for loft or cavity wall insulation. The only exception to this requirement is a government-listed building or a building in a conservation area, in which case you’ll be typing “home insulation near me” into Google.

How will it work?

Air source heat pumps, ground source heat pumps and water source heat pumps have been approved for installation under the grant. With the grant, home owners could save up to 50% on the price of their installation of an air source heat pump. Additionally, biomass boilers are eligible for buildings that have poor fabric efficiency and cannot be treated with other renewable systems.

Once an applicant has received their quote from a certified installer and the voucher has been issued, they have three months to complete work on biomass boilers and air source heat pumps. The timeframe has been extended to six months for bigger installations, such as ground source heat pumps and water source heat pumps. For the latter installations, vouchers of up to £7,000 will be made available and be redeemed upon completion.

The launch of the Clean Heat Grant in April shows the government’s confidence in low carbon technologies going forward. While we are waiting for confirmation of the final scheme going forward, it is recommended that you do your research into a heat pump now, and act quickly once the scheme launches. By working together and getting involved in schemes like these, we all do our best to contribute towards the government’s target of net zero emissions by 2050.

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