Government unveils new heat pump grants

The government has announced the Boiler Upgrade Scheme (BUS) has been expanded to include air-to-air heat pumps and heat batteries.

The BUS offers financial grants to landlords and homeowners to replace gas boilers with low-carbon alternatives such as heat pumps and biomass boilers.

The news comes after Chancellor Rachel Reeves announced in the Autumn Budget that the government would scrap the ECO scheme to save money on energy bills and replace it with the Warm Homes Plan.

Air-to-air heat pumps offer the best of both worlds

The National Residential Landlords Association (NRLA) writes on its website that under the new measures landlords will be eligible for a £2,500 grant towards the installation of an air-to-air heat pump.

The NRLA said: “This grant will cover a significant portion of the cost, with the average price being around £3,000, with the scheme continuing to offer £7,500 for the installation of a traditional air and ground-source heat pumps.

“In time it intends to support other technologies, including heat batteries at the same £2,500 level once installation and product standards are finalised, and is also taking steps to make the certification process for the installations simpler.”

Minister for Energy Consumers Martin McCluskey says the new grants for heat pumps will encourage more households to switch to heat pumps

He 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.”

Installing heat pumps is difficult

However, as previously reported on Property118, installing heat pumps is difficult due to planning restrictions.

Rodney Townson from landlord organisation iHowz previously told Property118: “Many rental properties are HMOs or leasehold flats. There may be planning or lease restrictions which prevent or add additional administrative and direct costs, which prevent or make it unaffordable to fit heat pumps for these properties, as well as older stock in the private rented sector makes it harder.”

Landlords are also still concerned over costs as the government has proposed, but not yet made law, that all private rented properties will need to meet EPC C targets by 2030, and 2028 for new tenancies.

The NRLA has previously warned landlords would need to spend an average of £6,100 to £6,800 per property to meet EPC C targets.

Many of these costs will be passed onto tenants, with a government minister last year admitting landlords can raise rents to pay for EPC upgrades.