FUNDING
GREEN HOMES GRANT
This is the main source of government funding currently available to all households in England, and applications are open until March 2022. The grant will cover two thirds of the cost of home efficiency improvements and renewable heating, up to £5000. Some households will be eligable for £10,000, based on financial circumstances. Although this grant is available for heat pump installations, it could be best to use it for insulation, and claim the RHI for your heat pump instead (see below).
RENEWABLE HEAT INCENTIVE
The Domestic RHI is a scheme which gives owners of renewable heating systems (such as heat pumps) quarterly payments based on the amount of renewable heat the system is expected to produce. The scheme runs for 7 years, and over this time, a typical household using a heat pump could expect to earn about £6000 through the RHI.
Click here for the official RHI webpages
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The RHI will be closing to new applicants from April 2022, and the government has indicated that it may replace this with a Clean Heat Grant, a £4000 upfront payment instead of smaller payments over many years.
ENERGY COMPANY OBLIGATION
The ECO is only available to certain households deemed low income or vulnerable. It provides funding for efficiency and heating system improvements. You can find out if you qualify for ECO here.