Homeowners and small businesses could find it cheaper and easier to install heat pumps under new proposals set out by the Department for Energy, Security and Net Zero (DESNZ).

Proposed measures could mean varying the levels of grants that are made available, depending on the customer’s property type or existing fuel source. This would make heat pump installations more affordable for more households and small businesses, enabling them to benefit from low-cost and low-carbon heating.

Households could also save time and money through a simplified approach to qualifying for a heat pump grant by removing the need to install loft or cavity wall insulation first.

DESNZ says these changes will help more homes and businesses move away from costly foreign fossil fuels and onto cleaner, cheaper homegrown energy – forming part of the government’s drive to decarbonise the nation’s heating, with more than £81 million in vouchers already issued to customers under the Boiler Upgrade Scheme.

These new proposals also provide an additional option to help consumers install new biomass boilers that also work as an oven, helping more households access the latest in green technology.

The government’s £450 million Boiler Upgrade Scheme was recently extended until 2028 and offers grants of £5000 towards the installation of an air source heat pump; £6000 off a ground source heat pump; and £5000 off a biomass boiler. Consumers can also receive a zero VAT rate on installations.

Heat pump installers, manufactures, suppliers, and the wider industry are now being invited to offer their views on the government’s proposed changes to the Boiler Upgrade Scheme, with the consultation open on GOV.UK until 12 October.

This comes alongside a government commitment to the Future Homes Standard coming into force in 2025. The Building Regulations will continue to set a performance-based standard rather than mandating or banning the use of any technologies.

Respond to the consultation by 12 October 2023: Proposed amendments to the Boiler Upgrade Scheme Regulations.