Grant scheme for air and ground source heat pumps opens for landlords

The government has officially opened its Boiler Upgrade Scheme for applications including those from private landlords.

Operated by the Department for Business, Energy and Industrial Strategy, it offers applicants it offers grants to encourage property owners to install low carbon heating systems such as heat pumps, it will now run until 2025.

Landlords can receive up to £5,000 off the cost and installation of an air source heat pump or £6,000 off a ground source heat pump and they are available as a single grant per property.

Air source heat pumps cost between £3,000 and £18,000 depending on property size and age, while ground source ones are more expensive, ranging from £15,000 to £45,000.

Eligibility for the scheme includes first and second homeowners as well as private landlords within England and Wales.

Participating in the scheme does not exclude landlords from applying for other grands such as separate funding for energy efficiency upgrades including insulation, doors or windows.

The only exclusions are properties that have already had government funding or support for a heat pump or biomass boiler, and those which have ab EPC that has includes a recommendation for loft or cavity wall insulation.

Also, hybrid heat pump systems, for example a combination of a gas boiler and air source heat pump, are not eligible.

A separate grant of £5,000 is also available for biomass builders, but only for rural or off-grid properties.

Landlords must first contact an MCS certified installer who will assess the viability and cost of a heat pump system and then apply on their behalf to have the £5,000 deducted from the cost.

The scheme is being managed by energy sector regulator Ofgem.