Tips & Advice

Government Incentives & Initiatives

Initiatives and legislation set out by the Government are designed to support the installation of efficient heating systems and sustainable technologies

Green Homes Grant Scheme

The Government’s Green Homes Grant scheme, which opened in September 2020 and is due to close in March 2022, is available to applicants in England who wish to make energy-saving improvements to their property. Homeowners and landlords can apply for vouchers which can go towards the costs of energy-efficiency measures within their homes from home insulation through to the installation of low carbon heating such as heat pumpssolar thermalbiomass boilers and hybrid heat pumps.

The process of how to apply can be found on the Government website here. Applicants will need to select local accredited tradespeople to complete the work who will need to be TrustMark approved and, if installing a low carbon heating system, MCS registered as well. An accredited supplier will then supply a quotation and, when this is approved, a voucher (for up to two-thirds of the total cost) will be issued up to the value of £5,000 for most households and up to £10,000 for the poorest households.

The Green Homes Grant aims to make energy-saving home improvements more affordable, helping households to lower their energy bills and reduce their carbon footprint. For further information, please visit the Government website here.

Renewable Heat Incentive

The Domestic Renewable Heat Incentive (RHI) is a Government Scheme which aims to encourage householders to consider using renewable energy to heat their homes as part of an ongoing strategy to reduce greenhouse gas emissions and climate change. Through the Domestic RHI, households who install eligible renewable heating systems (such as Grant’s air source heat pumps, solar thermal systems and biomass boilers) can receive quarterly payments for seven years subject to adhering to the Scheme’s rules.

To read more about the eligibility criteria, how the payments are calculated and more information about the RHI, please visit the Ofgem website.

ErP Directive

The Energy related Products (ErP) Directive is an EU initiative designed to achieve reductions in energy usage, emissions levels, and other environmental issues such as noise and the use of refrigerants. The Directive incorporates energy labelling requirements for space and water heaters, ensuring that appliances meet energy efficiency requirements while also helping consumers to identify most energy efficient products. It is the manufacture’s responsibility to issue their individual products with the necessary labels and product fiches and it is the installing engineer’s responsibility to issue an efficiency label for the entire heating system.

For further information about the ErP Directive, please click here.

ECO Design Directive

The ECO Design Directive forms part of the ErP regulations. The ECO Design Directive requires manufacturers to decrease the energy consumption of their products including space heaters, combination heaters, water heaters and thermal stores. For example, under the ECO Design Directive, it is a mandatory requirement for heating systems to be fitted with High Efficiency pumps. By complying with the ECO Design Directive products will consequently adhere to the ErP Directive requirements.

For further information regarding the ECO Design Directive, please click here.

Reduced VAT

Some energy-saving materials and heating equipment installations can be eligible for a reduced VAT rate of 5%. Such energy-saving materials can include air source heat pumps and wood fuelled boilers through to draught stripping and insulation. These energy-saving materials are only eligible for the reduced VAT rate if they are installed for use within specified types of residential accommodation. Furthermore, if energy-saving materials are installed as part of a new dwelling construction, the supply may be zero-rated VAT. It is always advisable for installers to refer to the Government’s notices to ascertain what VAT rate should be applied to an installation.

To read more on this topic, please click here.