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

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 (Grant air source heat pumps are eligible for the RHI as are Grant's solar thermal systems and hybrids) 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. Please note, the RHI Scheme will close to new applications at the end of March 2022. 

Boiler Upgrade Scheme

In Spring 2022, a new initiative to encourage householders to swap from fossil fuelled heating systems to renewable heating systems is being launched by the Government. The Boiler Upgrade Scheme, which will supersede the RHI Scheme, will provide eligible homeowners with a grant of £5,000 if they install a low carbon heating system, such as an air source heat pump. The aim of this scheme will be to make funds available to help offset the installations costs of a heat pump, helping to make them more comparable with the costs associated with a traditional gas boiler replacement.

The Boiler Upgrade Scheme forms part of the Government’s Heat and Buildings Strategy which sets out its plans to decarbonise home heating and reduce the dependency on fossil fuels. Further information about the Boiler Upgrade Scheme can be found in our blog here.

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.