Government Subsidies for Heat Pump Boilers
Renewable Heat Incentive (RHI)
● Ends 31st March 2022.
The government's RHI makes quarterly (tax free) payments to you for the renewable heat produced by your heat pump used for home heating or domestic hot water heating or both. This means that when your heat pump produces 4kW of heat for 1 hour and has a COP of 4 then you will pay for the 1kW.hr electrical power consumption while the RHI will pay you for the other 3kW.hrs of clean green renewable heat produced by the heat pump boiler.
As of April 2020 the RHI rates paid to you are:
● Ground source heat pumps: 21.16 Pence per kW.hr tax free paid quarterly for 7 years.
● Air source heat pumps: 10.86 Pence per kW.hr tax free paid quarterly for 7 years.
Clean Heat Grant
● Proposed to start April 2022 and end 31st March 2024.
● Replaces the domestic RHI scheme.
● Proposed to be a £4,000 flat rate scheme.
The proposed Clean Heat Grant is expected to provide £4,000 towards heat pump installations in UK households.