Funding your Air Source Heat Pump System
How much does a Heat Pump Costs?
The cost of a heat pump essentially depends on:
1.The size of pump required (Bigger pumps are required for larger properties, and/or less energy efficient properties)
2.The amount of prep work required prior to installation (see table below for some examples).
Most properties that can achieve a reasonable level of thermal insulation could be suitable for an air source heat pump.
There may be instances where the fabric of the building can be improved to achieve the highest levels of efficiency from the heat pump. For example where the property can be updated with the basic thermal improvements i.e. cavity wall installation, loft insulation and double glazing this should be considered if not already installed.
The air source heat pump then needs to be able to meet the maximum heat demand of the property under its maximum (coldest) conditions.
A Caplor engineer will visit the property to talk through Emitters, pipework, position of equipment and they will functionally check the current system to check that it is all operational.
If you require any work to be completed in preparation of a heat pump installation, Caplor can provide these services (for example installing UFH, replacing/upgrading Radiators and pipework).
For an average sized domestic property, with a D+ EPC rating and minimum prep work required for heat emitters and plumbing: A quotation for installation of an Air Source Heat Pump will start somewhere around £10-12,000.
What Options are there to Reduce my Heat Pump Installation Costs?
The good news for anyone considering installing a heat pump is that there are an increasing array of funding sources to help reduce the up-front costs of installation, further increasing the savings you will benefit from over the lifetime of your heat pump.
The Boiler Upgrade Scheme (BUS)
A new, flat, upfront grant, the BUS comprises £450million of total support over a three-year period.
Announced in the government’s Heat and Buildings Strategy, the BUS follows the Domestic Renewable Heating Incentive (DRHI), which closed at midnight on 31 March 2022.
The BUS allows consumers to apply for a one-off grant payment of:
- £7,500 towards the cost of an air-source heat pump (ASHP) or biomass installation
- or £7,500 towards the cost of a ground-source heat pump (GSHP) installation.
Please be aware that biomass installations are only supported in limited circumstances, and solar thermal is excluded from the scheme.
Installers will be required to lead the voucher application on behalf of the consumer.
Homes and small non-domestic buildings on and off the gas grid, including owner-occupiers, private landlords and custom-builds, are eligible for the BUS. New buildings and social housing will not be eligible for support. The consumer must have an EPC issued within the last 10 years to qualify.
Grants are capped at a total budget of £150 million per year over the next three years.
More details on the BUS can be found here.
The UK’s green mortgage market is showing signs that it is ready for lift off. Encouraged by the innovation of peers in this space, banks and building societies in the UK are launching green mortgage products at an ever increasing rate. Green Mortgage products come in a variety of different forms, but all aim to incentivise homeowners to invest in improving the energy efficiency of their properties.
More details can be found at the Green Finance Institute here.
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