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An innovative project to make heat pumps cheaper and easier to install has received over £15 million in funding.
The innovation, which makes heat pumps cheaper and easier to install, was supported by more than £15 million in public funding, helping to accelerate the UK’s transition away from fossil fuels.
The funding is part of the government’s £60 million Heat Pump Ready Programme, which is developing innovative solutions to lower barriers to low-carbon adoption in UK homes and businesses.
A total of 24 projects in England and Scotland were funded in the second round of the Heat Pump Readiness Programme.
The funding comes alongside the government’s £450m Boiler Modernization Program which offers homeowners £5,000 subsidies for heat pump costs and zero VAT on a clean heating installation, making it a more affordable option for people looking to replace gas or oil. boiler. their property.
Heat pumps are already a well-established technology that is more efficient than traditional fossil fuel boilers and provides a reliable low-carbon home heating solution.
In light of rising global gas and oil prices, bringing low-carbon heating technologies to homes is a priority for this administration as it will help families move away from expensive fossil fuels that drive up their bills.
Heat pumps are a proven and reliable technology using cheaper renewable energy produced in the UK. We have cut costs and reduced VAT to zero with our boiler retrofit scheme, but by finding innovative ways to make them cheaper and easier to install, we will help more households see the benefits faster.
The main goals of Heat Pump Ready are to reduce costs and increase the performance of residential heat pumps, minimize disruption to the home during heat pump installation, and develop a financial model to support wider deployment of heat pumps.
The innovation support is part of the government’s strategy to bring low-carbon heating technologies to the mass market and supports the goal of installing 600,000 heat pumps a year by 2028.
Industry sources estimate that the UK heat pump market grew by almost 50% last year thanks to a boiler retrofit program, readiness of heat pumps for broader government policies to expand deployment and support for the industry to lower the cost of heat pumps.
Projects supported by Stream 2 funding include a project in Harrogate, North Yorkshire, which uses smart meter data to help optimize the performance of heat pumps in home power systems, and a scheme in Truro, Cornwall, which aims at a project to develop efficient and environmentally friendly refrigerants for heat pumps, and Thame, Oxfordshire, is looking for ways to reduce the cost of installing and operating heat pumps.
A second stream of £15m, supporting 37 SMEs across 24 projects in England and Scotland, will support the creation of over 300 jobs and attract £6.5m of private investment.
Stream 2 of the Heat Pump Readiness Program is running concurrently with Streams 1 and 3. Stream 1 has provided over £2 million in funding for 11 projects to conduct feasibility studies on innovative ways to increase local use of residential heat pumps. During the first phase of the proposal, the project team estimated that a potential cost reduction of at least 20% could be achieved through a coordinated deployment.
Heat Pump Ready is part of the £1bn Net Zero Innovation Portfolio (NZIP), which funding was announced in October 2021 along with the heat and buildings strategy.
Through this strategy and projects funded by the Heat Pump Readiness Program, the government believes that the cost of the technology will decline rapidly as the low-carbon heating market grows. Working with industry, the government aims to make the purchase and operation of heat pumps the same as those of fossil fuel boilers by 2030 at the latest, and by 2025 by at least 25-50%.
The complete Stream 1 heat pump is supplied to 11 projects in Newcastle, Sunderland, Leeds, Oxford, Greenwich, Bristol, Tynebridge, Finland, Perth, Cherwell and Bridgend. Over £2 million in funding. These projects are working to develop feasibility studies for innovative ways to increase the use of residential heat pumps locally. The projects will then use the results of their projects to apply for up to £9 million for Stream 1 Phase 2 to try out the solutions they have developed.
Stream 3 of the Heat Pump Ready program provides funding of up to £5 million to support training under the Heat Pump Ready program, allowing participants and external heat pump stakeholders to exchange evidence. The £450m Boiler Modernization Scheme (BUS), which was opened for voucher applications in May 2022, aims to incentivize people by providing £5,000 towards the upfront cost of installing an air source heat pump and a grant of £6,000 for ground source heat pumps.
The government has launched an online service to help households make informed choices about installing low-carbon heating (including heat pumps) and improving their home’s energy efficiency as part of its Help to Heat support.
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