Image: Charlotte Lee, Chief Executive of the Heat Pump Association, welcomed, “the confirmation of additional funds for the BUS.”
The UK government has continued the roll-out of its Warm Homes Plan, as it looks to support improvements to hundreds of thousands of homes across the UK. The full Plan looks to ‘help people find ways to save money on energy bills and deliver warmer, cleaner to heat homes.’
The new announcements include allocating an additional £30 million for the Boiler Upgrade Scheme (BUS) this financial year, while almost doubling the budget to £295 million for the next financial year. The Boiler Upgrade Scheme offers a £7,500 grant to help with the cost of installing an Air Source Heat Pump.
The government will now also consult on plans to increase energy efficiency standards for new boilers and heat pumps.
In a further move designed to increase the uptake of Heat Pumps, it announced plans to remove the one-metre rule – the requirement that Heat Pumps are installed at least one metre from a property’s boundary. Rules will remain around listed buildings.
The government will also look to alter the Clean Heat Market Mechanism (CHMM), with a reformed version being introduced on 1st April 2025.
The industry has broadly welcomed the moves…
Charlotte Lee, Chief Executive of the Heat Pump Association said: “The package of measures announced by the Government today demonstrates their commitment to accelerating the decarbonisation of heat in the UK.
We welcome the clarity provided on the long-anticipated Clean Heat Market Mechanism and the confirmation of additional funds for the BUS, both of which enable the sector to invest with confidence. The changes to the Permitted Development Rights will help to streamline the heat pump installation process for installers and consumers and support an accelerated deployment of heat pumps over the coming years.”
Mike Foster, Chief Executive, Energy and Utilities Alliance, said: “Minister Fahnbulleh has constructively engaged with industry and British manufacturers, who have warmly welcomed this new approach. By working in partnership, we have an outcome which no longer unfairly penalises business and consumers. That is a big win for households across the country.”
Mark McManus, Managing Director, STIEBEL ELTRON UK said: “We welcome these changes that will help drive forward the adoption of heat pumps. The one metre rule in particular has been a thorn in the side of customers and installers and has on its own been a reason that many projects have been abandoned as it is often impossible to comply with UK homes built so closely together.”
Carl Arntzen, CEO of Worcester Bosch, said: “We welcome the announcements from DESNZ on the removal of some of the siting barriers for heat pumps and the extra funding being made available for the Boiler Upgrade Scheme. We are hopeful these measures will enable more homeowners to view heat pumps as a realistic heating alternative.
We’re also happy the minister has recognised the need to revise the CHMM and that further policy changes are required to increase heat pump demand and adoption in the UK.”
Henrik Hansen, Managing Director at Vaillant Group UK, said: “Today’s announcement represents a positive step forward addressing specific challenges felt by homeowners when considering the installation of a heat pump. By easing installation requirements, it addresses some of the barriers that have previously discouraged the adoption of this technology and shows what can be achieved by business and government working together.
“We welcome the boosted budget to the Boiler Upgrade Scheme allowing more homeowners to access funding when installing a heat pump. Additionally, we look forward to further announcements in support of the government’s Warm Homes Plan, to achieve the UK’s goal of reducing emissions and lowering the use of energy for households across the UK.”
Ian Rippin, CEO at MCS (Microgeneration Certification Scheme), said: “The confirmation of the Clean Heat Market Mechanism is a positive step for the sector and the changes to support the scaling up of the industry address concerns previously expressed. We look forward to continuing our work with the scheme to ensure that heat pump installations are to industry-recognised standards and are accurately recorded and reported. This is crucial in giving everyone confidence in the technology.
“Today’s announcement of changes to Permitted Development Rights are another welcome move that will support the deployment of heat pumps. We have worked to coordinate the industry’s responses and support with updates to tools and our standards, such as the MCS Planning Standard for Permitted Development Installations of Air Source Heat Pumps (MCS 020), to facilitate these changes.
“The Boiler Upgrade Scheme has been a great success in supporting the industry – we welcome any additional funding and look forward to the scheme continuing to grow and expand.”
