Heat Pump Funding

The Government offers the Renewable Heat Incentive (RHI) and a number of grants to incentivise the adoption of ground source heat pumps in the UK. Have a look at the heat pump funding and grants that could support your project.

Heat pump funding

The Renewable Heat Incentive (RHI)

The RHI provides quarterly tax-free payments for the renewable heat your ground source heat pump produces.

With ground source producing up to four times the energy it consumes, returns can be very rewarding.

There are two streams to the RHI:


The Domestic RHI

See if the Domestic RHI is right for you

Spanning over seven years, the Domestic RHI is a fund for individual residential installations of ground source heat pumps. It is primarily designed for private self-builders and homeowners.

Funding is secure for new applications until March 2022. Its proposed successor, the Clean Heat Grant, could provide up to £4,000 upfront – much less than anticipated Domestic RHI incomes.

Discover the domestic RHI

Use Kensa’s Domestic RHI Calculator

Discover how much money you could make and save when you install a Kensa ground source heat pump. Using our Domestic RHI Calculator, you can quickly see the payments you can expect to receive every year for seven years.

You can also find out the size and price of the heat pump recommended for your property.


The Non-Domestic RHI

Spanning over 20 years, the Non-Domestic RHI is heat pump funding for commercial applications or district heating schemes in domestic properties. It is ideal for businesses, social housing and the housebuilding sector.

The Non-Domestic RHI is payable to projects with ground source heat pumps connected to a district heating network of Shared Ground Loop Arrays. Kensa’s common projects include installing heat pumps into flats, new-build homes, schools or industries with high heat demands.

Funding is secure for new applications until March 2021.


The Energy Company Obligation (ECO)

The ECO is a grant for retrofitting ground source heat pumps into social housing properties. It places legal obligations on larger energy suppliers to fund efficiency measures for domestic energy users. The amount of ECO funding provided depends on how much carbon will be saved.

Thanks to the significant carbon reductions that ground source heat pumps can achieve – particularly against carbon-intensive fossil fuels – an ECO heat pump grant provides an attractive upfront subsidy to further offset project costs. It can be utilised in addition to the RHI.


The Green Homes Grant

Now extended to March 2022, the Green Homes Grant is a scheme to support energy efficiency improvements in existing households across England.

The improvements supported by the scheme include insulation and ground source heat pump installations. Vouchers of up to £10,000 will be issued to eligible homes.

Homes part of the Green homes grant scheme

Public Sector Decarbonisation Scheme

The Public Sector Decarbonisation Scheme incentivises heat decarbonisation and capital energy efficiency projects within non-domestic public buildings in England. The aim of the £1billion fund is to deliver significant carbon savings in the sector. It will cover up to 100% of the costs of ground source heat pump installations.

Eligible public sector bodies include:

  • Emergency services
  • NHS Trusts & Foundation Trusts
  • Further & higher education institutions
  • Local authorities
  • Maintained schools within the state education system
  • Nursery schools maintained by a local authority
  • Central government departments & non-departmental government bodies

Projects must be completed by 31st March 2022. Although time is of the essence for the scheme, this type of funding indicates the government’s trajectory. If you feel the deadline isn’t plausible for your project, contact us to get a proposal ready and prepare for future funding possibilities.

DISCOVER THE Public Sector Scheme

The Clean Heat Grant

The Clean Heat Grant is a scheme proposed by government, where grants of up to £4,000 will support heat pump installations. The scheme is intended for households and small non-domestic buildings across the UK. It is expected to replace the Domestic RHI from April 2022 and last until March 2024. 


Ground Array Funding

Ground array funding covers the cost of the groundwork for ground source heat pumps. Through this scheme, arranged by Kensa utilities, an investor funds the network – known as Shared Ground Loop Arrays – to cover the most expensive aspect of the project. In return, the investor receives the RHI and can charge connection fees if they wish.

Meanwhile, the developer or property owner benefits from a cheaper project, with all the efficient advantages of ground source over air source.