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 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 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 current scheme, ECO3, is due to end 31st March 2022. ECO4 is currently under consultation.


ECO4: Have your say

The upcoming ECO4 scheme, due to begin in April 2022, is currently under consultation and seeking views from sectors including energy efficiency installers and local authorities. We encourage you to look at the consultation and make a representation here. The consultation closes on 31st August 2021.

See more on the consultation

Green Heat Network Fund (GHNF)

This scheme intends to help new and existing heat networks to move to low and zero-carbon technologies. The fund is anticipated to run from April 2022 to September 2024. The Transition Scheme is live, offering funding to help commercialise projects ready to apply for construction funding in 2022.

Aimed at developers and investors in low-carbon heat networks, such as Shared Ground Loop Arrays, the objectives are to achieve carbon savings, increase the amount of low-carbon heat utilisation in heat networks and help prepare the market for low-carbon regulation.

See more information or contact us for more details.

Discover the GHNF

Social Housing Decarbonisation Fund (SHDF)

The SHDF will upgrade a significant amount of social housing stock to an Energy Performance Certificate rating of C. Applications for the first wave of funding opened 23rd August 2021 and closes 15th October 2021.

With the fund expected to offer a potential £3.8bn overall, more waves are expected to come.

Discover the SHDF

The fund will help:

  • deliver warm, energy-efficient homes
  • reduce carbon emissions and fuel bills
  • tackle fuel poverty
  • support green jobs.

Public Sector Decarbonisation Scheme (PSDS)

Eligible projects

The PSDS is a £1billion fund dedicated to heat decarbonisation and capital energy efficiency projects in non-domestic public sector buildings across England. Covering up to 100% of ground source heat pump installation costs, the scheme’s objective is to achieve significant carbon savings within the sector.

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

Be ‘shovel ready’ for potential funding

Phase 2 of the scheme closed on 13th April, as the scheme was 100% oversubscribed in less than seven days from opening.

With over £1billion in funding allocated to schemes to deliver in 2021/2022, it is clear there is both a need in the market and a desire from the government to support the development of schemes in this sector. However, with each funding round oversubscribed and short timescales to submit bids, projects need to be ‘shovel-ready’ to have a chance of success.

Kensa has already assisted a number of local authorities and institutions to secure PSDS funding – we are well placed to assist in supporting any proposed bids. Contact us to discuss any potential schemes and we can help to develop project costs and a proposal ready to prepare for future funding possibilities.

Contact us

The Clean Heat Grant

The Clean Heat Grant is a scheme proposed by government, where grants of up to £4,000 could support heat pump installations. Still under consultation, 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 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.