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.

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.

Social Housing Decarbonisation Fund (SHDF)

Following a 2019 proposal for a £3.8bn SHDF over a 10-year period to improve the energy performance of social rented homes, the government has announced around £160m of funding in the financial year of 2021/22, with full delivery up to March 2023.

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 will open in autumn 2021.

The fund will help:

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

See more information or contact us for more details.

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.