The Clean Heat Grant is a government-proposed scheme to deliver grants of up to £4,000 towards heat pump installations in UK households. The scheme is currently being consulted upon and is proposed to replace the Domestic Renewable Heat Incentive (RHI) from April 2022 to March 2024.¹
Who is the Clean Heat Grant for?
The Clean Heat Grant is intended for households and small non-domestic buildings across the UK. The flat-rate grant has been proposed to help with the upfront cost of installing heat pumps to deliver space heating and hot water.
The grant will move away from the RHI’s tariff-based system for consumers.
Which heating systems will the grant cover?
Heat pump installations
The government proposes the following types of heat pumps (high and low-temperature units) to be supported by the Clean Heat Grant:
- Ground source heat pumps
- Water source heat pumps
- Air source heat pumps
The consultation suggests that eligible installations must have a capacity less or equal to 45kW, limiting the support to smaller installations.
The government’s future support for low carbon heat consultation also proposes that, in limited scenarios where properties are not deemed suitable for heat pumps, the grant could support biomass installations.
However, this is only when absolutely necessary. Both government and the Committee on Climate Change (CCC) states that heat pumps offer the greatest potential for heat decarbonisation.2Read more on the proposal
What is the aim of the Clean Heat Grant?
By supporting consumers through the scheme, the government aims to address the barrier of upfront costs of low-carbon technologies, to help the UK meet its 2050 net-zero emissions target. The proposal also indicates that the scheme will provide targeted support following the RHI.
The Clean Growth Strategy
The Clean Heat Grant is part of a bigger Clean Growth Strategy, which was first published in 2017. The idea of the strategy is to decarbonise the UK’s heat and phase out high-carbon fossil fuel installations in the 2020s for off-gas properties.
Will the grant replace the Domestic RHI?
Yes. According to government, the proposed scheme will allow transition from the Domestic RHI. The Domestic RHI has been extended to 31st March 2022; the Clean Heat Grant is proposed to take its place from April 2022.
Domestic RHI & Clean Heat Grant: Differences
The existing Domestic RHI is paid to consumers through a tariff system, usually over seven years. For a typical project, you could expect to receive around £28,000. This differs from the proposed flat-rate funding of the £4,000 Clean Heat Grant.
Which systems will not be covered?
Support will be available to installations providing space and water heating in buildings, but the scheme excludes:
- Process heating
- Biogas combustion
- Solar thermal
- Hybrid heat pump systems
- Heat networks.