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Various grants, incentives and tax breaks are available for the installation of heat pumps.
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In order to obtain a grant an accredited installer such as Geowarmth Heat Pumps must be used. To find our more about the various benefits click on the links below and you will be redirected to the relevant organisation.
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Householder grants in England and Wales
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Under the DTi Low Carbon Buildings Programme in England and Wales Scotland a grant of 30% of the cost up to a maximum of £1,200 may be available for the installation of a ground source heat pump in a residential property.
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Householder grants in Scotland
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In Scotland grants are available on both air source and ground source heat pumps up to a maximum of £4,000 or 30% of the cost for installation in a residential property.
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Public sector and not for profit organisation grants
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Under the DTi Low Carbon Buildings Programme Phase 2, a grant of 50% of the cost up to a may be available for the installation of a ground source heat pump in the public and not for profit sectors. To our costs, you can add other essential parts of the installation for grant claim purposes, for example electrical connections and civils work.
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Community Sustainable Energy grant scheme
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Launched in 2008, with funding from the Big Lottery Fund, community groups can apply for grants of up to 50% to install heat pumps on sites including village halls, visitor centres or schools. Funding to improve building insulation is also available.
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Businesses and property developer grants of up to 50%
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Grants to businesses including property developers formerly available under the DTi Low Carbon Buildings Programme Phase 1 closed in 2007. It is worth checking with your local authority, Business Link, Regional Development Agency what other local or regional incentives may be available.
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Interest free loans for businesses
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Businesses may be eligible for a Carbon Trust interest free loan of up to £100,000 for installing a ground source heat pump.
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Enhanced capital allowances
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A ground source heat pump can qualify for enhanced capital allowances allowing businesses to write off the full cost against tax in the year of installation.
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VAT
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A ground source heat pump is defined as an energy saving device by HMRC and a reduced rate of VAT of 5% can be charged by us (except on the underfloor system) where the installation is in a residential dwelling. The proportion of the project relating to the underfloor heating will be standard rated. If the heat pump is installed during the course of construction of a new dwelling, our entire supply may be zero rated. If you require more information obtain downloads of VAT notices 708/6 and 708.
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Geowarmth Heat Pumps Limited, 6 Back Goldspink Lane, Sandyford, Newcastle upon Tyne, NE2 1NU
t: 0191 261 7751 f: 0191 261 6291 More info
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