How to get £5,000 free cash to upgrade boilers and cut energy bills this winter
HOMEOWNERS looking to reduce their impact on the environment can get cash help from the government.
You could get up to £5,000 to switch your boiler to a more eco-friendly one and save on your energy bills.
Households will be looking for ways to become more energy-efficient with bills due to go up from October 1.
The government announced a freeze meaning the average yearly bill for families will rise to £2,500.
However, your bill may be higher or lower that this depending on your usage because the freeze is only on the limit suppliers can charge you per unit of energy.
But through the Boiler Upgrade Scheme, launched by the government this year, some households might be eligible for money by switching to a lower carbon heating boiler which could reduce your overall bill.
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The £450million scheme has been set up to fund the changes and cover the costs of installation.
Jess Ralston, senior analyst at the Energy and Climate Intelligence Unit (ECIU), previously told The Sun: “The Boiler Upgrade Scheme has huge potential to deliver both hundreds of pounds of bill savings to families every year and energy security from volatile gas prices being influenced by Russia.
"One in three people say they are more likely to get an electric heat pump to shield us from Putin’s influence."
Here is what you need to know about the scheme.
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What is the Boiler Upgrade Scheme?
The Boiler Upgrade Scheme is a £450million fund that offers grants to homeowners in England and Wales to purchase heat pumps.
You can apply for £5,000 off the cost and installation of an air source heat pump or biomass boiler.
Homeowners can also get £6,000 off the cost and installation of a ground source heat pump.
In total the scheme is expected to pay for 90,000 installations and will run until the end of March 2025.
What is a heat pump?
Heat pumps work like a fridge in reverse.
They take in heat from the air outside, even when it is cold, and use it to warm a liquid refrigerant and turn it into a gas.
This is then compressed and transferred to a central heating system to warm radiators.
They heat your home at a lower temperature than gas and oil boilers, which could reduce your energy bills.
How does a heat pump work?
There are two types of air-source heat pumps, air-to-water systems and air-to-air systems.
Unlike gas boilers, heat pumps work on electricity and need less energy to operate.
This means lower emissions and hopefully cheaper bills as you won't be using as much energy.
Typically for every one unit of heat in, you get three out, according to the Energy and Climate Intelligence Unit (ECIU).
In contrast, for a typical gas boiler, for every one unit of heat in, you get less than one out.
This means that, overall, more than three times less energy is needed to operate a heat pump compared with a boiler.
How much do heat pumps cost?
Heat pumps can be quite costly and have stopped households from buying them in the past.
While homeowners can purchase boilers from between £500 to £1,500, the Energy Saving Trust estimates that a heat pump can cost £6,000 to £8,000.
But it is hoped that the grants from the Boiler Upgrade Scheme will take some of the strain away from people.
You will need to pay the difference if the pump costs more than the grant but the idea is to get the amount closer to what you would pay when installing a gas boiler.
Who can access heat pump grants?
The scheme is only open to domestic properties in England and Wales until 2025.
The property will need to have enough power to support an installation capacity of 45kWth or kilowatt thermal, which covers most homes.
Additionally, your home will also need a valid energy performance certificate with no outstanding recommendations for loft or cavity wall insulation, unless you are exempt.
How do you apply for a heat pump grant?
You don't apply for the scheme yourself.
Instead, you will need to find an MSC-certified installer to claim the grant on your behalf.
MSC is the certification scheme for energy efficiency product installers and you can find the nearest ones to you on the .
It may be worth getting a few quotes to compare which option is best-suited to you though.
The installer will advise on whether a low carbon heating system is suitable for your property and if you can get the grant.
Once you agree a price, the installer will apply for the grant and you will then be contacted by Ofgem, the energy regulator, to confirm that the work is being done on your behalf.
This isn't the only energy efficiency support available.
Councils have in the past offered green home grants, although none do currently.
The £400 energy bill rebate, announced by the government, will start being applied from next month as well.
The rebate will be applied in six monthly instalments from October through to March 2023.
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Check if you are missing any benefits such as the Warm Home Discount - which gives you £140 off energy bills.
People on certain benefits can also get Cold Weather Payments of £25 a year when the temperature drops.
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