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5 months ago

Government Warming Up to Heat Pumps

It appears the UK Government has gone cold on traditional central heating and is warming up to the idea of low-carbon heat pumps instead. With capital available to businesses to implement new systems and a simplified application process, there is a drive for more sustainable heating for the country’s offices.

Heat Pumps

Heat pumps operate by extracting heat from the air or ground at a low temperature, then raising it to a higher temperature before distributing it through the interior of the building for heating and hot water.

Compared to traditional boilers, heat pumps are far more energy-efficient and typically use cleaner electricity sources, resulting in reduced carbon emissions.

Grants Made Available

The Government has now introduced variable grants for heat pumps, which you can tailor to meet the needs of your business. The level of grants available could vary, depending on the building type and existing energy source. Heat pump installations could now become considerably more affordable for many SMEs, including the smallest businesses.

This move represents a major push towards encouraging more premises to transition away from expensive and pollutive fossil fuels. Instead, steering them towards cleaner, renewable energy.

The Government previously issued over £81,000,000 in vouchers as part of a ‘Boiler Upgrade Scheme’, demonstrating its eagerness to reduce the UK's carbon footprint more quickly.

Easier to Apply and Install

Another big change is the simplified process for businesses to find out if they qualify for a heat pump grant. The need to install loft or cavity wall insulation beforehand could soon be eliminated, saving both time and money for SMEs.

Man smiling in an officeThe Government hopes this streamlined process will make the switch to heat pumps much more attractive and feasible for a larger number of offices across the country.

Green Tech Investments

In addition to the changes above, the Government is offering a new option that could be enticing to a lot of businesses looking to become more sustainable. Now there's support available for those looking to invest in cutting-edge green technology, such as biomass boilers that double as an oven.

Click on the button below to find out more about financial support for SMEs aiming to cut their carbon emissions.

Boiler Upgrade Scheme

The £450,000,000 Boiler Upgrade Scheme was recently extended until at least 2028. This Government programme offers substantial grants, including £5,000 - £6,000 for heat pump installations. British businesses could also be eligible for a tax-free £5,000 grant to install a biomass boiler.

Some SMEs have been sceptical about the introduction of heat pump technology to their office space, but an impressive 92% of surveyed users expressed high satisfaction after two years.

Future Homes Standard

These changes align with the Government's commitment to the ‘Future Homes Standard’, scheduled to come into force in 2025. Rather than banning or mandating the use of specific heating solutions, Building Regulations will use a performance-based standard.

To ensure all new buildings in the UK are geared up for a zero-carbon future, the standard will effectively prevent new construction from using fossil fuel systems.

‘Heat Pumps a Vital Tool’

Lord Callanan, Minister for Energy Efficiency and Green Finance, said: “Heat pumps are a vital tool in cutting the carbon emissions from people heating their homes, while also helping to drive down costs and boosting our energy security.

“While a heat pump can be installed for a similar price to installing a gas boiler, the support we’ve put in place means it is an option for more and more households. Today’s changes go even further and will mean even more people could benefit from making the switch, offering them the option for a low-emission, low-cost form of heating their homes.”

How SMEs Can Save Money on Energy

With energy prices hitting worrying highs and continuing instability in the energy market, many UK businesses are looking for opportunities to cut their bills. At BusinessComparison, we can help compare deals from gas and electricity suppliers, allowing you to find the best energy rates.

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Sam White