After decades of importing expensive, polluting fossil fuels from Russia and other countries, the government is now encouraging a radical shift in our energy system.
Ambitious plans to ramp up more affordable, clean, homegrown power are being outlined in a series of roadmaps from The Department for Energy Security and Net Zeros as part of the Green Finance Strategy refresh.
The aim of these roadmaps is to build thriving green industries in Britain, boosting our energy security and independence, reducing household bills and achieving our net zero target by 2050.
The first roadmap published states that to reach 600,000 heat pump installations a year by 2028, there needs to be investment of up to £28 billion across the supply chain.
The document showcases what the government calls “significant opportunities for private sector investment” in the growing heat pump market, starting from manufacturing through to deployment.
The expectation is that at least 300,000 heat pumps a year will be manufactured here in the UK by 2028, with £1 billion of investment.
To encourage private sector investment, the government is providing a variety of support to businesses including tax relief and export finance, providing an extra £10 billion capacity to boost exports from the UK’s clean growth sectors.
The government is also launching a Heat Pump Investment Accelerator Competition, worth up to £30 million, to strengthen local supply chains and create thousands of new jobs.
The competition will be open to UK registered businesses (which includes those that may be set up to deliver the project in the application), who can apply for grant funding of up to £15 million per project, for major investments in the manufacture of heat pumps and strategically important components.
An expression of interest form can be submitted to heatpumpaccelerator@beis.gov.uk by 3 pm on Friday 28 April 2023.
The Boiler Upgrade Scheme will be extended to 2028. The government scheme offers a £5,000 grant to anyone buying an air source heat pump and a £6,000 grant if you buy a ground source heat pump.
This heat pump investment document is part of a series of roadmaps designed to power Britain from Britain and move us towards a greener, more affordable future.
For more information about heat pumps and how they can benefit your home or business please give us a call at our office in Sussex or make a request online via our enquiry form.
There’s a lot to think about, so we’ve tried to simplify things and answer some of your initial questions.
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