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What is the Clean Heat Grant?

The Clean Heat Grant has been proposed by the UK Government Department for Business, Energy and Industrial Strategy (BEIS) as a scheme to offer grants of up to £4,000 towards the cost of installing an air, water or ground source heat pump in domestic households. The scheme has been built upon the Clean Growth Strategy and aims to help support the phase-out of high-carbon fossil fuel heating. At present, the scheme is undergoing consultation but is proposed to replace the Domestic Renewable Heat Incentive (RHI) which ends on the 31st March 2022. The Clean Heat Grant would be available from April 2022 to March 2024. Like RHI, the scheme will be administered by Ofgem.

Who Can Apply For the Clean Heat Grant?

The grant is intended for households and small, non-domestic buildings. The grant will help to cover the upfront cost of installing a heat pump which will provide hot water and space heating. The cost of installing a heat pump can be a barrier for many people considering a renewable heating system, the grant aims to help remove or reduce that barrier.

What Heating Systems Can The Clean Heat Grant Be Used For?

The grant will be available for heating system installations up to a capacity of 45kW. These heating systems include ground source heat pumps, air source heat pumps and water source heat pumps. In particular circumstances, the grant will support the installation of biomass boilers but this is only when strictly necessary.

Which Systems Are Not Valid For the Clean Heat Grant?

The scheme will exclude the following heating systems:

• Hybrid systems where a heat pump will work in conjunction with a fossil fuel boiler • Biogas combustion • Solar thermal • Heat networks • Process heating

What is the Different Between the Renewable Heat Incentive and the Clean Heat Grant?

The Clean Heat Grant will offer a flat-rate voucher of £4,000 toward the installation of a heat pump, no matter the size or cost of the installation, or how much renewable energy the system will produce. The Renewable Heat Incentive (RHI) is a tariff-based system which offers quarterly payments for every kilowatt hour (kWh) of renewable energy your heating system produces. These payments continue for 7 years after the date of installation.

The RHI is available in England, Wales & Scotland until 31st March 2022.

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