New heat pump grant gives homeowners £10,000 discount
Already the Government has been offering a grant of £7,500 towards either air source or ground source heat pumps since the end of October 2023, as previously reported by NimbleFins.
And now Worcester Bosch is adding an extra £2,500 discount on their heat pumps, bringing the total available to Worcester Bosch customers to £10,000.
Boiler manufacturers have been set quotas to sell more heat pumps and move people away from traditional gas and oil boilers. From April 2024 4% of their annual sales must be heat pumps, with the quota rising each year under the Clean Heat Market Mechanism (CHMM). If they fail to hit the quotas, they will be fined £3,000 for each missed sale.
Worcester Bosch confirmed it will raise its gas boiler prices by £120 from this year, stating the targets were "clearly unachievable".
Its new heat pump discount is an attempt to lure more customers to investing in an expensive heat pump. NimbleFins research shows air source heat pumps cost around £7,000-£13,000 and ground source heat pumps generally cost between £14,000 and £19,000.
However, if extensive installation work is needed such as digging large holes, the price could skyrocket to £49,000, according to the Energy Saving Trust.
See more about our research into the cost of heat pumps here.
The deal will see a £2,500 discount applied to Bosch heat pumps bought after April 1 2024, or a £1,000 discount for those choosing a Bosch hybrid system. The offer will run until March 31 2025.
Engineers will also be incentivised, receiving £500 for each Bosch heat pump or hybrid system installed.
Carl Arntzen, CEO of Worcester Bosch said: “The start of 2024 is not just a fresh start, it also means that the UK is one step closer to its net zero 2050 target. If we are to succeed, then lower carbon heating technology – including heat pumps – needs to be more accessible to consumers.
"By our company giving up to a total of £3,000 Clean Heat Cashback on qualifying installations to support consumers and installers, we hope that more households will view heat pumps as a viable alternative to their current heating systems, as well as future-proofing their homes for lower carbon heat.
"We believe that this kind of incentive is exactly what the boiler levy arising from the Clean Heat Market Mechanism should be used for.”
The Government wants 600,000 heat pumps to be installed by 2028.
A total of £450 million has been made available by the Department for Energy Security and Net Zero between 2022 and 2025 to encourage the rollout of heat pumps.
It has removed VAT on heat pumps (as well as solar panels and insulation) until 2027 in another incentive to encourage take up.
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