Homeowners will be able to apply for the new grants for air source heat pumps, ground source heat pumps and biomass boilers from October 23 2023.
The Government boosted the £7,500 grants from £5,000 for air source heat pumps and £6,000 for ground source heat pumps. The grant available for biomass boilers will remain unchanged at £5,000.
Grant funding of £450 million has been made available over three years from 2022 to 2025 by the Department for Energy Security and Net Zero.
Anyone who already has a voucher they haven't used can cancel it and re-apply for a higher amount.
How do heat pumps work?
Heat pumps take heat from a low temperature from the air or below ground - hence the names air source heat pump and ground source heat pump.
The pump takes this heat and uses electricity to increase it to a higher temperature, which turns refrigerant liquid to gas. The gas is compressed, increasing in temperature, and this heat is then transferred into the home for heating and hot water.
They use the same technology as air conditioners, but heat pumps have a reversing valve so they can heat your home as well as cool it.
Heat pumps can blow hot air around the house or, what is probably more likely in British homes, can be connected to radiators or hot water systems just like your gas, electricity or oil heating systems.
The difference in heating your radiators this way is it is much more energy efficient. Heat pumps are said to give three units of heat energy for each unit of electricity used making the cost is comparable to gas. And the benefit of using electricity is it can be generated using renewable energy.
Heat pumps can also remove heat from a property, so in the summer you can have a cooler house.
Boiler Upgrade Scheme eligibility
The Boiler Upgrade Scheme has been introduced to move people away from using fossil fuels such as gas, electricity and oil, to heat homes.
That means the grants cannot be used to replace a low-carbon heating system already in use.
To qualify for the grant, homes must meet certain criteria such as insulation requirements, such as having wall insulation and a valid Energy Performance Certificate (EPC). The scheme only applies to non-social housing buildings.
They are available for any installation commissioned from April 1 2022, which means you could backdate your claim and receive the higher grant if you apply after October 23 2023.
For more information on eligibility and how to apply for the Boiler Upgrade Scheme, click here.