Grants & Subsidies

The UK government is committed to delivering a low-carbon future and recognise the role ground source heat pumps can play, whilst also providing low-cost heat and reducing air pollution. To this end a range of subsidies are available to support ground source heat pumps.

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Expert Advisers

Kensa are experts in UK government subsidies for ground source heat pumps. We work hard to keep this knowledge up-to-date, and are key influencers in shaping new policy. As such, we are uniquely placed to advise and assist you on the best options available for your projects.

Kensa Contracting provide dedicated claims support and direct relationships with utilities to secure the subsidy required. Details of current subsidies Kensa Contracting are able to support are detailed below, including the Renewable Heat Incentive, Energy Company Obligation, and Cleaner Heat Cashback.

Renewable Heat Incentive (RHI)

The Non-Domestic Renewable Heat Incentive (RHI) provides a lucrative 20 year income for commercial projects as well as retrofit and new build domestic schemes featuring ground source heat pumps connected to Shared Ground Loop Arrays.

Learn more at kensaheatpumps.com

Energy Company Obligation

The Energy Company Obligation (ECO) provides an upfront grant to those delivering retrofit housing schemes, and is based upon the amount of carbon that will be saved by replacing the current heating system with a Shared Ground Loop Array ground source heat pump system.

Learn more at kensaheatpumps.com

Public Sector Decarbonisation Scheme

The Public Sector Decarbonisation Scheme is a £1billion fund dedicated to heat decarbonisation and capital energy efficiency projects in non-domestic public sector buildings across England. Covering up to 100% of ground source heat pump installation costs, the scheme’s objective is to achieve significant carbon savings within the sector.

Eligible public sector bodies include:

  • Emergency services
  • NHS Trusts & Foundation Trusts
  • Further & higher education institutions
  • Local authorities
  • Maintained schools within the state education system
  • Nursery schools maintained by a local authority
  • Central government departments & non-departmental government bodies

Projects must be completed by 31st March 2021. Although time is of the essence for the Public Sector Decarbonisation Scheme, this type of funding indicates the government’s trajectory. If you feel the deadline isn’t plausible for your project, contact us to get a proposal ready to prepare for future funding possibilities.

Find out more here

Green Homes Grant: Local Authority Delivery Scheme

The Local Authority Delivery (LAD) is a branch of the Green Homes Grant scheme, aiming to upgrade the efficiency of low-income homes and those rated with low Energy Performance Certificates (EPCs with band E, F or G) in England. This includes poor quality off-gas homes.

The objective of LAD is to tackle fuel poverty, and, as part of the UK’s target to reach net-zero by 2050, phase out fossil fuel heating. The scheme will support the installation of low-carbon heating systems, such as ground source heat pumps.

First phase – ended

Bidding ended on 1st September 2020 for this initial phase, where local authorities produced proposals that met the scheme’s objectives. £200 million was designated to support low-income, fuel-poor households.

Second phase – to be announced

Later in 2020, a second phase will be announced. A further £300 million will support Local Energy Hubs in England to procure services dedicated to upgrading eligible homes.

We’ll update this page as the government provides further information.

SEE MORE ON THE LAD SCHEME