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.

Enfield Ground Source Heat Pump Tower Blocks Upgrade Combats London Air Pollution

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 and Energy Company Obligation.

Renewable Heat Incentive (RHI)

Applications for the Non-Domestic RHI are now closed. Please bear with us as we remove mentions of this expired funding across the website. In the meantime, please explore the other funding options below or contact us for advice on a project.

The Energy Company Obligation (ECO)

The 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.

The current ECO scheme is running until 31st March 2022, at which point it is set to be replaced by ECO4 – a stream currently under consultation which is due to run from 1st April 2022 to 31st March 2026. Have your say in the consultation here.

Discover ECO

Green Heat Network Fund (GHNF)

This scheme intends to help new and existing heat networks to move to low and zero-carbon technologies. The fund is anticipated to run from April 2022 to September 2024. The Transition Scheme is live, offering funding to help commercialise projects ready to apply for construction funding in 2022.

Aimed at developers and investors in low-carbon heat networks, such as Shared Ground Loop Arrays, the objectives are to achieve carbon savings, increase the amount of low-carbon heat utilisation in heat networks and help prepare the market for low-carbon regulation.

Discover the GHNF

Social Housing Decarbonisation Fund (SHDF)

The SHDF will upgrade a significant amount of social housing stock to an Energy Performance Certificate rating of C. Applications for the first wave of funding opened 23rd August 2021 and closes 15th October 2021.

With the fund expected to offer £3.8bn overall, more waves are expected to come.

Discover the SHDF

The fund will help:

  • deliver warm, energy-efficient homes
  • reduce carbon emissions and fuel bills
  • tackle fuel poverty
  • support green jobs

Public Sector Decarbonisation Scheme (PSDS)

Eligible projects

The PSDS 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
Discover the PSDS

Be ‘shovel ready’ for potential funding

Phase 2 of the scheme closed on 13th April, as the scheme was 100% oversubscribed in less than seven days from opening.

With over £1billion in funding allocated to schemes to deliver in 2021/2022, it is clear there is both a need in the market and a desire from the government to support the development of schemes in this sector. However, with each funding round oversubscribed and short timescales to submit bids, projects need to be ‘shovel-ready’ to have a chance of success.

Kensa has already assisted a number of local authorities and institutions to secure PSDS funding – we are well placed to assist in supporting any proposed bids. Contact us to discuss any potential schemes and we can help to develop project costs and a proposal ready to prepare for future funding possibilities.

Contact us