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 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.

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

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 2022. 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

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

A further £300 million was announced to support Local Energy Hubs in England to procure services dedicated to upgrading eligible homes.